20 HARVARD LAW REVIEW have here a substantive institution of the law merchant, which ought to be sustained on its own basis; and that whatever common-law theories may be convenient for the purpose are to be resorted to in order to fortify it. It is significant that no deliberate written promise of a business man or commercial entity made as a business transaction to answer for credit extended on the basis of the writ- ing has failed of enforcement in our courts.^" / Let us now apply these several theories to the actual form of letters in general use to-day in our export trade and test them by the problems to which those forms and the requirements of modern business give rise. m Although letters of credit in our foreign trade vary greatly in form, it is possible to group them into four well-marked types, with many variations of form in each type. The words "confirmed letter of credit," or "irrevocable letter of credit," or both, appear or seem to be implied in each type; and it is on these words that the business world seems to put its main, if not its whole reliance. Leaving these words out of account for the moment and looking at the purport of the letter apart therefrom, we may take as our first type those whose words suggest immediately a notification or acknowledgment by the issuer of the receipt of money to the use of the addressee, to be paid him upon compliance with the terms of its receipt, which are stated as conditions in the letter.^^ Refer- ^° The cases in note 45, supra, are an apparent exception. But the case in the federal court was one at nisi prius and the instrument was vague in its terms and by no means an ordinary letter of credit. In the Georgia case the language used, "we wUl carry you," was addressed to the holder, and evidently contemplated an exten- sion of existing indebtedness only. What is said as to agreements for acceptance is but dictum. In the New York case a majority of the court upheld the letter. ^' The following is an example of this type: [Amount] [No.] [Date] [Addressee]: At the request and for the account of [holder] we have opened a confirmed credit in your favor, bearing the above number, available by drafts at sight to an aggregate amount of [amount of credit] for [purposes of credit]. Payments to be made against delivery to us of properly endorsed negotiable rail- road bills of lading together with receipted invoices in triplicate at the above stated prices. This credit to remain in force until Any draft drawn under this credit must state that it is drawn imder [description.
