LETTERS OF CREDIT. TO THE EDITOR.

Otago Daily Times, Issue 5476, 6 September 1879, Page 1 (Supplement)

LETTERS OF CREDIT. TO THE EDITOR.

Sir, —I noticed in your issue cf 3rd mat. a Utter (headed "A Hint to the Banks," and signed "New Ohnm"), rettiFg forth the gri«vances cf nsw srrivals in this Colony who bring with them letters of ciedit on local banks. If "Now Chum," who has probably had some difficulty in getting cash tor his letter, hkd for a moment studied the wording of the document, ho would hkva been mstde aware that the banker who rafu*«d to cash his letter without identification was to pay to "New Chum," aud not to his order, whioh makes a vast amount of differenoa to the banker, who is held responsible if the money is pii i to the wrong party. Caso3 have be in known in which a wrong person, bearing, how.vtr, a, similar name, has received njoiiiy to which ho had no right, and when tho right man has applied for the money the banker has been obliged to "atump up " a eecond titno. Herca the caution, which ',' New Chum " thinks unnecessary. It weuld : fee a very great assistance to both banker* and clients wore peoplo leaving England or other places to forwarda srjeoimen of their signature thiongh tho bank which Bends their inaney.—I am, &c, ..■,...--: ■ ': ''■"'•' ''; :'*'''"' ' ■ "P^B.-'A;--1'