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 like our own is a large producer of gold and silver by mining. In this case the products of the mines are as proper an article of export as the products of the farms or of the factories, and should be estimated as a part of the natural exports. For these reasons the balance of trade must be carefully scrutinized before being accepted as proof of a nation’s progress in poverty or wealth. _Bank loans._—So far, in dealing with the subject of banking, no mention has been made of the function of extending individual credit by time loans. One of the original purposes of banking was to make a convenient office for the meeting of borrowers and lenders. The banks are still the go-betweens of those who have money to lend and those who have to borrow. In fact, every banking association is assumed to be a corporation of money lenders. Under ordinary circumstances this corporation is able to loan to individuals whose credit is good all of its capital not otherwise employed in the machinery of the bank, a considerable portion of deposits from its customers, and to a certain extent its own credit in the commercial world. In the case of a national bank a portion of capital is loaned to the government in the purchase of bonds, which are the basis of its circulating notes. The circulating notes, from 60 per cent to 90 per cent of the value of the bonds, are an extension of credit; that is, the capital already loaned on time to the government is partially loaned again to individuals. Again, the deposits of the customers, to be drawn as needed, in ordinary circumstances are not needed the same day. The bank soon learns by experience what portion it is safe to lend from day to day to individuals who are sure to make payments when promised. Double signatures, or endorsements, double the surety of prompt payment.