You are hereby authorized to draw on IRVING BANK-COLUMBIA TRUST your drafts to be accompanied by Invoice, Consular Invoice and full set of Steamer Bills Insurance Certificate evidencing shipment of Three hundred that 350 ponds Aniline Dye at $5.65 per pound, C.I.F. New York re merch and April 1923. SPECIM Marine and warrisk Insurance is to be effected by you. The shipments must be made and drafts drawn not later than April 30,1923. All drafts must be marked: "Drawn under Irving Bank-Columbia Trust Company, New York, Irrevocable Credit No. 5001 One negotiable Bill of Lading of each set and Consular Invoice must be forwarded direct to the Irving Bank Columbia Trust Company, New York, immediately by the bank negotiating documents. All the remaining documents must accompany the drafts. We hereby agree with the drawers, endorsers and bona fide holders of the drafts drawn under and in compliance with the terms of this credit, that the same shall be duly honored by the above named drawees on presentation and surrender of the documents. F. Yours very truly, Assistant Manager Foreign Division. 1213 25 1-29 A dollar credit. This is an irrevocable import credit issued to an Italian exporter. It was arranged by a New York importer for a purchase of dyes. covering about 400 bags of American Granulated Sager, shinment of which is to be effected during the path of arch 1923 from New York to atras. C.I.F. SPECIME! The following documents (complete Steamer Bills of Lading sued to or cer Invoice less otherwise stated) must be presented: endorsed in blank. Insurance: Certificates issued by Insurance Companies covering marine and warrisk. Unless "on board" 3111s of Lading are presented, insurance must cover steamer named in Bills of Lading "and/or following steamer". All documents are to be surrendered to us upon payment. Drafts must clearly specify the number of this Credit, and be presented at this Company on or before Larch 31. 1923. The provisions printed on the back hereof are incorporated as a part of the Credit in so far as they are not inconsistent with the terms above stated. Any amendment of the terms of the Credit, must be in writing over an authorized signature of this Company. Yours very truly The terms indicated herein must be strictly observed. If impossible to comply with same, please communicate with us and/or the consigee before making shipment with a view to obtaining modification of the conditions to conform to the terms of sale. Assistant Manager Foreign Drvision 1760 15 1-23 An irrevocable export credit. A Greek importer has obtained this credit through his bank in Greece to cover the purchase of sugar from a New York exporter. The New York bank is obliged to pay the draft if the terms of the credit are complied with. the acceptance in the market for the credit of the Buenos Aires bank. Similarly, a manufacturer of the United States selling hardware to a merchant in Rio Janeiro suggests or requires the arrangement of a dollar credit through a Rio bank. The Brazilian arranges the credit exactly as the New Yorker did, and the original letter and a copy are sent to the manufacturer and the New York bank, respectively. The manufacturer draws a draft upon the New York bank, and attaches the shipping documents. The New York bank upon the promise of the Brazilian bank to pay, lends its credit by accepting and detaching the documents. The manufacturer can now sell the acceptance to the highest bidder and get his money. The documents are sent to the Brazilian bank, so the buyer there can arrange to get the goods. Before the acceptance is due in New York the Brazilian bank forwards for its payment the funds which it has previously received from the buyer. ✓ 164. Drafts for traveling. For short-range travel a supply of currency and a check book are sufficient. For long-distance travel one needs so much currency as to make it unsafe, and among strangers a check book is unwelcome. A few large banks sell their own travelers' checks for world-wide use. At practically every bank "travelers' cheques " can be bought. These are sold. fastened in a handy wallet, or pocket-book, from which they may be torn as needed. They are issued in four denominations $10, $20, $50, and $100 and a traveler can have a book made up in any amount. These are acceptable for payments to hotels, railroads, and some stores; one is not dependent on banks for money. There is ease in obtaining funds, because they are self-identifying. The holder's identity is established by comparison of counter signature and signature, the cheques being signed at the time of purchase and countersigned in the presence of the A graphic explanation of a traveler's cheque. The name of the selling bank is inserted in the lower right corner, where the cheque is signed by an officer of the selling bank. 231 person called upon to cash them. Every cheque bears the acceptance of the agent of all the issuing banks, appointed by the American Bankers Association. A few larger banks independently issues their own travelers' checks. The charge for the checks is usually 12% of the face of the check. Holder's Signature TRAVELERS CHECK No. 123456 THE NATIONAL TRADERS BANK OR ITS PAYING AGENTS Will pay to the order of In United States and Canada In Other Countries At Bankers buying Rate of Exchange When signed below by the person whose signature appears above. The holder must sign here in presence of paying officer By One form of a traveler's check. President 165. Travelers' letter of credit. The traveler can also secure from his bank a letter of credit. This is addressed to bankers in all parts of the world and is the bank's agreement to accept the drafts of the traveler up to a certain amount, the letter to be returned with the last draft. These have usually been payable in London, an advice together with the customer's signature being sent to the London bank. In such a case the face of the letter is in sterling and the drafts must be drawn in sterling. The signature of the traveler is signed upon the letter, or, so that both may not be lost together, upon an accompanying document. Suppose the traveler is in Paris and wants about 500 francs. He goes to a bank specified in the letter and identifies himself by his signature. The price of pounds sterling at that moment is |