208        EXCHANGES  USED  FOR  AGES.
in  notes  and  bills,  precisely  the  same  sum  irhich  is  owing  to  him
in  the  same  manner,  then  the  meeting  of  all  the  debts  and
credits  in  the  same  hands  would  be  an  absolute  and  final  dis-
charge of  the  whole.  But  as  most  men  in  trade  make  a  balance
on  their  bills  payable  and  receivable,  favorable  or  unfavorable,
these  balances  only  remain  to  be  adjusted :  that  is,  each  indi-
vidual must  receive  what  is  coming  to  him  on  his  bills  receivable
more  than  he  has  to  pay  on  his  bills  payable ;  and  each  one
must  pay  what  he  is  indebted  over  the  amount  of  his  bills
receivable.  The  sum  of  these  balances  is  known  to  be  small :
men's  profits,  on  the  average,  bear  a  small  proportion  to  the
whole  amount  of  their  transactions.
It  was  better  understood  centuries  past  than  it  is  now,  that
by  such  means  payments  to  a  vast  amount  could  be  effected ;
better  understood,  because  the  complications  of  trade  were  fewer
then  than  at  present,  and  the  whole  operation  of  the  adjustment
could  be  distinctly  traced  and  comprehended  by  those  conversant
with  business.  This  mode  of  liquidation  has  been  practised  for
ages,  not  only  where  greater  facilities  were  wanting,  but  in
Venice,  Genoa,  Lyons,  and  Amsterdam,  where  great  facilities
were  enjoyed,  because  it  was  not  only  consistent  with  the  pro-
cesses of  the  great  banks  and  the  fairs,  but  could  aid  their  opera-
tion, and  receive  aid  from  them.  This  mode  is  not  less  efficient
at  the  present  day,  as  we  shall  have  occasion  hereafter  to
notice.
