The profits of the bank are chiefly made by dis-
counting bills of exchange, which is done to an
enormous extent. A bill of exchange is an in-
strument by which a party who is owed money
by another party, and accords to him the benefit
of delay in payment, for a fixed period, draws
on him in a form of order to that effect.

For instance, the firm of Bullion & Co. have
sold to John Robinson certain goods, which
need not be specified, as the principle applies
in all cases, whether it be bankers, merchants,
or traders, and for all transactions where one
party is indebted to another. The form drawn
by Bullion & Co. on John Robinson, which
requires to be stamped according to the amount,
would be as follows:-

---------------------------------------------------------
| Due 1st Nov. |
| ------------ |
| £500 London, 29th Aug., 1987. |
| |
| THREE months after date pay to our order the sum of |
| Five Hundred Pounds for value received. |
| |
| To Mr. John Robinson, Bullion & Co. |
| Merchant, |
| Liverpool. |
| |