the Boston clearing-house as a charge
against the Revere Bank. The Revere Bank would deduct the amount from
the First National of Haverhill's deposit and send the paid cheque to
the Haverhill Bank, where at the close of the month it would be handed
to B, showing on the back the indorsement of S, and stamping
representing all the banks through whose hands it passed. If the
Farmers' Bank of Waconia had sent direct to its New York
correspondent, the Ninth National, this bank would have sent to its
Boston correspondent, the North National, and the cheque would have
been charged up through the clearing-house against the Revere Bank. If
the First National of Minneapolis had sent direct to its New York
correspondent, the National Bank of the Republic, this bank would have
sent to its Boston correspondent, the Shawmut National, etc. As a
rule, banks collect by whatever route seems most convenient or
advantageous. It is estimated that millions of dollars are lost to the
banks each year on account of the time consumed by cheques en route.

VIII. COMMERCIAL CREDITS AND MERCANTILE AGENCIES

HOW THE WORLD'S TRADE IS LARGELY TRANSACTED UPON CREDIT

It is estimated that about ninety per cent. of the world's trade is
transacted upon credit. And in no country of the world are commercial
credits so freely granted as in the United States. This is a land of
seemingly unlimited faith in humanity, and yet a land in which
hazardous speculation, extravagance, and bankruptcy have often
prevailed. Statistics show that about ninety-five per cent. of our
merchants "fail to succeed," and yet no other country can boast of
such wealth, industrial energy, and generous confidence in business
integrity. While credit is not money, in that it cannot settle a debt,
it must be considered a very powerful agent in the creation of
capital. Credit is another name for trust. The business world bases
its confidence or trust in men upon their character and resources. And
the extent of this trust becomes the only limitation of the business
man's purchasing power. He who can show conclusively the ability and
disposition to fulfil obligations, has it within his power to command
the capital or merchandise of others. Credit is one of the fruits of a
higher civilisation and a settled condition of a country's business.
It bespeaks a quality of government, too, that is not to be
depreciated. The nations that are most successfully and equitably
governed and show the m