*India Office at Westminster, and in consideration of that, obtain it from the Government Treasury in India. That is the plain English of the transaction, which is technically formulated under the name of Council drafts and Secretary of State's bills. Well, then, if the Presidency Banks are giving the accommodation in India, nobody cares to deposit money here; the Secretary of State wants money, but nobody cares to bid, and then the rates become very low. Instead of 1s. 9d. it is 1s. 8d., or 1s. 84d., and so on. That is the plain English of the matter. Well, there is no doubt Mr. Bell rendered some service not only to the Exchange Banks, in which he is legitimately interested, as an officer, but he rendered some service to the Government by bringing this matter forward. It is partly in consequence of representations from him and from other quarters, that Government have begun to limit their deposits with the Presidency Banks; but the result is that the Government are obliged to keep money in their vaults. It is a great pity when there is so much money that it cannot be made useful for trade. As Government financiers, it is not our business to make money cheap, but if, incidentally, it is cheap, we suppose that it is an accommodation to trade; nevertheless, we cannot allow our balances to be made the means of lowering the price of Secretary of State's Bills in London, for that is a matter that greatly affects the interests of the Government. You are doubtless aware that a d. difference in the Exchange makes a difference, by a large sum of money, to Indian financiers; therefore we must perforce restrict our balances with the Presidency Banks. I hope I have made perfectly clear to you, in plain English, the substance of Mr. Bell's, perhaps, somewhat learned and technical exposition. As regards the importance of keeping a cash balance, many people used to say that we ought not to keep so large a cash balance in India; but I can assure you that this is positively necessary, because you never can tell when you may have war, or when you may have famine, and when the emergency does come, it is a great thing to have five or six millions on which you can lay your hand without going to the market to borrow. It is a great disadvantage in India if, after your borrowings have been announced, and the money-market has reckoned accordingly, you have occasion to go to the market. If you consider our distant position there, and the many political dangers whereby we are surrounded, I am sure you will all agree with me in thinking that the Government of India are exercising a wise discretion in keeping up a large reserve. The amount of that reserve in my time was very high. We had particular reasons then for keeping it high. In my time, it amounted to 20 millions sterling, and now 15 or 16 millions are considered sufficient. I have explained to you this evening, that with a cash balance of 15 or 16 millions, they were able to take three or four millions to finish up the accoun's of the

Afghan War. I must repeat that I look back with satisfaction when I think that the finances of India are in such a state of equilibrium, notwithstanding that India has paid 15 millions for famine, and 15 millions for war. These are things for which many Governments would have borrowed, but India has not borrowed the amount, but has paid it out of her current revenue.

The CHAIRMAN: There are a great many points raised in this interesting paper which I should be glad to have alluded to if the hour had not been so late, but under the circumstances I must content myself with an expression of the satisfaction with which we have heard the opinions of Sir Richard Temple in reference to the present condition of Indian finance, in which we are all deeply interested. I remember year by year, when my friend Mr. Grant Duff made his annual statement in the House of Commons, we were always told that he was taking too rosy a view of Indian finance, but I think what we have heard to-night justifies tho opinions expressed by our eminent countryman. Sir Richard told us that he was not going to read a paper, but to make a speech. I will only say, that whether he reads us a paper or makes a speech, we are always glad to see him in this room; and I hope the manifest satisfaction with which you have listened to him will induce him on some future occasion to give us, out of his wide stores of knowledge, another communication on one of these subjects.

QUESTIONS ON POINTS OF PRACTICAL INTEREST.

THE Council desire to express their readiness to receive at all times questions which are of general interest, and in regard to which it would appear desirable to assimilate the practice of

bankers.

The following questions have been received, and answers are appended, which, after careful deliberation, the Council have approved :

Deposit-Liability of Banker.

QUESTION I.: A banker makes advances to a client on the deposit with him under "memo of deposit" of the certificates of certain sbares registered in his (i.e. client's) name in a limited liability company, which we will designate the "A" company upon which a contingent liability exists for uncalled capital. The banker forthwith serves notice upon the "A" company of the deposit of these shares with him as a security for advances. Is the "A company bound to register such notice against the shares in their books?

ANSWER:-By the Companies Act, 1863, Section 30, it is enacted that "No notice of any trust express, implied or constructive, shall be entered on the register, or be receivable by the registrar, in the case of companies under this act, and registered in England or Ireland."

Assuming that the company was registered under this act it is not bound to enter the notice on the register, indeed it is precluded by the above section from doing so. If the banker wishes to prevent a transfer of the stock without notice to him he should serve the notice prescribed by the order of court issued under the authority of the Judicature Act.

Banker's lien-Bankruptcy of Client.

QUESTION II. In the event of the death or bankruptcy of the client would the banker referred to in Question I. possess any legal claim upon those shares, either without having served notice of their deposit with him or by virtue of having given such notice or by the powers under the "memo of deposit"?

ANSWER:-In the event of the death of the client the banker would have the same claim upon the shares as against his executors or administrators as he had against the client himself, but in the event of bankruptcy the banker would only have a claim upon the shares if he had served the company with notice of his security.

Otherwise they would remain in the order and disposition of the client within the meaning of the Bankruptcy Act, and pass to the trustee in bankruptcy.

Company in Liquidation-Liability of Banker.

QUESTION III. In the event of such notice having been registered in the books of the "A" company and of the company subsequently going into liquidation, would that registration involve any liability upon the banker for the payment of the uncalled portion of the capital of the company in liquidation?

ANSWER: The banker would not be liable unless he were registered as a shareholder.

Deposit-Drawn Bond.

One

QUESTION IV.: A had an advance from his country bankers, B, who held as security for it, with other securities, certain foreign government bonds, which were included in a mortgage deed to the bank. of the bonds was drawn for payment, and the coupon due on the same day the bond was advertised to be payable was on presentation by B, duly paid. B had no notice or knowledge that the bond had been drawn until the next coupon, which became due six months afterwards, was presented, when the amount of the drawn bond was at once collected and placed to A's account. A thereupon claimed from B interest on the amount of the bond from the time it was payable under the drawing to the time it was really collected, a period of about six months, on the ground that it was B's duty to discover the fact that a bond mortgaged to them had been drawn. Can A under these circumstances enforce his claim against B for the six months'- -or thereabouts-interest?

ANSWER:-Such a claim as that supposed in the question could only be maintained upon the assumption that there had been neglect of duty on the part of the bankers.

We do not think that, in the absence of special agreement, it was any part of their duty either as bankers or as mortgagees to discover the fact of the bond having been drawn. Consequently B's claim cannot, in our view, be supported.

Stamp Receipt.

QUESTION V.: Is a banker bound by the Stamp Act to put stamps on all acknowledgments by letter of money received by post or otherwise for the credit of accounts other than that of the senders?

ANSWER:The banker is bound to stamp such acknowledgments as they do not come within the exemption, which is in the following words: "Receipt given for money deposited in any bank or with any banker to be accounted for, and expressed to be received of the person to whom the same is to be accounted for." But such acknowledgments as to a treasurer of money for the charity for which he acts, or to an agent who remits for an estate account or a receipt in the words, "Received for the credit of John Smith," this enclosed in an envelope to Henry O'Brien," do not require a stamp.

"

Bill of Exchange-Bankruptcy of Acceptor before Maturity.

QUESTION VI.: D accepts a bill drawn upon him by C, which will mature on 1st May. C discounts the bill with his bankers, but before maturity, D becomes bankrupt. Can the bankers legal'y compel C to take it up at once?

ANSWER:-They cannot.

Bill of Exchange-Bankruptcy of Drawer and Acceptor.

QUESTION VII.: Suppose in the case referred to in the last question, both parties become bankrupt before the maturity of the bill, but C has a sufficient balance at his credit, can the bankers debit his account with the acceptance before due, to the detriment of the other creditors?

ANSWER:-They cannot, as the debt is not yet due, but they would not part with the funds until it becomes due.