Barclays Bank, Ltd. v. Bank of United States

Defendant is a New York bank and plaintiff is a British bank with its head office in London. Defendant had a standing arrangement with plaintiff that plaintiff should accept drafts drawn upon it under letters of credit issued by defendant and that defendant would pay to plaintiff the face amounts of any such accepted drafts on their respective maturity dates.

Defendant, at the request of a New York buyer who wished to purchase goods from abroad, issued a letter of credit under which drafts were to be drawn on plaintiff. In consideration therefor the buyer agreed to furnish defendant one day…