First: There is credit, which is the result of confidence and trust. It is the right to demand payment.
Second: For every credit granted, a debt is created.
Third: If every debt is paid every credit will be canceled.
Fourth: Credit is never excessive no matter what its absolute quantity is, so long as it always returns into itself; that is, cancels itself.
Fifth: Credit from a commercial point of view, when granted to create consumable commodities, the necessaries of life, is filling its proper function.
Sixth: Credit granted to facilitate the sale, transfer and distribution of consumable commodities, the necessaries of life, is filling its proper function from a commercial point of view.
Seventh: Credit extended in the form of acceptances of checks, drafts or bills of exchange, growing out of the actual production and distribution of the necessaries of life, is filling its proper function from a commercial point of view.
Eighth: Credit obtained through accommodation acceptances or indorsements is a bane to and peril of commerce, especially if such credit is used in real estate investments, and more particularly in speculation.
Ninth: Credit granted upon real estate securities should depend entirely upon the investment fund of the country for its cancelation. So far as such credit is canceled by appropriating the commercial fund of the country, labor will be thrown out of employment, production and consumption will cease to a corresponding degree, and this will measure the amount of human suffering that is sure to follow.