PREFACE TO FIRST EDITION. 



To state, that interest for money loaned on good security is irra- 

 tional, and that its abolition is not dependent upon philanthropic mo- 

 tive, but upon business principle, and therefore unavoidable, is to 

 either startle the "civilized" world or else to evoke ridicule. To state 

 that S|ay2g^ l)anks are economic absurdities, and that history gives no 

 greate^lividence of man's folly than in their establishment, is to be- 

 come not only the laughing-stock of superficial thinkers, but to be re- 

 garded as non compos mentis by "learned" writers on political 

 economy. Of course we do not court, neither do we fear these 

 results. They do not constitute arguments. The^^e the result of a 

 firm belief in accepted views of the nature and omceo^money, and 

 of the laws of value. It remains to be seen how long error upon this 

 subject will remain unassailed, while mankind itf making rapid prog- 

 ress in other directions. 



To those who will further extend to us the courtesy of their atten- 

 tion, we would say : The proof that interest u])on money loaned on 

 good security is irratioi^l, is the fact that the security is capital, and 

 that what the l)orrower obtains is merely something w hi( li enables him 

 to avail himself of the use of his ca])ital, WTOOut ( utling it up into 

 small pieces, as is done with the capital consisting of ihc metals, used 

 as money, but which in his case is impossible. The b^^jjjLKNDS his 

 CRKDii, and the borrower I'Lkdgks mis (ai'Iial ; tjIJ^^^hr 



FAR MORK SECURK THAN I'HK HOLDER OF THE HANK^^^^»<:R. 



banker i akf.s i-av for the use of capital, althcnigh ne furnishes 

 none; for the capital is fuknismed r.\- iiii. I!Okr()wkk. 'I'he banker. 



