BILLS OF EXCHANGE.

A Bill of Exchange is an order addressed to some person at a distance, directing him to pay a certain amount to the person in whose favor the bill is drawn, or to his order. A merchant in Chicago, owing a sum of money for goods to a merchant in London, instead of remitting money or goods to the amount of the debt, goes into the bank and buys from the banker, who keeps an account in London, a bill of exchange for the amount, and sends it to his creditor; in this way the creditor gets payment from a person in his own city, generally a banker, who keeps an account with some American banker for the purpose of paying such drafts. Letters of Credit have come largely into use, of late years, with tourists abroad, though bills of Exchange are yet frequently used by persons who wish to travel in foreign countries. Thus, if A, an American, wishes to travel over Europe, he estimates the expense of the journey, and finds it to be, perhaps $3.000. To carry this with him, in gold, would be unsafe and troublesome. He therefore goes to a banker and gets a bill of exchange for a thousand dollars, which is the amount he thinks he may require while in England. The banker also having money deposited in Paris, perhaps, and also in Vienna, he takes a bill for a thousand on a bank of each of those places. With these bills in his posSession, he commences his journey, with only money in his pocket sufficient to pay the incidental expenses of the trip, and draws on the London, Paris and Vienna bankers as occasion requires. The object of this arrangement is to secure travelers against loss, the bankers affording this accommodation to merchants and travelers for a percentage, which is paid them when they sell the bill of exchange.

In issuing these bills of exchange, it is customary for the banker to issue a set of two or three, worded nearly alike. One of these is kept by the purchaser, to be presented by him to the foreign banker, the other two are transmitted by mail, at different times, to the same bank. Thus, if the first bill is lost, the second or third, that go by mail, will still be available, and the holder can obtain the money without being subjected to the delay of writing to America for another bill.

DRAFTS.

A draft may properly be called an inland bill of exchange. It is customary for the bankers in all large cities, to make deposits with bankers in other large cities, and also for the banks in the interior towns to make deposits with some one bank in the nearest metropolis. Thus, the bankers of Milwaukee, Chicago and St. Louis, have deposits in New York, so that any person wishing to pay a certain sum of money to another person, East, has only to step into a bank and purchase a draft for the amount on New York, which he sends by mail to the creditor, who can usually get the amount the draft calls for, at the nearest bank.

The banker, as with bills of exchange, charges a certain commission to pay him for his trouble, which is termed "Exchange." There being less liabilitity to lose these inland bills, only one is usually issued. The merchant in the interior town, or other person, wishing to send money to Milwaukee, St. Louis, Cincinnati, or any other large city, can generally buy, of their home bank, drafts, thus, on the nearest metropolis, by the payment of the exchange.

The object in purchasing a draft is to avoid the danger of loss when sending money from one part of the country to another. Such form is worded as follows, and is known as a blank draft:

In making collections of money, drafts are frequently used, which are usually sent through the banks. A sight draft is used where the person upon whom it is drawn is expected to pay the debt immediately. In the time draft the same is made payable in a certain number of days.

SIGHT DRAFT.

$200.

CANTON, ILL, July 10, 1875. At sight, pay to the order of Higgins & Co., Two Hundred dollars, value received, and charge the same to our account. To J. D. SMITH, Chicago.

LELAND & CO.

$50

TIME DRAFT.

New Orleans, La., April 4, 1876,

Thirty days after date, pay to the order of Cobitt & Co.,

Fifty dollars, value received, and charge to our account.

To HOWE & Co., New York.

JONES & CO.

ACCEPTANCE.

The acceptance of a draft is effected by the drawee, or the person upon whom the same is drawn, if he consents to its payment, by writing across the face of the draft thus: "Accepted July 22, 1874. U. S. Grant."

DAYS OF GRACE.

Three Days of Grace are allowed upon Promissory Notes and Bills of Exchange in the following States, according to laws in force, January 1, 1875:

Colorado,

Maryland,

Utah,

Louisiana,

New York,

Maine,

Wisconsin.

North Carolina,

NOTE.-In States not enumerated here, the Commercial Laws of the States regulate in regard to Grace, Protest and Notice,

LANDLORD AND TENANT.

A person leasing real estate to another is termed a landlord; the person occupying such real estate is known as a tenant. The person making the lease is known in law as the lessor; the person to whom the lease is made, as the lessee. No particular form of wording a lease is necessary. It is important, however, that the lease state, in a plain, straightforward manner, the terms and conditions of the agreement, so that there may be no misunderstanding between the landlord and tenant.

It is essential that the lease state all the conditions, as additional verbal promises avail nothing in law. It is held, generally, that a written instrument contains the details, and states the bargain entire, as the contracting parties intended.

The tenant can sub-let part, or all, of his premises, unless prohibited by the terms of his lease.

A lease by a married woman, even if it be upon her own property, at common law, is not valid; but, by recent statutes, she, in many States, may lease her own property and have full control of the same; neither can the husband effect a lease that will bind her after his death. His control over her property continues only so long as he lives.

Neither a guardian nor a minor can give a lease, extending

beyond the ward's majority, which can be enforced by the lessee; yet the latter is bound unless the lease is annulled.

If no time is specified in a lease, it is generally held that the lessee can retain possession of the real estate for one year. A tenancy at will, however, may be terminated in the Eastern States by giving three month's notice in writing; in the Middle and Southern States, six months; and in the Western States, one month; though recent statutes, in some States, have somewhat modified the above.

The lease that specifies a term of years without giving the definite number is without effect at the expiration of two years. A lease for three or more years, being signed by the Commissioner of Deeds, and recorded in the Recorder's office, is an effectual bar to the secret or fraudulent conveyance of such leased property; and it further obviates the necessity of procuring witnesses to authenticate the validity of the lease.

Duplicate copies of a lease should always be made, and each party should retain a copy of the same.

A new lease invalidates an old one.

A landlord misrepresenting property that is leased, thereby subjecting the tenant to inconvenience and loss, such damages can be recovered from the landlord by deduction from the rent.

A lease on property that is mortgaged ceases to exist when the person holding such mortgage forecloses the same.

A landlord, consenting to take a substitute, releases the first

tenant.

When there is nothing but a verbal agreement the tenancy is understood to commence at time of taking possession. When there is no time specified in the lease, tenancy is regarded as commencing at the time of delivering the writings.

If it is understood that the tenant is to pay the taxes on the property he occupies, such fact must be distinctly stated in the lease, as a verbal promise is of no effect.

PARTNERSHIP.

An agreement between two or more persons to invest their labor, time and means together, sharing in the loss or profit that may arise from such investment, is termed a partnership.

This partnership may consist in the contribution of skill, extra labor, or acknowledged reputation upon the part of one partner, while the other, or others, contribute money, each sharing alike equally, or in fixed proportion, in the profits, or an equal amount of time, labor and money may be invested by the partners, and the profits equally divided; the test of partnership being the joint participation in profit, and joint liability to loss.

A partnership formed without limitation is termed a general partnership. An agreement entered into for the performance of