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balance of accounts; but a particular lien is a right to retain it only for a charge on account of labor employed, or expenses bestowed, upon the identical property detained This is a privilege given by law to persons engaged in occupations necessary for the accommodation of the public. Upon this ground common carriers and innkeepers have a lien on property intrusted to them. A tailor has a lien upon the cloth put in his hands to be worked up into a garment. But he cannot hold them for any debt previously contracted.

Partnership is a contract of two or more persons, to place their money, labor or skill, in lawful commerce or business, and to divide the profit, and bear the loss, in certain proportions. It is a partnership if one advances the funds, and another furnishes the personal services, and is to share in the profits. Though there be no express articles of copartnership, if persons have a mutual interest in the profits and loss, or if they hold out themselves to the world as joint traders, they are held responsible as partners to third persons, whatever may be the nature of their connexion; and each member of the firm is answerable for the whole amount of the debts. But a party may by agreement receive, by way of rent, a portion of the profits of a farm or tavern; or a clerk or agent may receive a portion of the profits of sales as a compensation for labor, without becoming a partner.

By the laws of New York, a limited partnership may consist of one or more persons jointly and severally responsible, who are called general partners, and one or more persons who furnish certain funds to the common stock, but whose liability extends only to the amount of the fund furnished, and who are called special partners.

general and particular lien? What is a partnership? What law sists in this state respecting a connexion between general and

The names of the special partners are not to be used, nor do they transact any business for the firm. Before such a partnership can act, a register thereof, with a certificate signed by the parties, must be registered in the clerk's office of the county; and the terms of the partnership must be published for six weeks.

The act of each partner relating to the partnership, is considered the act of all, and binds all. But if a bill or note be drawn by one partner in his own name only, without appearing to be on partnership account, he alone is bound, though it was made for a partnership purpose. A partnership ceases as soon as the business is completed; and if the partnership be without a definite period, any partner may withdraw when he pleases, and dissolve the partnership; but if the term of partnership be definite, it cannot be dissolved before the expiration of the term, without the mutual consent of the partners; except by the death, insanity, bankruptcy or some other inability of one of the parties; or by judicial decree of the court of chan cery in certain cases.

CHAPTER X.

Bills of Exchange-Promissory Notes-Banking and Insurance Companies.

A bill of exchange is a written order or request, from one person to another, to pay to a third person a certain

special partners? Is one partner bound by the acts of others? When do partnerships cease? What is a bill of exchange? Who is the

sum of money. If A., living in New York, wishes to receive $1000, which await his orders in the hands of B., in London, he applies to C., going from New York to London, to pay him $1000, and take his draft on B. for that sum, payable at sight. This is an accommodation to all parties. A. receives his debt by transferring it to C., who carries his money across the Atlantic, in the shape of a bill of exchange, without danger of robbery or loss; and on his arrival at London, he presents the bill to B., and is paid. A., who draws the bill, is the drawer; B., to whom it is addressed, is the drawee; and, on accepting it, he becomes the acceptor. C., to whom the bill is made payable, is called the payee. As the bill is payable to C., or his order, he may, by endorsement, direct the bill to be paid to D. In that case C. becomes the endorser, and D., to whom the bill is endorsed, is called the endorsee, or holder. A check is, in form and effect, a bill of exchange. It is not a direct promise on the part of the drawer to pay, but he is answerable if the drawee fails to pay. A check payable to bearer passes by delivery, and the bearer may sue on it as on an inland bill of exchange.

A promissory note is a written promise to pay or deliver to another a sum of money. If it be made payable to him or his order, or to bearer, it is called negotiable; and it may be sold or transferred to any other person, who has the same authority to sue for and collect the money, as the original promisee. When a note is payable to bearer, it passes without endorsement; but when it is payable to a person or his order, such person, the promisee, must endorse it by writing his name on the back of it, before any other person can receive the money. If the name of the payee or endorsee be left blank, any bona

drawer? Drawee? Acceptor? Payee? Endorser? Endorsee? What is a promissory note? What is the difference between notes

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fide holder may insert his own name as payee. words value received are usually inserted in a note, but the note is good without them. If a note be taken after it is due, the buyer takes it at his risk; and the promisor may offset against it any payment which he may have made to the original holder.

If a bill has been accepted, demand of payment must be made when the bill falls due; and it must be made by the holder or his agent upon the acceptor, at the place appointed for payment, or at his residence, or upon him personally, if no particular place be appointed. The acceptor is allowed three days after the bill falls due, to pay; which are called days of grace. Three days of grace apply also to promissory notes.

Agents are appointed in all commercial places, who are called notaries public. In the state of New York, they are appointed by the governor and senate. One or more are appointed wherever a bank is located, or in other places of extensive commercial business. When a bill or note is not paid at the end of the three days of grace, a declaration thereof is made, by the holder of the paper, to the notary, who certifies, under seal, to the presentment and non-payment or non-acceptance of the note or bill, and gives notice thereof to the drawer or endorsers. This act is called a protest. The act done on the first application to a notary, is called noting a protest.

Banks. The first institution of this kind was in Italy, where the Lombard Jews kept benches in the market places, for the exchange of money and bills; and banco being the Italian name for bench, banks took their title from this word.

payable to bearer and to order? How must payment be demanded? What are days of grace? How are notaries public appointed? What is their business? Where were banks first instituted? What

The first banks are supposed to have been only banks of deposit, places where persons deposited or laid up their money for safe keeping, to be ready when called for. Another species of bank is a bank of deposit and discount. By discounting is meant the advancing of money on bills of exchange, or on promissory notes due at a future time, taking out of the sum the interest thereon to the time when the note will become due.

But banks in this country, differ materially at present from either of those above mentioned. They receive money in deposit, and they discount notes; but instead of paying gold or silver coin for such notes, they pay in the spe their own notes, on which they are bound to pay cie whenever demanded. These bank bills or notes circulate as money: hence our banks are called, banks of depowers posit, discount and circulation. A bank derives its and privileges from acts of incorporation by the legislature. It is a corporation composed of a number of individuals, who petition to the legislature to be incorporated. The act grants and defines the powers of the corporation, and expresses the amount of capital which is to constitute the fund on which the bank is to do business. This capital is divided into shares, (usually of $100 each,) and sold; by which means the capital fund is raised. The owners of these shares are called stockholders, who choose from among themselves a certain number of direc tors, (ordinarily thirteen,) who, from their own number, choose a president. The president and directors choose cashier and clerks.

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Banks are allowed to issue bills to a greater amount than their capital stock. In the state of New York, banks may issue bills and discount notes to two and a half times

is a bank of deposit? What is discounting? What are banks in this country called? How incorporated? How is the stock raised?