"Remitters will please take notice that the maximum amount for which a money order may be drawn, payable in the United Kingdom, Cape Colony, or British Guiana, is $50."

"There is no limitation to the number of international orders that may be issued in one day to a remitter, in favor of the same payee."

"The postmaster must refuse to issue an international order payable to any person, if the surname and the initial letters of that person's given names are not furnished by the applicant, unless the payee be a peer or a bishop, in which case his ordinary title is sufficient. If the payee be a firm, the usual commercial designation of such firm will suffice, such as 'Baring Bros.,' Smith & Son,' ' Jones & Co.'"

Rates of commission, in United States currency, charged for issuing all international money orders:

2. By check, either of an individual or bank, certified

or uncertified. (See Checks.)

3. By cashier's check. (See Cashier's Checks.)

4. By drafts. (See Drafts.)

5. By bills of exchange, domestic or foreign. (See Domestic Exchange and Foreign Exchange.)

For large amounts this is certainly the method most generally employed for the reasons stated in the chapters devoted to those subjects.

6. By certificates of deposit, receipts from banks or bankers of the deposit of certain sums, made payable to a person designated by the depositor, and payable at the of the issuer. (See Certificates of Deposit.)

agency

7. By letters of credit. (See Letter of Credit.)

8. By checks issued by the express companies upon the plan described in the article on Cheque Banks.

9. In Great Britain and Canada by checks of cheque banks. This method does not prevail in this country to any appreciable extent.

Cheque Banks.-Cheque banks operate almost exclusively in England, where they were established more than half a century ago. The object of their existence is to furnish persons desiring to remit money other than by post-office orders a convenient mode for so doing, the bank issuing its check to the individual, payable to the person named by him, upon the payment by the purchaser of the amount of the check plus a small commission. The checks of these banks, whose business is confined to the issuing of such checks, are largely used by persons not having bank accounts and who cannot therefore send their own checks, and who are not willing to take the risk of sending bank notes, which at present in England are not issued in denominations of less than five pounds, and hence are not suitable for the payment of smaller amounts. By way of illustration, a person desiring to remit, say two pounds, will purchase at a cheque bank their check for that amount payable to the order of a person named, and mail the same to the person to whom it is payable, who can cash the same not only at any banker's, but, upon endorsement, at almost any tradesman's.

After endorsement, these checks pass from hand to hand, just the same as any currency. The check is so prepared that it cannot be raised.

This system is very largely used in the British Isles,

and while at first it was unsuccessful, owing to inefficient management, has since grown to enormous proportions.

These banks, however, would be of doubtful utility in this country, and hence have obtained but little foothold.

Commercial Bills.-Next we will consider Commercial Bills, which are drafts drawn by a person or persons in one country on a person or persons in another, in payment of merchandise received, held for account of, or in transit to the persons against whom they are drawn.

These bills are either sent directly abroad for collection. or sold by the drawer to some dealer in exchange in his city, most frequently the latter. The price at which they are purchased by the dealers is governed by the condition of the exchange market, and the length of time the bills have to run. Those payable on sight are generally purchased at the market rate for exchange, and those payable on time at the market rate of the exchange, minus the rate of interest prevailing in the country where such bill is payable, from the date of its purchase to the time of its maturity, which interest is deducted when the bill is purchased. It follows that "time bills," as they are called, are nearly always sold at a discount, as it very rarely happens that the discount on exchange is so great as to offset the interest charges.

These bills, when offered for sale, should always be accompanied by warehouse receipt, showing the storage of the goods against which they are drawn to the order of the drawee, or bills of lading showing the shipment of the goods to the person against whom the bill is made out, otherwise the purchaser has no evidence that the draft is drawn against any real value. The bill of lading or warehouse receipt is delivered to the purchaser of the draft, so that he may be in a position to enforce the payment of the draft, or hold the goods, and sell them to reimburse himself.

Cable and Telegraph Transfers.-The system of the transfer of money by telegraphic order originated during the late war, and at first was confined entirely to domestic business. The inception of the system seems to have been this: a person desiring to remit a sum to another at a distant point, deposited the amount to be remitted with a telegraph office and instructed them to send an order by telegraph to their office at the desired point to pay, to the order of the person named, the sum of money deposited, the person named in such order being also sent a telegram, to call at the office and receive the same. This represents the simplest form of a transfer of money, by telegram, and in this form the business is carried on very largely by telegraph companies.

The availability of this method of transfer of money, not only in domestic exchange, but also in foreign exchange, soon became apparent to bankers and commercial men, and if it could be applied successfully by a telegraph company for the transfer of limited amounts, it could certainly be applied to greater advantage by large banking houses or bankers having on hand great sums of money. Probably the next step in the development of this system was the depositing of the actual money with a banker selling telegraphic transfers of money called "cables" and receiving his cable order on his correspondent in another city, for the amount purchased, and also a cable to the person in whose favor the order was drawn apprising him of such order and directing him to call and collect the same. Naturally such transfers are effected at a charge proportionate to the rate of exchange then prevailing to the point on which the transfer was issued, together with the cable and telegraphic charges necessary to consummate such transfer.

Telegraph transfers (by which is meant domestic transfers) are made either by the telegraph companies themselves of small amounts, and of larger amounts principally

by banks, whereas cable transfers (by which is meant the transfer of money to foreign countries) are effected through exchange dealers, usually private bankers.

Most papers, in their commercial news, quote ordinary exchange, commercial bills, and cable transfers. The rates of all three differ for the reasons heretofore given in this work.