The Bridgeport times and evening farmer., 1920-11-05
A. B. (. OF FINANCE

The spring of 1921. in all probabfi- ity. will witness a great overseas exodus of American travellers. Thou sands of American tourists will visit the historic battlefields of Europe. and additional thousands of Amer1- cans, whose personal war sacrifices have aroused in them new and sym pathetic interest in foreign countries in general and particularly in the countries immoftalized to us by American sacrifices, will make pill rimages abroad during the yelr.
 The expansion of American busf- ness in foreign countries during and since the war will necessftate an in crease in the number of our business travellers overseas. Foreign branches of numerous American corporations have sprung up in connection With the handling of business in new mar lIets and the operation of these will require the naintenanee of a more extensive personal iiaison between countries than existed before the war.
 Every traveller needs some form Of international eurreney-goed i'll his own and every other country, accept able at it's face value or at it's current equivalent in the coin of foreign lands, secure against theft and loss, and convenient to carry TWO typlcas methods of carrying funds, either of which combenis all the advantages mentioned, are the use of travellers checks and letters of credit The two devices are distinct in operation. although they may be conveniently employed together.
 The travellers checks of financial institutions generally are issued Tn convenient denominations up to $1OO. Not only can they be cashed at the leading banks in the United States, Canada and foreign countries, but they are readily accepted in settle ment of bills by hotels and business houses both in the United States and of nartiCnlaT convenience to travellers in the Uni ted States, where they serve practi- caiiy as currency, and at the same time are safe against loss. Ihe cheelya are aeeepta bie at the principal railroad tic et offices, on dining cars and at hote-4. Travellers cheo1-e are self-identify- l ing. On the foi sas in most general use, the purchaser writes his sigma ture on the check at the time of pur- | chase but doea not countersign until | the time of eneaahment The second signature Is mcde in the presence of | the person accepting the eheek-a l procedure which makes certain the | identifies ton of the holder.
 l The checks have no value without 1 the second signature, A thief or | finder of the checks would hardly as-
 sume the risk of forging the owners 1 signature under the eye of the person | paying them. In case of loss, the ] owner should notify the issuing bank. l 1 and when proper indemnity has
 been furnished, refund the full face | value.
 In normal times, before the disor- | sanizat ton of the foreign exchanges. travellers checks were issued with the | euuiva lent in foreign money, at which | they were payable abroad, engraved | either on the face or back of each | check. This arrangement was con- venient to the holder under compara- l lively stable exchange rates, but the | depreciation of the exchanges o1 l many foreign countries during an6
 since the war created g demand fol
 a type of check which would give the
 purchaser the benefit of the premium
 at which the dollar sells in fereigr
 countries. Consequently, most forms
 of travellers checks are now made
 payable abroad at the best rate ruling | for exchange on New York on tht
 day of payment, thus giving the hold
 CT, in most cases, greater equ1Va | lent in foreign money than was pos
 sib1e under the old system of hXet
 rates of exchange.
 The purchaser holding 'unuse'
 travellers checks at the conc1uslon
 his trips may deposit them in his oWl | bank thereby securing prompt re denaptieR at face value.
 A letter of credit, also a eoHEeIiea trnethod of safety carrying funds, Is al 1 engraved decuHnent which introduce