Billing

“ If, before it came to the person who presents it to the acceptor for payment, it had passed through the hands of several other persons, who had successively advanced to one another the contents of it either in money or goods, and who to express that each of them had in his turn received those contents, had all of them in their order indorsed, that is, written their names upon the back of the bill; each indorser becomes in his turn liable to the owner of the bill for those contents, and, if he fails to pay, he becomes, too, from that moment a bankrupt. ”

“ The custom of keeping the spare cash reserved for immediate use or against contingent demands, in the hands of a banker, and making all payments, except small ones, by orders on bankers, is in this country spreading to a continually larger portion of the public. If the person making the payment, and the person receiving it, keep their money with the same banker, the payment takes place without any intervention of money, by the mere transfer of its amount in the banker's books from the credit of the payer to that of the receiver. ”

“ Whether a particular bill has been taken for discount or collection is a question of fact. As in the payment of bills, so in the collection of them, there is no statutory protection whatever for the banker; as against third parties he can only rely either on the customer’s title or his own as a holder for value, if no forged endorsement intervene and he can establish a consideration. ”

“ In the Treasury Building and in the Bureau of Engraving and Printing one may see the entire process of manufacturing and issuing paper money. In the Treasury we see new bills exchanged for old, worn-out bills, which are ground to pieces to destroy forever their value as money.
BUREAU OF ENGRAVING AND PRINTING, “UNCLE SAM'S MONEY FACTORY”
But to understand the story of a dollar bill or a bill of any other value we must visit the Bureau of Engraving and Printing. ”

“ A common method of procedure, when [Pg 103] a sale is made on time, is the drawing of a bill for the amount due, by the seller upon the buyer, payable at the end of the credit period agreed upon, and accepted by the buyer, and the discount of the bill by the seller's bank. In foreign and in some branches of domestic trade, the banker's bill is used on account of its more general acceptability as an object of discount, such bills usually being discountable by the central bank and by banks far distant from the place in which the bill originated. ”

“ Debit and credit are no longer known; interest, rents, profits, and all the calculations based on them no more have any place in human affairs. In your day everybody, besides his account with the state, was involved in a network of accounts with all about him. Even the humblest wage-earner was on the books of half a dozen tradesmen, while a man of substance might be down in scores or hundreds, and this without speaking of men not engaged in commerce. ”

“ Later on, in the chapter on the actual money-making operations of the foreign department, the risk in buying various kinds of bills will be fully explained, but in passing it may be mentioned that "clean" bills are of such a nature that bankers will touch them only when drawn by the very best houses. With a documentary bill, the banker holds the bill of lading, and if there is any trouble about the acceptance or payment of a draft, can simply seize the goods and sell them. ”

“ In the first class, the 'owner or holder,' &c., shall have a right to receive and recover so much current money as will purchase a good bill of exchange of the same time of payment, and upon the same place, at the current exchange of such bills, and also fifteen per cent. damages upon the value of the principal sum mentioned in such bill, and costs of protest, together with legal interest upon the value of the principal sum mentioned in such bill, from the time of protest, until the principal and damages are paid and satisfied. ”

“ A bill of itself does not operate as an assignment of the funds in the hands of the drawee available for its payment, nor is the drawee liable on a bill until he accepts or agrees to pay it. An inland bill is one drawn and payable within a state. Any other is a foreign bill.
An indorsed promissory note and an accepted bill are very much the same thing, and that is why the law always treats of both together. ”

“ A dealer who has sold goods, for which he is to be paid in six months, but who desires to receive payment sooner, draws a bill on his debtor payable in six months, and gets the bill discounted by a banker or other money-lender, that is, transfers the bill to him, receiving the amount, minus interest for the time it has still to run. It has become one of the chief functions of bills of exchange to serve as a means by which a debt due from one person can thus be made available for obtaining credit from another. ”

“ A spent bill is one where the goods have been delivered by the carrier at destination, but the bill of lading has not been taken up. A bill of lading is unlike a note in this respect—it has no date of maturity. When you buy a promissory note you can guess whether it has been dishonored or not, by whether the time for performance has come or not; but if a bill of lading for a cargo of goods is offered to you, you have no means of telling whether the cargo arrived the day before or whether the goods have been removed. ”

“ When a bill of exchange drawn to at least five pounds is not paid on demand at the time it is made payable, the person who accepted it may make a protest in writing before a notary public, which shall be served on the maker of such bill, who must pay it and all interest and charges from the date of the protest. ”

“ When the word bill refers to paper emitted by a bank, there will be found a most marked adherence to the distinction between an obligation and a bill, as appears in the clause of the original charter of the Bank of England, read by plaintiffs' counsel, 'That all and every bill or bills obligatory and of credit, under the seal of the said corporation, made or given to any person or persons, shall and may, by indorsement thereon, &c., be assigned,' &c. ”

“ No such power exists; neither the man who holds the real bill, nor the man who discounts it, has any property in the specific goods for which it was given: he as much trusts to the general ability to pay of the giver of the bill, as the holder of any fictitious bill does. The fictitious bill may, in many cases, be a bill given by a person having a large and known capital, a part of which the fictitious bill may be said in that case to represent. ”

“ It is essential, to constitute a legal demand of payment of a bill or note, that it should be presented to the acceptor at the time the demand is made, or, in other words, that the person who makes the demand should have the bill with him. ”

“ They deduct always, upon whatever sum they advance, the legal interest till the bill shall become due. The payment of the bill, when it becomes due, replaces to the bank the value of what had been advanced, together with a clear profit of the interest. The banker, who advances to the merchant whose bill he discounts, not gold and silver, but his own promissory notes, has the advantage of being able to discount to a greater amount by the whole value of his promissory notes, which he finds, by experience, are commonly in circulation. ”

“ The price paid by the principal auctioneers for country work is nine shillings per day; that is, seven shillings for day's work, one shilling for lodging, and one for paste. Town work is five shillings a day, including paste.'
'Town work must be rather hot work,' said I, 'if there be many of those fighting scenes that beggar description, among the bill-stickers?'
'Well,' replied the King, 'I an't a stranger, I assure you, to black eyes; a bill-sticker ought to know how to handle his fists a bit. ”

“ They have money enough, each of them, to buy a safe, an iron box into which any carpenter could bore with an ordinary brace and bit, and enough over to pay for the printing of twenty thousand dollars' worth of bills in denominations of one, two, five and ten dollars. The printing finished, each man would sign his own bills as president, and one of the others would add the final touch of authenticity by signing a fictitious name to the same bills as cashier. ”

“ Every branch of trade, every conceivable species of amusement, is forced upon the public eye in this way. Bill-posting is one of the fine arts. Its professors are among the most notable characters in Virginia. They have a specific interest in certain corners, boards, boxes, and banks of earth and rock, which, with the brush and pot of paste, yield them a handsome revenue. To one who witnesses this bill-mania for the first time the effect is rather peculiar. He naturally imagines that the whole place is turned inside out. ”

“ When no rate is fixed by the laws of the state, territory, or district, the bank may take, receive, reserve, or charge a rate not exceeding 7 per cent., and such interest may be taken in advance, reckoning the days for which the note, bill, or other evidence of debt has to run. ”

“ Many bills of exchange are drawn at sight, as it is called, in which case the payee presents it for payment to the drawee, there is no acceptance and no discount, and a bill of this kind becomes the same as a cheque. ”

“ That banker will be enabled to make payment, by the bill I shall draw on Messrs Le Couteulx, & Co. in your favor. Perhaps it may be most convenient to send the bill holders to them, but this you will be the best judge of. It is unnecessary to state any reasons to you for accepting these bills, as I cannot suppose you will have the least hesitation on that subject. I take this opportunity, however, of pledging myself to you, that you shall suffer no inconvenience from honoring them with your acceptance, as I shall most certainly remit in time the bills sufficient to discharge all I draw on you. ”

“ CROPS ARE MOVED BY USE OF BILLS OF LADING.—The various uses of bills of lading by sellers in order to insure concurrent payment by the buyer, and in order, with the aid of banks, to put themselves in funds while the goods are in transit, is a very important function of bills of lading. ”

“ The credit men of mercantile institutions keep tab on their customers through the local merchants exchange and the commercial agencies, and are in a position to know to what extent it is safe to extend credit. The merchant cannot refuse to pay his bills and go to another wholesale house and [25] buy goods, hence if he is a little tardy in meeting his obligations the bluff letter will awaken him to the necessity of paying the bill. ”

“ There's also a question of finance. I have an incurable habit of paying bills. I have been up and down Regent Street several times, looking for that shop. I am inclined to think, indeed, that in that matter honour is satisfied, and that, since Gip's name and address are known to them, I may very well leave it to these people, whoever they may be, to send in their bill in their own time. ”

“ My butcher says to me he wants that little bill. It’s a part of the pleasant unconscious poetry of the man’s nature that he always calls it a ‘little’ bill—to make the payment appear easy to both of us. ”

“ Buying and remitting commercial long bills is no pastime for an inexperienced man. Entirely aside from the question of rate, and profit on the exchange end of the transaction, there must be taken into consideration the matter of the credit of the drawer and the drawee, the salability of the merchandise specified in the bill of lading, and a number of other important points. ”

“ For, as the bills of the banks constitute the whole of the circulating medium; they gain, gratuitously, the interest on so much of their paper as is constantly absorbed in circulation: the amount of which we know is immense. ”

“ Then comes the term bills of credit, without any reference of explanatory words; but as it necessarily relates to the payment of money, the word bill must be taken as a paper, containing some evidence that a certain sum is due, to the person to whom it was emitted or issued, or by whom it was held. It is a word of legal import, as well defined as any in the English language, according to the subject-matter to which it is applied. 'A bill is a common engagement for money given by one man to another ”

“ Officers and managers who are honored and respected wherever they go have the men work like slaves, and instead of paying in cash give them a due-bill, good in trade alone, and only at the company store at that. By going through a lot of red tape, waiting perhaps three or four weeks, these due-bills can be cashed at ten per cent. discount. ”

“ It was a long time before I could turn these bills to any account; at last I found a person who, at a discount of only thirty per cent, consented to cash them; not, however, without sundry grimaces, and, what was still more galling, holding, more than once, the unfortunate papers high in air between his forefinger and thumb. ”

“ B does the like with respect to A. At the end of the year, the sum of A's debts to B is set against the sum of B's debts to A, and it is ascertained to which side a balance is due. This balance, which may be less than the amount of many of the transactions singly, and is necessarily less than the sum of the transactions, is all that is paid in money; and perhaps even this is not paid, but carried over in an account current to the next year. A single payment of a hundred pounds may in this manner suffice to liquidate a long series of transactions, some of them to the value of thousands. ”