s as
cheese, butter, dried fruits, etc., are apt to be drawn for, with
shipping documents attached, at anywhere from three to thirty days'
sight, but there is no rule about it. Where the "usance"--the time the
bill has to run--is only a few days, documents are apt to be
deliverable only on payment of the bills.

4. _Drafts Drawn Against Securities_

[Illustration: Form of Draft Drawn Against Securities]

Exchange of this kind is naturally of the highest class, the stocks or
bonds against which it is drawn being almost always attached to the
bill of exchange. In the case of syndicate participations by large
houses, the bonds may be shipped abroad privately and exchange against
them drawn and sold independently, in which case, of course, no
security is attached, but as a rule the bonds or stocks go with the
draft. A, in New York, executes an order to buy for B in London, one
hundred Union Pacific preferred shares on the New York Stock Exchange.
The stock comes into A's office, and he pays for it with the proceeds
of a sterling draft he draws on B. The stock itself he attaches to this
sterling draft. Whoever buys the draft of him gets the stock with it
and keeps possession of it till the draft is presented and paid in
London.

5. _Bankers' Checks or Demand Drafts on Their Correspondents Abroad_

[Illustration: Form of Bankers' Check]

Bankers who do a foreign exchange business, keeping large balances in
several European centers, are continually drawing and selling their
demand drafts--"checks," they are called, or "demand"--upon these
foreign balances. Such checks are always to be had in great volume in
the exchange market, the banker's business being to draw and sell
exchange, and his degree of willingness being merely a matter of rate.
There come times, of course, when bankers have every reason to leave
their foreign balances undisturbed, but even at such times the bid of a
high enough rate will usually bring about the drawing of bills.

6. _Bankers' Long Drafts_

[Illustration: Form of Bankers' Long Draft]

In describing the nature of bankers' drawings of long bills, great care
must be taken to differentiate between the _different kinds_ of long
bills being bought and sold in the exchange market. A finance bill
looks exactly the same as a long bill drawn by a banker for a
commercial customer who wants to anticipate the payment abroad for an
incoming shipment of wool or shellac, but the nature and origin