CHAPTER II. Credit and its Influence on Prices.
Definition of Credit-The meaning of. the expressions "good or
bad credit"-Credit is not capital-The manner in which
credit promotes the productive employment of wealth--Banks
-Joint-stock companies-Bills of Exchange-Bill-discounting
-Bills of exchange perform many of the functions of money—
Bank notes-Cheques-The Clearing-house-Book credits-
Credit influences prices, not the particular form which credit
assumes-The purchasing power conferred by credit-Credit
produces the greatest effect on the prices of those commodi-
ties whose supply is limited-Commercial panics-The Bank
Charter Act of 1844-Convertible and inconvertible paper cur-
rency-The Gold Ring of New York-The influence of credit
on general prices is beneficial-The direct economy of a paper
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