1, A long series of illustrious Lawyers whose doctrines were declared to be Law by the legislation of Justinian, had brought the Theory of Credit to a state of perfection at the beginning of the sixth century. These were adopted and confirmed in the Reformed Code, called the Basilica, promulgated by the Ba-silian Dynasty in the tenth century, which was the Code of the Byzantine Empire and of all Europe, except England. The Romans abandoned Britain at the end of the fifth century; and the Common Law of England on the subject of Credit was exactly as it stands in Gaius, which was the text-book of Roman Law throughout the Empire at the time when the Romans gave up Britain. But on the 1st November, 1875, the Common Law of England relating to Credit was superseded by Equity, which is simply the Law of the Pandects of Justinian.

The stupendous system of Credit and Banking which exists in this and some other countries is merely the practical exemplification of the principles of Credit which were worked out by the Roman Lawyers 1,300 years ago. But it is somewhat remarkable that while these doctrines may be found in any of the great continental Jurists, they have never yet found their way into any legal work in this country in common use. This chapter is therefore devoted to explaining the complete Theory of Credit, as developed in the Pandects of Justinian, and all the great Civilians, and which has now at length become the Law of England.

2. We shall consider the subject in the following order -

1. Investigation of the Nature of Credit.

2. On the Transfer of Credit or Debts.

3. On Instruments of Credit or Debt.

4. On the Limits and Extinction of Credit.

The investigation of the subject, moreover, opens up another most interesting branch of enquiry. For considerably more than a century Mathematicians have been in the habit of calling Debts "Negative Quantities." But very few have given any explanation of what they mean by calling a Debt a "Negative Quantity," and those who have attempted it have not succeeded, from a want of knowledge of the principles of Mercantile Law and the Facts of Commerce. We have shewn the real application of the algebraical signs in the Theory of Credit.

And when we have combined these three things together - an exposition of the Facts of Commerce - an exposition of the Law of Credit, - and shewn the application of the Theory of Algebraical Signs to these facts, we shall find a most beautiful exemplification of the use of these signs, strictly conformable to their use in Natural Philosophy. "We shall find that the Doctrines of Law, the Practice of Commercial Men, and the Theory of Algebraical Signs perfectly agree with one another. And though we shall give nothing but a simple exposition of the mechanism of the actually existing system of Credit and Banking, we shall be able for the first time to bring Economic Theory to the level of Commercial Practice, and present results which may surprise our readers.