This is all there is to Exchange, only in business life banks instead of individuals transact the business.
Only a small percentage of the money really passes from one city to another.
Exchange in the United States is carried on mostly by banks located in the large cities, which charge a small fee for transacting the business.
TABLE OF COMMERCIAL LAW IN THE STATES
| INTEREST LAWS | Statutes of Limitation | Exemption Laws | ||||||
|---|---|---|---|---|---|---|---|---|
| Legal Rate Per Cent | Per Cent Allowed by Contract and Penalty for Usury | Judg- ments | Notes | Open Ac- counts | Personal Property, Exempt | Homestead, Exempt | ||
| Alabama | 8 | 8; | Forfeit interest | 20 yrs. | 6 yrs. | 3 yrs. | $1,000 | $2,000 |
| Arizona | 6 | 12; | No provision | 4 yrs. | 4 yrs. | 3 yrs. | 500 | 2,500 |
| Arkansas | 6 | 10; | Forfeit principal and interest | 10 yrs. | 5 yrs. | 3 yrs. | 500 | 2,500 |
| California | 7 | Any; | No provision | 5 yrs. | 4 yrs. | 4 yrs. | ... | 5,000 |
| Colorado | 8 | Any; | No provision | 6 yrs. | 6 yrs. | 6 yrs. | ... | 2,000 |
| Connecticut | 6 | 15; | Fine or imprisonment, or both | 7 yrs. | 6 yrs. | 6 yrs. | ... | 1,000 |
| Delaware | 6 | 6; | Principal and interest forfeited | 10 yrs. | 6 yrs. | 3 yrs. | 200 | ... |
| Dist. of Col. | 6 | 6; | Forfeit interest | 12 yrs. | 3 yrs. | 3 yrs. | 300 | ... |
| Florida | 8 | 10; | Forfeit interest | 20 yrs. | 5 yrs. | 3 yrs. | 1,000 | 160 acres |
| Georgia | 7 | 8; | Forfeit excess of interest | 7 yrs. | 6 yrs. | 4 yrs. | 300 | 1,600 |
| Idaho | 7 | 12; | Forfeit interest and 10% of principal | 6 yrs. | 5 yrs. | 4 yrs. | ... | 5,000 |
| Illinois | 5 | 7; | Forfeit interest | 20 yrs. | 10 yrs. | 5 yrs. | 400 | 1,000 |
| Indiana | 6 | 8; | Excess interest forfeited | 20 yrs. | 10 yrs. | 6 yrs. | 600 | or 600 |
| Iowa | 6 | 8; | Forfeit interest and 8% of principal | 20 yrs. | 10 yrs. | 5 yrs. | 200 | or 40 acres |
| Kansas | 6 | 10; | Forfeit of double amount of usurious interest | 5 yrs. | 5 yrs. | 3 yrs. | ... | 160 acres |
| Kentucky | 6 | 6; | Forfeit of interest | 15 yrs. | 15 yrs. | 5 yrs. | 250 | 1,000 |
| Louisiana | 5 | 8; | Forfeit interest | 10 yrs. | 5 yrs. | 3 yrs. | ... | Total 2,000 |
| Maine | 6 | Any; | No provision | 20 yrs. | 20 yrs. | 6 yrs. | ... | 500 |
| Maryland | 6 | 6; | Forfeit interest | 12 yrs. | 3 yrs. | 3 yrs. | 100 | ... |
| Massachusetts | 6 | Any; | No provision | 20 yrs. | 6 yrs. | 6 yrs. | ... | 800 |
| Michigan | 5 | 7; | Forfeit interest | 6 and 10 | 6 yrs. | 6 yrs. | 500 | 1,500 |
| Minnesota | 6 | 10; | Forfeit interest | 10 yrs. | 6 yrs. | 6 yrs. | 500 | 80 acres |
| Mississippi | 6 | 10; | Forfeit interest | 7 yrs. | 6 yrs. | 3 yrs. | ... | 2,000 |
| Missouri | 6 | 8; | Forfeiture or misdemeanor | 10 yrs. | 10 yrs. | 5 yrs. | 300 | 1,500 (min.) |
| Montana | 8 | Any; | No provision | 10 yrs. | 8 yrs. | 5 yrs. | ... | 2,500 |
| Nebraska | 7 | 10; | Forfeit interest | 5 yrs. | 5 yrs. | 4 yrs. | 500 | or 2,000 |
| Nevada | 7 | Any; | No provision | 6 yrs. | 6 yrs. | 4 yrs. | ... | 5,000 |
| New Hampshire | 6 | 6; | Forfeit three times excess | 20 yrs. | 6 yrs. | 6 yrs. | ... | 500 |
| New Jersey | 6 | 6; | Forfeit interest and costs | 20 yrs. | 6 yrs. | 6 yrs. | 200 | 1,000 |
| New Mexico | 6 | 12; | Forfeit of twice the amount of interest | 7 yrs. | 6 yrs. | 4 yrs. | 500 | 1,000 |
| New York | 6 | 6; | Forfeit of principal and interest; misdemeanor | 20 yrs. | 6 yrs. | 6 yrs. | 250 | 1,000 |
| North Carolina | 6 | 6; | Forfeit interest | 10 yrs. | 3 yrs. | 3 yrs. | 500 | 1,000 |
| North Dakota | 7 | 12; | Forfeit interest | 10 yrs. | 6 yrs. | 6 yrs. | 1,000 | 5,000 |
| Ohio | 6 | 8; | Forfeit interest over 6% | 5 yrs. | 15 yrs. | 6 yrs. | 100 | 1,000 |
| Oklahoma | 6 | 10; | Forfeit interest | 5 yrs. | 5 yrs. | 3 yrs. | ... | 5,000 |
| Oregon | 6 | 10; | Forfeit principal and interest | 10 yrs. | 6 yrs. | 6 yrs. | ... | 1,500 |
| Pennsylvania | 6 | 6; | Forfeit excess of interest | 20 yrs. | 6 yrs. | 6 yrs. | 300 | ... |
| Rhode Island | 6 | Any; | No provision | 20 yrs. | 6 yrs. | 6 yrs. | 800 | ... |
| South Carolina | 7 | 8; | Forfeit interest | 20 yrs. | 6 yrs. | 6 yrs. | 500 | 1,000 |
| South Dakota | 7 | 12; | Misdemeanor | 20 yrs. | 6 yrs. | 6 yrs. | 750 | 5,000 |
| Tennessee | 6 | 6; | Forfeit of excess interest | 10 yrs. | 6 yrs. | 6 yrs. | ... | 1,000 |
| Texas | 6 | 10; | Forfeit interest | 10 yrs. | 4 yrs. | 2 yrs. | 500 | 5,000 |
| Utah | 8 | 12; | Forfeit excess interest | 8 yrs. | 6 yrs. | 4 yrs. | ... | 2,000 |
| Vermont | 6 | 6; | Forfeit of excess interest | 8 yrs. | 6 yrs. | 6 yrs. | 200 | 500 |
| Virginia | 6 | 6; | Forfeit interest | 20 yrs. | 5 yrs. | 2 yrs. | ... | 2,000 |
| Washington | 6 | 12; | Forfeit of double accrued interest and costs | 6 yrs. | 6 yrs. | 3 yrs. | 1,000 | 2,000 |
| West Virginia | 6 | 6; | Forfeit excess interest | 10 yrs. | 10 yrs. | 5 yrs. | 200 | 1,000 |
| Wisconsin | 6 | 10; | Forfeit treble amount of usurious interest paid | 20 yrs. | 6 yrs. | 6 yrs. | 200 | 5,000 |
| Wyoming | 8 | 12; | Forfeit interest | 5 yrs. | 5 yrs. | 8 yrs. | 500 | 1,500 |
Note.—In many of the States it is impossible to place a fixed amount on personal property exempt. In the table above these states have no amount given in the personal property column. Days of grace have been abolished in all states except the following: Arkansas, Mississippi, South Carolina and Texas.
If the drawee accepts the draft, he writes across the face of it “Accepted” with the date and his signature. This is called an Acceptance.
Once accepted, the draft becomes a note, with the same laws regulating it. If the draft is not accepted, it is not binding and we say that it has been “dishonored.”
A bill of exchange is entitled to days of grace, if it is payable in a State where grace is allowed, unless a particular day is named in the draft. In most States, no grace is allowed on sight drafts.