Superiority Of The Acceptance And Bill Of Exchange

As in England, the open account is replaced by the bill of exchange or time draft, and to a large measure, in the three name paper denominated as "acceptances." In supporting a discount market as exists in France, this class of paper bearing three names is of very great importance. It is easily discountable. Compared with the promissory note, the bill of exchange is far superior to the former. First, it bears behind it the responsibility of the maker; second, of the acceptor; and third, of a specific shipment of goods. So wide is the use of these credit instruments abroad, that they circulate as freely as does a check in America.

It is this system of credit, namely, the bill of exchange, the acceptance, the check and bank note, which gives to France an ideal and highly elastic credit system.