A draft may properly be called an inland bill of exchange. It is customary for the bankers in all large cities, to make deposits with bankers in other large cities, and also for the banks in the interior towns to make deposits with some one bank in the nearest metropolis. Thus, the bankers of Milwaukee, Chicago, and St. Louis, have deposits in New York, so that any person wishing to pay a certain sum of money to another person, East, has only to step into a bank and purchase a draft for the amount on New York, which he sends by mail to the creditor, who can usually gets the amount the draft calls for, at the nearest bank.

The banker, as with bills of exchange, charges a certain commission to pay him for his trouble, which is termed "Exchange." There being less liability to lose these inland bills, only one is usually issued. The merchant in the interior town, or other person, wishing to send money to Milwaukee, St. Louis, Cincinnati, or any other large city, can generally buy, of their home bank, drafts, thus, on the nearest metropolis, by the payment of the exchange.

The object in purchasing a draft is to avoid the danger of loss when sending money from one part of the country to another. Such form is worded as follows, and is known as a bank draft.

Form of a Bank Draft.

Form of a Bank Draft.

In making collections of money, drafts are frequently used, which are usually sent through the banks. A sight draft is used where the person upon whom it is drawn is expected to pay the debt immediately. In the time draft the same is made payable in a certain number of days.

Sight Draft

$400. Cincinnati, O., June 10,18 - .

At sight, pay to the order of Higgins & Co., Four Hundred Dollars, value received, and charge the same to our account. To B. L. Smith, Milwaukee, Wis. POLLOK BROS. & CO.

Time Draft

$50. Memphis, Tenn., April 4,18 - .

Thirty days after date, pay to the order of Cobb & Co., Fifty Dollars, value received, and charge to our account.

To HaRmon, MosheR & Co., A. B. MOORE & CO.

Buffalo, N. Y.


The acceptance of a draft is effected by the drawee, or the person upon whom the same is drawn, if he consents to its payment, writing across the face of the draft, thus: " Accepted, June 12, 1873. B. L. Smith."