Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1897-02-21
On the Protest of Commercial Paper.

To the Editor OF the DlSpdlCh.
IN the settlement OF an estate two
years ego the undersigned bought
tract Of land. There were many heirs,
and under the terms of sale he gave
quite a number Of notes. running one
and two years. As the first string APP
preached maturity, he found II difficult
10 locate the notes. some of which were
being shifted from one bank TO another,
and he, therefore, engaged an expert
enced bank-runner TO get them IN Tor
him. When the second batch were
maturing he received notification from
the banks holding them in all instances
except one, and In that case he was
notified by mail, under date Of the day
of maturity, that his paper was dis
honored, ana that ne would be held for
principal. damages. costs. and charges.
This was his first and only apprisal
that the bank had his note, whereupon
ne promptly rendered his check for the
face of the note. but IT was refused, and
protest charges demanded.
To the average rural mind, this trans
action opens several questions:
l. Is II the duty OF a bank to give
notification In such cases?
2 If not their duty, is II their custom?
g. If the custom is only partial one,
dictated by business courtesy. OF the
higher business instincts, do not the
houses which are amenable to those
influences give an undue advantage TO
the other sort?
4. In what degree do practices OF this
kind contribute 10 the strained rela-
tions, which IS so often deplored. be-
tween hayseed and money-changer, be-
tween producer and exploiter, between
country and town?
5. Cannot some method be devised
which will enable a plain man TO trace
his paper through these monetary laby-
rinths without having to engage the SER
vices of a financial expert7
c. viii not the Dispatch urge the
banks of Richmond to ADOPT a uniform
course towards those whose notes they
hold. so that notification shall be given
in every instance, or not at all?
l grant that an explicit and straight
forward course of this kind would prove
great hardship to some Of your city
notaries. but just now l am pleading
solely in behalf of poor PINE TAG.
/. 1t is not the duty Of the bank TO give
notice in such cases.
?. 1t is the custom of most Of the
banks In this city. but whether It is uni
versal or not we are not Informed.
8. We think not. The drawer Of a
negotiable note makes it payable at a
certain bank named in the note. 1t is
incumbent on him 70 take notice Of the
time and place at which he makes his
note payable. and "a. have the money
there TO meet it. His failure TO do this
is his neglect, ard makes him liable in
case Of default to the protest fees and
any interest which may have accrued on
the note.
4. We do not think they ought to con-
tribute to these relations at all, as they
are only the result Of the observance Of
plain business methods on one hand, as
against the failure to do this on tho
other, and 1t seems TO us that personal
tiers at all. In the case stated. no mat
ter how many notes were given, they
were doubtless all made payable at some
one bank, one set in one, and the other
set in two years after date. All the
maker had to do was to have his money
at the place, and at the time he con-
tracted it should be there. and it could
make no difference TO him who were the
holders Of these several notes.
8. This has been answered. in the pre-
ceding.
g. AS far as we know, the banks Of
Richmond have a uniform practice as
10 this, although those in some Of the
larger cities do not send out any no.
tees OF maturing paper at all, and we
are Informed that the Clearing House
here adopted a rule at one time that
they would not send any notices Of this
kind. but afterwards rescinded that ac-
ton simply out of considerations of
courtesy and convenience to their custo-
mcra