Note: This text has been automatically extracted via Optical Character Recognition (OCR) software.
Origin And History Of Promissory Notes And Paper Credit.
it , that even the validity of inland bills of exchange , under the Law-Merchant , was then controverted by foreign writers , an 4 . was clearly not acknowledged by the Common Law of England . JUST before the Restoration , in 1660 , a book , called ' Amphithalami , " was published by Abraham Lisset ; which , amongst other things , . contains ' Instructions for a Merchant . ' This writer continues the same complaint as MALINES' that the laudable custom of
, promissory notes was not yet practised in England ; ' and urges the same reasons for its adoption . SOON after the Restoration , the rigour of the Common Law by degrees gave way to the less formal instruments of the Law-Merchant , founded on the Civil Law . Bills of exchange were the first mercantile instruments thus favoured ; andwith respect to them , the
, custom of merchants was allowed to be pleaded . This had been done before with regard to foreign bills of exchange ; but now these bills extended to all money transactions between ail men residing at a distance from each other ; aud , at last , every person , by drawing a bill of exchange , was considered by the law as having become a merchant in that particular act . The various s'agas of their progress are
thus briefly , but satisfactorily , related . by TEEBY , Chief Justice of the C tmnoti Pleas , in the year I 6 CJ 6 . ' Bills of exchange ( says he ) at first extended only to merchant strangers trading with English merchants , and afterwards to inland bills between merchants trading the otie with the other here in England , and afterwards to ail traders and negotiatorsand OF LATE to all persons trafficking or not . '
, When inland bills of exchange had gained a footing in Westminster Hall , and were judged to be good between all traders and negociators , it seemed an easy step to establish , in some form or other , the transferable bill of debt , or bill obligatory , used by the merchants abroad , and so much and Ions recommended for introduction here . The
origin or tne new promissory note is distinctly attributed to the goldsmiths ; and such a note , in our Books of Reports , after the Revolution , is often called by its familiar name of a Goldsmith ' s Note . The period of time , to ivhich the beginning of these notes must be referred , is about the year 16 73 . It is well known , that , previous to the year 16 40 , the Mint was the usual place of deposit for the running cash of merchants . The seizure
of the money there by Charles I . in 16 40 , destroyed , for ever , the credit of the Mint . The frequent elopement of clerks , with all the money in their hands , to one army or the other , when the civil war broke out , prevented , the merchants from leaving cash in the hands of cashiers at home ; and thus , about the year 16 45 , the Goldsmiths became the general bankers . The situation of the country , first
from the real and necessary distresses of the Parliament and Protector , and afterwards from the profusion of Charles II . gave the new bankers great opportunities of making emoluments , and of tempting all men of property , by the allowance of a small interest , to deposit money in their bauds . £ TO BE CONTINUED . ]] VOL . vii . A a
Note: This text has been automatically extracted via Optical Character Recognition (OCR) software.
Origin And History Of Promissory Notes And Paper Credit.
it , that even the validity of inland bills of exchange , under the Law-Merchant , was then controverted by foreign writers , an 4 . was clearly not acknowledged by the Common Law of England . JUST before the Restoration , in 1660 , a book , called ' Amphithalami , " was published by Abraham Lisset ; which , amongst other things , . contains ' Instructions for a Merchant . ' This writer continues the same complaint as MALINES' that the laudable custom of
, promissory notes was not yet practised in England ; ' and urges the same reasons for its adoption . SOON after the Restoration , the rigour of the Common Law by degrees gave way to the less formal instruments of the Law-Merchant , founded on the Civil Law . Bills of exchange were the first mercantile instruments thus favoured ; andwith respect to them , the
, custom of merchants was allowed to be pleaded . This had been done before with regard to foreign bills of exchange ; but now these bills extended to all money transactions between ail men residing at a distance from each other ; aud , at last , every person , by drawing a bill of exchange , was considered by the law as having become a merchant in that particular act . The various s'agas of their progress are
thus briefly , but satisfactorily , related . by TEEBY , Chief Justice of the C tmnoti Pleas , in the year I 6 CJ 6 . ' Bills of exchange ( says he ) at first extended only to merchant strangers trading with English merchants , and afterwards to inland bills between merchants trading the otie with the other here in England , and afterwards to ail traders and negotiatorsand OF LATE to all persons trafficking or not . '
, When inland bills of exchange had gained a footing in Westminster Hall , and were judged to be good between all traders and negociators , it seemed an easy step to establish , in some form or other , the transferable bill of debt , or bill obligatory , used by the merchants abroad , and so much and Ions recommended for introduction here . The
origin or tne new promissory note is distinctly attributed to the goldsmiths ; and such a note , in our Books of Reports , after the Revolution , is often called by its familiar name of a Goldsmith ' s Note . The period of time , to ivhich the beginning of these notes must be referred , is about the year 16 73 . It is well known , that , previous to the year 16 40 , the Mint was the usual place of deposit for the running cash of merchants . The seizure
of the money there by Charles I . in 16 40 , destroyed , for ever , the credit of the Mint . The frequent elopement of clerks , with all the money in their hands , to one army or the other , when the civil war broke out , prevented , the merchants from leaving cash in the hands of cashiers at home ; and thus , about the year 16 45 , the Goldsmiths became the general bankers . The situation of the country , first
from the real and necessary distresses of the Parliament and Protector , and afterwards from the profusion of Charles II . gave the new bankers great opportunities of making emoluments , and of tempting all men of property , by the allowance of a small interest , to deposit money in their bauds . £ TO BE CONTINUED . ]] VOL . vii . A a