EXCHANGE. 
buyer or holder of a good bill that the obli- 
gation in his hands is almost as effectual as 
money. Having given so much power to 
the holder, it was thought Advisable to ex- 
tend some indulgence also to the acceptor. 
Accordingly days of grace were allowed 
him, that is, it was ordered that the holder 
should take no measures, and not even pro- 
test an acceptance until the expiration of 
certain days after the bill became due. In 
London three days of grace are allowed ; in 
Amsterdam, six ; in Hamburgh, twelve ; in 
Dantzic, ten; in Copenhagen, eight; in 
Berlin, three; and a different term in almost 
every distinct mercantile city. 
The practice of giving days of grace is, 
now at least, of no real use ; for every ac- 
ceptor, knowing that he may avail himself 
of them, does not fail to do it, and it would 
be considered quite ridicnlous in the holder 
of a bill to send it for payment before the 
end of the three days. So that when a 
bill is drawn at sixty days sight or date, the 
only effect of the days of grace is to make 
sixty, sixty-three. 
Protest. This is the notarial act which 
denotes that an irregularity has taken place 
in regard to the bill, either that it is not ac- 
cepted, or that it is not paid. In some 
branches of trade it is customary, in cases 
of non-acceptance, not to extend, but only 
to note a protest. Noting a protest is said 
when a notary only records the irregularity ; 
to extend a protest, implies that he has 
written out on a stamp a formal statement 
of that irregularity. 
In a case of non-acceptance, the protest 
gives the holder of course no power over 
the person on whom the bill is drawn, but it 
enables him in some countries to demand se- 
curity from the person of whom he received 
it ; in other countries, the holder can do lit- 
tle or nothing with a protest for non-accep- 
tance ; and in these cases he generally con- 
tents himself with noting a bill when accep- 
tance is refused. In our West India trade, 
for example, it is much more customary 
merely to note bills for non-acceptance, 
than to extend the protest ; for it is only in 
particular colonies (St. Vincent, for in- 
stance) that the holder can take prompt 
measures to oblige the drawer to find secu- 
rity to him for the amount of the bill : But 
on refusal of payment, a protest should al- 
ways be extended ; otherwise the holder 
would, by this omission, relieve every in- 
dorser on the bill from responsibility, and 
have no recourse, except on the drawer. 
If an accepted bill is refused payment, it is 
a proof that the acceptor is insolvent. The 
holder may either proceed against the ac- 
ceptor, or he may send back the bill to the 
last indorser, or if there be no indorser, to 
the drawer. The drawer, or last indorser, 
as the case may be, is pledged to refund 
the amount immediately to the holder. 
This mode being generally the speediest 
means of reimbursement, the holder always 
prefers it when he can obtain payment by 
it ; but in case of the insolvency of both 
drawer and acceptor, the holder retains the 
bill, and gets what he can from the estates 
of both. 
When the Bank of England finds that a 
merchant has suspended payment, their rule 
is to examine all the hjlls drawn upon him, 
which have been discounted by different 
persons at the Bank, and to send notice to 
these persons that the Bank expect the 
bills will be taken up and the moneyre- 
funded. It is disreputable not to comply 
as early as possible with this intimation. 
In our West Indian colonies, the pro- 
ceedings against insolvent persons are much 
more tedious than here. These colonies 
have hitherto been considered in a state of 
progressive advancement; the industry of 
the colonist, and the use he makes of bor- 
rowed capital, are deemed the means of 
this improvement ; and it has been judged 
politic to protect him to a certain extent 
against his creditor. A man cannot in our 
West India colonies, as at home, be made 
a bankrupt ; his property can be taken pos- 
session of by his creditors only after a pro- 
cess of considerable duration ; and in the 
payment of the debts of an estate, a pre- 
ference is regularly given to colonial claims. 
These laws proceed upon the belief that 
the profits on capital are rapid in these co- 
lonies, and that the best way for the public 
is to give such time to the debtor as may 
enable him to reap some gain before he is 
forced to refund the principal ; or rather, 
the moaey when borrowed is sunk in land 
and stock, which can be productive only in 
time to the tenant, and his creditor, like 
himself, mu$t be satisfied with a gradual re- 
turn. A new aera, however, is now created 
in the history of the West Indies : the de- 
preciation of their produce proves, that its 
culture is now sufficiently extended ; and 
the abolition of the slave-trade will take 
away the means of further speculation. 
These colonies should therefore be now 
considered in nearly the same state as the 
mother country, as far as regards mercan- 
tile affairs. At present such is t!;e uncer- 
