PART IV. | OF PUBLIC CREDIT.
BOOK IV. | OF CREDIT AND DEBTS.
PART II.
OF BANKS.
CHAP. I.
Of the various Kinds of Credit.
We have already pointed out the nature of credit, which is confidence; and we have deduced the principles which influence the rate of interest, the essential requisite for its support.
We come now to treat of domestic circulation; where we are to deduce the principles of banking. This is the great engine calculated for carrying it on.
That I may, with order, investigate the many combinations we shall here meet with, I must point out wherein banks differ from one another in point of policy, as well as in the principle upon which their credit is built.
If we consider them relative to their policy, I divide them into banks of circulation, and banks of deposit. This every one understands.