There are certain classes of commercial bills which, unless special care is taken, are regarded as unsafe. In the case of cotton, on account of the different grades and the fact that there is so great a difference in the price of the different grades, and its being so easy to substitute one grade for another, the bills against shipments should be purchased only of well-known and responsible shippers or indorsers.

Grain shipments are all right, providing the grain inspector at the shipping point is of good reputation; otherwise he might inspect as No. 2 what was billed as No. 1.

Perishable goods are always more or less risky, on account of the danger of delay and of the goods spoiling. You should see that perishable goods are sent by fast freight lines and fast steamers.

Pianos, organs, musical instruments, and such goods have imaginary values, and could rarely be sold at the price at which billed.

"Banker's reimburse bills" are those where drafts are drawn against a shipment exported, upon a banker, the documents being for acceptance. When buying such bills you should keep a record showing names of in-dorsers and keep close watch of the drawer or shipper until the bill is paid. The shipper should be responsible, and, if buying a considerable amount of such bills on the same drawee, you should ascertain through your correspondent abroad the responsibilty of the drawee, and be sure you do not buy more bills against a single drawee than his ordinary business requirements would indicate he needed.

Banks selling commercial bills of exchange (documentary) sometimes stamp them, for example, "In case of need with the Bank of Scotland, London," or some other bank. This is done to avoid charge of intermediate banks for indorsing or protesting drafts, which charge is usually very exorbitant. When so stamped, it is a notice to all holders of the draft they may call upon the bank named, if the draft is not promptly accepted or honored, for relief; therefore there is no necessity for protesting. The bank mentioned will, by previous arrangement, always honor such drafts and charge to the account of the bank indorsing such notation thereon.

Clean Bills of Exchange. "Clean bills" of exchange are those having no bill of lading attached, although they may have attached insurance certificate and an invoice of shipment. If these clean bills are drawn upon firms, they are subject to a discount rate of 1/4 of 1 per cent. above the private discount rate of the day; but if drawn upon bankers, they will be discounted at the private discount rate.

Commercial bills of exchange drawn by exporters without documents are generally upon their own house or branch abroad, and are against funds which have accumulated to their credit from payments for shipments previously made. Exporters before selling their own bills of this kind usually wait until the rates for exchange here are high. Such bills are discountable.

Commercial bills of exchange drawn upon bankers are always for acceptance, unless otherwise specified, and the discount rate applying to such bills is the private discount rate of the day.