The radicalness of the step is only apparent, not real - as all will be benefited by the examination proposed. The interpretation of credit statements is a technical operation, and the statements prepared by trustworthy professional men are generally more reliable than those not so prepared. The hard and fast 50 per cent credit rule will soon fail, and an exact and accurate study of each individual concern will take its place, each concern being entitled to credit on its merits. Working on imperfect information and applying one credit rule has resulted necessarily in a destructive policy. Accuracy will enable us to follow a constructive policy, which I believe is more nearly in accord with our position in the business world.

In brief, our next step is in the direction of accuracy. This is to be accomplished by having statements subjected to searching analysis certified to by certified publie accountants and engineers, and then credit will be extended strictly on the merit of the individual applying for loans.