Bill of credit


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Within the constitution of the United States, a paper issued by a State, on the mere faith and credit of the State, and designed to circulate as money. No State shall "emit bills of credit."
Among merchants, a letter sent by an agent or other person to a merchant, desiring him to give credit to the bearer for goods or money.
- U. S. Const.
See under Bill.

See also: Bill, Bill, Credit

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References in periodicals archive ?
33) Additionally, some of the federal Convention delegates who voted to remove the express bill of credit power did so only because they believed that the government would still be able to issue paper money without it.
173) A paper-money bill of credit was analogous to its private counterpart in that the issuing government gave the instrument to one of its creditors to assure the creditor that if he extended credit to his fellow citizens (potential debtors), then he (the creditor) would be held harmless.
How a colony labeled its currency did not necessarily control whether that currency was actually a bill of credit.