Reflections on the Formation
and Distribution of Wealth
Anne Robert Jacques Turgot
[1776 / Part 4 of 5]
- 61. Subdivisions of the industrious stipendiary class, in
undertaking capitalists and simple workmen.
Thus the whole class-employed in supplying the different wants of
society, with an immense variety of works of industry, is, if I
may speak thus, subdivided into two classes. The one, of the
undertakers, manufacturers and masters, all proprietors of large
capitals, which they avail themselves of, by furnishing work to
the other class, composed of artificers, destitute of any property
but their hands, who advance only their daily labour, and receive
no profits but their salaries.
- 62. Another employment of capitals, in advances towards
undertakings of agriculture. Observations on the use, and
indispensable profits of capitals in undertakings of agriculture.
In speaking first of the placing of capitals in manufacturing
enterprizes, I had in view to adduce a more striking example, of
the necessity and effect of large advances, and of the course of
their circulation. But I have reversed the natural order, which
seemed to require that I should rather begin to speak of
enterprizes of agriculture, which also can neither be performed,
nor extended, nor afford any profit, but by means of considerable
advances. It is the proprietors of great capitals, who, in order
to make them productive in undertakings of agriculture, take
leases of lands, and pay to the owners large rents, taking on
themselves the whole burthen of advances. Their case must
necessarily be the same as that of the undertakers of
manufactures. Like them, they are obliged to make the first
advances towards the undertaking, to provide themselves with
cattle, horses, utensils of husbandry, to purchase the first
seeds; like them they must maintain and nourish their carters,
reapers, threshers, servants, and labourers, of every
denomination, who subsist only by their hands, who advance only
their labour, and reap only their salaries. Like them, they ought
to have not only their capital, I mean, all their prior and annual
advances returned, but, 1st, a profit equal to the revenue they
could have acquired with their capital, exclusive of any fatigue;
2ndly. The salary, and the price of their own trouble, of their
risk, and their industry; 3rdly. An emolument to enable them to
replace the effects employed in their enterprise, and the loss by
waste, cattle dying, and utensils wearing out, &c., all which
ought to be first charged on the products of the earth. The
over-plus will serve the cultivator to pay to the proprietor, for
the permission he has given him to make use of his field in the
accomplishing of his enterprize; that is, the price of the
leasehold, the rent of the proprietor and the clear product: for
all that the land produces, until reimbursement of the advances,
and profits of every kind to him that has made these advances,
cannot be looked upon as a revenue, but only as a reimbursement of
the expences of the cultivation, since if the cultivator could not
obtain them, he would be loath to risk his wealth and trouble in
cultivating the field of another.
- 63. The competition between the capitalists, undertakers of
cultivation, fixes the current price of leases of lands.
The competition between rich undertakers of cultivation fixes the
current price of leases, in proportion to the fertility of the
soil, and of the rate at which its productions are sold, always
according to the calculation which farmers make both of their
expenditures, and of the profits they ought to draw from their
advances. They cannot give to the owners more than the overplus.
But when the competition among them happens to be more animated,
they sometimes render him the whole overplus, the proprietor
leasing his land to him that offers the greatest rent.
- 64. The default of capitalists, undertakers, limits the
cultivation of lands to a small extent.
When, on the contrary, there are no rich men that possess
capitals large enough to embark in enterprizes of agriculture;
when, through the low rate of the productions of the earth, or any
other cause, the crops are not sufficient to ensure to the
undertakers, besides the reimbursement of their capital,
emoluments adequate at least to those they would derive from their
money, by employing it in some other channel; there are no farmers
that offer to lease lands, the proprietors are constrained to hire
mercenaries or metayers, which are equally unable to make any
advances, or duly to cultivate it. The proprietor himself makes
moderate advances, which only produce him an indifferent revenue:
If the land happens to belong to an owner, poor, negligent, and in
debt, to a widow, or a minor, it remains unmanured; such is the
principle of the difference I have observed between provinces,
where the lands are cultivated by opulent farmers, as in Normandy
and the Isle de France, and those where they are cultivated only
by indigent mercenaries, as in Limousin, Angoumois, Bourbonnois,
and several others.
- 65. Subdivisions of the class of cultivators into undertakers,
or farmers, and hired persons, servants, and day-labourers.
Hence it follows, that the class of cultivators may be divided,
like that of manufacturers, into two branches, the one of
undertakers or capitalists, who make the advances, the other of
simple stipendiary workmen. It results also, that capitals alone
can form and support great enterprizes of agriculture, that give
to the lands an unvariable value, if I may use the expression, and
that secure to the proprietors a revenue always equal, and the
largest possible.
- 66. Fourth employment of capitals, in advances for enterprises
of commerce. Necessity of the interposition of merchants, properly
so called, between the producers of the commodities and the
consumers.
The undertakers either in cultivation or manufacture, draw their
advances and profits only from the sale of the fruits of the
earth, or the commodities fabricated. It is always the wants and
the ability of the consumer that sets the price on the sale; but
the consumer does not want the produce prepared or fitted up at
the moment of the crop, or the perfection of the work. However,
the undertakers want their stocks immediately and regularly
reimbursed, to embark in fresh enterprises: the manuring and the
seed ought to succeed the crops without interruption. The workmen
of a manufacture are unceasingly to be employed in beginning other
works, in proportion as the first are distributed, and to replace
the materials in proportion as they are consumed. It would not be
advisable to stop short in an enterprize once put in execution,
nor is it to be presumed that it can be begun again at any time.
It is then the strictest interest of the undertaker, to have his
capital quickly reimbursed by the sale of his crop or commodities.
On the other hand, it is the consumers interest to find, when and
where he wishes it, the things he stands in need of it would be
extremely inconvenient for him to be necessitated to make, at the
time of the crop, his provision for the whole course of a year.
Among the objects of usual consumption, there are many that
require long and expensive labours, labours that cannot be
undertaken with profit, except on a large quantity of materials,
and on such as the consumption of a small number of inhabitants of
a limited district, may not be sufficient for even the sale of the
work of a single manufactory. Undertakings of this kind must then
necessarily be in a reduced number, at a considerable distance
from each other, and consequently very distant from the
habitations of the greater number of consumers. There is no man,
not oppressed under the extremest misery, that is not in a
situation to consume several things, which are neither gathered
nor fabricated, except in places considerably distant from him,
and not less distant from each other. A person that could not
procure himself the objects of his consumption but in buying it
directly from, the hand of him that gathers or works it, would be
either unprovided with many commodities, or pass his life in
wandering after them.
This double interest which the person producing and the consumer
have, the former to find a purchaser, the other to find where to
purchase, and yet not to waste useful time in expecting a
purchaser, or in finding a seller, has given the idea to a third
person to stand between the one and the other. And it is the
object of the mercantile profession, who purchase goods from the
hands of the person who produces them, to store them in
warehouses, whither the consumer comes to make his purchase. By
these means the undertaker, assured of the sale and the
re-acquisition of his funds, looks undisturbed and indefatigably
out for new productions, and the consumer finds within his reach
and at once, the objects of which he is in want.
- 67. Different orders of merchants. They all have this in
common, that they purchase to sell again; and that their traffic
is supported by advances which are to revert with a profit, to be
engaged in new enterprizes.
From the green-woman who exposes her ware in a market, to the
merchants of Nantz or Cadiz, who traffic even to India and
America, the profession of a trader, or what is properly called
commerce, divides into an infinity of branches, and it may be said
of degrees. One trader confines himself to provide one or several
species of commodities which he sells in his shop to those who
chuse; another goes with certain commodities to a place where they
are in demand, to bring from thence in exchange, such things as
are produced there, and are wanted in the place from whence he
departed: one makes his exchanges in his own neighbourhood, and by
himself, another by means of correspondents, and by the
interposition of carriers, whom he pays, employs, and sends from
one province to another, from one kingdom to another, from Europe
to Asia, and from Asia back to Europe. One sells his merchandize
by retail to those who use them, another only sells in large
parcels at a time, to other traders who retail them out to the
consumers: but all have this in common that they buy to sell
again, and that their first purchases are advances which are
returned to them only in course of time. They ought to be returned
to them, like those of the cultivators and manufacturers, not only
within a certain time, to be employed again in new purchases, but
also, 1. with an equal revenue to what they could acquire with
their capital without any labour; 2. with the value of their
labour, of their risk, and of their industry. Without being
assured of this return, and of these indispensable profits, no
trader would enter into business, nor could any one possibly
continue therein: tis in this view he governs himself in his
purchases, on a calculation he makes of the quantity and the price
of the things, which he can hope to dispose of in a certain time:
the retailer learns from experience, by the success of limited
trials made with precaution, what is nearly the wants of those
consumers who deal with him. The merchant learns from his
correspondents, of the plenty or scarcity, and of the price of
merchandize in those different countries to which his commerce
extends; he directs his speculations accordingly, he sends his
goods from the country where they bear a low price to those where
they are sold dearer, including the expence of transportation in
the calculation of the advances he ought to be reimbursed. Since
trade is necessary, and it is impossible to undertake any commerce
without advances proportionable to its extent; we here see another
method of employing personal property, a new use that the
possessor of a parcel of commodities reserved and accumulated, of
a sum of money, in a word, of a capital, may make of it to procure
himself subsistence, and to augment, his riches.
- 68. The true idea of the circulation of money.
We see by what has been just now said, how the cultivation of
lands, manufactures of all kinds, and all the branches of trade,
depend on a mass of capital, or the accumulation of personal
property, which, having been at first advanced by the undertakers,
in each of these different branches, ought to return to them again
every year with a regular profit; that is, the capital to be again
invested, and advanced in the continuation of the same
enterprizes, and the profits employed for the greater or less
subsistence of the undertakers. It is this continued advance and
return which constitutes what ought to be called the circulation
of money: this useful and fruitful circulation, which animates all
the labour of society, which supports all the motion, and is the
life of the body politic, and which is with great reason compared
to the circulation of the blood in the human body. For, if by any
disorder in the course of the expenses of the different orders of
society, the undertakers cease to draw back their advances with
such profit as they have a right to expect; it is evident they
will be obliged to reduce their undertakings; that the total of
the labour, of the consumption of the fruits of the earth, of the
productions and of the revenue would be equally diminished; that
poverty will succeed to riches, and that the common workman,
ceasing to find employ, will fall into the deepest misery.
- 69. All extensive undertakings, particularly those of
manufactures and of commerce, must indispensibly have been very
confined, before the introduction of gold and silver in trade.
It is almost unnecessary to remark, that undertakings of all
kinds, but especially those of manufactures, and above all those
of commerce, must, unavoidably be very confined, before the
introduction of gold and silver in trade; since it was almost
impossible to accumulate considerable capitals, and yet more
difficult, to multiply and divide payments so much as is
necessary, to facilitate and increase the exchanges to that
extent, which a spirited commerce and circulation require. The
cultivation of the land only may support itself to a certain
degree, because the cattle are the principal cause of the advances
required therein, and it is very probable, there is then no other
adventurer in cultivation but the proprietor. As to arts of all
kinds, they must necessarily have been in the greatest languor
before the introduction of money; they were confined to the
coarsest works, for which the proprietors supported the advances,
by nourishing the workmen, and furnishing them with materials, or
they caused them to be made in their own houses by their servants.
- 70. Capitals being as necessary to all undertakings as labour
and industry, the industrious man shares voluntarily the profit of
his enterprize with the owner of the capital who furnishes him the
funds he is in need of.
Since capitals are the indispensable foundation of all lucrative
enterprizes; since with money we can furnish means for culture,
establish manufactures, and raise a commerce, the profits of which
being accumulated and frugally laid up, will become a new capital:
since, in a word, money is the principal means to beget money;
those who with industry and the love of labour are destitute of
capital, and have not sufficient for the undertaking they wish to
embark in, have no difficulty in resolving to give up to the
proprietors of such capital or money, who are willing to trust
them, a portion of the profits which they are in expectation of
gaining, over and above their advances.
- 71. Fifth employment of capitals, lending on interest; nature
of a loan.
The possessors of money balance the risk their capital may run,
if the enterprise does not succeed, with the advantage of enjoying
a constant profit without toil; and regulate themselves thereby,
to require more or less profit or interest for their money, or to
consent to lend it for such an interest as the borrower offers.
Here another opportunity opens to the possessor of money, viz,
lending on interest, or the commerce of money. Let no one mistake
me here, lending on interest is only a trade, in which the lender
is a man who sells the use of his money, and the borrower one who
buys; precisely the same as the proprietor of an estate, or the
person who farms it, buys and sells respectively the use of the
hired land. The Latin term for a loan of money or interest,
expresses it exactly, usura pecuniae, a word which adopted into
the French language is become odious, by a consequence of false
ideas being adopted on the interest of money.
- 72. False ideas on lending upon interest.
\
The rate of interest is by no means founded, as may be imagined,
on the profit the borrower hopes to make, with the capital of
which he purchases the use. This rate like the price of all other
merchandize, is fixed by the circumstances of buyer and seller; by
the proportion of the sum offered with the demand. People borrow
with every kind of view, and with every sort of motive. One
borrows to undertake an enterprize that is to make his fortune,
another to buy an estate, another to pay his losses at play,
another to supply the loss of his revenue, of which some accident
has deprived him, another to exist on, in expectation of what he
is able to gain by his labour. but all these motives which
determine the borrower, are very indifferent to the lender. He
attends to two things only, the interest he is to receive, and the
safety of his capital. He never attends to the use the borrower
puts it to, as a merchant does not care to what use the buyer
applies the commodities he sells him.
- 73. Errors of the schoolmen refuted.
It is for want of having examined the lending of money on
interest in its true point of view that moralists, more rigid than
enlightened, would endeavour to make us look on it as a crime.
Scholastic theologists have concluded, that as money itself was
not prolific, it was unjust to require a premium for the loan of
it. Full of these prejudices they have fancied their doctrine was
sanctioned by this passage in the Gospel, mutuum date nihil inde
sperantes: Those theologians who have adopted more reasonable
principles on the subject of interest of money, have been branded
with the harshest reproaches from those who adopt the other side
of the question.
Nevertheless, there are but few reflections necessary to expose
the trifling reasons that are adduced to condemn the taking of
interest. A loan of money is a reciprocal contract, free between
both parties, and entered into only by reason of its being
mutually advantageous. It is evident, if the lender finds an
advantage in receiving an interest for his money, the borrower is
not less interested in finding that money he stands in need of,
since otherwise he would not borrow and submit himself to the
payment of interest. Now on this principle, can any one look on
such an advantageous contract as a crime, in which both parties
are content, and which certainly does no injury to any other
person? Let them say the lender takes advantage of the wants of
the borrower, to force the payment of interest, this is talking as
absurd as if we were to say, that a baker who demands money for
the bread he sells, takes advantage of his customer's wants. If in
this latter case, the money is an equivalent for the bread the
buyer receives, the money which the borrower receives to day, is
equally an equivalent for the capital and interest he agrees to
pay at the expiration of a certain time; for in fact, it is an
advantage to the borrower, to have, during that interval, the use
of the money he stands in need of, and it is a disadvantage to the
lender to be deprived of it. This disadvantage may be estimated,
and it is estimated, the interest is the rate. This rate ought to
be larger, if the lender runs a risk of losing his capital by the
borrower becoming insolvent. The bargain therefore is perfectly
equal on both sides and consequently, fair and honest. Money
considered as a physical substance, as a mass of metal, does not
produce any thing; but money made use of in advances in
cultivation, in manufacture, in commerce, produces a certain
profit; with money we can acquire land, and thereby procure a
revenue: the person therefore who lends his money, does not only
give up the unfruitful possession of such money, but deprives
himself of the profit which it was in his power to procure by it,
and the interest which indemnifies him from this loss cannot be
looked upon as unjust. The schoolmen, compelled to acknowledge the
justice of these considerations, have allowed that interest for
money may be taken, provided the capital is alienated, that is,
provided the lender gave up his right to be reimbursed his money
in a certain time, and permitted the borrower to retain it as long
as he was inclined to pay the interest thereof only. The reason of
this toleration was, that then it is no longer a loan of money for
which an interest is paid, but a purchase, which is bought with a
sum of money, as we purchase lands. This was a mode to which they
had recourse, to comply with the absolute necessity which exists
of borrowing money, in the course of the transactions of society,
without fairly avowing the fallacy of those principles, upon which
they had condemned the practice: but this clause for the
alienation of the capital, is not an advantage to the borrower,
who remains equally indebted to the lender, until he shall have
repaid the capital, and whose property always remains as a
security for the safety of such capital; -- it is even a
disadvantage, as he finds it more difficult to borrow money when
he is in want of it; for persons who would willingly consent to
lend for a year or two, a sum of money which they had destined for
the purchase of an estate, would not lend it for an uncertain
time. Besides, if they are permitted to sell their money for a
perpetual rent, why may they not lend it for a certain number of
years, for a rent which is only to continue for that term? If an
interest of 1000 livres per annum is equivalent to the sum of
20000 livres from him to keep such a sum in perpetuity, 1000
livres will be an equivalent for the possession of that sum for
one year.
- 74. True foundation of interest of money.
A man then may lend his money as lawfully as he may sell it; and
the possessor of money may either do one or the other, not only
because money is equivalent to a revenue, and a means to procure a
revenue: not only because the lender loses, during the continuance
of the loan, the revenue he might have procured by it; not only
because he risks his capital; not only because the borrower can
employ it in advantageous acquisitions, or in undertakings from
whence he will draw a large profit; the proprietor of money may
lawfully receive the interest of it, by a more general and
decisive principle. Even if none of these circumstances should
take place, he will not have the less right to require an interest
for his loan, for this reason only, that his money is his own.
Since it is his own, he has a right to keep it, nothing can imply
a duty in him to lend it; if then he does lend, he may annex such
a condition to the loan as he chuses, in this he does no injury to
the borrower, since the latter agrees to the conditions, and has
no sort of right over the sum lent. The profit which money can
procure the borrower, is doubtless one of the most prevailing
motives to determine him to borrow on interest; it is one of the
means which facilitates his payment of the interest, but this is
by no means that which gives a right to the lender to require it;
it is sufficient for him that his money is his own, and this is a
right inseparable from property. He who buys bread, does it for
his support, but the right the baker has to exact a price is
totally independent of the use of bread; the same right he would
possess in the sale of a parcel of stones, a right founded on this
principle only, that the bread is his own, and no one has any
right to oblige him to give it up for nothing.
- 75. Answer to an objection.
This reflection brings us to the consideration of the application
made by an author, of the text, mutuum date nihil inde sperantes,
and shews how false that application is, and how distant from the
meaning of the Gospel. The passage is clear, as interpreted by
modern and reasonable divines as a precept of charity. All mankind
are bound to assist each other; a rich man who should see, his
fellow creature in distress, and who, instead of gratuitously
assisting, should sell him what he needed, would be equally
deficient in the duties of christianity and of humanity. In such
circumstances, charity does not only require us to lend without
interest, she orders us to lend, and even to give if necessary. To
convert the precept of charity into a precept of strict justice,
is equally repugnant to reason, and the sense of the text. Those
whom I here attack do not pretend that it is a duty of justice to
lend their money; they must be obliged then to confess, that the
first words of the passage, mutuum date, contain only a precept of
charity. Now I demand why they extend the latter part of this
passage to a principle of justice. What, is the duty of lending
not a strict precept, and shall its accessory only, the condition
of the loan, be made one; it would have been said to man, "It
is free for you to lend or not to lend, but if you do lend, take
care you do not require any interest for your money, and even when
a merchant shall require a loan of you for an undertaking, in
which he hopes to make a large profit, it will be a crime in you
to accept the interest he offers you; you must absolutely either
lend to him gratuitously, or not lend to him all? You have indeed
one method to make the receipt of interest lawful, it is to lend
your capital for an indefinite term, and to give up all right to
be repaid it, which is to be optional to your debtor, when he
pleases, or when he can. If you find any inconvenience on the
score of security, or if you foresee you shall want your money in
a certain number of years, you have no other course to take but
not to lend: It is better for you to deprive this merchant of this
most fortunate opportunity, than to commit a sin by assisting him."
This is what they must have seen in these five words, mutuum date
nihil inde sperantes, when they have read them under these false
prejudices.
- 76. The rate of interest ought to be fixed, as the price of
every other merchandize, by the course of trade alone.
I have already said, that the price of money borrowed, is
regulated like the price of all other merchandize, by the
proportion of the money at market with the demand for it: thus,
when there are many borrowers who are in want of money, the
interest of money rises; when there are many possessors who are
ready to lend, it falls. It is therefore an error to believe that
the interest of money in trade ought to be fixed by the laws of
princes. It has a current price fixed like that of all other
merchandize. This price varies a little, according to the greater
or less security which the lender has; but on equal security, he
ought to raise and fall his price in proportion to the abundance
of the demand, and the law no more ought to fix the interest of
money than it ought to regulate the price of any other
merchandizes which have a currency in trade.
- 77. Money has in commerce two different valuations. One
expresses the quantity of money or silver we give to procure
different sorts of commodities; the other expresses the relation a
sum of money has, in the interest it will procure in the course of
trade.
It seems by this explanation of the manner in which money is
either sold or lent for an annual interest, that there are two
ways of valuing money in commerce. In. buying and selling a
certain weight of silver represents a certain quantity of labour,
or of merchandize of every species; for example, one ounce of
silver is equal to a certain quantity of corn, or to the labour of
a man for a certain number of days. In lending, and in the
commerce of money, a capital is the equivalent of an equal rent,
to a determinate portion of that capital; and reciprocally an
annual rent represents a capital equal to the amount of that rent
repeated a certain number of times, according as interest is at a
higher or lower rate.
- 78. These two valuations are independent of each other, and
are governed by quite different principles.
These two different methods of fixing a value, have much less
connection, and depend much less on each other than we should be
tempted to believe at first sight. Money may be very common in
ordinary commerce, may hold a very low value, answer to a very
small quantity of commodities, and the interest of money may at
the same time be very high.
In effect, I will suppose for a moment, that all the rich people
in a country, instead of saving from their revenue, or from their
annual profits, shall expend the whole; that, not satisfied with
expending their whole revenue, they dissipate a part of their
capital; that a man who has 100,000 livres in money, instead of
employing them in a profitable manner, or lending them, consumes
them by degrees in foolish expences; it is apparent that on one
side there will be more silver employed in common circulation, to
satisfy the wants and humours of each individual, and that
consequently its value will be lowered; on the other hand there
will certainly be less money to be lent; and as many people will
in this situation of things ruin themselves, there will clearly be
more borrowers. The interest of money will consequently augment,
while the money itself will become more plenty in circulation, and
the value of it will fall, precisely by the same cause.
We shall no longer be surprised at this apparent inconsistency,
if we consider that the money brought into the market for the
purchase of corn, is that which is daily circulated to procure the
necessaries of life; but that which is offered to be lent on
interest, is what is actually drawn out of that circulation to be
laid by and accumulated into a capital.
- 79. In comparing the value of money with that of commodities,
we consider silver as a metal, which is an object of commerce. In
estimating the interest of money we attend to the use of it during
a determinate time.
In the market a measure of corn is purchased with a certain
weight of silver, or a quantity of silver is bought with a certain
commodity, it is this quantity which is valued and compared with
the value of other commodities. In a loan upon interest, the
object of the valuation is the use of a certain quantity of
property during a certain time. It is in this case no longer a
mass of silver, compared with a quantity of corn, but it is a
portion of effects compared with a certain portion of the same,
which is become the customary price of that mass for a certain
time. Let twenty thousand ounces of silver be an equivalent in the
market for twenty thousand measures of corn, or only for ten
thousand, the use of those twenty thousand ounces of silver for a
year is not worth less on a loan than the twentieth part of the
principal sum, or one thousand ounces of silver, if interest is at
five per cent.
- 80. The price of interest depends immediately on the
proportion of the demand of the borrowers, with the offer of the
lenders, and this proportion depends principally on the quantity
of personal property, accumulated by an excess of revenue and of
the annual produce to form capitals, whether these capitals exist
in money or in any other kind of effects having a value in
commerce.
The price of silver in circulation has no influence but with
respect to the quantity of this metal employed in common
circulation; hut the rate of interest is governed by the quantity
of property accumulated and laid by to form a capital. It is
indifferent whether this property is in metal or other effects,
provided these effects, are easily convertible into money. It is
far from being the case, that the mass of metal existing in a
state, is as large as the amount of the property lent on interest
in the course of a year; but all the capitals in furniture,
merchandize, tools, and cattle, supply the place of silver and
represent it. A paper signed by a man, who is known to be worth
100,000 livres, and who promises to pay 100 marks in a certain
time is worth that sum; the whole property of the man who has
signed this note is answerable for the payment of it, in whatever
the nature of these effects consists, provided they are in value
100,000 livres. It is not therefore the quantity of silver
existing as merchandize which causes the rate of interest to rise
or fall, or which brings more money in the market to be lent; it
is only the capitals existing in commerce, that is to say, the
actual value of personal property of every kind accumulated,
successively saved out of the revenues and profits to be employed
by the possessors to procure them new revenues and new profits. It
is these accumulated savings which are offered to the borrowers,
and the more there are of them, the lower the interest of money
will be, at least if the number of borrowers is not augmented in
proportion.
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