Q. What is the distinction between what are known as "prime bills" and other bills?
A. A "prime" bill we should define as a bill accepted by a London or provincial bank in first-class credit or a merchant or merchant banker of the first class whose business it is to grant credits.
Q. Do you discount any prime bills?
A. Yes.
Q. Do you discount to any considerable amount for individuals and merchants?
A. The bank discounts all approved bills offered to it by persons or firms having properly constituted accounts.
Q. Is it your custom to employ surplus funds in purchase of bills from discount houses?
A. No.
Q. Do you rediscount bills for the joint stock or other banks?
A. The bank is always prepared to rediscount for other banks at its official rate, and does a large business from time to time with the colonial and foreign exchange banks who are from the nature of their business always sellers of bills.