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TeachMeFinance.com - explain Credit currency historic definition... Credit currency -- Currency issued by a bank for use in transactions where ordinary bank credit available through the medium of checks is not practicable. For example, a merchant or a manufacturer in New York needing extra funds borrows from his bank, but he does not borrow actual money ; he in reality borrows credit against which he draws his checks. When a farmer needs extra money to harvest his crops or move them to market it is not practicable for him, as a rule, to borrow credit and draw checks against it. He must have the actual money. Advocates of credit currency hold that the banks should be authorized to issue currency for such purposes secured by their general assets in the same manner that the credits which they loan to be checked against are secured. Such a currency, they urge, would be perfectly safe and would be elastic, supplying temporary and local needs and obviating the danger of currency famines. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2007 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.