22 lines
709 B
Markdown
22 lines
709 B
Markdown
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-2-chapter-02 -->
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# Drawing and Redrawing
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## Definition
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A practice where merchants draw bills on each other in a circular pattern to raise money through repeated discounting, often involving accumulated interest and commission. This creates artificial credit that can be very expensive.
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## Source Chapter
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Book II, Chapter 2
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## Context
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Smith criticises drawing and redrawing as an expensive method of raising money that often leads to over-trading and eventual bankruptcy. He describes it as a practice that emerged when banks refused to extend excessive credit.
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## Economic Domain
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Exchange
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---
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