the creditor could draw a bill on the debtor and either use the bill as a means of payment in its own right or obtain cash for it at a discount from a banker willing to act as broker.
In "The Ascent of Money," Niall Ferguson discusses the role of bills of exchange in finance, highlighting their function as an essential tool for creditors. When a creditor issued a bill on a debtor, it provided a flexible means of transacting that could either serve directly as payment or be converted into cash through a banking intermediary.
This system allowed creditors to manage their financial dealings more efficiently, as they could easily transfer bills to obtain immediate cash, albeit at a discounted rate. The process illustrates the evolution of financial instruments and the importance of trust and credit in economic interactions throughout history.
