of Exchange for 60-day Bills.

Question 66.— Eeferring to the practice of cashing drafts drawn under letters of credit, " at the current rate for 60-day bills," where Bank A cashes a draft under a credit issued on Bank B, must Bank A accept whatever rate Bank B may claim to be the current rate at the point at which the credit is drawn?

Answer.—The proper way to regard the matter is no doubt this, that drafts under letters of credit payable at " the current rate of exchange," are to be cashed at the best rate at which the bank would buy a 60-day bank bill on England. The holder is clearly not bound to take an inadequate rate from the drawee, but unless the latter will make himself liable by some undertaking in the nature of an acceptance, the holder would have to look to the drawer or issuer of the credit for reimbursement.