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LIBRARY OFTHE University of California. Class Digitized bythe InternetArchive in 2008 with funding from IVIicrosoft Corporation http://www.archive.org/details/dictionaryofbankOOthomrich DICTIONARY OF BANKING A CONCISE ENCYCLOPAEDIA OF RANKING LAW AND PRACTICE BY WILLIAM THOMSON BANK INSPECTOR LONDON SIR ISAAC PITMAN & SONS, LTD., 1 AMEN CORNER, E.C. BATH AND NEW YORK FROMTHESAMEPUBLISHERS Bank Organisation, Management, and Accounts. ByJ. F. Davis, D.Lit., M.A., LL.B. (Lond.), Lecturer in BankingandFinanceattheCityof LondonCollege. Indemy8vo,cloth gilt,5s.net. icomprehensive PrintedbySirIsaac1'itman &Sons, Ltd., London, I3atu andNewYork PREFACE TheDictionaryofBankinghasbeencompiledinordertoprovide,inonevolume, the means of obtaining information, with the minimum of trouble, upon any subject connected withthebusiness ofbanking. Hithertoithasbeenamatterofcontinualdifficultywithmanybankofficials to knowexactlywhere to turnforinformationuponcertainsubjects; butit is hopedandbelievedthat the present volume will meet thisdifficulty, andthat itwillenableanyonetofindinitspagesaread\'andreliablereferencewhenever the occasionarises. Thefollowingpagesinclude, asfaraspossible, areferencetoallthevarious terms andmatters which come within thescope ofabanker's ordinary duties, aswellastoothermatterswhichariseoutof,orareassociatedwith,thebusiness ofbanking,suchasbankruptcy,companyregulations,partnerships,stampduties, stock exchange, winding up, etc. The book is furnished with many cross-references, and at the end of each leading subject, e.g., Accounts, Bankruptcy, Bill of Exchange, Cheque, Companies, Insurance, Mortgage, Stamp Duties, Stock Exchange, Title Deeds, willbefoundahstoftheprincipalarticlesconnectedwiththatsubject, which should facilitate the discovery of anyparticular point. The whole of the Billsof Exchange Act, 1882, is given,the sections being distributedundertheappropriateheadings. UnderthetitleBillsofExchange Act, 1882, references aresupplied to the various articles in which the different sectionshavebeenplaced. ]ManysectionsfromotherActs, whichareusefulandinterestingtobankers, are also included under the proper headings. For example, if information is requiredrespectingtheregistrationofachargegivenbyacompany, theactual words of the Companies (Consolidation) Act, 1908, on that subject are quoted underRegistrationofMortgagesandCharges andrespectingtheregistra- ; tionofamortgageofaship,theprovisionsoftheMerchantShippingAct, 1894, aresetforthunderShip-Mortgage,etc.,andsoinmanyothercases,anendeavour having been made, wherever practicable and necessary, to quote the sections of the Actsrelating to matters of importance. There is probably no subject of greater interest to branch managers and 221045 — PREFACE seniorclerksthan that of securities foradvances, andconsequently aUmatters connected with the examination of title deeds and the investigation of titles havebeentreated in the Dictionary in accordance with their importance. In addition to the article on Title Deeds,—deahng with the matter in a general way, thereis an article on Title Deeds Notes re Title, wherein is set out a number of the principal points which it is thought will prove useful inindicatingwhat abankershouldattendtowhenexaminingaparcelofdeeds of freehold, leasehold, or copyhold property. If further information should be required on any of the points raised, the subject can be referred to in its alphabeticalorderin the book. A few questions relating to the value of a propertywhichisofferedassecurityareaddedtothatarticle,andadditionalhints as to valuations, particularly for the benefit of younger manage—rs, may be found under Advanxes, Farm Stock, Licensed Property, Ship Valuation OF, Valuation. Withregardtosecuritiesotherthantitledeeds,articlessuchasthefollowing may be referred to: American Railroad Certificates, Bearer Bonds Bill o—f Lading, Bill of Sale, Bond of Credit, Certificate, Debenture, Debts Assignment of. Dock Warrant, Guarantee, Inscribed Stock, Life Policy, Negotiable Instruments, Shares, etc. Alistofmanyoftheabbreviationswhichareusedinbankofficesissupplied under Abbreviations. The article Bankrupt Person contains separate headingsrelatingtoabankruptdrawer,partner,pa3-ee,surety,etc.; andunder Statute of Limitations thevarioussub-headingsshowhowthestatuteaffects the different matters with which a banker is concerned, such as a bank note, abiUofexchange,thedrawerofacheque,aguarantee,memorandumofdeposit, promissorynote, etc. Aseries ofarticles is supphed dealing with the position uponadeath,e.g.,DeathofAcceptor,Administrator,Dr.\wer,Guarantor, Joint Customer, Partner, Shareholder, Trustee, etc. Specimens ofindorsements which are usually accepted, as well as examples ofthosewhicharenot, asarule, passedbyabanker, aregivenintabularform under Indorsement. The Report of the Gold Reserves Committee in 1909 is given under Gold Reserves; and under Unification of Laws of Bills of Exchange the various rules recommendedby the conference ofthe National LawAssociation at Budapestin 1908andat Londonin 1910areset forthfor theconsideration ofthose who are interested. Theresults oflawcaseshave beengiven, wherevernecessary, and in many • PREFACE instances the words of the judges are quoted. References are added to the various cases, and the abbreviations in the quotation of reports are explained on page vii. To facilitate reference being made to law reports other than those that are quoted in the text, the date of the decision has been given in every instance. The followingbooks—amongst others havebeenconsulted inthe preparation of the present volume: ...... Grant's Law of Banki.ng ..... The Law of Banking Heber Hart, LL.D. (Lond.) The Law of Banking Sir John R. Paget, Bart, K.C. TBahnekiPnragctaincdeNoefgoBtainakbilnegI(n4stVorlusm.)ents. .. .. FJorhannkHuTticllhyiasrodn, M.A. Pitman's Bills, Cheques, an.d No.tes... TEnhgeliCsohunPtrrayctiBcaan.lkeBra.nkin.g .. .. .... TG.eoBr.geMoRxaoen Lombard Street Walter Bagehot Pitman's Business Man's Gu.ide... .... J. A. Slater,B.A.,LL.B.(Lond.) PBraenskeinntg-DaanydBCaunrkrienngcy . . . . . EF.rnEe.stStSeyeklees, B.A. MThyeBCaonuknetrryanBdanIker's. Han..dboo..k ......... J. G. Kiddy MHiosnteoyry,MaPrrkienctipPlresi,mearnd Practice of Banking . JG.eoWr.geGiCllbaarret THhaendEbloeomkenotnsJoofi.nBtanS.ktoicnkg.C.om.pa.ni.es. ...... HF..GDao.nrdeM-aWcB.lreoowJdno,er,dMa.MnA..A., K.C, Banking Law W.Wallace,M.A.andA.IMcNeil Questions on Banking Practice Journal ofthe Institute of Bankers Bankers' Magazine Banking Almanac Ihave to express mydeepindebtednesstothe manyfriendswhohavebeen kind enough to supply most useful information and to read and correct the sheets as they have passed through the press, and I desire especially to acknowledgethevaluableassistancewhichIhavereceivedfrom Mr.J.A.Slater of the Middle Temple, Barrister-at-Law, in checking the points referring to bankinglaw. W. THOMSON. Newcastle-on-Tyne. January, 1911. — PREFACE seniorclerks than that of securitiesforadvances, andconsequently allmatters connected with the examination of title deeds and the investigation of titles havebeentreated in the Dictionary in accordance with their importance. In addition to the article on Title Deeds,—dealing with the matter in a general way, thereis anarticle on Title Deeds Notes re Title, whereinis set out anumber of the principal points which it is thought will prove useful inindicatingwhat abankershouldattendtowhenexaminingaparcelofdeeds of freehold, leasehold, or copyhold property. If further information should be required on any of the points raised, the subject can be referred to in its alphabeticalorderin the book. A few questions relating to the value of a propertywhichisofferedassecurityareaddedtothatarticle,andadditionalhints as to valuations, particularly for the benefit of younger manage—rs, may be found under Advances, Farm Stock, Licensed Property, Ship Valuation OF, Valuation. Withregardtosecuritiesotherthantitledeeds,articlessuchasthefollowing may be referred to: American Railroad Certificates, Bearer Bonds Bill of Lading, Bill of Sale, Bond of Credit, Certificate, Debenture, — Debts Assignment of. Dock Warrant, Guarantee, Inscribed Stock, Life Policy, Negotiable Instruments, Shares, etc. Alistofmanyoftheabbreviationswhichareusedinbankofficesissupplied under Abbreviations. The article Bankrupt Person contains separate headingsrelatingtoabankruptdrawer,partner,payee,surety,etc.; andunder Statute ofLimitationsthevarioussub-headingsshowhowthestatuteaffects the different matters with which a banker is concerned, such as a bank note, abillofexchange,thedrawerofacheque,aguarantee,memorandumofdeposit, promissorynote, etc. A series ofarticles is supplied dealing with theposition uponadeath,e.g.,DeathofAcceptor,Administrator,Drawer,Guarantor, Joint Customer, Partner, Shareholder, Trustee, etc. Specimens ofindorsements whichareusually accepted, as well as examples ofthosewhicharenot, asarule, passedbyabanker, aregivenintabularform under Indorsement. The Report of the Gold Reserves Committee in 1909 is given imder Gold Reserves and under Unification of Laws of Bills of Exchange the ; various rules recommendedby the conference ofthe National LawAssociation at Budapest in 1908andat London in 1910areset forth for theconsideration of those who are interested. The resvilts oflaw caseshavebeengiven, wherevernecessary, and in many