DISCOUNT

In a general sense, an allowance or deduction made from a gro sum on any account whatever. In a more Umited and technical sense, the taking of interest in advance. By the language of the commercial world and the settled practice of banks, a discount by a bank means a drawback or deduction made upon its advances or loans of money, upon negotiable paper or other evidences of debt payable at a future day, which are transferred to the bank. Fleckner v. Bank, 8 Wheat. 338, 5 L. Ed. 631; Bank v. Baker, 15 Ohio St. 87.. Although the discounting of notes or bills, in Its most comprehensive sense, may mean lep.ding money and taking notes in payment, yet, in its more ordinary sense, the discounting of notes or bills means advancing a consideration for a bin or note, deducting or discounting the interest which will accrue for the time the note has to run. Loan Co. v. Towner, 13 Conn.· 249. Discounting by a bank means lending money. npon a note, and deducting the interest or premium in advance. Bank v. Bruce. 17 N. Y. 507; State v. Sav. Inst., 48 Mo. 189. The ordinary meaning of the term "to discount" is to take interest in advance and in banking is a mode of loaning money. h is the advance of money not due till some 'future period, le the interest which would be due thereon when payable. Weclder v. Bank, 42 Md. 592, 20 Am. Rep. 95. Discount, as we have seen, rs the difference between the price and the. amount of the debt, tlH! evidence of which is transferred. That difference represent11 intere11t charged, being at the 111UI1e rate, according to whicb 'the. price paid, if invested unW the maturit, of the debt, will [s. 380]