signature, expresses himself satisfied with the contents of a bill, and thereby engages to pay it when due. A drawee should be careful not to accept two vias or parts of the same bill, as by doing so he would render himself liable to pay on both of them should they get into different hands. Having once accepted a bill of exchange, a drawee is bound to pay it when due, and it is of no use for him to afterwards allege that the bill is a forgery or that he received no value for it. In the case of forgery or fraud, however, an acceptor would not be liable to pay a bill unless it were in the hands of a bonâ fide holder who had given a proper consideration for it. A drawee can accept for part of the amount of a bill should the state of his account with the drawer not allow of his accepting for the full amount.

Example of a Foreign Bill accepted.

In need, with Messrs. Knight & Co. for honour of
C. D.

In need, with Messrs. Williams, Marshall & Co.
for honour of O. & Co.

The acceptor of a bill is the party principally liable on

a bill, and all the other signatories by endorsement stand as his securities.

ENDORSING a Bill.

Bills drawn payable to bearer can be passed on from one party to another without endorsement; but those drawn payable to order are not transferable except by endorsement. Now, one of the most essential points to be borne in mind with regard to bills of exchange is that every endorser as well as the drawer is liable to be called upon to pay the amount should the drawer or acceptor either refuse or fail to do so at maturity.

Endorsements are of two sorts-" to Order" and "in Blank": if" to order," the bill is payable only to the endorsee named, or to his order by endorsement; if endorsed in blank, it is payable to bearer. The holder of a bill endorsed in blank can make it specially payable to whoever he likes, by writing the necessary words above the endorser's signature, as, for instance, “Pay Thomas Green," which converts the blank endorsement into a special endorsement. This is often done by merchants and others to escape the responsibility on bills they take in execution of orders for remittances; for if a man sells a bill without putting his name to it, he is not liable should it be dishonoured, the holder's remedy being against the endorsers and drawer of the bill.

SANS RECOURS.

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But a man may endorse a bill without incurring any liability upon it by adding to his endorsement the words, "Without recourse to me," or Sans Recours," and this is usually done when one party endorses a bill as agent for another.

Endorsements, as we have said, are of two kinds, special and general (or blank). They are special when a bill is made payable to the order of the transferee, which order, or his endorsement, must therefore be given by him when he parts with the bill. A common form of such endorsement is this

Pay to the order of Messrs. E. Wilson & Co.,

William Stanley.

The endorsement is called general when only the signature of the transferror is given; as

E. Wilson & Co.

for the next endorsement to the above, but the former is the safer practice, especially when bills are transmitted by post; and in foreign endorsements the place and date are likewise often stated, as well as when negotiated, and whether the value has actually been received, or has only been received in account, which also is commonly placed upon the bill by the drawer, together with a direction as to what account it is to be carried, and whether advice of its being drawn is given, or whether it is to be accepted "with or without advice ".

Example of a blank Endorsement.

‚WILLIAM BROWN.

A bill blank endorsed becomes payable to bearer and

may pass from hand to hand without further endorsement, and the person who holds it when due for payment is entitled to the money.

If the bill were given by Brown to Jones, and Jones wishing to negotiate the bill and transfer it to William Wilkins, but so that the bill shall no longer be payable to bearer, and shall require Wilkins' signature, and yet not wishing to be liable on it himself, Jones writes over Brown's signature, "pay William Wilkins" as follows, which converts the blank endorsement into a special endorsement.

Example of a Blank Endorsement Converted into a Special Endorsement.

Here Frank Jones is specially named, and the bill will now require his signature.

Frank Jones,

Sans recours.

Example of an Endorsement by an Agent without Liability.

A CASE OF NEED.

Let us take the case of the following bill which we will suppose we have taken in the course of trade. On many foreign bills, as in this case, will be seen a memorandum as shown at the foot of the bill, "in need with Messrs. A. B. & Co." This is called a Case of Need, and means that if the drawee should fail to accept, or having accepted, should fail to pay the bill, A. B. & Co. will do so for the " "honour" of the drawer or the endorser of the bill who inserted this clause, as explained in case of need. The bill is drawn in Seville as shown