BILLITON (Dutch Blitoeng), an island of the Dutch East Indies, between Banka and Borneo, from which it is separated respectively by Caspar and Karimata straits. Politically it is under an assistant resident. It is roughly circular in form, its extreme measurements being 55 m. by 43, and its area 1773 sq. m. In physical structure and in products it resembles Banka; its coasts are sandy or marshy; in the interior an extreme elevation of 1670 ft. is found. The geological formation is Devonian and granitic, with laterites. The mean annual rainfall is heavy, 102 to 126 in. The day temperature varies from 80° to 87° Fahr. The nights are very cool. Like Banka, Billiton is chiefly noted for its production of tin, the island forming the southern limit of the occurrence of this metal in this locality. There are upwards of 80 mines, which employ some 7500 workmen, and have produced more than 6500 tons of tin in a year. Iron is also worked. On the rocks along the coast are found tortoises, trepang and edible birds’ nests, which are articles of export. The forests supply wood of different kinds for boat-building, in which the inhabitants are expert; and also provide trade in cocoa-nuts, sago, gum and other produce. The population is about 42,000, of whom some 12,000 are Chinese. The natives belong to two classes, the Orang Darat, the aborigines, thought to be akin to the Battas and other branches of the pre-Malayan or Indonesian race; and the Orang Sekah, people of Malayan stock who live in boats. The coast is as a rule difficult of access, being beset with rocks and coral banks, and the best harbour is that at the chief town of Tanjong Pandan on the west coast. The island was formerly under the sultan of Palembang, by whom it was ceded to the British in 1812. As no mention was made of it in the treaty between the British and Dutch in 1814, the former at first refused to renounce their possession, and only recognized the Dutch claim in 1824. Till 1852 Billiton was dependent on Banka.
BILL OF EXCHANGE, a form of negotiable instrument, defined below, the history of which, though somewhat obscure, was ably summed up by Lord Chief Justice Cockburn in his judgment in Goodwinn v. Robarts (1875), L.R. 10 Ex. pp. 346-358. Bills of exchange were probably invented by Florentine Jews. They were well known in England in the middle ages, though there is no reported decision on a bill of exchange before the year 1603. At first their use seems to have been confined to foreign bills between English and foreign merchants. It was afterwards extended to domestic bills between traders, and finally to bills of all persons, whether traders or not. But for some time after they had come into general employment, bills were always alleged in legal proceedings to be drawn secundum usum et consuetudinem mercatorum. The foundations of modern English law were laid by Lord Mansfield with the aid of juries of London merchants. No better tribunal of commerce could have been devised. Subsequent judicial decisions have developed and systematized the principles thus laid down. Promissory notes are of more modern origin than bills of exchange, and their validity as negotiable instruments was doubtful until it was confirmed by a statute of Anne (1704). Cheques are the creation of the modern system of banking.
Before 1882 the English law was to be found in 17 statutes dealing with isolated points, and about 2600 cases scattered over some 300 volumes of reports. The Bills of Exchange Act 1882 codifies for the United Kingdom the law relating to bills of exchange, promissory notes and cheques. One peculiar Scottish rule is preserved, but in other respects uniform rules are laid down for England, Scotland and Ireland. After glancing briefly at the history of these instruments, it will probably be convenient to discuss the subject in the order followed by the act, namely, first, to treat of a bill of exchange, which is the original and typical negotiable instrument, and then to refer to the special provisions which apply to promissory notes and cheques. Two salient characteristics distinguish negotiable instruments from other engagements to pay money. In the first place, the assignee of a negotiable instrument, to whom it is transferred by indorsement or delivery according to its tenor, can sue thereon in his own name; and, secondly, he holds it by an independent title. If he takes it in good faith and for value, he takes it free from “all equities,” that is to say, all defects of title or grounds of defence which may have attached to it in the hands of any previous party. These characteristic privileges were conferred by the law merchant, which is part of the common law, and are now confirmed by statute.
Definition.—By § 3 of the act a bill of exchange is defined to be “an unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at a fixed or determinable future time a sum certain in money to or to the order of a specified person, or to bearer.”[1] The person who gives the order is called the drawer. The person thereby required to pay is called the drawee. If he assents to the order, he is then called the acceptor. An acceptance must be in writing and must be signed by the drawee. The mere signature of the drawee is sufficient (§17). The person to whom the money is payable is called the payee. The person to whom a bill is transferred by indorsement is called the indorsee. The generic term “holder” includes any person in possession of a bill who holds it either as payee, indorsee or bearer. A bill which in its origin is payable to order becomes payable to bearer if it is indorsed in blank. If the payee is a fictitious person the bill may be treated as payable to bearer (§7).
The following is a specimen of an ordinary form of a bill of exchange:—
London, 1st January 1901.
£100
Three months after date pay to the order of Mr J. Jones the sum of one hundred pounds for value received.