FAIR is a non-profit organization dedicated to providing well-documented answers to criticisms of the doctrine, practice, and history of The Church of Jesus Christ of Latter-day Saints.
Question: Was are the terms and definitions related to banking in the 1800s?
Revision as of 09:45, 26 March 2015 by RogerNicholson (talk | contribs) (Created page with "{{FME-Source |title=Question: Was are the terms and definitions related to banking in the 1800s? |category=Kirtland Safety Society }} <onlyinclude> ==Question: Was are the ter...")
Terms and definitions
- face value
- the specie value marked on scrip. For a $20 note, the face value would be $20.
- note
- another term for scrip
- redeem
- to exchange scrip for specie at the bank
- specie
- hard currency, precious metal coins of accepted value (gold or silver)
- scrip
- paper money, issued by a bank. An example of KSS scrip can be seen here.
- suspension of payment
- an indication by a bank that, until further notice, it can no longer redeem its scrip with the face value of specie.
- wildcat bank
- a bank established as a money-making scam. "A wildcat bank was one in which the managers of the bank made a deliberate effort to evade paying off notes by making the place of redemption inaccessible to those trying to trade notes for specie".[1] Thus, the bank kept the specie, and the note holder was left with worthless paper which no one would honor, since it could not be redeemed (the bank being located "where the wildcats are"). Such banks usually collapsed quite quickly when it became clear that their notes were not easily redeemed.
Notes
- ↑ Partridge, 451