Front Page Titles (by Subject) Bills of Exchange. - Money and the Mechanism of Exchange
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Bills of Exchange. - 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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Bills of Exchange.
A bill of exchange is an order to a person to pay money to the legal holder of the document on a day indicated therein. If payable at sight, a bill does not apparently differ from a cheque or draft to order, except that it will be usually drawn upon persons of less credit than well-known bankers. If not payable at sight, the length of time intervening between the day named for payment and the day of issue may vary from a day or two upwards, and the money cannot be demanded in the mean time. Hence a bill generally bears interest, or rather is only bought at such a discount as will enable it to be held to maturity without loss. To estimate the liability of loss, some estimate must be formed of the rate of interest likely to prevail in the mean time, and the value of the bill will thus vary according to a multitude of circumstances. Bills of exchange may be made payable to the bearer, but as a general rule they are payable to a specified person, and transferred by endorsement to other specified persons. Thus every party concerned with a bill incurs a certain liability, which is not removed until it is duly paid. In several respects, then, a bill may differ from coined money, which bears no interest, and discharges instead of creating liability when tendered in payment of debts.