Many near-by country banks clear through city banks;
others clear less directly. If the First National Bank of Philadelphia
is known at the clearing-house as the representative of the First
National Bank of Media it likely has money belonging to this Media
bank on deposit. In that case the cheque is charged up against the
account of the First National of Philadelphia. This bank then sends
the cheque to the First National of Media, by which it is charged up
against B. This system of collection of cheques is about as perfect as
is the post-office system of carrying registered mail.

[Illustration: Backs of two paid cheques.]

Now, the banks and clearing-houses through which the cheque passes on
its way _home_ stamp their indorsements and other information upon the
back. Our illustration shows the backs of two cheques which have
"travelled." Millions of dollars are collected by banks daily in this
way, and all without expense to their customers. It is estimated that
these collections cost the New York City banks more than two million
dollars a year in loss of interest while the cheques are _en route_.
Ten thousand collection letters are sent out daily by the banks of New
York City alone.

IX. COMMERCIAL DRAFTS

A COMMERCIAL DRAFT bears a close resemblance to a letter from one
person to another requesting that a certain sum of money be paid to
the person who calls, or to the bank or firm for whom he is acting.
For instance, the draft shown in the first illustration might be
worded something like this:

_St. Louis, Mo., Feb. 22, 1899._

_Mr. Robert Elsmere,_
_Jefferson City, Mo._

_My dear Sir:_

_Will you kindly pay to the messenger from the ---- Bank who will
call to-morrow the sum of three hundred and ninety-seven dollars
and charge to my account?_

_Yours, very truly,_
_David Grieve._

[Illustration: A sight draft developed from the above letter.]

Commercial usage, however, recognises a particular form in which this
letter is to be written, and the address of the person for whom it is
intended is usually written at the lower left-hand corner instead of
on an envelope. Commercial drafts usually reach the persons upon whom
they are drawn through the medium of the banks rather than directly by
mail. Let us illustrate. Suppose that A of Chicago owes B of Buffalo
$200, and B desires to collect the amount by means of a draft. He
fills in a