The rapid extension of our foreign trade and the increasing numbers of Americans traveling abroad has resulted in a demand for wider banking facilities to handle international transactions. Formerly this business was largely in the hands of a few private banking houses, but the great increase in foreign business has led banks and trust companies to establish foreign departments. As the foregoing discussion shows, the chief business of the foreign department of a bank is to deal in foreign exchange in its various forms.
The larger banks and private banking houses have a foreign exchange manager who is a Specialist in that business and who keeps in touch by telephone, wire and cable with money and exchange conditions both at home and abroad. Then there are the big dealers in exchange who do a regular exchange business like the banks, but who also have men out on the street trading between large buyers and sellers of bills and keeping in touch with exporters, importers and other banks. Finally there is a very large number of exchange brokers who bring buyer and seller together, charging a commission for the service..