Volume 2 - ElectricCanadian.com

DEVELOPMENT OF CANADIAN BANKING 421receipt given by a warehouseman, miller, wharfinger, masterof a vessel or carrier, for cereal grains, goods, wares ormerchandise stored or deposited, or to be stored or deposited,in any warehouse, mill, cove or other place in the province,or shipped in any vessel or delivered to any carrier for carriage,might by endorsement thereon by the owner of, or personentitled to receive such cereal grains, goods, wares or merchandise,be transferred to any incorporated or chartered bank inthe province, or to any private person, as collateral securityfor the due payment of any bill of exchange or note discountedby such bank in the regular course of its banking business,or any debt due to such private person; and being so endorsedshould vest in such bank or private person all the right andtitle of the endorser to or in such cereal grains, goods, waresor merchandise, subject to the right of the endorser to havethe same re-transferred to him if such bill, note or debt werepaid when due."The Act made provisions enabling the bank or privateperson to sell the goods in question in the event of defaultin payment of the bill, etc., and it contained the proviso thatno transfer of any such bill of lading, or receipt, should bemade to secure the payment of any bill, note or debt, unlesssuch bill,note or debt was negotiated or contracted at thesame time with the endorsement of such bill of lading orreceipt."It will be observed that this Act applied both to incorporatedbanks and to private persons. There were but fivekinds of persons entitled under it to give a receipt for goods,which might be transferred as collateral security, viz., aetc.,warehouseman, a miller, a wharfinger, a master of a vessel ora carrier."It will also be observed that no transfer of the bill oflading or receipt could be made to secure the payment of anybill, note or debt, unless such bill, note or debt was negotiatedor contracted at the same time with the endorsement of thebill of lading or receipt.