“It is a common idea that the direct object of a bank is to throw notes into circulation. Undoubtedly the power of issuing notes is an immediate consequence of the credit of a bank; but we must beware of confounding this result with the real object of the institution of a _banque de secours_. When we seek a principle, we must of necessity disengage it from its consequences, however clear and direct they may be. “The object of a bank composed of partners _en commandite_, like the caisse d’escompte, is to furnish assistance to commerce by bringing together funds to be applied to discounting good bills at a moderate rate of interest. When bills are presented for discount at this bank, the directors, provided they agree to give the accommodation, grant a _bon_, or order, to receive the cash at their treasury. The bearer of this order proceeds to the treasury, procures the cash, and carries it away. This is the natural course of proceeding, which was pursued at the commencement; but after going through the process of discounting paper repeatedly, and finding that the order on the treasury was always paid on presentation, it was soon perceived that it would be paid with equal punctuality on the following day, and that it was sometimes more convenient to carry home the order, and send for the cash when required. This order was next given in payment to some third party, who, being also aware of the exactness with which it would be paid, was in no hurry to present it; and thus, the knowledge of the punctual payment of the orders furnished by the directors of the bank upon their treasury produced in the end the effect, that everybody felt it to be a matter of indifference whether he held the note, or the cash which it represented. “The consequence of this has been that those holding an interest in the establishment, finding that many parties abstained from sending for payment of the notes made payable at sight at the treasury, thought they were justified, when good bills were brought to them with dates not too distant, in discounting them with a part of the cash destined to meet their own notes. It is clear, however, that they could not properly employ for this purpose any portion of the cash beyond that which, in the nature of things, would not be demanded of them before the period fixed for the return of the money which had been advanced upon the bills they had discounted.