Writers on credit enumerate various kinds or species of credit, including:

1. Personal credit. This is currently taken to mean credit which effects the transfer of goods or money to an individual on his mere assurance and without security.

2. Commercial credit. This is probably the broadest and vaguest term currently used, but is frequently taken to mean credit represented by all grants of time within which to settle for merchandise bought at wholesale for resale or manufacture.

3. Mercantile credit. By this is usually meant credit which effects the extension of accommodation by retail merchants to their customers (consumers).

4. Bank credit. By this is usually signified credit represented by loans and discounts by banks without regard to use.

5. Public credit. By this is ordinarily indicated credit represented by the advances secured by treasuries through sale of bonds and certificates of debt.

Credit here is defined by the writers referred to as operating in three ways: (1) as a transfer; (2) as a grant of time; (3), (4), (5), as a loan, accommodation, or advance. Upon analysis, however, it will appear that the credit transaction is at bottom the same in these classifications, and that the distinguishing elements or points of difference in all cases center about the two questions already referred to, the various classes of credit presenting special problems under these two heads. In each class or kind of credit the questions at issue are simply these: Will the recipient or beneficiary of the credit finally close the transaction as agreed by giving value in settlement; and are his transactions of a kind that will enable him to complete the transaction as expected? The process of measuring, testing, judging, or apportioning credit is a process of determining the degree of uncertainty on these two heads that is present in any given transaction.