TRAVELLERS' CHEQUES. The system of travellers' cheques was inaugurated by the American Bankers' Association for the use of its members, that Association, it is stated, having contracted with the Bankers' Trust Company of New York for their issuance and for their protection.
The cheques are issued in denominations of $10, $20, S50 and $100, tinted respectively in blue, green, straw and orange.
The idea is that, if the cheques are in proper order, they will be cashed by bankers, hotels and others.
According to the instructions issued by the Association : The holder may identify himself by sign ing his name in ink in your presence in the space left for that purpose upon the face of the cheque. The signature must correspond with the holder's signature which was placed upon the cheque at the time of its purchase in the place designated for that purpose.
Ordinarily the line following the words " pay to the order of " on the cheque will be left blank. In such cases the name of the bank or hotel company or other party cashing the cheque should be filled in, thus making the cheque payable directly to the party who cashes same ; in which case the holder need not indorse the cheque. his counter signature being all that is necessary. Should the name of the holder have been written on the face of the cheque following the words " pay to the order of " it will then be neces sary for him to indorse the cheque as well as to countersign it.
Parties presenting cheques for encash ment should receive the face amount, or its nominated equivalent in countries especially mentioned upon the face of the cheque, and in all other countries the equivalent of the sterling amount at the current rate of exchange.
In the case of doubt as to the authenticity of the cheque, if it is held up to the light cer tain planchettes will be seen, and no cheque is genuine without them. Planchettes, it is explained, are small discs in three colours embedded in the pulp of the paper at the time of its manufacture.
At the foot of the cheque the equivalent of the $20 is given for various countries, that for Great Britain and Ireland being ls. 8d.
The order is to be payable without deduc tion of charges, except stamp tax, out of funds to credit of drawer.
When cashed the cheque is to be for warded for reimbursement to one of the various bankers mentioned on the back of , the cheque, according to the country in which it is cashed.
Travellers' cheques are also issued in this country in precisely the same way as in America, but, of course, they are not guaranteed by any Trust Company. The cheques are for f,5, and and are payable in various countries at the rates specified upon them, and in other countries at the current rates. A list of agents through out the world is issued with each cheque or batch of cheques.