it may be well to keep in mind that these secondary efEecta are commonly very considerable and farreaching, and that they may in specific instances very materially affect the outcome.
The theoretical result of this summary sketch of loan credit so far seems to be : {a) an extension of loan credit beyond that involved in the transference of productive goods from their owners to more competent users is unavoidable imder the regime of competitive business — credit extension is normally in some degree " abnormal " or " excessive " j {6) such a use of credit does not add to the aggregate of industrially productive equipment nor increase its material output of product, and therefore it does not add materially to the aggregate gross earnings obtained by the body of business men engaged in industry, as counted in material terms of wealth or of permanent values ; ^ (c) it diminishes the aggregate net profits obtained by the business men engaged in industry, as counted in such terms, in that it requires them to pay interest, to creditors outside the industrial process proper, on funds which, taken
Las an aggregate, represent no productive goods and have no aggregate productive effect ; {d) there results an overrating of the aggregate capital engaged
Thb diareguds the Indirect eSects of a apecuUtive advance in Um waj o[ beigbUned istenait; ol application and fuller employment of tbe iodostrltJ plant