BILL OF CREDIT. Paper issued by the authority of a state on the faith of the state, and designed to circulate as money. Briscoe v. Bank, 11 Pet. (U. S.) 257, 9 L. Ed. 709.
Promissory notes or bills issued by a state government, exclusively, on the credit of the state, and intended to circulate through the community for its ordinary purposes as mon ey, redeemable at a future day, and for the payment of which the faith of the state is pledged. 4 Kent 408.
The constitution of the United States pro vides that no state shall emit bills of credit, or make anything but gold and silver coin a legal tender in payment of debts. U. S. Const art 1, § 10. This prohibition, it seems, does not apply to bills issued by a bank owned by the state but having a spedific cap ital sets apart ; Cooley, Const. Lim. 84; State v. Billis, 2 McCord (S. C.) 12; McFarland v. Bank, 4 Ark. 44, 37 Am. Dec. 701 ; Bris coe v. Bank, 11 Pet. (U. S.) 257, 7 L. Ed. 709; Darrington v. Bank, 13 How, (U. S.) 12, 14 L. Ed. 30 ; but see Craig v. Missouri,
4 Pet. (U. S.) 410, 7 L. Ed. 903; Linn v. Bank, 1 Scam. (Ill.) 87, 25 Am. Dec. 71; nor does it apply to notes issued by corporations or individuals which are not made legal ten der ; 4 Kent 408; nor to coupons on state bonds, receivable for taxes and negotiable, but not intended to circulate as money; Poindexter v. Greenhow, 114 U. S. 270, 5 Sup. Ct 903, 962, 29 L. Ed. 185. But it does apply to a state wairant containing a direct promise to pay the bearer the amount stated on its face, and which is intended to circu late as money ; Bragg v. Tuffts, 49 Ark. 554, 6 S. W. 158.
In Mercantile Law. A letter sent by an agent or other person to a merchant, desir ing him to give credit to the bearer for goods or money. Oomyns, Dig. Merchant, F, 3; 3 Burr. 1667; Pagaud v. State, 5 Smedes & M. (Miss.) 491;, McFarland v. Bank, 4 Ark. 44; State v. Calvin, R. M. Oharlt. (Ga.) 151.