14. If an article is delivered, upon which work is to be bestowed, the work must be properly done. A manufacturer who receives our wool, to make into cloth, or the tailor who takes cloth 10 make into a garment, must do the work well, or he is liable for damage. If the property should be lost or stolen, he is responsible for ordinary neglect.

15. Inn kepers are, in general, responsible for all injuries to the goods and baggage of their guests, even for thefts. But for losses caused by unavoidable accident, or robbery, they are not liable.

16. A common carrier, that is, one who carries goods for hire, as a common employment, is responsible to the owner even if robbed of the goods. But a person who occasionally carries goods for hire is not a common carrier, and is answerable only for ordinary neglect, unless he expressly takes the risk. A common carrier is one who holds himself out as ready to carry goods as a business, by land or by water, and is answerable for all losses, except in cases of public enemies, as in time of war, and in case of the act of God, as by lightning, storms, floods, &c. Public carriers are responsible for the baggage of their passengers, though they advertise it as being at the risk of the owners.

CHAPTER XXXIII.

Of Promissory Notes; Bills of Exchange; Interest.

1. A PROMISSORY note is a writing by which a person promises to another a certain, sum of money, for some value received by the promisor. The following is a form:

"CLEVELAND, January 1, 1846. "Three months after date, I promise to pay John Jones, or bearer, twenty dollars, for value received.

"SAMUEL SMITH."

2. Notes thus written may be bought and sold as other

11. State the liability of one who takes an article to do work upon. 15. Of innkeepers. 16. For what are common carriers answerable? Who are common carriers?

1. What is a promissory note? State its form.

2. When is a note

property. But if the words or bearer were omitted, it would not so pass; or as men would say, it is not negotiable, being payable to John Jones only. The holder might sell it; but the buyer, if obliged to sue, must sue in the name of Jones, in which case Smith may offset against the note any demand which he may have against Jones. The words " or bearer" should therefore be inserted, that the holder, whoever he may be, may collect it in his own name.

3. Another way of making notes negotiable, though less practised, is to insert the words or order, in the place of "or bearer;" but in this case, the promisee must endorse it by writing his name on the back of it. Such endorsement is in law considered as his order to the maker to pay it to another person; and then it may pass.

4. It is usual to insert the words value received, as evi. dence that the note was given for some valuable consideration; for it will be recollected that contracts are not valid witl.out some consideration. But these words are not necessary to make the note good; for if the maker of the note can prove that no value was received, he can avoid the pay. ment, even if these words are in the note.

5. A note, after it has become due, is not negotiable as before due. It may be transferred; but the promisor may offset demands which he had against the promisee, the original holder, before he parted with it.

6. Notes are sometimes made payable on demand. They are due immediately; and payment need not be demanded and refused before the holder can sue. So also, if no time of payment is mentioned in a note, it is due when given, and no demand of payment is necessary. But a note payable at sight, or at a specified time after sight, must be presented for payment before it can be sued.

7. After a note has become due, the maker is allowed three days to pay, which are called days of grace. But if

called negotiable? How is a note sued when not negotiable? How must it be drawn to be negotiable? 3. What is the effect of the words "or order," instead of "or bearer?" 4. Are the words, "value received," essential? 5. Is a note negotiable after it has become due? 6. What effect have the words " on demand ?". What if no time of payment is mentioned? 7. What are days of grace? How is an endorser of a note

no time of payment is mentioned in the note, or if it is payable on demand, no grace is given. To bind the endorser of a note payable to order, payment must be demanded of the maker on the last day of grace, and refused, and the endorser notified the same day, or the day after, by the holder, or by a person sent for that purpose, that the note is not paid. If the parties do not reside in the same town, notice may be sent by the first mail after the last day of grace.

8. Sometimes the seller of a note warrants it. If in his endorsement he guaranties "the payment of the note," he is liable the same as an original promisor. If he warrants it "good," or "collectable," the holder must show that it could not be collected of the maker when due, or the guar. antor is not liable.

9. Sometimes notes, so called, are made payable in grain, lumber, or some other property, instead of money. But these are not considered in law as notes, and are not nego. tiable, though written payable to bearer. Such obligations, however, are often sold and transferred; but if sued, it must be done in the name of the payee, in which case the promisor may offset demands, if he has any, against the payee. If such obligations are not paid when they become due, they are then payable in money.

10. A bill of exchange is an order drawn by one person on another, requesting him to pay money to a third person. The following is a form:

"COLUMBUS, December 10, 1845. "Ten days after sight, pay James Johnson, or order, five hundred dollars, value received. PETER PRICE.

11. It will be seen that this is, in effect, the same as an order used in common business. chants in commercial cities on

But when drawn by merpersons in distant places,

made and held responsible? How and when must he be notified of non-payment? 8. What is the difference between guarantying the payment of a note and warranting it good? 9. What is here said of obligations for property? How sued, &c.? 10. What is a bill of exchange? 11. What is it like? 12. State the nature and effect of a bill of ex

orders of this kind are called bills of exchange.

They are often very convenient to persons in mercantile business.

12. The nature and operation of a bill of exchange are thus illustrated :-A in New York has $500 due him from B in Cincinnati. A draws an order on B for that sum, and C, who is going to Cincinnati, pays A the money, and takes the order and receives his money again of B. If B has not the money when the bill is presented, or if it is made payable at some future day, and he agrees to pay it, he is said to accept the bill; and as evidence of the fact, he writes his acceptance upon it

13. When a person accepts a bill he becomes the debtor, but the drawer remains liable to pay if the acceptor fails to do so. But payment must de demanded of the acceptor on the last day of grace, and notice given to the drawer, as in the case of an endorsed note.

14. Interest is an allowance for the use of money, or for the forbearance of a debt Thus, a person lends to another $100 for one year, and receives for the use of it $6, which is called interest. I romissory notes are generally made payable with interest.

15. The rate of interest is fixed by law, but it is not the same in all the states. In the state of Ohio it is six per cent. ; that is, six dollars on every hundred for a year, and in that proportion for a longer or shorter period. A less rate may be taken, by agreement; but when no special agreement is made, six per cent. nay in all cases be charged. A higher rate of interest than that fixed by law, is called usury. If a person has paid usurious interest, he may sue for and recover the amount paid above the lawful interest.

change. How is it accepted? 13. Who is then debtor? When must payment be deinanced? 14. What is interest? Give an example. 15 What is the lawful rate of interest in this state? What is usury?

CHAPTER XXXIV.

Moneyed Corporations.-Banks; Insurance Companies.

1. We are informed that the first banks were only places where money was laid up or deposited for safe-keeping. But banks at the present day are not used for depositing alone. No banks in this country can be established, but by authority of law. The formation, nature, and uses of a bank, are shown by the following example :

2. If the inhabitants of a place want a bank, they petition the legislature to incorporate a banking association. The act of incorporation prescribes the manner in which the company shall be formed, how its business shall be done, and the amount of capital or stock to be employed. The capital is raised in this way: The sum intended to constitute the capital of the bank, is divided into shares of $100 each: so that if the whole stock is to be $100,000, there are 1000 shares. These shares are sold, to one person ten, to another twenty, and to another, perhaps fifty, and so on till all are sold, and the whole capital is paid in.

3. Now a person buying any number of shares, takes a certificate, stating that he is the owner of such number of shares; and such certificate may be sold to another person.

4. The stockholders choose of their number, usually, thirteen directors, who choose one of themselves to be president; hence the name of a banking association generally is, "The President, Directors, and Company of the Bank The president and directors choose a cashier

of

A part of the business of banks is still that for which they were originally intended, viz., depositing money. Merchants and other business men near a bank, deposite their money, and then draw it out as they have use for it, by send. ing their order to the cashier. This order is called a check.

1. What is said of the first banks? 2. State how a bank is authorized, and how the capital is raised. 4. Who are the stockholders? What officers are chosen, and how? 5. How are deposites wn out of

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