Home >> Business Encyclopedia And Legal Adviser >> Bank Rate to Clearing >> Bill of

Bill of

bills, foreign, british and banks

BILL OF STORE.—Whatever may have been the origin of this term, and however inexpressive it may be of the purposes for which it is used, it has acquired a distinct legal signification, and the name is retained as a designation familiar to the mercantile world. By the law regulating the Customs, reimported British goods are, as regards duty and the general conditions of their admission into the United Kingdom, dealt with as foreign goods. They may, however, be entered as British provided the reimporta tion is within five years after their exportation, and the Commissioners of Customs are satisfied that they are British goods returned. In such case the entry is called a Bill of Store, and should be made in accordance with the prescribed form. All foreign goods on reimportation into the United Kingdom, whether they have paid duty on their first importation or not, are liable to the same duties, rules, regulations, and restrictions as if then imported for the first time.

BILL-BROKER.—There are two persistent facts in our modern com mercial system : the one is that manufacturers, traders, and the mercantile community generally, working as they do to a very large extent upon credit, eagerly avail themselves of the medium of bills of exchange in order to obtain and extend their credit ; the other is that the banks, which are the reposi tories of so much of the uninvested capital of the public, seek means for its profitable investment, and at the same time for the creation of a reserve, and find such means in bills. There is thus created on the one hand a great

supply of bills, and on the other, a great demand for them, the bill-broker forming the link between the supply and the demand. He must not be confounded with the money-lender, or the ordinary bill-discounter ; he is rather a banker. The banks, in effect, invest with him large sums of money upon the security of a never-ceasing supply of bills, payment of which he personally guarantees, and the best class of merchants furnish him with the bills. The banks leave all responsibility of selection of the bills to the broker, it being sufficient for them that he carries on a well-established business, and that his name is indorsed on the bills. It is therefore an essential part of the bill-broker's business that he should have an intimate knowledge of the financial worth and credit of the names on the bills he discounts. For a bill to be dishonoured would be for him to pay ; and it is a perfect illustration of the remarkable financial stability of the commercial classes generally that the bill-broker can exist. His rate of discsmut is about the market rate only, and the total amount of bills he deals in would be at times enormous; yet the average of dishonoured bills of this class is such that he can not only keep solvent, but even make large profits. For dealings in foreign bills, see FOREIGN EXCHANGE.