ost stable conditions of currency also show us
the most extensive and efficient credit systems. It is abundantly true
that these same nations have on many occasions passed through periods
of great distress from failures widespread and panics severe, but it
must also be borne in mind that these very bankruptcies are more often
the abuse of prosperity than the product of adversity. Over-confidence
in men and things has resulted in speculation and precipitated
bankruptcy. And if it be urged that to the undue expansion of credit
is traceable the greater number of our financial disasters, it may be
said with still greater force that all our impetus to industrial
achievement has been and still is dependent upon the generous exercise
of credit. The construction of our railroads and canals, the operation
of our mines, the improvement of our great farm areas, the building of
our towns and cities, and the development of our extensive
manufacturing interests are all the result of the trust reposed in men
and the industrial interests they represent.

THE IMPORTANCE OF A HIGH STANDARD OF CREDIT TO BUSINESS MEN

Reticence on the part of business men respecting their financial
position may seriously impair their credit. It is universally regarded
by the intelligent business man to be good policy to make known his
condition. A refusal to do so throws a suspicion and doubt upon his
financial ability, and at some future time when confidence in his
integrity may be essential to the very life of his business, he may
find the necessary help unobtainable. An applicant for credit should
be willing to prove himself worthy of it. But the keen competition
among merchants eager for sales often enables the buyer to obtain
credit without the necessity of giving very much evidence as to his
commercial standing. Since some risks must be taken merchants
frequently conclude to accept an account because of its possible
acceptance by some competitor. If business is to be had risks must be
taken, is the theory.

When former customers apply for credit the merchant is guided by the
record made in previous dealings. A business man's ledger is a very
valuable history of credits. It is his compass in a sea of doubt. If
upon the inspection of an old account it be discovered that in former
years the customer paid cash and discounted his bills, and that later
his method of payment was by promissory notes, and that on several
occasions he asked for special favo