Suppose that in the illustration given in the preceding paragraph, when John Doe and Richard Roe came to make a settlement it was found that Richard Roe owed John Doe a balance of one hundred dollars which he was unable to pay immediately. John Doe desires the money, as he wishes to use it to pay a debt. Accordingly, he informs Richard Roe that if the latter will give him his promissory note for the amount, he (John Doe) will have it discounted at the bank. Thereupon, Richard Roe fills out and signs and gives to John Doe the following promissory note.

"Washington, D.C., March 15, 1916. Three months after date for value received, I promise to pay John Doe, or order, one hundred dollars with interest at six per cent per annum until paid.

(Signed) Richard Roe."

John Doe now credits Richard Roe on his books with one hundred dollars and the account is balanced.