70 Pa. 474 | Pa. | 1872
The opinion of the court was delivered, May 18th 1872, by
The law merchant recognises clearly a distinction in many respects between checks on banks and ordinary bills of exchange. One difference is, that when the former are payable on demand or at sight no days of grace are allowed. The same rule holds when they are post-dated: Byles on Bills 14, note; 3 Kent’s Com. 104, note; In re Brown, 2 Story’s Reports 502; Daniel v. Kyle, 1 Kelly 304; Mohawk Bank v. Broderick, 10 Wend. 405; Salter v. Burt, 20 Wend. 205; Andrew v. Blackly, 11 Ohio (N. S.) 89; Westminster Bank v. Wheaton, 4 Rhode Island 30. Whether it applies also to checks payable at a future day named, is a question upon which there is a contrariety of opinion and decision. Mr. Justice Story says: “ The argument pressed is that checks are always and properly payable on demand, and that when payable at a future time, they become to all intents and purposes inland bills of exchange. But I am not, by any means, prepared to admit the validity or force of this distinction ; and no case has been cited which in my judgment satisfactorily establishes it. A check is not less a check, because it is post-dated, and thereby becomes in effect payable at a future and different time from that on which it is drawn or issued. This is sufficiently apparent from the case of Allen v. Reeves, 1 East 435.” That was the determination of a question arising under the Stamp Acts, and it was there held that a post-dated check was not a draft payable on demand but at a future day, and therefore liable to the duty. Judge Story adds: “ It (a check) is usually also made payable on demand; although I am not aware that this is an essential requisite. The distinguishing characteristics of checks, as contradistinguished from bills of exchange, are (as it seems to me) that they are always drawn upon a bank or banker ; that, they are payable immediately on presentment, without the allowance of any days of grace, and that they are never presentable for mere acceptance, but only for payment:” 2 Story’s Rep. 512. He quotes Chancellor Kent as concurring in these views: 3 Kent 104, n.
The ordinary commercial form of a bill of exchange payable at a future day is at so many days’ or months’ notice after date or
Judgment affirmed.