The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1872-06-25
Sight Drafts..How Much Time May
be Claimed Before Paying Them.

| w Siuluheu DelOLe raging Anens
A Richmond WAY correspondent puts
this inquiry TO the Journal Of Commerce !:
A planter draws a sight draft on his
commission merchant without advising
him; the bank presents 1t at say or 3
o'clock, and the merchant asks until to.
morrow to examine the planters account.
Can the bank protest the draft that even.
ing! Some Of our banks say We can
claim twenty-four hours on sight.draGt,
while others claim that the paper must be
protested the same day to protect them.
selves.
And gets this reply:
all time drafts, presented for accep.
lance, carry with them the obligation TO
give the drawee, If he demands II, TWEEN.
tyfOur hours consideration. This is not
only the old common.law rule, but the
custom in nearly all countries from time
lmmemorial. Story on Bills, section 2S7,
says: "When bill is presented for &C.
ceptance the draweeis entitled, If he desire
1t, to have at least twenty.four hours to
consider whether he will accept the bill
or not; and it's usual in such cases for
the holder tolleave the bill with him for
tina! time" Bailey, another high author.
ity, says: Upon q presentment for &C.
ceptance the bill should be left with the
drawee twenty.tour hours, unless in
the interim he either accept or declare
resolution not to accept" In England,
where the drawee Is in doubtful credit, or
but little known, It is CUSTOMARY to leave
a copy Of the bill, in place otthe original,
but this is always considered reflection
on his standing. In this State the rule,
sanctioned by law, Is to leave, the bill for
one day unless the drawee chooses to de.
eide at once. 1t Is provided here by
statute that "every person upon whom d
bill OF exchange is drawn, and to whom
the same is delivered for acceptance, who
shall destroy such bill or refuse within
twenty.four hours after such delivery, or
within such other period as the holder
may allow, to return the bill, accepted
or unaccepted, to the holder, shall be
deemed to have accepted tbs same"
This supposes that the drawee has q legal
right to such use and detention Of the
bill. -
But when we come to sight drafts the
case is changed. There isgreat difference
OF custom, opinion and statute law the
world over as to grace on sight bills.
Where drawee may have three days af.
ter presentation IN which to pay o sight
draft, he must accept II; and II he is asked
to accept instead, Of TO pay 1t, we see no
reason why he Is not entitled TO the TWEEN,
ty.iour hours for consideration. OfcouIse
when he accepts It, he Is ID. pay 1t where
Lgrace is allowed, in three days from the
day OF presentation; but the decisions all
declare that wherevera bill Is presented
for acceptance the drawee may insist, ifhe
chooses, upon twenty four hours for consid
Grafton. Such days Of grace on sight bills
are expressly allowed by statute in Maine
New Hampshire, Massachusetts, North
and South Carolina, Ohio and Wisconsin
They are disallowed, by custom, upor
sight bills in many other States, and we
suppose that this Is the rule in Virginia
EThey are expressly forbidden by statute
in Vermont. Connecticut and New York
The act Of 1957in this State declares thai
"all bills of exchange or drafts drawn
payable at sight, at any place within the
State, shall be deemed due on presenta
ton, without any days Of grace being
allowed thereon"
This clearly cuts of not only the privi.
lege Of twenty.four hours ydeliberation
but, as many close reasoners infer, ever
the usual custom Of delay until the day Il
! about to close. The English madea dis
: ttnction between draft payable at sight
and one payable on demand; so does thu
law, II tho view many take otit Is correct
but It exactly reverses the English dis
/ unctton. A bill payable on demand can
i not be protested here II the tirawee 4
ready with his money at any time durinf
!. me day, or II payable at bank, at AMI
; Tune while tho bank is open, But a mi
70 payable at sight, II the law is % he inter
= preted literally, must DO paid 81, ia fra
!. presentation, and can that moment n n \
Y, protested Il the drawee, ia NOT ready I,
y honor It. Our decision, therefore Ia ths
y. q where law or custom allows three dav,
- grace on sight bills, the drawee NAV taIs
!. twenty.four hours to consider Of 6is AZ
y ceptance. But where law or custom al
~ :, allows any grace on sight bills, the drawe
y, y mustpay on the day approximation.