How To Carry Funds For Your Voyage - 1910
"Put money in thy purse"—Iago.
Funds may be carried :
- In cash.
- Letters of credit.
- Express checks.
- Steamship company checks.
- Circular notes.
The amount of cash which is carried should be for use on the steamer and on landing; rarely will more than $50.00 be required.
LETTERS OF CREDIT
Sample Letter of Credit
For sums of $500.00 and over, letters of credit are recommended. They can be obtained from any bapker against the deposit of a proper sum plus a fee of usually 1 per cent., except where the amounts are very large.
The letter of credit includes a letter of identification which must be signed by the owner, who will also sign blanks which are sent to the principal correspondents of the hankers abroad.
The letter of credit can be presented at various banks and brokers all over the world at any reasonable hour and the owner is required to sign a draft for the amount. The signature is then compared with the signature on the letter of credit and the amount is paid over plus exchange-if any.
If the balance of trade is in the right direction an exchange of fifty or sixty cents for each ten pounds drawn is not unusual, except in Great Britain and Ireland where drafts are paid pound for pound.
Letters of credit should be very carefully guarded the same as money, as in the case of loss all the correspondents would have to be notified, tbe expense of which is very great. A proper carrying case is provided hy most bankers issuing letters of credit. Letters of credit can be issued to two or more persons if desired.
Applications for letters of credit should be accompanied by letters of introduction from a bank or some well-known firm and such letters should bear the signature of the hearer as a means of identification. One of the largest firms of bankers whose letter of credit we reproduce, has the following terms of issue :
- (a) Against Cash Payment at our posted rate of Exchange for Demand
Bills on London and a commission of 1 per cent.—Any unused balance will be refunded at our posted rate of Exchange for Demand Bills on London.
- (b) Against Satisfactory Guarantee of Repayment as drafts appear. —Commission, 1 per cent. only on amount used.
- (c) Against Deposit of Cash.—Interest allowed on daily balances subject to arrangement. Commission, 1 percent., payable on amounts used.
- (d) Against Deposit of Approved Collateral.—Commission, 1 per cent., and drafts charged in account in the same way as in method "c." Interest or dividends on these securities collected for one-quarter of 1 percent. and credited in account.
Tinder Credits issued against guarantee, cash deposited or satisfactory collateral, the drafts will be converted into dollars, in London, at the buying rate of exchange on New York.
The Dollar Credits will be found convenient for travelers in all parts of North America, as well as in Cuba and Peurto Rico."
Remember that Letters of Credit are issued for a specified time which is agreed upon at the time of securing same. No funds can be drawp after tbe time limit has expired without special arrangements or a new letter is issued. For particulars consult the bankers.
Circular notes or travelers' checks in $10.00, $20.00, $50.00 and $100.00 denominations are another form of express and steamship company checks issued by reputable tourist agencies. The checks are practically the same, but a letter of identification often accompapies it the same as a letter of credit.
All of these methods of carrying funds are considered safe, but great care should be taken not to lose any of them. There is little diffi-culty in exchanging money at banks or exchange offices at any seaport where there is trans-Atlantic trade.
Owing to a peculiar law it is not possible to give facsimiles of foreigp coins, although a coin dealer may puhlish such illustrations in his catalogue.
In other words, in the very books where the information would tend to prevent the cheating of visitors, so reproductions can be given owing to some absurd idea that this would benefit counterfeiters, whereas as a matter of fact the coin catalogues would be much more useful to counter-feiters. They would not be liable to go to either one, as the facsimiles would not be good enough for this purpose.
The following charts give the principal gold and silver coins of Great Britain, France, Germany, Holland, Norway, Sweden and Denmark, and owing to the peculiar law cited ahove it is not possible to do more than give the actual size of the coins, the metal, the denomination in coin currency and tho equivalent in American money.
The importance of these charts will be recognized by old travelers who have often made mistakes on landing, especially with English and French money : the half-sovereign and the sovereign being very much alike except as to size.
The 5-franc, the 10-franc and the 20-franc pieces are also very often confused. It is not thought necessary to give reproductions as to size of the copper coinage.
The English penny, half-penny and farthing being compar-atively well known, there is little chance for the visitor to be cheated with these coins. The same thing applies to the French 2-sou and 1-sou pieces.
The German copper coins of the value of 2-pfennig and 1-pfennig are seldom used by the traveler. The Dutch coins of the value of 21/2 cents (Dutch) equal to 1 cent; and the even smaller coinage of 1 cent and 1 /2 cent are not much used, and are only valuable to give to children to keep them out of the way when you do not care to have them in photographs. The bronze coins of Norway, Sweden and Denmark are not used to any extent hy tourists.
The ducat, a coin equal in value to $2.24, is not generally obtainable, and it would therefore seem that it is out of circulation to some extent. The 20-kroner piece is not in circulation at the present time.
The silver coinage of Greece should be rejected, as these coins do not pass current in France. A careful comparison of coins the first few days after landipg will save the traveler much expense and trouble.