and the drawee reside within the kingdom. There is not in law any difference between them, except that inland bills do not require to be protested, as is the case with foreign bills. Promissory notes, or notes of hand, are a plain and direct engagement in writing, to pay a sum specified at the time therein limited to a person therein named, or sometimes to his order, or often to the bearer at large. These are assignable and indorseable in like manner as bills of exchange.

The payee, either of a bill of exchange or promissory note, has a property vested in him, not indeed in possession but in action by the express contract of the drawer in the case of a promissory note, and, in the case of a bill of exchange, by his implied contract, viz., that, provided the drawee does not pay the bill, he will for which reason it is usual, in bills of exchange, to express that the value thereof has been received by the drawer, in order to show the consideration upon which the implied contract of repayment arises. And this property, so vested, may be transferred and assigned from the payee to any other man; contrary to the old rule of the common law, that a chose in action was not assignable; which assignment is the life of paper credit. A few of the incidents attending this transfer may therefore be useful.

In the first place, then, the payee, or person to whom or whose order such bill of exchange or promissory note is payable, may, by indorsement, or writing his name in dorso, or on the back of it, and delivery, assign over his whole property to the bearer, or else to another person by name, either of whom is then called the indorsee; and he may assign the same to another, and so on in infinitum. A promissory note or cheque, payable to A, or bearer, is negotiable without any indorsement, and payment thereof may be demanded by any bearer of it. But, in case of a bill of exchange, if it be payable at some time after sight, the payee, or the indorsee, whether it be a general or particular indorsement, is to go to the drawee, and offer his bill for acceptance, which acceptance, so as to charge the drawer with costs, must be in writing, under or on the back of the bill. If the drawee accepts the bill, which must in all cases be in writing, he then makes himself liable to pay it; this being now a contract on his side, grounded on an acknowledgment that the drawer

has effects in his hands, or at least credit sufficient to warrant the payment. If the drawee refuses to accept the bill, and it be of the value of 201. or upwards, and expressed to be for value received, the payee or indorsee may, and in the case of a foreign bill ought to, protest it for non-acceptance; which protest must be made in writing, under a copy of such bill of exchange, by some notary public; or, if no such notary be resident in the place, then by any other substantial inhabitant in the presence of two credible witnesses; and notice of such protest must immediately be given to the drawer and indorsers. An inland bill need not be protested; but notice of its non-acceptance must be at once given.

But, in case such bill be accepted by the drawee, and after acceptance he fails or refuses to pay it within three days after it becomes due, which three days are called days of grace, the payee or indorsee is then, in the case of a foreign bill, to get it protested for non-payment, in the same manner, and by the same persons who are to protest it in case of non-acceptance, and such protest must also be notified, within fourteen days after, to the drawer. A protest for non-payment is not required in the case of an inland bill; but notice of dishonour must be given immediately to the drawer and indorsers, in order to preserve the holder's remedy against them. And the drawer, on such protest being produced in the case of foreign bills, or on demand in the case of inland bills, is bound to make good to the payee, or indorsee, not only the amount of the said bill, but also interest and all charges, to be computed from the time of making such protest. But if no protest be made or notified, or notice of dishonour be given, to the drawer, and any damage accrues by such neglect, it shall fall on the holder of the bill. The bill, when refused, must be demanded of the drawer as soon as conveniently may be; for though, when one draws a bill of exchange, he subjects himself to the payment, if the person on whom it is drawn refuses either to accept or pay, yet that is with this limitation, that if the bill be not paid, when due, the person to whom it is payable shall in convenient time give the drawer notice thereof, for otherwise the law will imply it paid; since it would be prejudicial to commerce, if a bill might rise up to charge the drawer at any distance of time; when in the mean

time all reckonings and accounts may be adjusted between the drawer and the drawee.

If the bill be an indorsed bill, and the indorsee cannot get the drawee to discharge it, he may call upon either the drawer or the indorser, or, if the bill has been negotiated through many hands, upon any of the indorsers; for each indorser is a warrantor for the payment of the bill, which is frequently taken in payment as much, or more, upon credit of the indorser, as of the drawer. And if such indorser, so called upon, has the names of one or more indorsers prior to his own, to each of whom he is properly an indorsee, he is also at liberty to call upon any of them to make him satisfaction, and so upwards. But the first indorser has nobody to resort to but the drawer only.

What has been said of bills of exchange is applicable also to promissory notes, that are indorsed over, and negotiated from one hand to another; only that, in this case, as there is no drawee, there can be no protest for non-acceptance; or rather the law considers a promissory note in the light of a bill drawn by a man upon himself, and accepted at the time of drawing. And, in case of non-payment by the maker, the several indorsers of a promissory note have the same remedy, as upon bills of exchange against the prior indorsers.

CHAPTER XXVII.

OF TITLE BY BANKRUPTCY.

IX. A NINTH method of transferring property, is that of bankruptcy; a title before touched upon, so far as it relates to the transfer of the real estate of the bankrupt. It is now to be treated more minutely, as it principally relates to the disposition of chattels, in which the property of persons concerned in trade generally consists.

1. A bankrupt is defined to be a "trader who secretes himself or does certain other acts, with intent to defeat or delay his "creditors." He was formerly looked upon as a criminal or offender and in this spirit we are told by Sir Edward Coke, that

we have fetched as well the name as the wickedness of bankrupts from foreign nations. But at present the laws of bankruptcy are considered as laws calculated for the benefit of trade, and founded on the principles of humanity as well as justice; and to that end they confer some privileges, not only on the creditors, but also on the bankrupt or debtor himself. On the creditors, by compelling the bankrupt to give up all his effects to their use, without any fraudulent concealment: on the debtor, by exempting him from the annoyance of legal proceedings when he has nothing to satisfy the debt. Till quite recently the law allowed the benefit of bankruptcy to none but traders: justly considering, that if persons in other situations of life ran in debt without the power of payment, they should take the consequences of their own indiscretion, even though they met with sudden accidents that might reduce their fortunes. And the position of those debtors who were not entitled to the benefit of the bankrupt laws, was, consequently, one of great hardship. For as a judg. ment creditor had a right to cause the person of the debtor to be detained in prison until he satisfied the claim, the unhappy debtor might possibly be detained for years in hopeless confinement. This, indeed, became so common an occurrence, that special acts of parliament were passed for the liberation of these insolvents. These statutes were at first only temporary in their nature, and partial in their operation; and the evil remained unabated until 1813, when the relief of insolvent prisoners was permanently provided for, and ultimately administered according to a regular system in the court for the relief of insolvent debtors.

The proceedings therein were analogous to those in a bankruptcy, with one essential point of difference; that whereas the bankrupt was relieved from all claims upon him whatever, the insolvent remained burdened with the whole of the debts, which his property was unequal to discharge; and all future acquisitions which he might make were for the benefit of his creditors until they were fully paid. The result was that a trader, however reckless, could, as a bankrupt, be freed from all his obligations; while a non-trader, however unfortunate, had no means of escape from the pressure of his liabilities.

The palpable injustice which in many cases resulted from this state of the law, led at last to the subjection of all debtors, what

ever to the bankrupt laws: the sole distinction between traders and non-traders now consisting in this, that what constitutes an act of bankruptcy in the one, is not necessarily an act of bankruptcy in the other. I shall not, however, examine by what acts a man may become a bankrupt, but content myself with referring the reader to the several statutes on this subject, and the resolutions formed by the courts thereon.

The first proceeding is the filing of the petition for adjudication, on which the court either adjudicates the trader to be a bankrupt, or dismisses the petition. When an adjudication is made the property of the bankrupt becomes divisible among his creditors; to effect which the creditors elect a trustee, by whom the whole property is to be divided. The bankruptcy may then be closed: and the bankrupt discharged.

A petition must be prosecuted in the court of the district in which the debtor resides or carries on his business; but the proceedings may be transferred from any one court to any other, or may be prosecuted in London at the request of the creditors, or if the London Court shall so order.

The petition must be verified by affidavit, and served upon the debtor; that he may have an opportunity of disputing the statements therein contained, at the hearing. These statements are usually the debt, the trading, if the debtor be a trader, and the act or acts of bankruptcy; and they are to be carefully investigated, and, if they cannot be sworn to, proved by witnesses, before the debtor is called upon to answer.

The debtor if he intends to dispute any of the statements in the petition, must give notice, stating which of the matters he intends to dispute; and, if disputed, all these matters must be again proved, the attendance of all witnesses, and the production of all documents being enforced by process of the court if necessary. The order of adjudication if then made may be suspended by appeal. But at any time after presentation of the petition, the Court may stop all legal proceedings against the debtor; and, upon sufficient grounds being stated, may appoint a receiver or manager of his property or business, so as to protect it for the creditors.

If the adjudication is submitted to, or sustained, notice thereof is given in the Gazette, and advertised locally; and at