FINANCE AND CREDITS 303 
the time agreed upon for payment, according 
to the terms of the sale. Compare this perfect 
system of the banks extending courtesy to the 
exporters and the importers with the Ameri 
can policy of “cash against documents” and we 
see another vital reason why the Europeans 
succeeded in their conquest of these markets. 
The American manufacturer with small capi 
tal was handicapped. His business demanded 
a quick turn-over; he had no way of ascertain 
ing Latin American credits and no American 
banking connections to accept his export ship 
ping documents at a discount. As a conse 
quence, the door of this trade was closed to 
him and his productions. 
Owing to the fact that gold coin is bulky 
and heavy to transport and paper money of a 
foreign nation always worth as a rule much 
less than its face value, a traveler is accus 
tomed to carry what is known as a Letter of 
Credit. This is a document issued by a bank 
to a person or concern authorizing him or it to 
draw on the bank or its correspondents drafts 
for the whole or any desired part of the sum