INTEREST 



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INTEREST 



a man should add the interest on his capital 

 to the expense account of his business before 

 calculating his profit. 



Interest, like nearly anything else, varies ac- 

 cording to the money supply and demand. If 

 there are large opportunities to make money 

 by producing some commodity, there is, of 

 course, an increased desire to borrow, and the 

 rate of interest will be high while the unusual 

 demand continues ; when money is not urgently 

 needed the rate begins to fall. 



Legal Interest Rates. The rates of interest 

 lawful in the United States are given here: 



In Canada. The legal rate of interest 

 throughout Canada is established -^tt five per 

 cent, but any higher rate may be stipulated by 

 agreement between contracting parties. How- 

 ever, by terms of a law affecting professional 

 money lenders, no rate may exceed twelve per 

 cent on a loan of $500 or less. 



INTEREST (!N PSYCHOLOGY). Children on 

 a playground engage in different sorts of play. 

 Some are swinging, others are climbing poles 

 and others playing ball. When permitted to 

 choose their subjects high school students indi- 

 cate their individual likes and dislikes in the 

 selection of their studies. John may choose a 

 course in agriculture and Henry one that will 

 lead to a professional career. Mary may 

 choose household arts and Helen may select 

 such studies as will prepare her to become a 

 teacher. What is the cause of these different 

 choices? The answer is that each chooses that 

 which most strongly appeals to him, that in 

 which he finds the highest satisfaction. In 

 other words, each chooses the line of work in 

 which he is the most deeply interested. 



Interest is the value in ideas; we are inter- 

 ested in whatever satisfies our physical, intel- 

 lectual and spiritual wants. The child's first 

 interest is in whatever ministers to his physi- 

 cal needs, such as food, clothing, shelter. 

 His next interests are in those things that 

 satisfy his mental needs, such as the mother's 

 soothing care, the bright toy and the daily 

 play with some one who can give him the exer- 

 cise his system craves. His interests are both 

 pleasurable and painful. He derives pleasure 

 from his cup of milk and eagerly looks for the 

 next cup when the time for it arrives. But 

 after he has burned his hand on a hot stove 

 he is interested in avoiding it. 



Interest is a feeling, and like any other feel- 

 ing it is individual. The same object will 

 arouse interest in some and aversion in others, 

 and still others will look upon it with indiffer- 

 ence. Interest is one of the strong character- 

 istics of personality, and while many people 

 may have similar interests, the interests of 

 no two persons are identical. 



Interest is immediate and remote immedi- 

 ate when it is placed on something that satisfies 

 present needs, like food when one is hungry, 

 and a game of ball when one desires physical 

 exercise. It is remote when fixed upon some- 

 thing to be attained in the distant future, such 

 as entering upon a profession for which years 

 of preparation are necessary, or the acquisition 

 of wealth as the result of a long business career. 



