No164.

London S

Accepted Ichn Howie Cz

See page 51 & 55.

INTRODUCTION.

IN this Introduction we are to explain the method of drawing out Receipts and Drafts, and such Accounts as usually occur in business. That the learner may the more readily comprehend the nature and use of these, they are selected from the transactions which compose Sets B. and C.

I. RECEIPTS.

A RECEIPT is a written acknowledgment of having received a Sum of money or a Bill in the settlement of an Account. The usual form of drawing out these is exhibited in the following Engraved Specimens.

II. INLAND BILLS.

A BILL or DRAFT is a note on stamp paper given by one person to another, to pay to him, or to his order, a certain sum of money at a specified time.

In every Bill there are at least two persons concerned, the Drawer and the Acceptor. In the first draft A. B.* is the drawer or holder of the bill, and John Howie and Co. are the acceptors or the persons who pay the bill when due. In the second draft, Edward Weston is the drawer, and A. B. the acceptor.

When the TERM of a Bill is expressed in months, calendar months are always understood. Thus if a Bill be dated the 1st January, and made payable at one month after date, the term or month expires on the 1st February; and if a Bill be dated the 29th, 30th, or 31st January, and payable at one month after date, the term expires on the last day of February, which in common years, is the 28th day, and in leap-years on the 29th.

When a Bill falls due on Sunday, or any holiday, it must be paid on Saturday, or day before. A Bill dated on a Sunday is not considered valid.

If a Bill be not payable at the place where the Acceptor resides, and no particular house be mentioned in the Bill for payment, it is proper to add to his acceptance the House at which he intends to pay it.

* A. B. is here understood to be the name of the learner, or owner of the books in the following Sets.

III. FOREIGN BILLS OF EXCHANGE.

A BILL of EXCHANGE is a written order from one person to another, requiring him to pay a certain Sum of money to a third person, or to his order, and that either on demand or at a specified time.

It is by means of Bills of Exchange, that money is usually remitted from one Country to another. There are generally four persons concerned in a Foreign Bill; two at the place where the bill is drawn, and two at the place of payment. Thus, for instance, A. of Amsterdam, owes to B. of London; and, instead of remitting the money in specie to B. he applies to C. residing at Amsterdam, to whom D. at London, is indebted. A. pays the money to C. and receives from him a Bill addressed to D. to pay the amount to B. or to any other appointed by him, who sends it to his correspondent B. with an order that the money be paid to him by D.

But it often happens, that only three persons are concerned, as in the first specimen; for example, R. Conder, residing at New York, and wishing to remit money to A. B. at London, and having George Kay owing him money in London, addresses his Bill to Kay, desiring to pay the sum therein mentioned to A. B. or to his order.

The TERM of a Bill varies according to the agreement of the parties, or the custom of the countries. Some Bills are drawn at sight, others at a certain number of days after sight, or after date; and some at usance,

USANCE is the usual time at which Bills are drawn between certain places, such as one, two, or three months after date; and double or half usances, means double or half of the usual time. If the usance be one month, fifteen days are allowed for half usance.

DAYS OF GRACE, are a certain number of days granted after the term mentioned in the Bill is expired. These also vary according to the custom of the different places. Bills at sight, however, must be paid when presented.

The use of Bills of Exchange, and the manner of negotiating them, will be understood by the illustration of the second Bill.

To explain the Business transacted by this second Bill, it must be supposed that Holford, Rucker and Co. who reside at Hamburgh, have occasion to remit to London, and apply to Moses Reiss for a Bill on that place; Reiss agrees to supply them, and draws the Bill upon his debtor or banker Solomon Sheldon, according to the Engraved form. Holford, Rucker and Co. on receiving the Bill, pay the value to Reiss, and send it to their creditor, suppose A. B. of London, first writing on the back of the Bill

Pay Mr. A. B. or order,

HOLFORD, RUCKER & Co.