which each may be drawn being limited on the face of the check itself. For example: A book containing 50 blank

The chequebank check.

checks, each of which may be drawn for the maximum amount of $10, may be purchased for $500. When the book is finally presented at the bank for settlement, the bank will return to the customer the canceled and paid checks; the difference between the amount of drafts actually made and the amount paid for the book will be returned to the customer, or credit will be given on the purchase of a new book. Check-books are made up of assorted blanks, to suit the customer's convenience. Such books may be had at the main office, or at any of the other banks which serve as correspondents of the "cheque-bank."

Other instruments of transfer of

The "customer's check" is the instrument usually employed for the transfer of funds from one bank customer to another where business relations are such as to make them acceptable. It often happens, however, that a customer will find it desirable to have funds in a bank where he is not known, or will desire to make payment to one who does not care to take the risk of a private check. In such case some other form of instrument of transfer will be used.

credit funds.

For this purpose one of the most common devices is the "certified check." The customer will draw his check for the amount desired, and this will be handed to the cashier

of the bank in which he has funds. The cashier will thereupon write across the face "Certified," or "Good when properly indorsed," over his official signature, and charge The "certi- the same against the customer's account. This fied check amounts to a transfer to the bank of the amount and the "cashier's drawn, and a guarantee on the part of the bank that the funds will be transferred to the owner of the check on presentation. Another form is the "cashier's check." To obtain a cashier's check the customer will exchange his own check for that of the cashier-i. e., the

check."

amount of funds represented by the check will be formally turned over to the bank, and the bank, through its cashier, will thereupon deliver its own instrument of transfer to the customer, made payable to such person as the customer may direct. Another form of instrument of transfer of credit funds used between banks is the bank draft. One of the most artistic engravings of this kind is given on the opposite page a form of draft used by the "Biddle Bank" for business with its correspondents.

The money-order is an instrument of transfer of funds. created for a special purpose. For example: One wishes to send $50 to a person residing in another part of the country. He will make a deposit, or in some manner create a $50 fund in the hands of a company or department of Government whose business it is to transfer funds. fund having been created, the company or department will issue an order for the amount, payable to the person speci

The

fied. This will be sent instead of money or other forms of funds. Money-orders are issued by express companies, the Bankers' Money-Order Association, and the Post-Office. A photo-engraved copy

of an Adams Express Company order is exhibited on page 68.

One may wish to travel in a foreign land -let us assume the estimated cost to be $1,000.

to carry money enough
to pay the expenses of
the entire trip. For this
reason some form of
credit is preferable to
money. With this in
view, the prospective
traveler goes to his bank-
er. He arranges at the
bank for a special credit
fund of $1,000 to be
drawn against at any
time. But banks and
business houses abroad
will not accept a "cus-
tomer's check" against
an American bank.
"Letter of Credit" is
therefore issued. The

A

ordinary letter of credit is really a guarantee of payment of all "customer's checks" or drafts drawn by the holder to the amount stated in the letter. It is a "certified-account"

instead of a "certified-check." It has its advantages over a certified-check in that it allows the customer to draw just the amount needed at any time or place, and, upon identification, to have his check cashed in the same manner as a certified-check or a cashier's check. With the increase of foreign travel the letter of credit has become such a common instrument for the transfer of credit funds that every one should be familiar with its form and purpose. We reproduce on pages 69 and 70 a facsimile of the first and second pages of a letter of credit for £100 ($500). The first page is the letter guaranteeing the account, authorizing the various correspondents of the bank issuing it, or any other

banker to whom the letter may be presented, to pay to the holder any amount for which he may draw not to exceed the fund provided. In order that the fund may not be overdrawn, a second page is provided upon which are entered the amounts drawn. These entries are made by the bank officer himself at the time that the draft is paid, and give a complete account of the fund. The entries give the names of the banks to which the letter is presented, the place, and the amount paid by each. On the third page is the "Indication List"-i. e., the names of the bank's correspondents where drafts will be honored. The customer is not, in fact, limited to the correspondents of the bank issuing the letter, as the draft will be accepted at any place where the bank

of issue will be given credit. As a matter of safety and of greater ease in identification, the banker issuing the letter requires the one to whom it is issued to place his signature on the face of the letter itself. He also takes a number of

other signatures on blanks specially prepared for that purpose, and sends one to each of the leading foreign bankers drawn upon. In course of travel or business the holder presents his letter at one of the banks named on the "Indi