Circular Notes

Circular Notes are bank-notes specially adapted for the use of travellers in foreign countries; and being, in fact, bills personal to the bearer, they are believed to be more safe as travelling money than ordinary notes or coin. Circular notes of the value of £10 and upwards are furnished by or through the chief banking-houses. Along with these notes is given a 'letter of indication.' This letter (a lithographed form in French) is addressed to foreign bankers, requesting them to pay the notes presented by the bearer, whom they name, and to aid him in any way in their power. On the back of the letter there is a long list of foreign bankers, extending all over Europe, any of whom will cash one of the circular notes on being presented and indorsed by the bearer. In paying these notes the money of the country is given according to the rate of exchange, and free of any charge for commission. For security, the letter and the notes should not be carried together, in case of their being stolen or lost. A corresponding certificate issued by the bankers in the United States for the use of travellers, is called Letter of Credit. See CREDIT.