OCR Text |
Show NEED FOR UNIFORMITY IN BUSINESS LAWS How Collection of Just Debts May Ee Prevented by Differing State Statutes. An effort to bring about better coordination co-ordination and greater uniformity among state laws dealing with business busi-ness and banking Is being made by the American Bankers Association. It Is pointed out that, although the country is a unit commercially, and citizens of any one state may do business busi-ness that reaches all, over the country, coun-try, most laws governing business transactions are made by the different differ-ent states, with application limited to their own local jurisdictions and often in conflict with laws in other states. It Is held that state laws should be uniform so that the same transaction will not be subject to different sets of rules according as state laws differ. To illustrate the disadvantages of conflicting laws, the following illustration illus-tration Is given: Mr. Jones lives in New York where the statute of limitations limita-tions outlaws a note in six years. He falls into the error of assuming that the same rule prevails everywhere. He visits Maryland and loans $1,000 to his friend, Mr. Smith, taking a promissory note. As the note carries interest Mr. Jones is In no hurry for his money and he believes Smith to be financially responsible. Finally at the end of four years Jones concludes he has loaned Smith the money long enough and seeks to collect the note from him. But Smith can deny liability liabil-ity and point to the statute of Maryland Mary-land which Jones is surprised to learn outlaws a note after three years. Changes Recommended The particular subjects of legislation legisla-tion recommended by the association for enactment by State legislatures during 1923 include uniform acts on negotiable instruments, bills of lad- ' ing, warehouse receipts, stock trans- j fer, and fiduciaries. Under the head of laws for better protection of banks in particular j transactions are proposed measures dealing with limiting liability on cer- i tified check; instruments based on gambling or usurious consideration; time limit on stop payment; payment ' of stale check; adverse claim to bank deposit; payment of forged or raised i check; deposits in two names; de- ! posits in trust; competency of bank ! and corporation notaries; non-pay- 1 ment of check through error; Satur- : day afternoon bank transactions, and forwarding check direct to payor- j Under the Federal Reserve and ' foreign banking are recommended laws on membership of 6tate Institutions Institu-tions In Federal Reserve System, and ; foreign banking. Penal laws proposed pro-posed deal with false statements for credit; slander and libel of bank; checks or drafts without funds, and burglary with explosives. |