In exchange. When the words "in exchange" are appended to a draft the amount of the draft is to
be paid in exchange on the place from which the draft emanates.  For example, if a person in New
York draws on a person in Chicago, the draft being payable in exchange on New York, the person
in Chicago must pay the draft in exchange on New York; that is, he delivers in payment of the draft
a bill of exchange (which is a draft) payable in currency (money) in New York. Such a bill of
exchange he may purchase from a bank in Chicago and it will be paid by the bank in New York
which is a correspondent of the bank in Chicago.