The movement of what is partly consists in becoming another to itself, and thus developing explicitly into its own immanent content; partly, again, it takes this evolved content, this existence it assumes, back into itself, i.e. makes itself into a moment, and reduces itself to simple determinateness. In the first stage of the process negativity lies in the function of distinguishing and establishing existence; in this latter return into self, negativity consists in the bringing about of determinate simplicity. It is in this way that the content shows its specific characteristic not to be received from something else, and stuck on externally; the content gives itself this determinate characteristic, appoints itself of its own initiative to the rank of a moment and to a place in the whole. The pigeon-holing process of understanding retains for itself the necessity and the notion controlling the content, that which constitutes the concrete element, the actuality and living process of the subject-matter which it labels: or rather, understanding does not retain this for itself, on the contrary, understanding fails to know it. For if it had as much insight as that, it would surely show that it had. It is not even aware of the need for such insight; if it were, it would drop its schematizing process, or at least would no longer be satisfied to know by way of a mere table of contents. A table of contents is all that understanding gives, the content itself it does not furnish at all.

If the specific determination (say even one like magnetism) is one that in itself is concrete or actual, it all the same gets degraded into something lifeless and inert, since it is merely predicated of another existing entity, and not known as an immanent living principle of this existence; nor is there any comprehension of how in this entity its intrinsic and peculiar way of expressing and producing itself takes effect. This, the very kernel of the matter, formal understanding leaves to others to add later on. Instead of making its way into the inherent content of the matter in hand, understanding always takes a survey of the whole, assumes a position above the particular existence about which it is speaking, i.e. it does not see it at all. True scientific knowledge, on the contrary, demands abandonment to the very life of the object, or, which means the same thing, claims to have before it the inner necessity controlling the object, and to express this only. Steeping itself in its object, it forgets to take that general survey, which is merely a turning of knowledge away from the content back into itself. But being sunk into the material in hand, and following the course that such material takes, true knowledge returns back into itself, yet not before the content in its fullness is taken into itself, is reduced to the simplicity of being a determinate characteristic, drops to the level of being one aspect of an existing entity, and passes over into its higher truth. By this process the whole as such, surveying its entire content, itself emerges out of the wealth wherein its process of reflection seemed to be lost.

In general, in virtue of the principle that, as we expressed it before, substance is implicitly and in itself subject, all content makes its reflection into itself in its own special way. The subsistence or substance of anything that exists is its self-identity; for its want of identity, or oneness with itself, would be its dissolution. But self-identity is pure abstraction; and this is just thinking. When I say Quality, I state simple determinateness; by means of its quality one existence is distinguished from another or is an "existence"; it is for itself, something on its own account, or subsists with itself because of this simple characteristic. But by doing so it is essentially Thought.

Here we find contained the principle that Being is Thought: here is exercised that insight which usually tends to deviate from the ordinary non-conceptual way of speaking of the identity of thought and being. In virtue, further, of the fact that subsistence on the part of what exists is self-identity or pure abstraction, it is the abstraction of itself from itself, in other words, is itself its own want of identity with itself and dissolution—its own proper inwardness and retraction into self—its process of becoming.

Owing, to the nature which being thus has, and so far as what is has this nature from the point of view of knowledge, this thinking is not an activity which treats the content as something alien and external; it is not reflection into self away from the content. Science is not that kind of Idealism which stepped into the place of the Dogmatism of mere assertion and took the shape of a Dogmatism of mere assurance, the Dogmatism of mere self-certainty. Rather, since knowledge sees the content go back into its own proper inner nature, the activity of knowledge is absorbed in that content—for it (the activity) is the immanent self of the content—and is also at the same time returned into itself, for this activity is pure self-identity in otherness. In this way the knowing activity is the artful device which, while seeming to refrain from activity, looks on and watches how specific determinateness with its concrete life, just where it believes it is working out its own self-preservation and its own private interest, is, in point of fact, doing the very opposite, is doing what brings about its own dissolution and makes itself a moment in the whole.

While, in the foregoing, the significance of Understanding was stated from the point of view of the self-consciousness of substance; by what has been here stated we can see clearly its significance from the point of view of substance qua being. Existence is Quality, self-identical determinateness, or determinate simplicity, determinate thought: this is existence from the point of view of Understanding. On this account it is Nous, as Anaxagoras first thought reality to be. Those who succeeded him grasped the nature of existence in a more determinate way as Eidos or Idea, i.e. as determinate or specific universality, kind or species. The term species or kind seems indeed too ordinary and inadequate for Ideas, for beauty, holiness, eternal, which are the vogue in these days. As a matter of fact, however, idea means neither more nor less than kind, species. But we often find nowadays that a term which exactly designates a conception is despised and rejected, and another preferred to it which hides and obscures the conception, and thus sounds more edifying, even though this is merely due to its being expressed in a foreign language.

Precisely for the reason that existence is designated a species or kind, it is naked simple thought: Nous, simplicity, is substance.