dominant incentive to effect the reorganization. The whole operation of reorganization may, therefore, beat be taken up from the point of view of the promoter, who is the prime mover in the matter.
A reorganization of industrial concerns on a large scale, such as are not uncommon at the present time, involves a campaign of strategy, engaging, it is said, abilities and responsibilities of a very high order. Such a campaign of business strategy, as carried out by the modem captains of industry, runs, in the main, on credit relations, in the way of financial backing, options, purchases, leases, and the issuance and transfer of stock and debentures. In order to carry through these large " deals," in the first place, a very substantial basis of credit is required, either in the hands of the promoter (organizer) himself or in the hands of a credit house which " finances " the organization for him.
The strategic use of credit here involved is, in effect, very different from the old-time use of loan credit in investments. In transactions of this class the time element, the credit period, is an inconspicuous fact-or at the most ; it plays a very subordinate and uncertain part. The volume of credit at the disposal of a given strategist is altogether the decisive point, as contrasted with the lapse of time over which the incident credit extension may
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run. The usefulness of the credit extension is not measured in terms of time, nor are the gains which accrue to the creditor in the case