The Kinsley graphic. [volume] (Kinsley, Kan.) 1890-1940, 1902-12-26
LETTER OF CREDIT.
eEI TEE THAN CASH "a sslLs o.
ESoaAnGS.
e,av~ssse A-e111 tho Wer4a q Coa-
0eTe.sa iase>s4aseiss Written so paps,
-o.se - Net our~see IN Iaexe s1ns
b Traveller.

One Of the most interesting fea
lures Of the business substitute fol
actual money and 3 substitute that Ii
! used by r~arfy every transatlantic
traveller. 10 the letter o: credit. sayi
the Boston Herald. To illustrate @
typical case. let US introduce Mr
Jones. He decides that he would like
to spend q year in travel, and, after
| mapping out an itinerary. he makes
An estimate of the amount of money
Il will be necessary for him to spend
He fixes the amount, say, at $4,000
The average traveller does not care to
load himself down with any such sum,
because, in addition to the inconven-
fence of handling it. he makes himself
q possible target for thieves, In case
they learn of his possessions. lie
can. of course. divide this sum into
smaller amounts by drawing bills of
exchange, payable on certain banks In
certain cities throughout the world.
bit the letter of credit affords a much
more simple and satisfactory method
CT keeping himself supplied with
FUNDS. After arranging his itinerary
and satisfying himself that he can af-
ford to expend the amount he has es-
dnated the trip will cost him Nh
Jones betakes himself to a banking
house in this city witch issues letters
OF credit and obtains such q document
It IS usually 4 large folder. On the
first page is an engraved letter of
iatroduc -on. The banker, address
ing his correspondents in whatever
part Of the world they may be- begins
by formally taking the liberty, etc."
OF introducing Nr. Jones, and certify
ing that his credit is equal to the sum
OF $4,000. At the foo. Of the page
Mr.. Jones signs his name. Another
page Of the document Is ruled eff into
spaces in which are to be alled the
various amounts drawn. Still another
page is deroted to & list Of banks In
different cities and towns in the world
ct which such a letter will be hon
ored. This letter Is rot merely an
assurance that Mr.. Jones Is good"
for the amount named, but that he is
q proper person. fro-r a social point
OF view, to receive such letter. This
is one OF the Oldfashioned features
OF banking which is not based entire
~ on dollar-and-cents basis. Mr.
Jones must furnish assurances to the
banking b"use, IN case he is person.
ally una"Iuainted with any of the
persons conducting it, that he is not
only financially sound. but socially SO;
otherwise he letter is refused him.
-Ie can bd" bill of exchange On the
basis Of dollars and cents, but not o.
letter OF credit. With this letter Of
credit MIR. Jope1 may travel to any
part Of the civilized world, without
-aking with him cent of money, and
always feel sure that his financial
wants, within the limits Of the sum
aamcn therein. will be supplied. Be-
fore leaving, he must place under the
control OF the banking house the
snount emed IN tho letter. either in
rash CT It's fnaucial equivalent After
paying for his steamer passage he
carries with him from this country
only sufficient nooey to cover Incl
dental expenses. When he reaches
London he calls upon the correspond
ents Of the berFing house, presents
his letter and draws as much as he
may wish fer current expenses. H
s required to furnish no further iden
-incat:on thar q signature which shal
;e similar to the one affixed by him
he bottom Of the letter of credit. Tbs
;uGl lie has drawn is debited on
blank lsge Of his letter, so that b;
snows jrs+ what his haiance IS a. an.
-:me. Vixen he reaches Paris he PRO
1uces the same letter and repeats tho
operation. The second amount IS alec
iehited. At Berlin he does likewise
Ind so it goes. whether the place -
Rome. Algiers. Yokohama. Calcutta
Melbourne, Durham oT any one of 90
places that might be named If there
S no stated correspondent in g plsca
Re place is not too small for the Or
;ertGtion OF his letter OF credit. pro
'iied it "a in the civilized world en'
hsre Is bank there. Nor is this all
rhe banking house. through its "a
'tous agencies, becomes sort OF spen
'or ard personal guardian. The LEI
er OF credit becomes in reality a Lex
er of Introduction and OPENS w to
i'm many court2s!es. If his friend:
n this country wish to write TO hin
hey address t''o letters in care OF Ii,
.oldon banking house. whose Letter
# credit be carries. and that house.
through its mail forwarding 6en7rG
nent, sees to it that ali commun:ca |
ions intended for him are sent to
whatever point OF his itinerary ra-
,e his abiding place for the :iT;e be |
ng. More than that. shopl' he .:e |
ONE Ill while \ol his travels. rs ies- |
er is G guarantee that sc-,n one r7p-
the local ccrres9cnHan: rin |