If a man has not sufficient ready cash to pay for the real estate
he is about to purchase, he makes up the difference by a note,
which note is secured by a mortgage on the property.

Remember the mortgage must always be regarded as security. The
note represents the debt.

Often wholesalers take a note as part or even full payment for a
bill of goods to a retailer.

If the wholesaler needs money, he endorses these notes and putting
them in his bank draws against them, less the discount he has to
pay for the accommodation.

As has been shown, an account may be transferred and sold, but a
note is more convenient for that purpose.

AN ILLUSTRATION

As with a check the maker of a note is known as a "drawer," the
person in whose favor it is drawn is the "payee."

Notes may be written in pencil, but it is better and safer to
write with ink on good paper.

Supposing you buy a team of horses, or it may be a bill of goods,
from John Brown, for $350.

Now you have only $100 in cash. What are you to do?