FINANCE AND CREDITS 309 
vantage of the situation, the position it as 
sumed has positively hurt us as a nation. 
One of the things to be met and overcome is 
the question of long credits. European mer 
chants originally extended much time to re 
liable customers. Instances are on record of 
from twenty-four to thirty-six months being 
given. Goods were often shipped on consign 
ment. The tendency of late, however, as busi 
ness became established in these lands has been 
to curtail credits. This condition is one 
which demands delicate and diplomatic 
handling and very naturally will be materi 
ally controlled by circumstances. European 
banks were organized, as hereinbefore ex 
plained, to discount long time paper, provided 
the drawer and the drawee were considered 
good risks. The Federal Reserve Act, how 
ever, falls short of helping us in this regard 
for the life of a foreign negotiable draft is 
limited by it to ninety days. 
Long credits are not to be encouraged. 
They were excusable in the age of the sailing 
ships and poor banking facilities, but with the