There was a time in the distant history of this country when banks were authorized to issue a form of paper money (script). It was very similar to promissory notes. You could use it locally as a form of currency to buy goods and services. You could redeem it for its face value in gold or silver at the bank that issued it. However, if you tried to redeem it at a bank at a distant location you would have to discount its face value for purposes of redemption. The further away the bank was the greater was the discount.

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