A Bill of Exchange is an order addressed to some person at a distance, directing him to pay a certain amount to the person in whose favor the bill is drawn, or to his order. A merchant in Chicago, owing a sum of money for goods to a merchant in London, instead of remitting money or goods to the amount of the debt, goes into the bank and buys from the banker, who keeps an account in London, a bill of exchange for the amount, and sends it to his creditor; in this way the creditor gets payment from a person in his own city, generally a banker, who keeps an account with some American banker for the purpose of paying such drafts.

Letters of Credit have come largely into use, of late years, with tourists abroad, though Bills of Exchange are yet frequently used by persons who wish to travel in foreign countries. Thus, if A, an American, wishes to travel over Europe, he estimates the expense of the journey, and finds it to be, perhaps $3,000. To carry this with him, in gold, would be unsafe and troublesome. He, therefore, goes to a banker and gets a bill of exchange for a thousand dollars, which is the amount he thinks he may require while in England. The banker also having money deposited in Paris, perhaps, and also in Vienna, he takes a bill for a thousand on a bank in each of those places. With these bills in his possession, he commences his journey, with only money in his pocket sufficient to pay the incidental expenses of the trip, and draws on the London, Paris, and Vienna bankers as occasion requires. The object of this arrangement is to secure travelers against loss, the bankers affording this accommodation to merchants and travelers for a percentage, which is paid them when they sell the bill of exchange. In issuing these bills of exchange, it is customary for the banker to issue a set of two or three, worded nearly alike. One of these is kept by the purchaser, to be presented by him to the foreign banker, the other two are transmitted by mail, at different times, to the same bank. Thus, if the first bill is lost, the second or third, that goes by mail, will still be available, and the holder can obtain the money without being subjected to the delay of writing to America for another bill. These bills are worded as follows:

Set Of Foreign Bills Of Exchange

1 Chicago, III., July 10,18-.

Exchange for

.200. Sixty days after sight, of this our first oF exchange (.second and third of the same tenor and date unpaid), pay to the order of Abel Cummings, Two Hundred Pounds Sterling, value received, and charge the same to

Henry Greenebaum & Co.

To the Union Bank of London, No. 840. London, Eng.

2 Chicago, July 10,18-.

Exchange for

200

Sixty days after si]ght, of this our second OF exchange (first and third of the same tenor and date unpaid), pay to the order of A bel Cummings, Two Hundred Pounds Sterling, valuereceived, and charge the same, without further advice, to

Henry Greenebaum & Co.

To the Union Bank of London, No. 840. London, Eng.

3 Chicago, "July 10, 18-.

Exchange for

200.

Sixty days after sight, of this our third of exchange (first and second of the same tenor and date unpaid), pay to the order of Abel Cummings, Two Hundred Pounds Sterling, value received, and charge the same, without further advice, to

Henry Greenebaum & Co.

To the Union Bank of London, No. 840. London, Eng.