New-York tribune., 1922-05-28
Legal Resorts of American Exporters
In Protesting Dishonorcd Acceptanccs
Exchange
Solemn Provided Recording
to Homo WhenD

Selling the foreign customer is
only half the operation in export
trade. The other half is getting the
foreign customer to pay for the
goods In the unsettled condition Of
finance in many foreign countries
during the last year or more, thou
sands Of drafts, drawn upon foreign
customers by American exporters
have been dishonored by non-accept-
ance or non payment.
The draft is the favoritc instrument
IN foreign trade, Many Who have re-
Gently entered the foreign trade field
are unfamiliar with its uses or the laws
and international regulations applying
TO it, The following statement by A. j.
Wolfe, chief Of the Division of CONNER
cial Laws Of the Department Of Com
merce clears up some Of the uncertain
! points concerning drafts and will serve
as guide to those using drafts in for
/ eign trade transaCNons.
The inference that drafts may be
allowed to be dishonored without need
Of resorting to the legal remedies pro-
vded for such cases shows the dsre-
pu'e ihto "h'ch inc oI'i o. 0Ncnahse
has fallen in the minds Of many
drawers.
Time Extended
"tt .lo l,,,.o- e +ho d,.as. do.;ros
oc+;nn ~ ~ t,lo,, ~ NO ovcnt tbc
l,.os. l{chono,.od 10 ebonId hove
d,'1,,.,, 4,rS. 49,, crn4 ;.s+onco
/ bnt sent Tho Goods win a bin on oocn
/ occo,,,,t co,4o,t "a a,,ojt 4,o pleosurc
! ~ bis c,ston,or os ~ tho t;n,o of nav
;nr II Rui tho drawer of the draft
mos- like'v seeks 70 have il discounted
bv a bank. If. then. he tenders thc
draft to his bank for discount he indi-
Gates hv this action to the bank that
the draft is based upon a bona tdc
mercantile transaction. that he be
hoves it viii be duly accepted and paid
and that he wil. IN the event of its
being djshonorcd take such steps as
VIII preserve has rights ana the rIghlS
'c 0f nl1u paIlIeS WIo HIdS 'T5u w. ~ a.
.Ii ~ no.'0' ti,''D' y. ~ ha,y +bat he
,,,1 l'0' ',oeo ~ .hn dsbnrorinq Of
h;1f ,olds +r,,a swan IN tho
af t;iln sont ror colloction only
A4 ..;a lolje t,i,o also wbnre the
drni,,ar l,,o,,,a vow. woU thai tho dis
conTti,o hank hases it's action entirely
ma, 10 e4andinc Of the drawer and
+bo ,alue of he s}praturc
nOs oo,,Gro :, 1,o,, ,annon that in
per intends to take INTO consIdera'lon
Ii possible combination OF circum-
stances under which 1T would not be
possible Tor the drawee to meet the
bill when ii is due and the drawee thus
notifies the drawer. The drawer de-
sires 20 retain the customers trade
and appreciates the fact that hlS III
ability TO pay is temporary and is not
due to p !acA OF regard for the honor
of his signature. In that case all the
drawer has to do is to instruct hls bank
TO exact new acceptance FOR fur
ther term Of 30, so. or 80 days, as the
case may be. with interest. and &c
destroy the old accepted draft, but not
to allow it to become dlshonorec
and worthless slip of paper.
Must BE Paid
u-rLo L;,,na, ,,,,,s+ n,daro,ord tho.
o, accon.ad draft staMds entirelv on
irs own ieqs II must he Maid on time
NO rna+ter what The noints of disD,,tt
n,s,, h1 hotueer ,ba shinner and ~,
ruston,er nm when the draft Is dis
,n,orad snS Tho drawer has failed -
avail bimeeif of tho Local stems nro
,,ided for s,,ob 81 case he il cnn-rronto,
with the necessity Of nrovino nj. case
He is then a creditor whose debtor j,
'nlrtE days, as mlght be expected at