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The advance last year was to a great extent due to minerals, particularly coal, but even without these the average of the remaining commodities would have been 69 against 64 in 1899, or 8 per cent. higher. In fact the average prices of most articles were higher, a few remained practically unchanged, and only wool and inferior tea ruled lower.

The monthly fluctuations were thus:

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The index number at the end of the year was still 14 per cent. higher than at the end of 1899. The changes in the month of December were-better prices for meat, but a break in iron prices and a lower export value of coal. Taking articles of food and materials separately, the index numbers compare thus (1867-77-100):—

1899 1900.

Food
Materials

1878-87 1890-99 1895 1896 Average. Average. Feb. July 84 68 68.8 60.0 76 64 57.0 58.6

Dec. Feb. Nov. Dec. 65.1 65.8 69.1 69.2 77.5 81.9 77.4 76.5

Articles of food are now 6 per cent. higher, materials 1 per cent. lower than a year ago.

The position of the six separate groups of commodities at the end of the last two years and in comparison with former periods is illustrated by the following index numbers (1867-77=100) :

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Corn was lower in 1899, while all other groups had risen, and the closing prices of 1900 show some improvement, principally for maize and potatoes, while wheat is only slightly higher. All kinds of meat advanced, particularly mutton, pork and bacon. Sugar was higher till September, but declined afterwards in view of large crops; Brazil coffee realised better prices than in the previous year, but tea was cheaper, and the average import price of the year is the lowest on record. Pig iron was dear up to November, and touched in April 77s. 10d. per ton for Scotch, the highest price since 1874, but it closed lower than a year ago. Copper was fairly steady, while tin experienced great variations between £112 and £152 per ton; both metals were a little higher at the end of the year than in 1899. Lead unchanged. Coal was excessively dear, and the average export value-16s. 9d. per ton against 10s. 9d. in 1899was only exceeded in 1873 and 1874; prices, however, have lately given way. Among textiles we have to note much higher prices for cotton, which rose from 4d. per lb. for middling American to 7d., the highest point in September, from which it declined again to 54d. Manila hemp, which had reached the exorbitant price of £64 per ton in December, 1899 (against £17 at the end of 1897, before the American War), declined gradually to £29.

Fine wool suffered a fall of 45 per cent., unprecedented within so short a period, and coarse wool dropped 20 per cent. At the end of the year cotton and flax were much higher; jute was a little lower; and wool, silk and hemp

very much lower than a year ago. In the group of sundry materials

linseed-oil was very dear; palm oil, olive oil, soda and timber were also dearer at the end; hides, petroleum and indigo cheaper.

The average price of silver was 284d. per oz., as against 27 d. in 1899. It stood at 27 d. at the end of 1899 and remained very steady between 27jd. and 28d. during the first half of the year; it improved later on and touched 301d. in October, closing at 29 d. per oz. in December. The index numbers are as follows (60-84d. per oz. being the parity of 15 silver to one gold=100):Average, 1899

1900

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45.1 46.4

End December, 1899 44.7

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Silver was favoured by a very good Indian demand, and dependency were greater than at any time since 1877. large quantity, but Russia received very little.

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The production of gold, which reached about £63.000,000 in 1899, was considerably less owing to the stoppage of Transvaal mining, and remained probably under £50,000,000.

The great trade activity which characterized the year 1899 continued throughout the greater part of the closing year of the century, but the result of the latter was not by far so favourable as that of its immediate predecessor. No doubt splendid profits were made in some branches, but in others there were rude disappointments. The year opened with a certain amount of gloom in this country on account of the reverses in South Africa, with a high rate of interest here, and monetary stringency in Germany. The gloom was soon relieved by military successes, but the long-hoped-for reopening of the mines, which might have improved the monetary position, had to be postponed and is not yet in sight. Besides the South African War we had the Indian famine and the difficulties in China, which had a more or less unfavourable influence on trade, but perhaps the worst was the high price of coal. While adding enormous amounts to the incomes of mine owners and to the wages of miners, the high level of prices heavily handicapped many industries. Shipbuilding continued on a large scale, though the outturn may have been a little less than in the previous year; the engineering industries were mostly fully employed until the autumn, when the position became less satisfactory. The cotton trade was good, although hampered to some extent by great fluctuations of prices owing to corners and the uncertainty of supplies, but the wool trade was disastrous, suffering immense losses through the unprecedented fall in prices of fine wool. The silk industry was also unfavourably affected and sustained great losses. The harvest was not quite so good as in the previous year, but farmers were to some extent compensated by slightly better prices for corn and higher prices for meat. Wages remained high, but there was a lack of employment in certain industries towards the end of the year. Prosperity continued in the United States, and this led to a great boom in American Railway securities. The new issues of capital in the United Kingdom were larger than ever, a considerable portion, however, was due to Government loans.

The wave of prosperity may, as many believe, already be on the decline, but there are also points which make the outlook more hopeful. There is the splendid position of the United States, improved conditions in India, and the probability that hostilities in South Africa and China will soon come to an end. With peace restored and the mines reopened, trade may receive a fresh and important stimulus.

Yours faithfully

A. SAUERBECK.

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Where trustees are expressly authorised to retain or invest in convertible securities, such as bonds transferable by delivery with coupons attached, they may deal with them in the way usual with prudent men of business, and may deposit them in their joint names with the bankers to the trust upon a simple acknowledgment by the bankers of the receipt thereof.

Field v. Field, [1894] 1 Ch. 425, distinguished.

Adjourned Summons.

This was an application by three of the trustees of the will of C. G. S. de Pothonier for directions as to the safe custody and control of bonds and debentures transferable by delivery and held by them on the trusts of the said will.

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The testator, who died in December, 1899, after appointing his wife and the three plaintiffs executors and trustees, and giving numerous specific and pecuniary legacies, gave the residue of his real and personal estate to his trustees upon trust to realise and convert the same into money with such powers and dis"cretions as if they were absolute owners thereof, and with power "to continue all investments made by me, and generally to manage "and deal with my estate and the realisation and postponement of "realisation thereof as they in their absolute discretion may think "fit"; the residuary estate was then settled upon trust for the benefit of the testator's wife for her life or widowhood, his only daughter for her life, with remainder to her children or issue. The will also contained the following clause: "As regards all moneys "subject to investment under my will my trustees are to have full power to continue all investments made by me whether of a "nature authorised for investment or not without incurring any responsibility."

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A large portion of the estate of the testator was at the time of his death invested in bonds of American railroads payable to bearer with coupons for dividends attached; it was considered desirable, as the trustees were expressly authorised so to do, to retain about £50,000 worth of these investments, and the trustees proposed to deposit these and other bearer bonds with the Union Bank of London, Limited, with whom it was intended to keep the

banking account of the trust estate, but, having regard to the judgment in "Field v. Field " (1) as to the duty of trustees holding bonds and certificates payable to bearer, the present summons was taken out. The widow and the infant daughter were defendants.

Affidavits by two well-known bank managers, as to the practice prevailing in the City of London amongst bankers and their customers with regard to the custody of bonds of foreign governments or of railroad or other companies payable to bearer, were filed, which stated as follows

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"It is a common practice of investors to deposit such bonds with their bankers upon a simple acknowledgment by the bankers "of the receipt thereof. In such cases the bankers accept the deposit subject to such responsibility as is imposed upon them by "law for their safe custody, and they collect the coupons for their customers, and credit them to the account of the customers, as "and when received. From my own knowledge of the course of "business in the City, I say that it is a very common practice amongst men of business, and joint stock companies who hold "large quantities of bonds, to deposit them with their bankers upon the above terms, and I believe that such practice offers to the owner of the bonds as good a security for the safe and proper "custody of such bonds as can be obtained, and is at the same time "the most convenient course the bond-holder can adopt as regards "the collection of interest on the bonds. If bonds to bearer are 'deposited with bankers in a locked box or other closed receptacle, "the bankers do not give any receipt for the bonds, but only a "general acknowledgment of receipt of the box, and decline to accept any responsibility for its contents."

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CLAUSON, for the plaintiffs. After the observations at the end of the judgment in "Field v. Field" (1), the trustees felt some difficulty in deciding whether they were justified in depositing the bonds with a bank, as a mere agent; the bankers would be only gratuitous bailees-"Giblin v. McMullen" (2)—and would not be bound to exercise more than the ordinary care, and would only be liable for loss through negligence: Johnston's Claim. (3) In Mendes v. Guedalla" (4) trustees were allowed to deposit bonds of this kind in a box at a banker's on account of all the trustees, one being allowed to keep the key in order to obtain the coupons: this, of course, is very inconvenient; besides, the evidence shows that the trustees really get a better security by delivering the bonds direct to the bankers than by placing them in a box for custody with them, in which case a receipt for the box only is given. The former course seems to be the usual one adopted

(1) [1894] 1 Ch. 430.

(2) (1868) L. R. 2 P. C. 317.

(3) (1871) L. R. 6 Ch. 212.
(4) (1862) 2 J. & H. 259.

by business men. Trustees are only bound to exercise the same care that a prudent man of business would use with securities of this class.

(Lewin on Trusts, 10th edit., p. 317, and Grant's Law of Banking, 5th edit., p. 189, were also referred to.)

WHINNEY, for the testator's infant daughter, raised no objection, and left the matter to the Court.

COZENS-HARDY, J. The law does not impose upon trustees more than the exercise of that ordinary care and diligence which a competent and prudent man of business would exercise in his own affairs that is settled by "Speight v. Gaunt." (1)

Now here the testator has done that which, speaking for myself, I think an extremely imprudent thing. He has authorised the retention of bearer securities, and one of the trusts of the will is to deal with these bearer securities, which are securities with coupons attached which have to be cut off at regular periods. It is idle and ridiculous to say that securities of that nature must be kept in a box with four keys, not to be opened to cut off the coupons except when all four trustees are present together. That is not a businesslike transaction in a matter of this kind. I think the trustees are perfectly justified in dealing with American bonds and securities of this nature in the way which is customary among prudent men of business. As I understand, the trustees have a current trust account with their bank. The bankers are wellknown bankers. It is the ordinary usage of bankers, with whom bonds of this nature are deposited, to discharge the duty of cutting off the coupons when due, collecting them, and placing the amount to the credit of the customer's account. I think the trustees would be perfectly justified in depositing the bonds with the bankers upon those terms, which will not justify the bankers in parting with the bonds except under the authority of all the trustees, but will justify the bankers in cutting off the coupons and collecting them as and when they are due, in the ordinary course. This seems to be entirely in the spirit of, if not sanctioned by the express language of, Wood, V.-C., in "Mendes v. Guedalla " (2), and I do not think that Kekewich, J., in "Field v. Field (3) really intended to depart from that. I observe that Mendes v. "Guedalla" (2) was not cited to Kekewich, J., and he was directing his mind to the question whether trustees ought to allow bonds of this nature to remain in the hands of a solicitor. That I should unhesitatingly answer in the negative. It is no part of a solicitor's duty to cut off these coupons and collect them, while it is part of the duty of the banker. My judgment is that it is part of the duty which he undertakes for his customer. The order should, I think, (2) 2 J. & H. 259.

(1) (1883) 9 App. Cas. 1.
(3) [1894] 1 Ch. 430.

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