A Documentary Credit (occasionaly called a "marginal credit") is in much the same form as the above, except that it states that the documents against which the bills are drawn (viz., full set of Bills of Lading, with invoice, policy, and letter of advice in duplicate) are to accompany the drafts, and that the amount drawn in each case is not to exceed, say, 75 per cent. of the cost of the goods. A "Documentary Credit," therefore, refers to "documentary bills." This credit would also have to be forwarded to the firm abroad.

Credits similar to those described above are not confined to banks, they are frequently given by private firms, and they are also arranged for by foreign firms in favour of home firms, who may be shipping goods abroad for account of such foreign firms.

Insurance. Just as a firm, when exporting goods, may either take out a separate policy for each shipment, or may declare such shipments against an "open policy," so a firm abroad, when shipping produce for account of a home firm, may insure each shipment separately, or may leave the home firm to declare the risk under an open policy which the latter has taken out. Firms in this country having large import transactions usually prefer to do their own insurance, and for this purpose they take out an "open policy," of which the following is a specimen :—

S. G.

£30,000.

Delivered the 28th day of March, 1899.

(No. 423,796)

Be it known that Arundel, Keene & Co.

as well in their own Name, as for and in the Name and Names
of all and every other Person or Persons to whom the names
doth, may, or shall appertain, in part or in all, doth make
assurance and cause themselves and them and every of them, to
be insured, lost or not lost, at and from Bombay, to a Port in
the United Kingdom, with leave to call at all and any Ports
and places on the voyage for all and any purposes.

upon any kind of Goods and Merchandises, and also upon the Body,
Tackle, Apparel, Ordnance, Munition, Artillery, Boat and other
Furniture, of and in the good Ship or Vessel called the
Steamer or Steamers, warranted to sail on or before 31st May, 1899,
whereof
is Master, under God, for this present Voyage, or
whosoever else shall go for Master in the said Ship, or by whatsoever
other Name or Names the same Ship, or the Master thereof, is or

shall be named or called, beginning the Adventure upon the said Goods and Merchandises from the loading thereof aboard the said Ship

upon the said Ship, &c., including all risk of craft to and from the vessel, and shall so continue and endure, during her Abode there, upon the said Ship, &c.; and further, until the said Ship, with all her Ordnance, Tackle, Apparel, &c., and Goods and Merchandises whatsoever, shall be arrived at as above,

upon the said Ship, &c., until she hath moored at Anchor Twentyfour hours in good safety, and upon the Goods and Merchandises until the same be there discharged and safely landed; and it shall be lawful for the said Ship, &c., in this Voyage to proceed and sail to and touch and stay at any Ports and Places whatsoever and wheresoever, for all and any purposes, without being deemed a deviation, and without prejudice to this Insurance. The said Ship, &c., Goods and Merchandises, &c., for so much as concerns the Assured, by Agreement between the Assured and Assurers in this Policy, are and shall be valued at £30,000 on Cotton, as may be hereafter declared and valued. Being on shipments made by Lewis Arundel & Co., of Bombay, in which they are interested, or which they may have received instructions to insure.

Touching the Adventures and Perils which we, the Assurers, are contented to bear and do take upon us in this Voyage, they are, of the Seas, Men-of-War, Fire, Enemies, Pirates, Rovers, Thieves, Jettisons, Letters of Mart and Countermart, Surprisals, Takings at Sea, Arrests, Restraints, and Detainments of all Kings, Princes, and People, of what Nation, Condition, or Quality soever, Barretry of the Master and Mariners, and of all other Perils, Losses, and Misfortunes that have or shall come to the Hurt, Detriment, or Damage of the said Goods and Merchandises and Ship, &c., or any part thereof; and in case of any Loss or Misfortune it shall be lawful to the Assured, their Factors, Servants, and Assigns, to sue, labour, and travel for, in, and about the Defence, Safeguard, and Recovery of the said Goods, Merchandises, and Ship, &c., or any part thereof, without prejudice to this Insurance; to the charges whereof we, the Assurers, will contribute each one according to the rate and quantity of his sum herein assured. And it is agreed by us, the Insurers, that this Writing or Policy of Assurance shall be of as much force and effect as the surest Writing or Policy of Assurance heretofore made in Lombard Street, or in the Royal Exchange, or elsewhere in London. And so we, the Assurers, are contented, and do hereby promise and bind ourselves, each one for his own part, our Heirs, Executors, and Goods, to the Assured, their Executors, Administrators, and Assigns, for the true performance of the premises, confessing ourselves paid the consideration due unto us for this Assurance by the Assured at and after the rate of Fifteen

shillings per cent.

IN WITNESS whereof we, the Assurers, have subscribed our Names and Sums assured in London, this 27th day of March, 1899.

N.B.-Corn, Fish, Salt, Fruit, Flour, and Seed are warranted free from Average, unless general, or the Ship be stranded; Sugar, Tobacco, Hemp, Flax, Hides, and Skins are warranted free from Average under Five Pounds per cent.; and all other Goods, also the Ship and Freight, are warranted free from Average under Three Pounds per cent., unless general, or the Ship be stranded.

To follow and succeed a Policy for £20,000 done at Lloyds, and dated 30th January, 1899.

up.

To pay average on every 10 Bales running landing numbers.
General Average payable as per foreign statement, if so made

Declarations to be made binding in their order, whether in the order of the Bills of Lading or otherwise; or in the absence of Declarations they shall be in the order of the date of the Bills of Lading. Declarations in all cases to be binding as to the value of the Interest.

Warranted free from capture, seizure, and detention, the consequences thereof, or of any attempt thereat, and from all consequences of hostilities or warlike operations, whether before or after declaration of war.

The names of the underwriters and the amounts underwritten would be written on the back of the policy, as described in the Chapter on Marine Insurance.

It will be seen from the above clause that the insured is covered by this policy even when no declaration has been made, so long as the shipment can be proved.

.

Insurance Letter.—When goods are shipped abroad for account of a home firm who insure themselves, as in the above case, a “letter of insurance," in lieu of the policy, is handed to the bank when a documentary bill is drawn. This is simply a letter addressed to the home firm, giving particulars of the shipment and requesting the firm to declare a specified sum against their open policy and to satisfy the bank's London office that the insurance is fully covered. In all cases the bank reserves to itself the right of insuring for its own protection should the insurance not have been effected.

Fire Insurance. When the steamer arrives, the bank will request the drawee to cover fire insurance, and if this is not done immediately they will insure themselves and debit the drawee with the premium.

Imports "on Consignment."-These imports consist mainly of foreign or colonial produce shipped to a merchant in this country for sale on commission. Arrangements have, of course, been previously made that the home firm will receive such consignments, and in each case the consignor either draws on the consignee for, say, 75 per cent. of the invoice amount or receives an advance of about that amount from the consignee's branch firm abroad. In these cases the consignor generally prefers to attend to the marine insurance himself, but in many cases he leaves the insurance to the home firm. The consignor, of course, sends to the consignee an Invoice and Weight Note, together with the Bill of Lading, and when the goods are sold the consignee sends to the consignor full particulars of the sales, and remits any balance that may be due.

Places of Sale.-Most of the goods imported on consignment are sold by auction, there being certain recognised places where the sales are effected, and where traders in the different articles meet each other. Many of these places are in London. The goods are sold on samples chiefly.

Colonial Wools are mostly sold at the "Wool Exchange," in Coleman Street, London, sales being held at fixed periods. There are also periodical sales at Liverpool (chiefly South American and East Indian wools), and occasionally at Bradford.

Corn, and cereals generally, are dealt with at the Corn Exchange, Mark Lane (London), and also at Hull.

Oil Seeds (linseed, rapeseed, cottonseed, &c.) and oils and oil cakes are sold at the "Baltic," in Threadneedle Street, London, and at Hull.

Colonial and East Indian Produce of various kinds (such as tea, coffee, sugar, drugs, spices, indigo, silk, &c.) is sold at the "Commercial Sale Rooms," in Mincing Lane, London, and also at Liverpool.

Green Fruits are disposed of in two or three places in London, Pudding Lane, Monument Yard, and Covent Garden being the principal markets.

Cotton is sold chiefly at the "Cotton Exchange," Liverpool. For produce of this kind Liverpool is obviously the most convenient centre, being the nearest port to the United States, whilst only a few miles distant from the seat of manufacture. A cotton market has lately been established in Manchester in connection with the Ship Canal. Cotton is also sold in London, but only to a comparatively small extent.

Notices of London sales, together with market reports, prices current, reports of sales, and a variety of other information, may be found in the Public Ledger, a newspaper published in London, and issued on Wednesday and Saturday in each week.