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wealth of the race. As that is limited, while human wants are infinite, it would appear that there will always be a demand for more than exists. The simplest way of solving the difficulty would, therefore, be to put the social capital up and let open competition settle its price. Added accumulation means greater competition to let it, so that its price will be lowered year by year. But can that price ever become nothing so long as men have additional wants that capital can assist to fill? Yet Mr. Westrup advocates a rate of interest based on the cost of issuing the money,—that is, allowing nothing for the capital. Is "stored labor" so plenty as to be cheaper than blackberries?

For illustration, A has $1,000 worth of land, buildings, etc., in a farm, but sees that he can use $1,500 worth profitably. So he places a mortgage of $500 on the place and invests it in more property. Now to say that he should have that additional property merely for the cost of issuing the paper which represents it during the transfer would be like saying that, when he bought his house, he should have it merely for cost of the transfer papers,—the deeds, etc.,—paying nothing for the house itself.

In a line my query is: Where do your definitions of interest and discount on money diverge?

Yours truly,

J. Herbert Foster.

Meriden, Connecticut.

Discount is the sum deducted in advance from property temporarily transferred, by the owner thereof, as a condition of the transfer, regardless of the ground upon which such condition is demanded.

Interest is payment for the use of property, and, if paid in advance, is that portion of the discount exacted by the owner of the property temporarily transferred which he claims as payment for the benefit conferred upon the other party, as distinguished from that portion which he claims as payment for the burden borne by himself.

The opponents of interest desire, by reducing the rate of discount to cost, or price of burden borne, to thereby eliminate from discount all payment merely for benefit conferred.

But they are entirely innocent of any desire to abolish payment for burden borne, as it certainly would be abolished in the case supposed by Mr. Foster, were A to obtain his extra $500 worth of property simply by paying the cost of making out the transfer papers. A certainly could not thus obtain it under the system of credit proposed by the opponents of interest. His obligation is not discharged when he has paid over to the man of whom he buys the property the $500 which he has borrowed on mortgage. He still has to discharge the mortgage by paying to the lender of the money, at the expiration of the loan, in actual wealth or valid documentary claim upon wealth, the $500 which he borrowed. That is the time when he really pays for the property in which he invested.

Now, the question is whether he shall pay simply the $500,