Improvements relating to Bills of Exchange for the Purpose of Increasing their Security and Utility.
Year: 1887

page_text: Improvements relating to Bills of Exchange for the Purpose of
Increasing their Security and Utility.
I, ALBERT GOLDSTEIN, President of The Franklin Savings Bank Company Columbus,
Franklin County, State of Ohio, United States of America, temporarily residing in
London, England, do hereby declare the nature of this invention and in what
manner the same is to be performed, to be particularly described and ascertained in
and by the following statement :-
My invention relates to bills of exchange used in commercial or other transactions
for the purpose of transferring money from one point to another through the medium
of two or more banks or other agencies acting as banks or bankers. The objects of my
invention are to facilitate and safeguard such transactions; and to enable an individual,
firm, corporation, or other body to transfer money, (at any place or time of the day or
night), to any person or persons situated at any domestic or foreign point, where
ordinary commercial operations are transacted.
This is accomplished by the use of a special form, or assemblage of forms, so
arranged that each party engaged in each step of the transaction, has a complete
voucher of the same, and is fully protected in the literal exercise of his function, while
the simple use of the assemblage of forms according to their respective tenor, operates
so as to make any attempt at fraud absolutely fruitless.
This form is arranged as follows. Upon the left hand side of the sheet is arranged
a convenient form for a record of the several steps of the transaction: that is, suitable
blanks for names, dates, amounts, or the like; and this portion is retained by the
person transferring the money as his record of the same. The remaining portion of
the sheet is divided into four parts, the upper right hand portion of which is

page_text: denominated "Original" and is drawn in the usual commercial and legal form of a bill
of exchange, with the addition of a few words necessary to qualify and effectuate the
particular purpose for which it is designed, namely, as an original draft, signed by the
drawer in favour of the payee for the amount specified thereon when presented at the local
bank or banker upon whom the bill is drawn, (located at or near the same point as the
payee), at the time of payment specified; and the amount is directed by the drawer to
be charged to the bank (hereinafter referred to as the "initial medium") named thereon,
or their authorized endorsees, subject to their proper advices accordingly upon the
duplicate of such bill of exchange. for account of the drawer.
The upper left hand portion of the sheet is denominated "Advice" and is a form
signed by the drawer and addressed to the payee forwarding the bill accompanying,
(denominated "Original" as above) and requesting the payee to acknowledge the
receipt of same below, for which a blank form is provided so that such payee can
readily do so in accordance with the drawers request.
The lower right hand portion of the sheet is denominated "Duplicate," and
necessarily should be a duplicate of the upper right hand portion, (both in respect to
the original printing and writing,) and be filled up and signed by the drawer
accordingly, except that there is provided, crosswise, a form printed preferably in red
ink for greater distinction, to the effect that the bank hereinbefore termed the " initial
medium certifies and accepts such duplicate under the hand of the, or any, regularly
authorized officer of such initial bank (located at the same point as the drawer) the
name of which bank is specified, likewise the name of the bank where such certification
(by virtue of such endorsement) is payable on demand; which, for example would be,
(1). Any bank or banker specified, located at the same point as the payee (upon
which point the draft is usually but not necessarily drawn direct by the drawer), or
(2). Any bank or banker specified located near to the particnlar bank or banker upon
whom the draft is drawn, or the payce in whose favor the draft is drawn, or (3). Any
bank or banker specified, located at a commercial centre, as near to the bank or banker
upon whom the draft is drawn, as is expedient, subject and consistent with the security
and facilities of such bank or bankers at such commercial centre for securely and
expeditiously clearing such draft, according to the judgment of the initial bank or
banker who certify and accept the said draft.
As it is to the interest of all parties to the transaction for the original draft to be
paid and satisfied as soon as possible, therefore the underlying principles to be followed
governing the clearing of the duplicate for that purpose, would be: (1), Security;
(2), Expedition and (3), Facilities.
The lower left hand portion of the sheet is denominated "Voucher," and is a form
signed by the drawer and addressed to what is hereinbefore termed the "initial medium,"
(either the local bank of the drawer, or any bank located at or near the same point as
the drawer), directing them to pay the duplicate accompanying, together with current.
rate of exchange for, (him), and to debit, his account accordingly. Below the signa-
ture of the drawer is provided a place for such bank to note in detail the total amount
that the drawers account has been debited with.
The operation of this method of Exchange is, in short, that the drawer wishing to
transfer money to the payee direct draws upon some local bank or banker at the point
where, or near to where, the payee is located; and forwards such original draft to the
payee by postal service, or otherwise. The payee on receipt of the draft acknowledges
the same on the form accompanying ("Advice") with memorandum of receipt below),
and subsequently presents the original draft for payment according to its tenor.
The
drawer, (providing the draft matures shortly thereafter) simultaneously, or in due
time, according to the maturity of his draft in favor of the payee, notifies the local
bank (the initial medium ") by the use of the form of voucher provided for that
purpose to pay the duplicate draft accompanying, and debit his account accordingly,
which latter must, of course, be first made good and sufficient. In that case, such
local bank, hereinbefore termed the "initial medium" certifies and approves such
duplicate draft, making it payable on demand by their specified correspondent, and
then forwards it in regular course for payment of the original draft; that is to say,

page_text: "
sending such certified duplicate to (1), the final bank drawn on; or (2), to any bank
located at or near the same point as the payee, (which bank is specified in such
certification); but providing however that such bank termed the "initial medium
have current funds with such specified correspondent,
their credit, so that such
correspondent can endorse, pay or satisfy such original draft in any proper manner,
and make a corresponding debit charge to the account of such bank termed the "initial
medium." In the case, however, of the bank termed the "initial medium not having
any current funds to their credit at or near the same point as the payee, they can
notwithstanding make and forward their aforesaid certification specifically payable at
or near the same point as the payee, as the case may be; providing they accompany
their certification as aforesaid with credits or values to the satisfaction of such bank or
bankers so drawn on by such "initial medium," or in the absence of such credits, or at
the option of such "initial medium," (as for example might be the case with a bank
of comparatively limited facilities in respect to foreign exchange, but who notwith-
standing have unusual occasion to draw exchange on comparatively distant foreign
and domestic points); they (the "initial medium"), can indemnify, or have such bank
or banker so drawn on, fully indemnified in advance in some mutually satisfactory
manner (as for example any one or more methods of protecting Foreign Exchange
drawn direct, without the drawee having current funds to the credit of the drawer,)
and still make their certification payable on demand at a specified bank at or near the
same point as the payce. In the absence of the facilities last indicated, or at their
option, they (the initial medium), can make their certification payable on demand at
a specified bank or banker located at the most mutually convenient commercial
centre, where they, (the "initial medium") have current funds to their credit, in order
that the bank or bankers referred to, at such commercial centre, can clear such certifi-
cation of the bank or bankers termed the "initial medium" as expeditiously as the
facilities of such clearing bank, at such commercial centre, will permit, and so on in
the regular course (for the accomplishment of the payment of the original draft to the
payee) consistent as hereinbefore indicated with the three underlying principles of
security, expedition, and facility.
It is to be understood that the arrangement of the forms upon the sheet constituting
the assemblage of forms, may be varied in position from that described herein, without
departing from the spirit or nature of my invention. Also that the words printed
upon the forms, or arrangement of the blanks, may be modified from time to time, as
may become necessary through any change of legal or commercial procedure in any
country in which the said forms, or any of them, are used. The language of the forms
may be of English, French, or any other necessary or expedient to use, or any
combination thereof. In order to be convenient for exchange between any domestic or
foreign point it is preferred to arrange the forms in a book or package and to have the
language of the same that of the country in which it is intended to be used, or to
have some of the forms of another language or of several, or combinations thereof;
with suitable provision for the expression of the amounts to be transmitted, in the
currency of one or more countries. Distinguishing colors of ink can be used to
designate the forms drawn up in any particular language or currency, or tinted paper
used for the same or any combination thereof; and provision can be made either upon
the back of the forms, or attached to the cover of the book containing the same,
for lists of banks or correspondents, and values of currency as may be found
convenient.
Fig. 1 is the form, or assemblage of forms, which constitutes a bill of exchange
according to my invention; in which A is the record of the several steps of the
transaction, to be retained by the person who makes the remittance. B denotes the
original, or draft, signed by the drawer in favour of the payee to whom it is sent.
On the left side of the draft or bill of exchange B, is shown C, which is denominated
advice, and accompanies the original B when sent to the payee. D denotes the dupli-
cate, which is similar to B but with the crosswise form in which the "initial medium"
certifies to the same, as already described; and E denotes the voucher which secures
the initial medium," and forms its instruction.
[6

page_text: Having now particularly described and ascertained the nature of my said Invention,
and in what manner the same is to be performed, I declare that what I claim is:
1. A form or assemblage of forms, either separate, detachable, or upon one sheet,
constituting a bill of exchange, substantially as described.
2. A form or assemblage of forms, either separate, detachable, or upon one sheet,
adapted to be used substantially as and for the purpose specified.
3. A bill of exchange or forin to be used as such arranged in five divisions or parts,
and adapted to be used separately as and in the manner specified.
4. The combination of the various parts A, B, C, D and E when used substantially
as described.
FAIRFAX & WETTER,
433, Strand, London,
Agents for the Applicant.