blank draft, signs it, and addresses it on the lower
left-hand corner to A. Instead of sending it by mail he takes it to
his bank--that is, deposits it for collection. It will reach a Chicago
bank in about the same way that cheques for collection go from one
place to another. A messenger from the Chicago bank will carry the
draft to A's office and present it for payment or for acceptance. If
it is a _sight_ draft--that is, a draft payable when A sees it--he may
give cash for it at once and take the draft as his receipt. If he has
not the money convenient he may write across the face "Accepted,
payable at (his) Bank," as in the illustration. It will then reach his
bank and be paid as his personal cheque would be, and should be
entered in his cheque-book. Banks usually give one day upon sight
drafts. The draft will not be presented a second time, but will be
held at the bank until the close of the banking hours the next day,
where A can call to pay if he chooses. Leniency in the matter of time
will depend largely upon B's instructions and the bank's attitude
toward A. If the draft is a time draft--that is, if B gives A time, a
certain number of days, in which to pay it--A, if he wishes to pay the
draft, _accepts_ it. He does this by writing the word _accepted_ with
the date and his signature across the face of the draft. He may make
it payable at his bank as he would a note, if he so desires. He then
returns the draft to the messenger, and if the time is long the draft
is returned to B; if only a few days, the bank holds it for
collection.

[Illustration: No. 1. A sight draft.]

[Illustration: No. 2. An accepted ten-day sight draft.]

[Illustration: No. 3. An accepted sight draft.]

[Illustration: No. 4. A time draft.]

An accepted draft is really a promissory note, though it is more often
called an _acceptance_. When a man pays or accepts a draft he is said
to _honour_ it. In the foregoing illustration A is not obliged either
to pay or to accept the draft. It is not binding upon him any more
than a letter would be. He can refuse payment just as easily and as
readily as he could decline to pay a collector who calls for payment
of a bill. Of course, if a man habitually refuses to honour legitimate
drafts it may injure his credit with banks and business houses.

It is a very common thing to collect distant accounts by means of
commercial drafts. A debtor is more likely to meet--that is, _to
pay_--a draft than he is