Front Page Titles (by Subject) Bank-notes. - Money and the Mechanism of Exchange
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Bank-notes. - William Stanley Jevons, Money and the Mechanism of Exchange 
Money and the Mechanism of Exchange (New York: D. Appleton and Co. 1876).
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What we call a bank-note is a promissory note, issued by a banker, and binding him to pay the sum named therein to the bearer immediately upon demand. The note is transferable by delivery, so that the holder is like the holder of a coin, the owner primâ facie, and as such can claim the fulfilment of the promise at any moment, within reasonable hours, without inquiry. The failure of the banker to pay the note when presented does not create any liability between the persons through whose hands the note had previously passed, so that the note is continually employed, like metallic money, in settling debts and removing liabilities. It is most important to observe that a bank-note being payable on demand bears no interest, and is never bought at a discount, except when the ultimate payment is doubtful. Hence the holder of a note has, like the holder of ordinary coins, no motive in keeping it, except to make future purchases. If a man has more notes than he expects to pay away in the next week or two, he will do best to deposit them in a bank, where they will be safer and at the same time bear interest. There is thus an inherent tendency in notes to circulate like coins, and to be kept down in amount to the lowest quantity consistent with the accomplishment of retail purchases.