European banks are noted for charging for every item possible in connection with every transaction handled - such items as postage on letters sent to you during a certain period, cost of cablegrams, check-books, envelopes, stationery, and often a lump sum for items that may have been overlooked. For collecting commercial bills of exchange they will usually charge, in England, about 1-20 of 1 per cent., or 1 shilling per cent.; France, 1-16 per cent; in Germany, 1-20 per cent. in the larger places and from 1-16 to 1/8 per cent. in the smaller places.

Interest at thirty, sixty, or ninety days, with three days' grace added (as allowed throughout Great Britain), can easily be arrived at by using printed tables furnished by some of the leading foreign-exchange bankers, which give the proper decimal of a pound to deduct for interest and revenue stamp at the various rates. These printed tables also give the same information for figuring German and French bills of exchange.

Complicated Transactions. Exchange transactions become more complicated when one country or place, as is often the case, discharges its debts through another country by means of bills of exchange drawn upon a third country or place; as, for instance, a merchant in Chicago importing goods from China would pay the exporter in China with a check upon London, for the reason that such check would he more desirable to the shipper in China, since the demand for exchange in China is greater upon London than upon the United States.

When in any market the demand for exchange on a certain country or place is greater than the supply, the deficiency is usually supplemented by bills on other countries having a more favorable exchange with the latter.

In the East Indies those who ship to America usually draw upon London instead of America. In New Orleans, exporters of cotton, etc., to Russia, draw upon London instead of St. Petersburg. This is because England does more business with those countries than America; besides, London is regarded as the greatest money center, and exchange upon that city is usually more favorable and can be used to better advantage.

German Requirements. Importers in Germany will not accept drafts drawn against importations until the duplicate documents (duplicate draft, bill of lading, etc.,) are presented, and, in order to have the original draft accepted immediately upon its arrival, banks in this country when forwarding such bills for acceptance and collection will attach to the original draft a memorandum agreement to the effect that the duplicate bill of lading is in their possession, and their correspondents (banks) are requested to guarantee the acceptors (importers) that the duplicate documents will be delivered to them as soon as received, which guarantee also gives the number and amount of draft, the name of drawer, and the signature of a proper official of the bank or financial institution forwarding the same.