When notes are offered at bank they are passed upon by its officers or directors, or both,to satisfy themselves that the maker and indorsers are good for payment. If accepted the bank charges interest or discount at an agreed upon rate reckoned upon the face of the note for the time for which the note is to run from the day it is discounted. For instance a note for $500 drawn and dated April, 1, 1901, payable in 3 months, would be due and payable July 1st or 4th. If offered at bank for discount on May 1, 1901, the bank would reckon the interest from May 1st to July 4th. It is to be noted that the bank takes its interest in advance and pays to holder of note the proceeds which is the face value less the bank interest or discount. To compute the value of a note which reads "with interest" you add to the face value the interest which will be due at the maturity of note. Upon this value the bank reckons its discount.