WARRANTS IN PORTUGAL 



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The bearer of the warrant who is not paid on date of maturity may have 

 it protested, as in the case of a bill of exchange. Ten days after the protest 

 the goods deposited may be sold at auction. 



Before date of maturity of the warrant, the bearer may discount it. 

 not orJy at the General Deposit and Thrift Bank, but also at the Mutual 

 Agricultural Credit Banks (i) founded in conformity with the law of March 

 1st., 1912. The discount may not, however, exceed 50 % of the value of the 

 goods deposited. In contrast with previous legislation, the new law attempts, 

 as we see, to render the warrants negotiable. 



Let us add that the minimum term for discount is three months and 

 the maximum one year. In case the goods suffer depreciatior which might 

 reduce the reaHsable value anticipated by more than 20 %, the depositor 

 must make an additional deposit. The goods are sold by auction or by priv- 

 ate arrangement, but in any case, by an official broker employed only at 

 the warehouse and appointed by the Government, or, if need be, by a 

 sales agent. 



Sales by private contract are made by means of samples altogether 

 corresponding v.dth the goods deposited and, if need be, subjected to analysis 

 and carefully classified. 



Sales by auction must be advertised five days in advance in the most 

 widely circulating paper of the district of the General Warehouse and, in 

 addition, posted at the door of the establishment. These advertisements 

 and placards must state the nature and quantity of the goods, the weight 

 and volume of each lot and the conditions for payment and delivery. In 

 the case of sales on account of failure to pay, the advertisements must 

 also be inserted in the Diario do Governo. Finally, two days before the auc- 

 tion, the goods must be exhibited. As the auction proceeds, the official 

 broker or the sales agent enters in a special register the number of the lots 

 dealt with, their volume and weight, the names and addresses of the seller 

 and buyer and the price. The latter is paid over to the seller within for- 

 ty-eight hours, after deduction of all costs and charges. 



The revenue of the General Agricultural Warehouses is made up of 



1st., a commission of %^ real (0.OC125 frs.) per kilogram warehoused; 



2nd., a warehouse charge, varying according as the goods remain 

 exposed or have to be brought inder cover. The minimum charge is fixed 

 by the Goverrunent at the suggestion of the Technical Agricultural 

 Councils of which we shall presently speak; 



3rd., a charge for custody, fixed the same way ; 



4th., 5 % brokerage on the amount of the insurance premium ; 



5th., various charges ; 50 reis (25 cent.) for registration on deposit 

 and withdrawal ; 150 reis (75 cent.) for each receipt and warrant ; 350 

 reis (i fr. 75) for sampling etc. 



In each of the three Agricultural Divisions of Portugal there is a Tech- 

 nical Council composed of the three managers and the various sectional 

 chiefs. Its duty is to supervise the General Agriciiltural Warehouse of 



(i) See Bulletin of Economic and Social Intelliqence, N. 10, October 1913, P- 7<J. 



