Dealers

in foreign exchange do not ordinarily resell the commercial and other bills which they buy. These they forward for collection or in cover (in payment) of their own bills. The bills they sell are their own bills which are drawn against credits they themselves have negotiated abroad or against credits that they have created by forwarding the commercial and other bills they have purchased. A banker’s bill of foreign exchange is drawn (and delivered to the buyer) in sets, so-called—in duplicate or triplicate and numbered first and second, or first, second and third of exchange, respectively, requesting payment of money as men- ~ tioned in each. The one first presented is paid and the payment of this one extinguishes (cancels) the others. Where a bill is i ued in duplicate the two copies are forwarded for collec- ’ tion, each by a different steamer (to provide against the lo or delay of one). Ifa third copy is furnished it is retained by the purchaser of the bill as a voucher or it may be forwarded by a third steamer.. A bill of exchange is transferable by indorsement the same as a check.: ' Following is the usual form of a 60-day bill of exchange drawn in triplicate: | Exchange for £1,000. New York, January 1, 1904. 1 At sixty.days after date of this our First of Exchange (second and third of the same tenor and date unpaid) pay to the order of James Robinson One you sand Pounds sterling, and charge the same, without further advice, to | No. 5,005. Brown, Green & Co. To White, Black & Co., | London. When America is largely indebted to Europe drafts (bills of exchange) drawn in America on Europe, that is, payable in Europe, are likely to command a premium, or in other words, are likely to be worth more than their face value (or the equiv- | alent of their face value). On the other hand, when Europe | is largely indebted to America drafts drawn in America on ) Europe are likely to be at a discount, or in-other words, are likely to be quoted at le than their face value (or the equivalent of their face value). 209