CREDE. 551 CREDIT. Berlin. He studied medicine in Berlin and in lleidelbcra-, and in 1852 was made director of tlic Scliool of MidAvifery and of the obstetric de- partment of the Charitc in Berlin. Four year,s later he was made professor of obstetrics and •iirector of the lying-in hospital in Leipzig. His published works include the following: Klinlschc i'ortriigii iibcr (I'cbiirt.thilfc (1853-54); Die Ver- hiitunf) der Au(jencn.1~un/Iin(j der "N eugebornen (1884) ; Gesinule und kranke Wochnerinnen (1880); Lrhrhtirh der Hcbtnnmen (()th ed.. re- vised by Leopold and Zweifel, Leipzig. 1897). From 1853 to 1869 he was co-editor of the lloii- atssdirift fiir Ocbtirlfkiinde, and, for many years, of the Archiv fur Gynakologie. CRE'DENCE (It. credcnza, belief, cupboard, JIL. credent ia, from Lat. credere, to beli»'e). A side-table, buffet, or sideboard, on which dishes were placed or kept before meals ; a cupboard in which stores or household gear were kept. Also, in the ecclesiastical terminology of the Roman Catholic and Episcopalian churches, a small table or shelf near the altar or communion table on Avhich the bread and Avine are laid be- fore being consecrated; in the Greek Church it is called the frajie-ri jirolhesis. The Oxford movement was largely responsible for its rees- tablishment in the Episcopal churches of Great Britain and America. CREDI, kra'de, LoRE^rzo DI (1459-1537). An Italian painter, born in Florence. He was a pupil of Andrea Verocchio, the master of Da Vinei and Perugino. His style was at first severe, like that of Verocchio, but in later life his manner became softer. He executed his work with great care — in fact, he paid almost too much attention to detail. Throughout his life he was influenced by the quality of Da Vinci's art. Their pictures have been mistaken for each other, and the charm of Lorenzo is of the siibtle, intangible kind that made Da Vinci the master that he was. His favorite subject was the Madonna and Child, surrounded by angels, shepherds, or the worshiping kings. A beautiful example, the "Adoration of the Shep- herds," is in the Accademia delle Belle Arti in Florence. Another equally fine is in the Louvre, and still another in the Xational Gallery, in London. In the Uflizi Gallery, Florence, there are some tine portraits by him. CREDIT (Fr. credit, from Lat. creditum, a loan, neut. p.p. of credere, to trust). In politi- cal economy this term indicates broadly the con- fidence which is reposed in the ability and pur- po.se of men to meet future obligations. It is defined by J. S. Mill as permission to use an- other's capital, and by H. D. MacLeod as 'a. right of action.' While it rests etymologicallj' upon trust in human nature, the term embraces many operations in which this plays a small part, in which by the estalilishment of claims to portions of the debtor's estate the creditor as- sures himself of the repayment. A familiar illustration of such transactions are the loans of bankers upon collateral security. From an objective point of view, the essence of a credit transaction is that on one side the transfer of goods or money is immediate, on the other that the return is deferred. Personal credit resting solely upon the good faith of the creditor is the earliest form in which credit ap- pears, and is still widely prevalent, as in the book accounts of retail merchants. But in the larger transactions of commerce credit could not have gained its prominent place without the in- tervention of instruments of credit. These assume various forms, notes, drafts, mortgages, bonds, etc.: but all have a common purpose — to insure the transferability of the claim against the debtor. Without them the lender — for whatever form the credit may assume it is alwaj's in the nature of a loan — must await the pleasure of the debtor or the termination of the contract before he can enter into possession of his ora. With these instruments of credit he practically has control of his capital whenever he desires to use it. By transferring his claim to others he can secure his capital at any time. Credit rests ultimately upon the fact that many persons possess wealth who have no pres- ent use for it and are willing that it should be employed by others. If circumstances arise, as in times of panic, when each seeks to secure for himself the actual possession of his wealth, then credit cannot be obtained, and tho.se whose trans- actions require it must either pay exorbitant prices for it or be crushed out. This explanation of credit will seiTe to indicate the important function which banks play in the world of busi- ness. They are reseroirs of credit. In them are gathered claims upon the unemployed wealth of the comnninitA', and through them this wealth is directed by loans into channels of usefulness. It is brought together in small and large quan- tities from all classes of persons who do not immediately need it, and who are unable or un- willing to loan it directly. From the point of view of individuals credit is frequently spoken of as capital, becau.se, like capital, it increases their productive power. But credit from a na- tional point of view is only to be regarded as capital in so far as it diminishes the amount of wealth which wcuild odierwise lie idle, and in- creases that which is devoted to productive pur- poses. An effective organization of credit does not produce wealth, but draws out wealth, and enhances its usefulness. Hence a nation in which credit, as in Anglo-Saxon communities, is highly organized, will have a higher productive cajiacity than one in which a primitive organiza- tion prevails. Credit is not without its dangers, and when the credit organization is out of joint the results are disastrous. This is the price of progress. As the disasters to a railroad express train are more severe than those which overtake the lumbering wagons which preceded it, so the commercial disasters of a highly organized na- tion with a broad development of credit are more serious than tho.se of less advanced peoples. The remedy is not to go back to the wagons, but to apply every device to insure the safety of the modern vehicle. For a clear analysis of credit, consult: MacLeod, Theory of Credit (London. 1889-91) ; Dunbar, Clinpter.i in the History und Theory of Rankiny (New York, 1892) : Report of Comptroller of the Currency, 1S96. See B.VNKS; CkISLS, ECONOMIC. CREDIT, Letter of. This term is apiilied in general to commercial instrimients, usually in the form of a letter in which one party addresses a second, requesting him to pay certain sums of money to a third. It is in effect a draft, except that the amount to be paid is stated, not abso- lutely, but as a maximum not to be exceeded. It presupposes that arrangements exist by which
