In an address in June, 1896, at the organization of the National Association of Credit Men, I stated: "Credit can hardly be classed among the sciences, and certainly it cannot be said to be an exact science, because it is not governed by any definite, fixed laws." But after years of study of this subject, I am beginning to feel that there are certain definite, fixed laws governing credit, and I am prepared to take a step forward to-day, designating it credit science, and I hope to be able to show some of its principles, its mechanism, and its guiding rules.

It is evident to students of financial affairs that there has been a gradual change of method in the buying and selling of commercial paper from that which obtained in former times. Borrowers no longer confine themselves to one place, but go where funds can be produced to the greatest advantage. Merchants in the smaller towns go away from home to borrow money, and bankers in smaller cities go away from home to procure investments. Often bankers do not feel that they can break the rate locally, but it frequently happens that they will send to the large money centers and buy the paper of their home merchants at a lower rate than they would feel that they could take the note for direct. One-eighth per cent will take many a business man from home for his accommodation. The practice is growing for the banks in larger cities to buy commercial paper for their correspondents and in the face of these changes in method it becomes more and more imperative for bankers who handle commercial paper, and who are located in the large money centers, to be fully informed in the widest measure upon the credit of borrowers.

We have noted the beginnings of credit science; we have briefly traced its interesting and rapid development during the past twelve years, and we have marked the changes in methods which are calling for constantly improved ways and means of credit research. Let us take the measure of the credit science of to-day in a few words before we consider the problems and prospects of the future.