Calcutta Merchants circa 1850.
The agents of credit instruments were inextricable from the instruments themselves. Merchants and bankers used credit instruments according to the rules, laws or customs governing their networks. Within a given network several kinds of credit instruments supporting different types of transactions inevitably evolved. Bills of exchange in particular, performed functions dictated by mercantile customs, norms and laws. Over time, specific bills of exchange acquired known classifications and functions which transcended individual networks. These instruments allowed merchants from one
community or region to conduct business with other merchants in far-flung locations.
Such instruments took on particular qualities and embodied mercantile codes of conduct. Their usage and forms were also very much dependent on the social, economic and political contexts within which merchants operated. Higher risk marketplaces, for instance, where political stability was low, usually reflected in higher rates of interest being applied to bills. Similarly, safe marketplaces resulted in low interest rates being levied. Some bills of exchange were used primarily as collateral or as a means of safeguarding transport. These bills developed rules adapted to their purpose and modes of risk.
Disputes and governance, especially in the law courts, shaped the way merchants conducted business with each other, and left their imprint on the evolution of bills of exchange. Each bill of exchange can reveal some part of its holders' histories and cultures, and provide an insight into the kinds of economic and cultural networks that existed during the bill's lifetime.
community or region to conduct business with other merchants in far-flung locations.
Such instruments took on particular qualities and embodied mercantile codes of conduct. Their usage and forms were also very much dependent on the social, economic and political contexts within which merchants operated. Higher risk marketplaces, for instance, where political stability was low, usually reflected in higher rates of interest being applied to bills. Similarly, safe marketplaces resulted in low interest rates being levied. Some bills of exchange were used primarily as collateral or as a means of safeguarding transport. These bills developed rules adapted to their purpose and modes of risk.
Disputes and governance, especially in the law courts, shaped the way merchants conducted business with each other, and left their imprint on the evolution of bills of exchange. Each bill of exchange can reveal some part of its holders' histories and cultures, and provide an insight into the kinds of economic and cultural networks that existed during the bill's lifetime.
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