338 



THE INDIA RUBBER WORLD 



[April 1, 1916. 



York bank have as yet advanced any payment in the transaction. 



The bank at Singapore is required by the terms of the letter 

 of credit to send one bill of lading together with consular in- 

 voice directly to the New York bank. The remaining docu- 

 ments, which include duplicate bills of lading and insurance cer- 

 tificate, if required, are attached to the original draft and sent 

 forward to London by the Singapore bank. 



As soon as the draft reaches the London correspondent of the 

 Singapore bank its messenger takes it to the London branch of 

 the New York bank, which accepts it bi^ writing on the face the 

 word "Accepted," the date of presentation and the date at which 

 it matures, which is 93 days after the first presentation (three 

 days of grace being allowed in London), and finally signing the 

 acceptance officially. The London bank notifies its New York 

 office of the amount of the draft and the date of its maturity, 

 and forwards the shipping documents. 



In the meantime the bill of lading and consular invoice have 

 gone direct from Singapore to the New York bank, which holds 

 them pending the arrival of the goods. On receipt of advice 

 from London they advise John Jones & Co. of the date that the 

 draft is due in London and also in New York. The form shown 

 in Fig. 5 is used for this notification. 



If John Jones & Co. should so desire, they may pay cash at 

 any time before the draft is due and receive an allowance of in- 

 terest, according to the agreement with the banker at time of 

 issuance of the credit. 



If this is not done the rulilier is cleared and warehoused in the 

 bank's name until the obligation is met. 



SPECIMEN 

 TRUST RECEIPT 



.«,j^n. 



d mtrihaiKiise their frojcrtj. ip«,firf in Ihe ail of Lading per S.S A*Ml1'lVn/>, 



rr 



WfC 

 J J c 



'fjO J(/u-'cA^ /loM^ /AyVufjly fCiM-e^ 



By this method the importer is permitted to remove the rub- 

 ber and sell it, but is bound to turn over immediately to the 

 New York bank enough money coming from such sale or sales 

 to pay the relative obligation to the bank. Furthermore the bank 

 is privileged at any time to cancel the agreement and take over 



^JJU/'d 



/MEM iTATtntNT 



%IA <1A/1. 



New York^/tt-VT^iil 



_Whvy'.PmJt4j^L<l.^,.jUATr^^^'rYfo 



'.£^^ 



To Trust Company 



^^^7». 



T. 



s/ ^-^^ 



kSw! ^/n-%(m'VUi^\ <l 3 



S ^0 0- 



7^ 



•//lyaAyaA 



^i/<n/v\/ Cicr^r wi W- 



8 .f ^ V 



Fig. 7. — St.mement Rexdered. 



the goods for which they have given their obligation. This trust 

 agreement in no wise interferes with the obligation to meet the 

 draft when due in New York. 



The final form, illustrated in Fig. 7, is the statement ren- 

 dered to John Jones & Co. on the date the draft is due in New 

 York. The original amount drawn in Singapore is converted at 

 the current selling rate of exchange for bankers' checks on 

 London on the date the draft is due in New York. To this is 

 added the commission, usually '-^ to '/i of 1 per cent per month 

 of the tenure of the draft. The total amount as shown by the 

 statement is charged against John Jones & Co.'s account or they 

 remit their check to the banker, and the transaction is ended. 



This system of credits has been found to be a most logical 

 and satisfactory way of financing imports, inasmuch as the im- 

 porter has the assurance that the goods must be shipped before 

 the seller receives payment, and the seller is sure of obtaining 

 his money immediately on delivery of the goods to the steamship 

 company. 



The documents that 

 ourtesy of George We 

 maratity Trust Co. of 



roduced havt 

 imager of the 



been supjilied through the 



Foreign Department of the 



i largest and most prominent 



MACHINE FOR INFLATING TOY BALLOONS. 



Toy balloons are made by the dipped process, that is, the 

 small pear-shaped form is dipped into a solution of rubber, 

 after which the balloons are vulcanized and finally inflated. It 

 is for the latter process the apparatus here shown is 

 designed. The vessel on the right is the generator, 

 and here hydrogen gas is generated by the action of 

 sulphuric acid upon zinc, this gas being con- 

 veyed by a rubber tube to the vessel on the 

 left, which is the gas reservoir. This is sur- 

 mounted by a pipe with a stop-cock. The 

 neck of the balloon is pressed over 

 the end of this tube, the stop-cock 

 turned on, the balloon inflated, the 

 stop-cock closed ; then the neck of 

 the balloon is tightly wound with 

 strong thread, after which it is 

 varnished in the usual manner. 

 Two sizes are made, one for in- 



If the importer is of sufficiently good standing, the bank may ' - Aating 8 dozen balloons at each 



permit the goods to be released on a trust receipt. One form of charge, and the other for 12 do^en balloons. [Brazel Novelty 

 trust receipt is shown in Fig. 6. 



Fig. 6. — Trust Receipt. 



Manufacturing Co., Cincinnati, Ohio.] 



