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To the Banking Institutions of the United States. 



The attention of bank officers, and other holders of negotiable paper, 

 and notaries, is desired to the late and important cases reported and 

 published in the Bankers' Magazine; cases which affect the business 

 of all monied institutions. The cases reported are upon the following 



subjects : 



I. Notarial Notices of Protest. 

 II. Transfer of Stock by Executors, 

 III. Grace on Sight Bills. 



I. Of Notarial Notices. — By recent decisions in the highest courts 



of England, confirmed by cases in the Supreme Court of New York, 



and the Supreme Judicial Court of Massachusetts, it will be found that 



many of the notarial notices of protest at present in use in New \ork, 



Maryland and other states, are informal and void, as against en- 

 dorsers. 



It will be found by numerous banking institutions throughout the 

 country, that their securities (so far as their endorsers are concerned) 

 & re of little value. The omission of important words in notices of pro- 

 test, exposes holders of negotiable paper to great and unnecessary 

 risks, — which could be obviated with a little care. 

 t II. Transfers by Exec tors. — An equally important topic to all 

 incorporated companies is the view taken by Judge Taney (Chief Justice 

 Supreme Court U. S.) of the liability of corporations for stock improp- 

 erly transferred by executors. This opinion was delivered by Judge 

 T - tn the Circuit Court of the United States, July, 1848, in the import- 

 ant case of Lowry vs. The Commercial and Farmers^ Bank of Balti- 

 mor ?, the publication of which in the Bankers' Magazine has already 

 changed the usage of several banks in regard to transfers by executors. 

 f n this case the bank (confessedly one of the best managed institutions 

 ln l he country, and its stock above par for years past) permitted the 

 transfer of two hundred and eighty-two shares of its stock by the exec- 

 utor of a deceased stockholder, without such an examination of the 

 Will as would have forbidden the transfer. 



"The bank is equally chargeable for the neglect or omission of duty 

 b y the officer to whom it had committed the superintendence of the 

 transfers of stock, as it is for the neglect or omission of its president— 

 an d such officer is equally chargeable with implied notice of the Will. 



"The bank was bound to take notice of the Will of the testator 

 pen this transfer was proposed to be made by one of the executors. 

 11 was negligence in the bank not to examined : and if it was igno- 

 ra nt of its contents, and of the specific bequest of this stock, it was its 

 °wn fault. V 



"Although it may not have actual notice of the contents of the Will, 

 pt as a was dealing with an executor in his character as such, the 

 Ja w implies notice." 



HI- Grace on Sight Bills.— The late decisions contained in this 



J la gazine have induced many banks to be extremely cautious in their 



eahngs with their correspondents, in reference to grace on Sight Bills. 



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