Introducing English Linguistics

generate the
bulk of our money supply. They do so by creating credit. 
(BNC A3T 386)
In the second example so in S1’s turn substitutes for everything said by S2
in the preceding turn:
S2: um huh, so everyone in the community goes to the high school play
that’s very interesting
S1: yeah i thought so too.
(MICASE OFC115SU060)
Ellipsis.
Ellipsis is like Substitution except that it involves deleting
information recoverable from some prior context rather than replacing
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INTRODUCING ENGLISH LINGUISTICS

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the information with a word like do or  so. For instance, in the example
below, the speaker begins by mentioning that he thinks Oxford United has
experienced one best thing:
Basically what I, I think the best thing that’s happened to Oxford United
this season. Well there are two.
(BNC KRT 4288)
However, rather than repeating this information in his second utterance
following two, he simply leaves it out. It might seem counterintuitive that
the omission of linguistic material creates a cohesive tie. However, in
order to correctly interpret the second utterance above, the hearer has to
recover the missing information from the prior context.
Halliday and Hasan (1976: 154) comment that words such as two, which
are members of the class of numeratives (i.e. words that describe quanti-
ties of something), commonly precede the positions where ellipsis takes
place, as do certain kinds of pronouns, such as these and any in the exam-
ples below (the elliptical material is italicized in brackets):
In same cases additional amounts are available for particular needs. The
optician will include these [additional amounts] when appropriate.
(ICE-GB W2D 117–118)
<$B> <#> Can I grow some basil from seed
<$C> <#> Yes that’s how I’ve <#> I don’t have any [basil] this year but I’ve
grown it other years 
(SBCSAE)
While the previous examples illustrated ellipsis within noun phrases,
larger structures can be elided too. In the first two examples below, verbs
and other elements are deleted:
When you buy a used vehicle the seller may agree to include a current
licence in the sale. If the seller does not [include a current licence] you must use
form V1O, or form V85 for goods vehicles weighing over 1525 kgs unladen. 
(ICE-GB W2D-010 101–2)
<$C> <#> Take this to the table please
<$B> <#> <[> Okay I will [take this to the table] <#> just wait a minute 
(SBCSAE)
In the next example, the subject and contracted verb in the last turn are
elided:
<$B> <#> Okay <#> Two weeks ago I’m watching TV and David Horowitz
is going to have this former car radio thief on
<$A> <#> It’s her boyfriend
<$B> <#>Yeah [it’s] her ex boyfriend 
(SBCSAE)