ABSTRACT
The greater part of all monetary transactions in Europe is made today through bills of exchange; more payments are probably made in this way than by money, at least in all those instances where larger amounts are involved. Since bills of exchange are payable at time, by transferring them before maturity, interest for the time they are still outstanding is usually deducted from their face value; this is called a discount. In business, bills of exchange are found to accomplish two circulations in opposing directions; they are sold in the same city, like commodities, for money; they are transferred from city to city, and sometimes in the same city, in payment for goods, just like money. While bills of exchange replace money, and while they are in some way the universal money of the business world, they differ from it fundamentally because of their fixed maturity date, which makes them subject to discount, and consequently assures to their holder interest.
