ABSTRACT
A bill of exchange, a promissory note or check, and a letter of Credit, are written obligations to pay, or cause to be paid, a sum of money, either at a time, or at a different place. Governments have commonly made it their object to contrive that the precious metals shall form the largest possible portion of the national import from, and the least possible portion of the national export to, foreign countries. The money still remaining in circulation, wherever it was exchanged for the bank deposits; that is to say, for entries in the bank books, necessarily lost in proportion to the reduction of its intrinsic value. The banks of England and France make no advances to private persons, except on bills of exchange, and give no credit beyond the funds in hand. They indemnify themselves for the trouble of receiving and paying on account of individuals by turning to account the floating balance left in their hands.
