E. It pays no interest (or a low rate) to A, B, and C, but charges D and E interest. There are therefore two classes of people with whom the bank has dealings, (1) those who deposit their money with the bank (called depositors), and (2) those who borrow from the bank. Banking is often carried on by individuals or firms, but most extensively by banking corporations.*

2. Deposits. A deposit is substantially a loan to the bank. The depositor may withdraw his money or any part of it at any time he chooses. The act of opening an account with a bank makes a contract. On the part of the depositor, this contract is that the bank may use as its own whatever money he deposits with it; on the part of the bank, the contract is that it will pay back to him the money or any part of it whenever he calls for it. He calls for parts of it from time to time by means of checks (p. 126).

3. Discounts. One way in which a large part of the lending of a bank is done is by discounting commercial paper. Its depositors, or others dealing with it, often obtain notes or drafts not yet due, but upon which they wish to obtain the money immediately. If, believing them to be certain of payment, the bank is willing to buy them, it does so and the notes and drafts are transferred to it, and it pays for them, deducting a certain interest. Thus a discount is in reality a sale, the property sold being the note or draft. But its effect is that of a loan, with the interest paid in advance.†

Note to Teacher.-The foot-note gives an example in which the transaction is in the nature of a loan. If the bank should take the note without the indorsement of the other party, or should buy it in the market, it would be more in the nature of a sale.

* As the word bank will be used here, it will include bankers. Suppose A has B's note for $500 due in six months. If he wishes the money immediately he applies to the bank to discount it.

4. Other Business.-Banks loan money in other ways besides by discounting paper. Nor is the lending of money the only business done. They are allowed to pay out and use as money bank bills, which we have seen are really their promissory notes (p. 145). They also buy and sell gold, stocks, bonds, etc., or receive valuable articles into their vaults for safe-keeping. But we need not consider these things, for the laws governing their transactions are not peculiar, but are the ordinary rules of sales, commercial paper, pledge, etc.

CHAPTER XXXVII.

HOTEL KEEPERS.

1. Definition. A hotel keeper* is one engaged in the business of supplying board and lodging to travelers. It is essential that we should know just what constitutes one a hotel keeper, for his rights and his duties are peculiar in some respects. As we shall see in the following sections, he has greater obligations, especially with regard to the property of his guests, and more extensive rights, than a person ordinarily has who has the property of another in The bank takes it, with his indorsement, and pays him (say) $485, i.e., $500 less six months' interest. Thus A gets his money six months sooner than he would have if he had kept the note; and the bank (when B pays the note) gets $500, which is all it paid and interest. Another way to make the loan is, for A to make his own note, and have the bank discount that.

* "Innkeeper," or "tavern-keeper," means the same as "hotel keeper," and a hotel, tavern, or inn is a house where any one may obtain food or lodging. The term public-house expresses the idea well,

his possession. The constituting elements are three: (1) his following it as a business, (2) his offering his services to the public generally, and (3) his providing both food and lodging, (p. 159). Thus one who received private guests in his own private house, or one who even received strangers now and then for a compensation (but not as a business), would not bear towards them the responsibility of a hotel keeper to his guests. Neither would one who kept only a restaurant, even though it was open to all the public.

2. Obligation to Receive.--The rights and duties of hotel keepers are in some respects similar to the rights and duties of common carriers. One similarity is this: they offer their services to the public, and they must render them to whoever chooses to accept of them. A hotel keeper on being paid a reasonable compensation is obliged by law to receive any one who comes to his house until the house is full. He, therefore, is an exception in this particular, to the rule allowing one to contract with whom he pleases (p. 18). But intoxicated or disorderly persons he need not receive, and if they are there he may require them to leave. The amount of compensation is not regulated by law, but left to agreement between the parties.

3. Lien. A hotel keeper may detain the property of a guest placed in his care until the charges against the guest are paid. This lien is like the lien of a common carrier (p. 161). Thus the trunks of a traveler, or his horse which has been stabled at the inn, may be detained until he pays his bill. If one is traveling with a family or servants, this will include the board and lodging of all.

4. Loss of Property.-If the property of a guest is lost while he is at a hotel, the hotel keeper is responsible for it, unless it were lost through the fault or carelessness of the owner himself or of those with him. As in the case of

the common carrier, it makes no difference whether or not the hotel keeper exercised due care. Thus if other guests or burglars from outside should steal it, or if it should be destroyed by fire in spite of every precaution upon the hotel keeper's part, yet he would still be responsible for it.

But the guest must place the property where he is requested to, in order that the proprietor may have the opportunity to protect it, or else he must take all the risk himself. Very often in large hotels safes are provided, in which the guests are requested to place their money, jewelry and other valuable property. If they neglect to do so and in consequence the property is lost, the hotel keeper is not responsible.

5. Boarding-Houses.-A boarding-house is different from a hotel in two particulars: (1) it is not intended for transient guests, but for permanent boarders, and (2) it is not open to the public. Those and only those are received there whom the proprietor chooses to accept. The peculiar rights and duties of a hotel keeper do not pertain to one who keeps a boarding-house. The latter is under no obli gation to receive any one who applies for board; he has no lien upon a boarder's property; and he is not responsible for the loss of that property unless such loss has been caused by his negligence. The same person may be a hotel keeper to some and a boarding-house keeper to others. Thus if one lives at a hotel for some time under an arrangement agreed upon beforehand, as to him the proprie tor is not a hotel keeper.