Industrial

stock. The stock of a manufacturing company, In exchange. When the words “in exchange” are appended: to a draft the amount of the draft is to be paid in exchange on the place from which the draft emanates. For example, if a person in New York draws on a person in Chicago, the draft being payable in exchange on New York, the person in Chicago must pay the draft in exchange on New York; that is, he delivers in payment of the draft a bill of exchange (which is a draft) payable in currency (money) in New i York. Such a bill of exchange he may purchase from a bank in Chicago and it will be paid by the bank in New York which is a correspondent of the bank in Chicago. It is the same when a promi ory note is payable in exchange. For example, a merchant in Chicago may purchase goods of a merchant in New York and give for them a note payable in exchange on New York. When the note matures | (falls due) the merchant in Chicago pays it with a bill of exchange on New York. 4 Very few drafts and notes are made payable in exchange for the reason that the fact of making them so payable renders them non-negotiable instruments. In exchange is different from with exchange; see With exchange. 269