CREDIT. In commerce, the sale of goods or the transfer of property upon promise of deferred payment. Generally, belief or trust (Lat. credere, to believe). The term is also commonly used to express the reputation of an individual or institution, as in "a man of credit." In book-keeping, the side of the account in which payments are entered is termed "credit" or "Cr."; hence, some times, the name is applied to the payments themselves. The confi dence of traders in each other and in the commercial or monetary system in which they perform their functions has so much to do with profitable work and enterprise that economists have given much attention to the part which credit plays in the production and exchange of wealth. (See ECONOMICS.) In a highly civilized community the use of credit money be comes possible. Paper promises to pay money become currency if backed by gold (e.g. a Bank of England note), or by accepted credit (e.g. a cheque) and greatly facilitate trading operations. The cheque has become the currency of British and American internal trade and a cheque is a draft on credit backed by commodities. (See BANKING AND CREDIT; MONEY.)