If the system were adopted throughout the United States, the banks of each State would be likely to have agencies of this kind in all the great cities. Each of these agencies would exchange the bills of every other State for the bills of its own State; and thus the bills of each State would find their way home, without any demand for their redemption in specie having ever been made. Where railroads were used as capital, all the banks in the United States could form one association, of the kind just mentioned, to establish agencies at all the great commercial points, for the redemption of their bills. Of course each railroad would receive the bills of all other roads, for fare and freight. Thus all railroad currency, under this system, would be put at par throughout the United States. CHAPTER V. THE SYSTEM AS A CREDIT SYSTEM. SECTION 1. Perhaps the merits of the system, as a credit system, cannot be better illustrated than by comparing the amount of loanable capital it is capable of supplying, with the amount which the present "National" banks (so called) are capable of supplying. If we thus compare the two systems, we shall find that the former is capable of supplying more than fifty times as much credit as the latter. Thus the entire circulation authorized by all the "National" banks,[E] is but three hundred and fifty-four millions of dollars ($354,000,000). [E] Exclusive of the so-called "gold" banks, which are too few to be worthy of notice. But the real estate and railroads of the country are probably worth twenty thousand millions of dollars ($20,000,000,000). This latter sum is fifty-six times greater than the former; and is all capable of being loaned in the form of currency. Calling the population of the country forty millions (40,000,000), the "National" system is capable of supplying not quite _nine_ dollars ($9) of loanable capital to each individual of the whole population. The system proposed is capable of supplying five hundred dollars ($500) of loanable capital to each individual of the whole population. Supposing one half the population (male and female) to be sixteen years of age and upwards, and to be capable of producing wealth, and to need capital for their industry, the "National" system would furnish not quite eighteen dollars ($18) for each one of them, on an average. The other system is capable of furnishing one thousand dollars ($1,000) for each one of them, on an average. Supposing the adults (both male and female) of the country to be sixteen millions (16,000,000), the "National" system is capable of furnishing only twenty-two dollars and twelve and a half cents ($22.12-1/2) to each one of these persons, on an average. The system proposed is capable of furnishing twelve hundred and fifty dollars ($1,250) to each one, on an average.