---
entity_slug: promissory_notes
evaluator: null
evaluated_at: '2026-02-23T06:11:31.040450'
overall_score: 4.6
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly distinguishes promissory notes as written promises
    by bankers that circulate as money based on public confidence. It avoids circularity
    and captures the essential mechanism of how these instruments function differently
    from other forms of money.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This entity is directly grounded in Smith's detailed discussion in Book
    II, Chapter 2, where he extensively analyzes how bankers' notes circulate as money
    and reduce the need for precious metals. The concept and mechanism described are
    explicitly present in the source text.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: The "Exchange" domain is perfectly appropriate, as promissory notes are
    fundamentally instruments that facilitate exchange by serving as a medium of exchange.
    This placement correctly captures their role in the monetary and trading system.
- name: vsm_relevance
  value: 4.0
  max_value: 5.0
  rationale: Promissory notes map well to S1 (primary operations) as they are operational
    tools that enable the basic functioning of trade and commerce. They also have
    some relevance to S2 (coordination) as they help coordinate economic activity
    by providing a trusted medium of exchange.
- name: explanatory_value
  value: 5.0
  max_value: 5.0
  rationale: This entity provides significant explanatory power by illuminating the
    mechanism through which private banking instruments can substitute for precious
    metals in circulation. It reveals how confidence and reputation create monetary
    value, which is a crucial insight into the nature of money and credit systems.
---

# Evaluation: Promissory Notes

## definition_precision — 4.0 / 5.0

The definition clearly distinguishes promissory notes as written promises by bankers that circulate as money based on public confidence. It avoids circularity and captures the essential mechanism of how these instruments function differently from other forms of money.

## source_grounding — 5.0 / 5.0

This entity is directly grounded in Smith's detailed discussion in Book II, Chapter 2, where he extensively analyzes how bankers' notes circulate as money and reduce the need for precious metals. The concept and mechanism described are explicitly present in the source text.

## domain_placement — 5.0 / 5.0

The "Exchange" domain is perfectly appropriate, as promissory notes are fundamentally instruments that facilitate exchange by serving as a medium of exchange. This placement correctly captures their role in the monetary and trading system.

## vsm_relevance — 4.0 / 5.0

Promissory notes map well to S1 (primary operations) as they are operational tools that enable the basic functioning of trade and commerce. They also have some relevance to S2 (coordination) as they help coordinate economic activity by providing a trusted medium of exchange.

## explanatory_value — 5.0 / 5.0

This entity provides significant explanatory power by illuminating the mechanism through which private banking instruments can substitute for precious metals in circulation. It reveals how confidence and reputation create monetary value, which is a crucial insight into the nature of money and credit systems.
