est, constituitur., says the Digest.^ Thus a note made in Canada, where interest is six per cent., payable in England, where it is five per cent., bears English interest only.^ Loans made in a place bear the in- terest of that place, unless they are payable else- where; and if payable in a foreign country, they bear any rate of interest not exceeding that which is lawful by the laws of that country.^ And on this account a contract for a loan made and payable in a foreign country, may stipulate for interest higher than that allowed at home.* If the contract for interest be illegal there, it will be illegal every- where.^ But if it be legal where it is made, it will be of universal obligation, even in places where a lower rate of interest is prescribed by law.
Thus then the general rule of the common law, that the lex loci contractus will govern as the rule of interest, follows out the doctrine of the civil law, cum judicio bonce fidei deceptatur, arhitrio jvdicis uswrarum modus, ex more regionis, ubi contractum, consti- tuitur; ita tamen ut legi twn offendat.^ But if the England. A contract made to pay money in England, for services performed abroad, is an English contract, and will carry English interest.
' Big., Lib. 22, Tit. 1 ; Burge. Com. on Col. & For. Law, p. 860.
" S-ofield V. Day, 20 John. E., 102. " JDewolf V. Johnson, 10 Wheat. R., 367 ; Conseqva v. Willing, Peters. Cir., 225 ; Andrews v. Fond, 13 Peters. R., 65 ; Thompson V. Ketchum, 4 John. R., 285.
'' 2 Kent Com., p. 460; Houghton v. Paige, 2 N. Hamp. R., 42. = 2 Kain's Equity, B. 3, ch. 8. " Dig. Lib., 22, 1; 1 Burge. Com., p. 1, ch. 1.
DIFFICULTIES IHT APPLYING EULE. 115 place of performance is different from that of the con- tract, then the parties may stipulate for