742. BANKS, Sound Money.—[further continued].
To the existence of banks
of discount for cash, as on the continent of
Europe, there can be no objection, because
there can be no danger of abuse, and they
are a convenience both to merchants and individuals.
I think they should even be encouraged,
by allowing them a larger than
legal interest on short discounts, and tapering
thence in proportion as the term of discount
is lengthened, down to legal interest on those
of a year or more.—
To J. W. Eppes. Washington ed. vi, 247.
Ford ed., ix, 417.
(M.
Nov. 1813)
