dwelling…houses　of　his　workmen；　etc。；　of　the　capital　which　the
  undertaker　of　a　mine　employs　in　sinking　his　shafts；　in　erecting
  engines　for　drawing　out　the　water；　in　making　roads　and
  waggon…ways；　etc。；　of　the　capital　which　the　person　who　undertakes
  to　improve　land　employs　in　clearing；　draining；　enclosing；
  manuring；　and　ploughing　waste　and　uncultivated　fields；　in
  building　farm…houses；　with　all　their　necessary　appendages　of
  stables；　granaries；　etc。　The　returns　of　the　fixed　capital　are　in
  almost　all　cases　much　slower　than　those　of　the　circulating
  capital；　and　such　expenses；　even　when　laid　out　with　the　greatest
  prudence　and　judgment；　very　seldom　return　to　the　undertaker　till
  after　a　period　of　many　years；　a　period　by　far　too　distant　to　suit
  the　conveniency　of　a　bank。　Traders　and　other　undertakers　may；　no
  doubt；　with　great　propriety；　carry　on　a　very　considerable　part　of
  their　projects　with　borrowed　money。　In　justice　to　their
  creditors；　however；　their　own　capital　ought；　in　this　case；　to　be
  sufficient　to　ensure；　if　I　may　say　so；　the　capital　of　those
  creditors；　or　to　render　it　extremely　improbable　that　those
  creditors　should　incur　any　loss；　even　though　the　success　of　the
  project　should　fall　very　much　short　of　the　expectation　of　the
  projectors。　Even　with　this　precaution　too；　the　money　which　is
  borrowed；　and　which　it　is　meant　should　not　be　repaid　till　after　a
  period　of　several　years；　ought　not　to　be　borrowed　of　a　bank；　but
  ought　to　be　borrowed　upon　bond　or　mortgage　of　such　private　people
  as　propose　to　live　upon　the　interest　of　their　money　without
  taking　the　trouble　themselves　to　employ　the　capital；　and　who　are
  upon　that　account　willing　to　lend　that　capital　to　such　people　of
  good　credit　as　are　likely　to　keep　it　for　several　years。　A　bank；
  indeed；　which　lends　its　money　without　the　expense　of　stamped
  paper；　or　of　attorneys'　fees　for　drawing　bonds　and　mortgages；　and
  which　accepts　of　repayment　upon　the　easy　terms　of　the　banking
  companies　of　Scotland；　would；　no　doubt；　be　a　very　convenient
  creditor　to　such　traders　and　undertakers。　But　such　traders　and
  undertakers　would；　surely；　be　most　inconvenient　debtors　to　such　a
  bank。
  It　is　now　more　than　five…and…twenty　years　since　the　paper
  money　issued　by　the　different　banking　companies　of　Scotland　was
  fully　equal；　or　rather　was　somewhat　more　than　fully　equal；　to
  what　the　circulation　of　the　country　could　easily　absorb　and
  employ。　Those　companies；　therefore；　had　so　long　ago　given　all　the
  assistance　to　the　traders　and　other　undertakers　of　Scotland　which
  it　is　possible　for　banks　and　bankers；　consistently　with　their　own
  interest；　to　give。　They　had　even　done　somewhat　more。　They　had
  overtraded　a　little；　and　had　brought　upon　themselves　that　loss；
  or　at　least　that　diminution　of　profit；　which　in　this　particular
  business　never　fails　to　attend　the　smallest　degree　of
  overtrading。　Those　traders　and　other　undertakers；　having　got　so
  much　assistance　from　banks　and　bankers；　wished　to　get　still　more。
  The　banks；　they　seem　to　have　thought；　could　extend　their　credits
  to　whatever　sum　might　be　wanted；　without　incurring　any　other
  expense　besides　that　of　a　few　reams　of　paper。　They　complained　of
  the　contracted　views　and　dastardly　spirit　of　the　directors　of
  those　banks；　which　did　not；　they　said；　extend　their　credits　in
  proportion　to　the　extension　of　the　trade　of　the　country；　meaning；
  no　doubt；　by　the　extension　of　that　trade　the　extension　of　their
  own　projects　beyond　what　they　could　carry　on；　either　with　their
  own　capital；　or　with　what　they　had　credit　to　borrow　of　private
  people　in　the　usual　way　of　bond　or　mortgage。　The　banks；　they　seem
  to　have　thought；　were　in　honour　bound　to　supply　the　deficiency；
  and　to　provide　them　with　all　the　capital　which　they　wanted　to
  trade　with。　The　banks；　however；　were　of　a　different　opinion；　and
  upon　their　refusing　to　extend　their　credits；　some　of　those
  traders　had　recourse　to　an　expedient　which；　for　a　time；　served
  their　purpose；　though　at　a　much　greater　expense；　yet　as
  effectually　as　the　utmost　extension　of　bank　credits　could　have
  done。　This　expedient　was　no　other　than　the　well…known　shift　of
  drawing　and　redrawing；　the　shift　to　which　unfortunate　traders
  have　sometimes　recourse　when　they　are　upon　the　brink　of
  bankruptcy。　The　practice　of　raising　money　in　this　manner　had　been
  long　known　in　England；　and　during　the　course　of　the　late　war；
  when　the　high　profits　of　trade　afforded　a　great　temptation　to
  overtrading；　is　said　to　have　carried　on　to　a　very　great　extent。
  From　England　it　was　brought　into　Scotland；　where；　in　proportion
  to　the　very　limited　commerce；　and　to　the　very　moderate　capital　of
  the　country；　it　was　soon　carried　on　to　a　much　greater　extent　than
  it　ever　had　been　in　England。
  The　practice　of　drawing　and　redrawing　is　so　well　known　to
  all　men　of　business　that　it　may　perhaps　be　thought　unnecessary　to
  give　an　account　of　it。　But　as　this　book　may　come　into　the　hands
  of　many　people　who　are　not　men　of　business；　and　as　the　effects　of
  this　practice　upon　the　banking　trade　are　not　perhaps　generally
  understood　even　by　men　of　business　themselves；　I　shall　endeavour
  to　explain　it　as　distinctly　as　I　can。
  The　customs　of　merchants；　which　were　established　when　the
  barbarous　laws　of　Europe　did　not　enforce　the　performance　of　their
  contracts；　and　which　during　the　course　of　the　two　last　centuries
  have　been　adopted　into　the　laws　of　all　European　nations；　have
  given　such　extraordinary　privileges　to　bills　of　exchange　that
  money　is　more　readily　advanced　upon　them　than　upon　any　other
  species　of　obligation；　especially　when　they　are　made　payable
  within　so　short　a　period　as　two　or　three　months　after　their　date。
  If；　when　the　bill　becomes　due；　the　acceptor　does　not　pay　it　as
  soon　as　it　is　presented；　he　becomes　from　that　moment　a　bankrupt。
  The　bill　is　protested；　and　returns　upon　the　drawer；　who；　if　he
  does　not　immediately　pay　it；　becomes　likewise　a　bankrupt。　If；
  before　it　came　to　the　person　who　presents　it　to　the　acceptor　for
  payment；　it　had　passed　through　the　hands　of　several　other
  persons；　who　had　successively　advanced　to　one　another　the
  contents　of　it　either　in　money　or　goods；　and　who　to　express　that
  each　of　them　had　in　his　turn　received　those　contents；　had　all　of
  them　in　their　order　endorsed；　that　is；　written　their　names　upon
  the　back　of　the　bill；　each　endorser　becomes　in　his　turn　liable　to
  the　owner　of　the　bill　for　those　contents；　and；　if　he　fails　to
  pay；　he　becomes　too　from　that　moment　a　bankrupt。　Though　the
  drawer；　acceptor；　and　endorsers　of　the　bill　should；　all　of　them；
  be　persons　of　doubtful　credit；　yet　still　the　shortness　of　the
  date　gives　some　security　to　the　owner　of　the　bill。　Though　all　of
  them　may　be　very　likely　to　become　bankrupts；　it　is　a　chance　if
  they　all　become　so　in　so　short　a　time。　The　house　is　crazy；　says　a
  weary　traveller　to　himself；　and　will　not　stand　very　long；　but　it
  is　a　chance　if　it　falls　to…night；　and　I　will　venture；　therefore；
  to　sleep　in　it　to…night。
  The　trader　A　in　Edinburgh；　we　shall　suppose；　draws　a　bill
  upon　B　in　London；　payable　two　months　after　date。　In　reality　B　in
  London　owes　nothing　to　A　in　Edinburgh；　but　he　agrees　to　accept　of
  A's　bill；　upon　condition　that　before　the　term　of　payment　he　shall
  redraw　upon　A　in　Edinburgh　for　the　same　sum；　together　with　the
  interest　and　a　commission；　another　bill；　payable　likewise　two
  months　after　date。　B　accordingly；　before　the　expiration　of　the
  first　two　months；　redraws　this　bill　upon　A　in　Edinburgh；　who
  again；　before　the　expiration　of　the　second　two　months；　draws　a
  second　bill　upon　B　in　London；　payable　likewise　two　months　after
  date；　and　before　the　expiration　of　the　third　two　months；　B　in
  London　redraws　upon　A　in　Edinburgh　another　bill；　payable　also　two
  months　after　date。　This　practice　has　sometimes　gone　on；　not　only
  for　several　months；　but　for　several　years　together；　the　bill
  always　returning　upon　A　in　Edinburgh；　with　the　accumulated
  interest　and　commission　of　all　the　former　bills。　The　interest　was
  five　per　cent　in　the　year；　and　the　commission　was　never　less　than
  one　half　per　cent　on　each　draft。　This　commission　being　repeated
  more　than　six　times　in　the　year；　whatever　money　A　might　raise　by
  this　expedient　must　necessarily　have；　cost　him　something　more
  than　eight　per　cent　in　the　year；　and　sometimes　a　great　deal　more；
  when　either　the　price　of　the　commission　happened　to　rise；　or　when
  he　was　obliged　to　pay　compound　interest　upon　the　interest　and
  commission　of　former　bills。　This　practice　was　called　raising
  money　by　circulation。
  In　a　country　where　the　ordinary　profits　of　stock　in　the
  greater　part　of　mercantile　projects　are　supposed　to　run　between
  six　and　ten　per　cent；　it　must　have　been　a　very　fortunate
  speculation　of　which　the　returns　could　not　only　repay　the
  enormous　expense　at　which　the　money　was　thus　borrowed　for
  carrying　it　on；　but　afford；　besides；　a　good　surplus　profit　to　the
  projector。　Many　vast　and　extensive　projects；　however；　were
  undertaken；　and　for　several　years　carried　on　without　any　other
  fund　to　support　them　besides　what　was　raised　at　this　enormous
  expense。　The