BANKING AND CREDIT. The term "credit" is best understood through its relation to the term debt. Debtor and creditor are correlatives. Debt expresses the relation of the debtor to the creditor; credit, in its simplest use, expresses the rela tion of the creditor to the debtor. It is therefore another name for debt. This definition supplies a clue to all the various uses of the term. A sale of anything creates a debt from buyer to seller. Pay ment in ready money extinguishes the debt as soon as it comes into being. If payment is postponed, the debt is allowed to sub sist. In that case the sale is said to be on credit, and the seller gives credit. By derivation the term credit expresses the trust re posed by the creditor in the debtor. A man has good credit in pro portion as he is trusted as a debtor. The credit of a Government is commonly measured by the price at which its obligations are quoted in the market. A credit instrument is a document by which a debt is assigned from one creditor to another. A bank credit is a debt due from a banker, whether in the form of a deposit, or of a right to draw bills payable at a future date.