which each possessed by joining them together. This is the proper working of the system, but can only follow where the rate INCONSIBTEKCIES OF THE LAW. 129 of interest is not so great as to swallow up all the profit made by the trader. There must be two shares — one to pay for the hire of the tools, and an- other to pay the mechanic who uses them. Money thus becomes an article with a value attached to it, in the same manner as the industry employed ; and hence the necessity that exists for borrowing and lending money on interest, and the adoption of the method in aU properly regulated commercial communities.
But let us glance now at some of the inconsisten- cies of the law. Compensation miost be proportioned to the risk. The law recognizes this principle in the case of bottomry and respondentia bonds; every insurance office insists on it, while the whole business of the stock exchange is founded on it, because it is a principle of common sense strangely ignored by usury laws. The prohibition of catching bar- gains in the case of minors depends upon other considerations, and laws prohibiting them may well be jilstified, for in this case there is inexperience and incompetence of judgment. No infant can con- tract but for his own manifest advantage, as in the case of necessaries. But where is the reason for the distinction between risks by land and risks at sea ? In both cases the lender can indemnify himself by insurance or other collateral security ! Yet the ne- cessity of maritime usury in bottomry and respon- dentia bonds is everywhere admitted; no evil ten- dency is feared from it, and the propriety of leaving 130 HISTOEY OF USURT.
the ship captain and merchant to judge for them- selves what is best for their own interests is, univer- sally recognized. Besides maratime loans, however, there is another legalized system of usury, which falls heavily upon the needy and distressed of the poorer classes. We allude to Pawn-broking.-'^ In this business there is no risk, for the pawn-broker lends