You should always bear in mind that a different rate for discount applies to the different classes of bills. For instance, on documentary bills where documents are for payment, the discount or rebate rate is 1 per cent. below the bank of England official minimum discount rate. If drawn on firms (not bankers) and documents are for acceptance, the discount rate would be 1/4 or 1 per cent. above the private discount rate for bankers' bills.

If drawn on bankers, whether documentary or otherwise (which are always for acceptance), the discount rate would be the private rate of discount, which fluctuates according to demand and supply of such bills; and in case of large transactions it is customary for buyers of such bills here to cable their correspondents abroad for a discount rate to apply on bills to arrive by next mail or for a stipulated period before buying, in order that they may know exactly at what rate the bills can be discounted upon their arrival. Without such previous arrangement the discount rate might change materially and result in loss upon the transaction.