Indirectly, bankers will be benefited or injured with the country in which they live, but practically, and for the purposes of their daily life, they have no need to think, and never do think, on theories of currency. A good system of currency will benefit the country, and a bad system will hurt it. Different countries differ in their laws of legal tender, but for the primary purposes of banking these systems are not material. To put it more simply-credit is a set of promises to pay will those promises be kept? Especially in banking, where the "liabilities," or promises to pay, are so large, and the time at which to pay them, if exacted, is so short, an instant capacity to meet engagements is the cardinal excellence.Īll that a banker wants to pay his creditors is a sufficient supply of the legal tender of the country, no matter what that legal tender may be. "Is that trust justified? and is that confidence wise?" These are the cardinal questions. The main point on which one system of credit differs from another is "soundness." Credit means that a certain confidence is given, and a certain trust reposed.
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