Defence of Usury [42]
greater than all the advantage reaped before the recall. Neither of these propositions has ever been attempted to be proved: nor does either seem likely to be true. 1. It may happen to any lender to recall his money: but this is not more likely to happen to a man of one country than of another. You may put cases where an Englishman who has lend his money in Ireland(35*) may be disposed to recall that money: but it is just as easy to put cases in which an Irishman who has lent his money in Ireland may be disposed to do the same thing. An Irishman who is upon the spot is more likely to look for, to spy out, and to improve such opportunities, than an Englishman who is at a distance, and who, if he lends his money in such a way, is more likely to have lent it with views of permanence, and as a means of providing himself for life, without farther sollicitude, a settled income. 2. If there were any reason to apprehend that the time when the foreign lender may call in his money would be more inconvenient to the lender than the time when a home lender might call in his, the danger of recall might sooner afford an objection to the importation of foreign capital. But no such reason can be assigned. The disposition of the foreign lender to call in his money will not be governed by the consideration of the inconvenience to the borrower, but by the consideration of his own convenience. But that convenience is not the more likely to clash with the convenience of the borrower on account of the lender's being a foreigner: not more likely to do so than that of a lender at home. We have seen that on one account it is less likely: because a foreign lender is less likely to be tempted by opportunities of occasional profit to clasp and change his security than a native. It is also on another account: a lender at home is more in the way of being acquainted with the circumstances and exigencies of his borrower.. more in the way of having quarrels with him: of watching opportunities of distressing him in a time of need, either for the sake of hurting him, or for the sake of making a profit of his distress. Whatever may, by accident, be the disadvantage resulting to A or B in this way from a recall of a foreign capital, a capital thus imported will, so long as it continues unrecalled, be productive to the nation that has imported it, of a clear revenue to the amount just stated. If the use of a million for ten years would have been worth *600,000, the use of the same million for one year will have been *60,000. Recall it when you will, it will have had its value from the time of its importation to the time of its recall. To furnish an argument against the import, the inconvenience likely to result from the recall must be not only very considerable, but superior to the whole amount of the benefit reaped previously to the recall.
DEVELOPMENT OF THE PRINCIPLE "NO MORE TRADE THAN CAPITAL", OR "CAPITAL LIMITS TRADE".
1. No branch of productive industry can be carried on without the help of a certain quantity of capital previously accumulated. 2. The whole quantity of productive industry each individual can carry on, is limited by the quantity he has of his own, or is able to borrow of other individuals. The whole quantity of productive industry a nation can carry on, is limited by the quantity of capital it has of its own, or can borrow from other nations. The whole quantity of productive industry the world can carry on, is limited by the capital it has of its own, till it can find another world to borrow of. 3. Credit need not be taken separately into the account: since credit is but capital borrowed, and the quantity that can be borrowed is limited by the quantity possessed. 4. The quantity of capital limiting the quantity of productive industry, limits in the same proportion the possible quantity, and amount in value, of the produce of that industry, and thence of whatever part of it is capable of becoming the subject of trade. The quantity of capital sets the limit to the quantity of wealth: it likewise sets
DEVELOPMENT OF THE PRINCIPLE "NO MORE TRADE THAN CAPITAL", OR "CAPITAL LIMITS TRADE".
1. No branch of productive industry can be carried on without the help of a certain quantity of capital previously accumulated. 2. The whole quantity of productive industry each individual can carry on, is limited by the quantity he has of his own, or is able to borrow of other individuals. The whole quantity of productive industry a nation can carry on, is limited by the quantity of capital it has of its own, or can borrow from other nations. The whole quantity of productive industry the world can carry on, is limited by the capital it has of its own, till it can find another world to borrow of. 3. Credit need not be taken separately into the account: since credit is but capital borrowed, and the quantity that can be borrowed is limited by the quantity possessed. 4. The quantity of capital limiting the quantity of productive industry, limits in the same proportion the possible quantity, and amount in value, of the produce of that industry, and thence of whatever part of it is capable of becoming the subject of trade. The quantity of capital sets the limit to the quantity of wealth: it likewise sets