, 1873-12-28

that interest IL JUST natural, and lawful.
.Secon-A second consequence, not loss ro-
markablo than tho former, 9 and Il possible still
Is thiBs 1ntoroat Is :,
'~. NOT 1N5uH1ous TO TIE noRRowER.
! moan to say, tho obligation in which tho bor-
rover finds himself to pay a remuneration for
condition. Observe, In fact, that Jamoa and
William are perfeotly FREQ, aa regards tho tram
saotion to which tho plano gayo occasion. TLo
transaction cannot DO accomplished without the
worst which can happon Is, that James may DO
too oxaoting and, In this case, William, refusing
tho loan,. romains rs he was bofore, By
tho, faot Of hia: agreeing to borrow. 10 proves
proves, that aftor every calculation, including
tho remuneration. wlatevorlt may bo, required
Of him, ho atill nnds 1t moro profitable to bor-
row than not to borrow. He only determines to
ieneaa with tho adyantaRes. na has calculated
that tho day on which bio returns tho plano, ao-
companled by tie remuneration agreed upon, he
will llayo effected moro work, with tho Hann'
labor, thnnkH to this tool, A profit viii roma!n
to him; othorwiso lo would not have borrowed.
Tho two Borvicea OF which We arc Hponls-
Ing are exchanged according to tho Inv which
governs al exohangog, tho law Of supply and do
impasaablo limit. This is tho point in which tho
tho advantage which William might find in mnk-
Ing uBo Of q plnho. In thig case, tho borrowing
olthor makoa plane forhimsoif, or to do without
ono, which would leave him IN Ills orlginal con-
ditfon. He borrowa, because ho gains by bor-
rowing. know very we'll whit will be told me.
You will sny, William may bo deceived. or, por-
haps, he may be governed by necessity, and be
Obliged to submit to a harsh law.
It may be- 30. As to errors In calculation, they
belong to tho inflrmity OF our nature, and to mr.
fso ths nggt M the tTansaeon as IN
aginabla transactions, In oyery human act. Error
Ia m accidental fact, which ia inccesnnt1y rome-
died BY experience. In short, eyerybody must
glardagainat IT.. al far ns thoBo hard nocesg-
ties arc concerned, which forco persons to bur-
denHome borrowings, It is clear that
TnEsE NEoEssIT1Es EXIST PREVIOUSLY
to tho borrowing. II William is In n situation
In which he cannot possibly do without a plane,
uation result from James having taken tho
trouble to mako the tool2 Docs 1t not exist In
dependently Of this circumstance ? However
harsh, however severe Jamoa may be, le will
worse than 1t Is. Morally, 1t ia true, the lander
will DO to blame; but, in On economical point OF
Wow, tho loan itsolf can never be considered ro-
sponaiblo for previous nocesaisios, which it has
not created, and which it relieves, to o certain
extont.
But this proves something to which ahall TO-
turn. Tho evident interesta Of William, repre-
senting hcre tho borrowers, there arc many
Jameaes and planes. In othor words. lenders
mud eaptes s vsry evaent that # William
bitant; thoro ia no laok Of planes in the. world !"
he will be in a better situation than II Jnmos
plane was tho only ono to be borrowed. AS
suredly, there ie no maxim moro true than this
service for service. But lot us not forget, that
no service has hxod and absolute value. COM
pared with others. Tho contracting parties arc
freq. Each carriea hiH roqnisitions to tho far
thest possible point; and the most favorable cir
Of riyalBhip. Hence it follows, that II thero is
oIass OF men more Interested than any other
In the formation, multiplication, aud abundance
Of Capitals, it il
MAINLY THAT OF TEE DonRoWER8.
Now, since capitals can only be formed and III.
creased by tie Btimulus and the prospect Of ro-
munoration let this clnBs understand tho injury
they. ato intlictfng on themselves, when they
proclaim that credit should bo gratuitous. when
capital, when they discourage saving, thus forc-
ing capitals to become scarce; and consequently
interests to riao.
TAird-The aneedoto I havo just related on
ables you to explain this apparently singular
phenomenon, which is termed tho duration or
pENrETU1TY OF INTEREST.
Since, In lending his plane,. Jan,aa has faan
a'Slo yory Y lawfully to make It condition that it
yoar, tn tbs eano .stato in which It
don't that ho may at tho e1pIra-
kluu VI Tug toTIls iona IL again Oh the same COIL
d.tions. II lie resolves upon tho lattor plan, tho
plane will return to him ut the end Of every year,
and that without end. James will then bo In o
condition to lend it without cnd that is, ho may
derive from it aperpotual interest," 1t will ba sud
that the plano will DO worn out. That is true;
but it will bo worn out by tho hand and for the
profit of tile borrower. The latter has taken
into account this gradual wear, and taken upon
himself, as he ought, tho consequences.
Ho has reckoned that ho ehall derive
from this tool an advantage which will
allow him torostore it in it's original condition,
after having realized profit from it. as long
as James does not use this capital himself, or
for his own advantage as long % ho ronounces
the advantages which allow it to be- restored to
its original condtion-ho will have an incon-
testablo right to hayo it restored, and that in
dopendontly Of interest.
observe, beHldea, that it. aa believe have
shown, SHOWN, James, far from doing any harm to
Mltllam, mas done htm serusce IN lending him
his plano for year; for the same reaaon, no
viii do no harm to q second, third, fourth
borrower. n tho sunsequent periods. Hence