Before issuing these bonds the surety companies make rigid examination as to the ability of the manufacturer to fulfill his contract. The commission charged for issuing these bonds is from 2-1/2 to 5 per cent. on the amount involved. The demand for bonds has been so great during the last six months that it has taxed to the limit the combined resources of all the surety companies in the country. The remaining part of the contract price is usually guaranteed by bankers' irrevocable letters of credit or deposits made with New York banks, to be drawn against as the goods are delivered, f.o.b. the factory--that is, free on board the cars--or f.a.s. the seaboard--that is, free alongside ship--as the terms may provide. Banks here are beginning to purchase bank acceptances or bank-accepted bills of exchange, and in this manner payment is also being made to American manufacturers for goods sold to the Allies. For example, when a purchasing agent in Paris places an order for ammunition here he makes arrangements whereby the manufacturer will be authorized to draw on a New York banking institution at a stipulated maturity, and after acceptance of his drafts by such banking institution he could then negotiate these time drafts with his own banker--thus making them, less the discount, equivalent to cash--through whom they could be rediscounted by the Federal Reserve banks. These bank-accepted bills are discounted at a nominal rate of interest. Before the war we were a debtor nation; today we are rapidly becoming, if we have not already become, a creditor nation. A year ago we were selling abroad only about as much goods as we were buying; now the balance of trade is greatly in our favor, due to the enormous export of foodstuffs and war supplies of all kinds. Monthly our exports are exceeding our imports by many millions of dollars. This indicates that foreign nations are going into debt to us. At the time of writing this article foreign exchange was quoted as follows: London exchange, sterling, 4.76-1/2; Paris exchange, franc, 5.45-3/4. By paying down $4.76-1/2 in New York you can get L1 in London, which on a par gold basis is equivalent to $4.86 in London. By paying down 94-1/2 cents in New York you can get the equivalent to 100 cents in Paris. We now come to another interesting phase of this war supply business, namely, how some persons thought these war orders could be secured and how they are actually being placed. Almost immediately after the declaration of war, most of the belligerent Governments dispatched "commissions" to the United States. Some had orders to buy, and others were authorized to get prices and submit samples. In an incredibly short period of time it became generally known that foreign Governments were shopping and buying in our markets. The knowledge of this fact brought about a condition unique in our business life.