Another benefit derived from bankers is, that they make advances to persons who want to bor-row money. These advances are made - by discounting bills or notes - upon personal security - upon the joint security of the borrower and two or three of his friends - and sometimes upon mortgage. Persons engaged in trade and commerce are thus enabled to augment their capital, and consequently their wealth. The increase of money in circulation stimulates production.

When bankers are compelled to withhold their usual accommodation, both the commercial and the agricultural interests are plunged into extreme distress.

The great advantage arising to a neighborhood from the establishment of a bank, is derived mainly from the additional supplies of money advanced in the form of loans, or discounts, to the inhabitants of the place.