CHAPTER XXIII

CREDIT

Analysis rather than definition: "futurity" not essence of credit; credit part of general value system; stocks as credit instruments; juridical and accounting phases 459-462

Confidence; involved in general value phenomena as well as credit; social psychology of confidence; contagions; influence of centers of prestige; nothing unique in credit; selling _vs._ borrowing 462-469

Definition of credit; credit _vs._ credit transaction; credit and exchange; bulk of credit grows out of dynamic conditions 469-474

Functions of credit; increasing saleability of non-pecuniary wealth; corporate organization; limits of credit expansion 475-478

Consideration of objections: that personal loans do not rest on wealth; public loans; that value behind loan would not exist if loan were not made 478-484

Schumpeter's "heresies"; his view of the function of the banker: "dynamic credit"; America _vs._ Continental Europe 484-488

Peculiarities and functions of bank credit; technique of banking: capital; assets; reserves; "liquidity"; money market 488-496