to fix such a rate of interest as will enable industry to employ with advantage, a borrowed capital, and thereby to promote labor and increase the national wealth ; and to enable the state to borrow on better terms than would be made, if speculators could meet the minister in the money market on equal terms." Applying this interpretation to our own country, let us inquire how far this policy has been successful.
We have already seen, that no sooner had specie become a circulating medium with a settled value, than the use of it became worth paying for by those who had it not of their own. The consequence was, that those who had it made the most of it, and the wealthy lender too often became extortionate, and took from his client more than the hire of the com- modity was really worth. To prevent this, the Legislature interfered; but this legislative inter- ference, while it rarely reached the end at which it aimed, was baneful in its effects upon commerce, for ' Lord Mansfield says : " To protect men who act with their eyes open, ugainst themselves."
CREDIT NECESSAET TO TEADE. 127 commerce cannot exist without mutual and exten- sive credit, and credit is dependant upon profits/ " It is vanity to suppose there can be borrowing without profit, and as great inconveniences would arise if borrowing were cramped in order to retain the advantages and avoid the disadvantages of usury, two rates of interest should be adopted, a less and a greater — the one to suit the borrower who has good security, and the other to suit the merchant whose profits being higher, will bear a greater rate."^ Again, " money," says the immortal Locke, " is an universal commodity, and is as necessary to trade as food is to life, and everybody must have it at what rate they can get it, and invariably pay dear when it is scarce ; you may as naturally hope to set a fixed price upon the use of houses or ships as of money. Those who will consider things beyond their names, will find that