Question 91.— A sight draft for $1,000, drawn in New York on a firm in New Glasgow, "payable with exchange," is sent to a bank in Halifax, thence to the agency of another bank in New Glasgow. The latter agency presents bill and demands of 1% exchange. On the day the draft is presented other banks in New Glasgow offer to sell drafts on New York for 1-8 of 1%. Can the bank presenting collect more than 1-8 of 1% as exchange. You might also state whether the fact of the draft having been sent through a bank in Halifax, makes any difference as to the rate of exchange ?

Answer.—Assuming that what the draft means is that the acceptor shall pay $1,000, plus the cost of transferring the same to New York, and that the current rate of Exchange on New York, at the place of payment, is 1-8%, the acceptor is bound to pay, and the holder to accept that rate.

What is the proper rate is a question of fact, to be determined as other questions of fact are; in the last resort by an action at law.

The holder of the draft can collect only the amount of the same and the exchange; he cannot make the acceptor pay anything in the nature of a collection charge. Nor does it make any difference that it has passed through a number of collecting agents. All that the acceptor is concerned in is to comply with the order contained in the draft to pay $1,000, and in addition the current local rate of exchange on New York, whatever that may be.