Bank notes pass without endorsement and thus depend on the credit of the bank alone, not, like checks, on the credit of the person, from whom received.

Unlike ordinary promissory notes, they yield no interest to the holder.

They go into circulation and remain in circulation for considerable time by virtue of their monetary character in the hands of the holders.

Thus they approach political money in their nature, and the banks are near to exercising the sovereign right of the issue of money.
At the other extreme of view have been those who consider bank notes to be essentially of the nature of political money.

If they are so, it is argued, the power of issue should not be exercised by any but the sovereign state.