e their means of business credit as their progress in
mutual understanding increases.

_Government inspection._--The principal support of universal credit through
banking is the assurance that uniform methods, honest in principle and
accurate in execution, are followed. To secure these results a system of
government inspection and guaranty seems absolutely necessary. If the
public faith is to be maintained, the ground of that faith must be
publicly established. The more complete the examination by trusted
officials and the more frequent the publication of official reports, the
better the public credit. It seems possible that even individual
trustworthiness may become a matter of government record as it is now of
private consideration in all business circles. One chief guaranty of
credit through the banks is the strict inquiry made by the banks
themselves into the business standing of their customers. If the record
were perfect, the chief weakness of the credit system would be largely
removed.

_The balance of trade._--The bulk of trade between countries, that is of
dealers in different countries, is settled in the usual routine of banking
as has been indicated; but since under present systems the standards of
value are given in different terms in different countries, somewhat more
of friction remains in such trade. A greater attention is given to the
fact of final settlement in coin or bullion. The price of exchange from a
country whose dealers owe more than is due them, under the law of supply
and demand, soon arises to an amount sufficient to cover the cost of
transporting gold or silver. When these metals are used in payment by
transportation from one country to another they are said to indicate the
balance of trade; that is, they show that more of other property comes
into the country than goes out. This balance of trade is supposed to show
the relative prosperity of a nation, and is said to be against it when the
nation buys more than it sells.

It is usually sought in the difference between the value of coin or
bullion exported and of that imported. In two sets of circumstances a
large correction is necessary to show the actual condition of trade. One
is where a nation is buying on long credit, as in case of great
enterprises like railroads or factories, constructed by sale of bonds in
foreign countries or by sale of any other securities, government or
individual, in a foreign land. The other is where a country