BANK POST BILL. A Bank Post Bill may be described as a promissory note issued by the Bank of England (which is the only bank in this country that issues them) undertaking at, usually, seven days after sight to pay " this my sole bill " to a specified person or order. The following shows the form of one of these bills :— No . London, February 1, 1910.
At seven days' sight I promise to pay this my sole Bill of Exchange to or order, fifty pounds sterling value received of Accepted February 1, 1910.
For the Governor and Company of the Bank of England.
Although practically a promissory note, it may also be described as a bill of exchange drawn and accepted by a bank. The acceptance may be on the bill when it is issued, but if it is to be sent into the country it may be unaccepted when issued.
When indorsed by the payee the bill is payable to bearer. They are issued for any amounts from t10 to I:1,000.
Bank Post Bills of the Bank of England do not take days of grace.
Bank Post Bills were first issued in the year 1738. At that time highway robberies were very frequent, and it appears that these bills were originated on the suggestion of the Postmaster-General so that, being payable at seven days after sight, in case of the mails being robbed, the losers might have time to give notice of their loss and have payment of the bills stopped.
The following is a specimen of an Irish Bank Post Bill :— Bank Post Bill (under compo sition for X. & Bank of Ireland, stamp duty.) Dublin , 1910.
Seven days after date pay to the order of the sum of sterling. On account of the X. & V. Bank of Ireland, M a nager.
To A, & B. Bank, Ltd., London.
Bank Post Bills of Irish banks may be drawn for and upwards, payable at days after date or after sight, and they take the usual three days' grace.