1. What is a promissory note?
2. What is a check?
3. What is a draft?
4. What is an acceptance?
5. What is a bill of exchange?
Until we know precisely what these various terms signify, or mean in banking, when put into use, we shall soon be so far out at sea that we will not know what we are saying, because we do not know the meaning of the words we are using. This will be true of some of us at least. We must familiarize ourselves with these words, or terms.
Mr. Banker: If you will allow me, I will try and explain and tell you what these various terms mean, and what use we make of these several instruments in writing.
First: A Promissory Note is a written promise to pay some one a sum of money. It may be either to pay it immediately, or on demand, or at some future day; to pay it either with or without interest; or to pay it at some particular place.
Mr. Merchant: It is just a written acknowledgment of a debt, isn't it?