Four parties take part in a bill of exchange :—1st, The payee, or the party who gives the value and receives the bill; 2nd, The drawer or maker of the bill, namely, the party who receives the funds to pay them over upon another place, and who issues the bill; 3rd, The holder, or the party who, by the fact of his holding of the bill or by indorsement, has authority to receive the amount; 4th, The drawee or acceptor, or the party who executes the exchange. Three persons only take part in a bill of exchange when the bill is drawn especially in favour of the payee, without inserting the words "to order," or when the drawer gives order on another place to pay to his attorney, or to his own order. Two persons only are nominated in a bill when the drawer draws upon himself a bill of exchange for paying or reimbursing the amount to another person in another place. In all these cases the bill of exchange is valid (a). Bills or notes subject to Must be written on stamped paper. SECTION II. STAMPS. BRITISH LAW. Bills and notes made and payable in any part of the United stamp duties. Kingdom, and foreign bills before they are presented for payment and negotiated in the United Kingdom, are subject to stamp duties. Bills and notes made and payable in the United Kingdom must be written on paper previously stamped; the commissioners not being allowed to stamp any paper with any stamp after the bill has been written out (b). Any person making, or causing to be made, signed, or issued, or accepting or paying, or causing to be accepted or paid, any bill of exchange, draft, or order, or promissory note for the payment of money liable to stamp duties, without the same being duly stamped, is subject to a penalty of £50 for every offence (c). Penalties on contravention of stamp duties. Adhesive stamps on foreign bills. Foreign bills need not be stamped before they are presented (a) Swedish Ordinance on Bills of Exchange of February 1, 1748. (b) 55 Geo. 3, c. 184; 31 Geo. 3, c. 25, s. 19; Steadman v. Duhamel, 1 C. B. 888; Jardine v. Payne, 1 B. & for acceptance, unless they have been indorsed or negotiated in this country (a). The stamping of foreign bills is effected by means of adhesive stamps attached to the bills before they are presented for payment, or before they are indorsed and negotiated in the United Kingdom, the stamps being cancelled by the holder writing his name or that of the firm, or the initials of the same, and the date and year in which he does so cancel the stamp (b). And any person who presents for payment, or who pays, indorses transfers, or negotiates a foreign bill, without the proper stamp affixed thereon, and any person who ought to cancel such stamp refuses, or neglects so to do, is subject to the penalty of £50; and no person who takes or receives such bill, either on payment or as a security, or by purchase or otherwise, is entitled to recover thereon, or to make it available for any purpose whatever, unless at the time he took and received the bill there shall be such stamp affixed and cancelled (c). The duty of cancelling the stamp affixed on a foreign bill of exchange is equally imposed on both the holder and the transferee of the bill (d). Any person who draws and issues, or who transfers or negotiates within the United Kingdom, otherwise than in a complete set and duly stamped, any bill purporting to be drawn in a set and payable out of the United Kingdom; and any person who takes or receives such bill within the United Kingdom, either in payment or in security, or by purchase or otherwise, without having transferred or delivered to him, duly stamped, the whole number of bills of which the set purports to consist, is not entitled to recover thereon, or make it available for any purpose whatsoever (e). Instruments for which stamps have been used of an improper denomination or rate of duty, but of equal or greater value, are valid and effectual, except in cases where the stamp used is specially appropriated to any name on the face thereof (f). improper stamp, but of equal 57. (a) Sharples v. Rickard, 2 H. & N. (b) 17 & 18 Vict. c. 83, s. 4; 16 & 17 Vict. c. 59, as to allowing the initials only to be sufficient. other instrument by having its (c) 17 & 18 Vict. c. 83, s. 5. (d) Pooley v. Brown, 31 L. J. C. P. 134. (e) 17 & 18 Vict. c. 83, s. 6. Penalty for the proper stamp, or not cancelling the same. not affixing Stamp duty on bills drawn in sets. Deeds not invalidated by stamps of improper deno mination or rate of duty, except in certain cases. What sum determines the stamp. Stamp duties on inland bills. Inland bills not made payable on demand or to order. Inland bills for monthly or weekly pay ments. stamped by the commissioners on payment of the duty and evidence (a). The sum which determines the amount of stamp duty is the principal sum mentioned in the note, and not a sum compounded of principal and interest (b). So the amount of the stamp upon a bill or note depends on the date expressed on the face of the bill or note, not on the time when it was actually issued (c). INLAND BILLS. The following are the stamp duties chargeable on inland bills and notes, drafts or orders, for the payment to the bearer or to order at any time, otherwise than on demand, of any sum of money-Not exceeding £5, 1d.; exceeding £5 and not exceeding £10, 2d.; exceeding £10 and not £25, 3d.; exceeding £25 and not £50, 6d. ; exceeding £50 and not £75, 9d.; exceeding £75 and not £100, 18.; exceeding £100 and not £200, 28.; exceeding £200 and not £300, 3s.; exceeding £300 and not £400, 4s. ; exceeding £400 and not £500, 5s.; exceeding £500 and not £750, 78. 6d. ; exceeding £750 and not £1000, 10s. ; exceeding £1000 and not £1500, 158.; exceeding £1500 and not £2000, £1; exceeding £2000 and not £3000, £1 108.; exceeding £3000 and not £4000, £2 (d); and when the sum exceeds £4000, then for every £1000 or part of £1000 of the money thereby made payable, 10s. (e). Inland bills, drafts, or orders for the payment of any sum of money, though not made payable to the bearer on demand or to order, pay the same duties as bills of exchange for the like sum payable to the bearer or order, if the same shall be delivered to the payee or some person on his or her behalf. Inland bills, drafts, or orders for the payment of any sum of money, weekly, monthly, or at any other stated periods, pay the same duty as bills payable to bearer or to order on demand, if made payable to the bearer or to order, or if delivered to the payee or some person on his or her behalf, whether the total amount of the money thereby made payable shall be specified therein, or can be ascertained therefrom, or shall be indefinite (a). The following instruments are to be deemed and taken to be inland bills, drafts, or orders : Drafts or orders for the payment of any sum of money by a bill or promissory note, or for the delivery of any such bill or note in payment or satisfaction of any sum of money, where such drafts or orders shall require the payment or delivery to be made to the bearer or to order, or shall be delivered to the payee, or some person on his or her behalf. Drafts for bill or note. payment by restitution. out of a par Receipts given by any banker or bankers, or other person Receipts or persons, for money received, which shall entitle, or be in- entitling to tended to entitle, the person or persons paying the money, or the bearer of such receipts, to receive the like sum from any third person or persons. Bills, drafts, or orders for the payment of any sum of money out of any particular fund, which may or may not be available, or upon any condition or contingency which may or may not be performed or happen, if the same shall be made payable to the bearer, or to order, or if the same shall be delivered to the payee or some person on his or her behalf (b). Bills payable ular fund if payable to bearer or order. credit. Documents or writings usually termed letters of credit, or Letters of whereby any person to whom any such document or writing is or is intended to be delivered or sent, 'shall be entitled or be intended to be account with, or to entitled to have credit with, or in draw upon any other person for or to receive from such other person any sum of money therein men tioned (c). bankers. Bills, drafts, or orders for the payment by any banker or Drafts on person acting as a banker, of any sum of money, though not made payable to the bearer or to order, and whether delivered to the payee or not; and writings or documents entitling or entitled to entitle any person whatever to the payment from or by any banker of any sum of money, whether the person to whom payment is to be made shall be named or designated therein or not, or whether the same shall be delivered to him or not; as if the same had been made payable to bearer Exceptions to duties on drafts on bankers. Provided always, that any one document or writing, although directing the payment of several sums of money to different persons, shall be chargeable with stamp duty as one order only (a). Any such document within the last-mentioned Act, sent or delivered by the drawer to the banker, and not to the person to whom payment is to be made, or to any one on his behalf, is to be chargeable only with one penny, notwithstanding the payment is directed to be made at any time after the date thereof. The following exceptions are made to the law relating to duties on drafts on bankers :— Any draft or order drawn by any banker upon any other banker, not payable to bearer or to order, and used solely for the purpose of settling or clearing any account between such bankers. Any letter written by a banker to any other banker, directing the payment of any sum of money, the same not being payable to bearer or to order, and such letter not being sent or delivered to the person to whom payment is to be made, or to any person on his behalf. Warrants or orders for the payment of any annuity granted by the Commissioners for the Reduction of the National Debt, or for the payment of any dividend or interest on any share in the Government or Parliamentary stocks or funds. Drafts or orders drawn by the Accountant-General of the Court of Chancery in England or Ireland (b). Duties on foreign bills. FOREIGN BILLS. Foreign bills of exchange drawn in but payable out of the United Kingdom, if drawn singly, or otherwise than in a set of three, are charged the same duty as on inland bills of the same amount and tenor. If drawn in sets of three or more, the rate for every bill of each set is as follows: Where the sum payable shall not exceed £25, 1d.; exceeding £25 and not exceeding £50, 2d.; exceeding £50 and not £75, 3d.; exceeding £75 and not £100, 4d.; exceeding £100 and |