place appointed for payment, or at his residence, or upon him personally, if no particular place be appointed. The acceptor is allowed three days after the bill falls due, to pay; which are called days of grace. Three days of grace apply also to promissory notes. A bill or note payable on demand, or in which no time of payment is expressed, is not entitled to the days of grace.

615. If the third day of grace falls on Sunday, or some other day of public rest, the demand of payment must be made on the day preceding. If the demand be not made on the last day of grace, the drawer of a bill, and endorser of a note, are discharged. As to the particular time of the day at which the demand must be made, it is said to be unseasonable to demand payment before the expiration of the day; but this question is governed, in a degree, by the custom of the place; and if, in a commercial city, payments are to be made at the banks, demand must be made within bank hours.

616. The holder of a note can recover upon it, though he received it of a person that had stolen or robbed it from the true owner; provided he took it innocently, in the course of trade, for a valuable consideration, and with due caution. There are said to be but two cases in which a bill or note is void in the bands of an innocent endorsee or holder: one is when the note is given for money lost at gaming; and the other when it is given for a'usurious debt. Usury is an agreement, upon the loan of money, to receive the same again with a greater interest than that which is fixed by law.

617. The acceptance of a bill may be in writing, or by parol. Parol means, assurance given by word. If a person, in writing, authorizes another to draw a bill, and stipulates, before the drawing of the bill, to honor it after it shall have been drawn; and if the bill be afterwards drawn, and taken by a third party, it amounts to an acceptance. A parol promise to accept a bill already

be demanded on accepted bills? 615. When must the demand be made when the last day of grace falls on Sunday? 616. In what cases are notes void? 617. In what menner must the acceptance

drawn, or thereafter to be drawn, is binding if the bill be purchased in consideration of the promise. In New York, however, it is specially provided, that no acceptance is binding, unless it be in writing.

618. If a note be made payable in any species of property other than cash, it is not negotiable. If such note be not paid according to the conditions therein expressed, the maker becomes liable to pay the same in cash. But in either case, if it passes to a third person, he can sue it only in the name of the person to whom it was executed, who is allowed to offset any account or claim which he may have against the promisee. And any note, if it be taken after it is become due, the buyer takes at his peril; and the promisor may offset against it any payment which he may have made to the original holder.

619. That the drawer and endorsers of a negotiated note or bill may be held responsible, the holder must show that a demand has been made, or that due diligence has been used to get the money of the maker of the note, or the drawee of a bill; and he must also give reasonable notice of their default to the drawer and endorsers. The object of this notice is to afford an opportunity to the drawer and endorsers, to obtain security from those to whom they must resort for indemnity. The notice must be given by the first convenient, practicable mail that goes on the day next to the third day of grace; or, it must at least be put into the post office for that purpose, if possible. Where the parties live in the same town, personal notice must be given, or a special messenger must be sent to the dwelling house or place of business of the party to be charged.

620. Agents are appointed in all commercial places, called notaries public. When a foreign bill is to be presented for acceptance or payment, the demand is usually made by a notary; and in case of refusal, his certificate of the presentment of the bill, and of the refusal, is legal proof of the fact in any court. This certificate is called a

of bills be signified? 618. What is the character of notes not payable in cash? 619. What is requisite to hold drawers and endorsers of negotiated paper responsible? 620, 621. What are the

R

protest, which means, for proof. A protest must be noted on the day of the demand; but it may be drawn up in form at a future period. A bill drawn in one state, upon a person in another, seems to be regarded as a foreign bill requiring a protest.

621. But notaries may also demand acceptance and payment of inland bills of exchange, and promissory notes, and protest the same for non-acceptance or non-payment. No protest, however, is legal evidence in court, except in the case of a foreign bill of exchange. Yet it is expe dient, in many cases, to employ notaries, when evidence is to be preserved, because they are easily to be found when wanted as witnesses. And in the state of New York, the original protest of such notary, under seal, is evidence, in case of his death, insanity, or absence, so that his personal testimony cannot be obtained. Notaries in this state are appointed by the governor and senate wherever they shall think proper.

622. Banks. The first institution of this kind was in Italy, where the Lombard Jews kept benches in the mar ket places, for the exchange of money and bills; and banco being the Italian name for bench, banks took their ti tle from this word.

623. The first banks are supposed to have been only banks of deposit, places where persons deposited or laid up their money for safe keeping, to be ready when called Another species of bank is a bank of deposit and discount. By discounting is meant the advancing of money on bills of exchange, or on promissory notes due at a future time, taking out of the sum the interest thereon to the time when the note will become due.

624. But banks in this country, differ materially at present from either of those above mentioned. They receive money in deposit, and they discount notes; but instead of paying gold or silver coin for such notes, they pay in their own notes, on which they are bound to pay the specie whenever demanded. These bank bills or notes

duties of a notary public? What is a protest? 622. Where were banks first instituted? 623. What is a bank of deposit? What is discounting? 624. What are banks in this country called? How

circulate as money: hence our banks are called, banks of deposit, discount and circulation. A bank derives its powers and privileges from acts of incorporation by the legislature. It is a corporation composed of a number of individuals, who petition to the legislature to be incorporated. The act grants and defines the powers of the corporation, and expresses the amount of capital which is to constitute the fund on which the bank is to do business, This capital is divided into shares, (usually of $100 each,) and sold; by which means the capital fund is raised. The owners of these shares are called stockholders, who choose from among themselves a certain number of directors, (ordinarily thirteen.) who, from their own number, choose a president. The president and directors choose a cashier and clerks.

625. Banks are allowed to issue bills to a greater amount than their capital stock. In the state of New York, banks may issue bills and discount notes to two and a half times the amount of their capital; which renders banking a profitable business, as the stockholders draw interest on a sum much greater than they have invested. Every six months the profits are divided among the stockholders. The sums thus divided are called div idends. If a bank cannot redeem all the bills it has issu ed, it is said to have failed, or to be broken.

626. In the state of New York, a fund is provided to indemnify the holders of bank bills against losses by the failure of banks. This fund is raised under an act passed in 1830, imposing a yearly tax of one half of one per cent. on the capital stock of the several banks, until such tax shall amount to three per cent; and whenever this fund shall become exhausted, taxation shall be again resorted to to replenish it. In some states the property, personal and real, of the stockholders, is pledged for the redemption of the notes of the banks.

627. Insurance companies are corporations created for

are they incorporated? How is the stock raised? 625. To what amount may banks issue bills and discount notes? What are dividends? 626. How are bill holders in New York secured against losses from bank failures? 627. What are insurance companies?

the purpose of insuring persons against losses by fire, or at sea, and sometimes on the risk of the duration of persons' lives; and they sometimes have the same powers and privileges as banks have, in regard to the issuing of bills. If a person wishes to be insured against fire, he applies to an agent of the company, who takes a survey of the building and property to be insured. The rate of insurance is then agreed on, which is a certain sum, say 50, 75 or 100 cents for every $100 insured. The money paid for insurance is called premium; and the writing given by the agent, in behalf of the company, to the person insured, expressing the terms of insurance, is called a policy.

628. Companies for the insurance of lives, are less common. Their purpose is to provide a fund for creditors, or family connexions, in case of death. The insurer, either for a sum in gross, or in yearly payments, agrees to pay a certain sum, or an annuity, upon the death of the person whose life is insured. Such contracts are well calculated to secure relief to the members of a family whose only dependence rests upon the life of a single

person.

CHAPTER VIII.

Of Crimes and their Punishment.

629. CRIMES made punishable with death by the laws of the state of New York, are, treason against the people of the state; murder; and arson in the first degree.

Treason is defined to be levying war against the people of the state, a combination to usurp, by force, the government of the state; or adhering to, and aiding, the enemies of the state, while separately engaged in war with a foreign enemy.

How are insurances effected on property? 628. What is the nature of a life insurance?

629. What crimes are punishable with death in New York? What is treason? 630. What is murder? 631. What is arson in