It is represented by a bank-bill.

Here now--" And he opened his purse leisurely and drew out a five-dollar note of the Bank of New York, "here is a promise to pay five dollars--in gold or silver, of course.

Do you suppose that the Bank of New York has gold and silver enough to pay all those promises it has issued?
Of course not." Abel knocked off the ash from his cigar, and took a long contemplative whiff, as if he were about making a plunge into views even more profound.
Mr.Newt, half pleased with the show of philosophy, listened with less frowning brows.
"Well, now, if by some hocus-pocus the Bank of New York hadn't a cent in coin at this moment, it could redeem the few claims that might be made upon it by borrowing, could it not ?" Mr.Newt shook his head affirmatively.
"And, in fine, if it were entirely bankrupt, it could still do a tremendous business for a very considerable time, could it not ?" Mr.Newt assented.
"And the managers, who knew it to be so, would have plenty of time to get off before an explosion, if they wanted to ?" "Abel, what do you mean ?" inquired his father.
The young man was still placidly blowing rings of smoke from his mouth, and answered: "Nothing terrible.

Don't be alarmed.

It is only an illustration of the practical value of credit, showing how it covers a retreat, so to speak.
Do you see the moral, father ?" "No; certainly not.