money, as well as other commodities, is liable to the same change and inequality, and the rate of money is no more capable of being regulated than the price of land." So we see that unless money can be borrowed, trade cannot be carried on ; and if no premium is allowed for the hire of money, few persons will care to lend it, or at least the ease of borrowing " at short warning, which is the life of commerce," will be en- tirely at an end. Few will care to risk their means ' 2 Bl. Com., 455. " Lord Bacon. (It will be remembered that the legal rate of interest was eight per cent, in his time.)
in the speculations of another, unless a reward com- mensurate with the hazard run is held out. The hazard of loss must have its weight in the regulation of interest. If this be true, and to prevent borrowing is to prevent trade, then, though in a less degree, to permit borrowing, but only at a rate of interest below the actual market value of money, is to retard the progress of business, for it drives the capitalist who respects the law or fears its penalties, from the mar- ket, and, by withholding the current "which turns the wheels of trade," Hmits the productive power of the capital and industry of the country.
But the necessities of individuals will make bor- rowing unavoidable, and money upon some terms must be had wherewith to make money. Industry and enterprise are often totally useless if unaided by cajjital, and therefore it becomes necessary for one possessing and desirous of using these valuable ad- vantages, to borrow; in return for which, he must forego a portion of the profit which he realizes. This portion he returns to the lender, who has thus made a profit, while the borrower has been doing the same. Both have been benefited. The capi- talist has been paid for the use of his goods, and the risk he ran of losing them, while the borrower has been paid for his enterprise and industry. These were his own — the invested capital another's. A market has been found for that