A 'bill of exchange' in Second Bank operations was a collateralized promise to pay drawn between merchants—a Cincinnati packer would draw a bill on a Philadelphia merchant who agreed to accept it, allowing the packer to receive payment immediately while goods were in transit, financed by the Second Bank purchasing the bill and collecting at destination.

definitionpending

Speaker

Dr. Jane Nodell

Evidence Quote

I'm a I have some packed pork in Cincinnati...I'm going to draw a bill of Exchange on my Accord on a business in New in Philadelphia...I'm going to draw a bill on the guy in Philadelphia

Source

A Masterclass In Central Banking | Professor Jane KnodellForward Guidance
Created: 8/11/2026, 1:31:04 AM

My Notes

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