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is the only usurer left. But is any one so innocent as to suppose that Dodge, or Lodge, or Modge will long continue to pay Hodge more for his grown grain than his sown grain, after any or all of them can get land free of rent and money free of interest, and thereby force time to work for them as well as for Hodge. Nobody who can get the services of time for nothing will be such a fool as to pay Hodge for them. Hodge, too, must say farewell to his interest as soon as the two great monopolies of land and money are abolished. The rate of interest on money fixes the rate of interest on all other capital the production of which is subject to competition, and when the former disappears the latter disappears with it.

Presumably to make his readers think that he has given due consideration to the important principle just elucidated, Mr. George adds, just after his hypothesis of the banker's transaction with Podge:

Of course there is discount and discount. I am speaking of a legitimate economic banking transaction. But frequently bank discounts are nothing more than taxation, due to the choking up of free exchange, in consequence of which an institution that controls the common medium of exchange can impose arbitrary conditions upon producers who must immediately use that common medium.

The evident purpose of the word "frequently" here is to carry the idea that, when a bank discount is a tax imposed by monopoly of the medium of exchange, it is simply a somewhat common exception to the general rule of "legitimate economic banking transactions." For it is necessary to have such a general rule in order to sustain the theory of interest on capital as a reward of time. The exact contrary, however, is the truth. Where money monopoly exists, it is the rule that bank discounts are taxes imposed by it, and when, in consequence of peculiar and abnormal circumstances, discount is not in the nature of a tax, it is a rare exception. The abolition of money monopoly would wipe out discount as a tax and, by adding to the steadiness of the market, make the cases where it is not a tax even fewer than now. Instead of legitimate, therefore, the banker's transaction with Podge, being exceptional in a free money market and a tax of the ordinary discount type in a restricted money, market, is illegitimate if cited in defence of interest as a normal economic factor.

In the conclusion of his article Mr. George strives to show that interest would not enable its beneficiaries to live by the labor of others. But he only succeeds in showing, though in

a very obscure, indefinite, and intangible fashion,—seemingly