ts of usefulness, for the sole object of facilitating their
arrangements? In the midst of social complications, the man who is in a
condition to lend, scarcely ever has the exact thing which the borrower
wants. James, it is true, has a plane; but, perhaps, William wants a
saw. They cannot negotiate; the transaction favorable to both cannot
take place, and then what happens? It happens that James first exchanges
his plane for money; he lends the money to William, and William
exchanges the money for a saw. The transaction is no longer a simple
one; it is decomposed into two parts, as I explained above in speaking
of exchange. But, for all that, it has not changed its nature; it still
contains all the elements of a direct loan. James has still got rid of a
tool which was useful to him; William has still received an instrument
which perfects his work and increases his profits; there is still a
service rendered by the lender, which entitles him to receive an
equivalent service from the borrower; this just balance is not the less
established by free mutual bargaining. The very natural obligation to
restore at the end of the term the entire _value_, still constitutes the
principle of the duration of interest.

At the end of a year, says M. Thore, will you find an additional crown
in a bag of a hundred pounds?

No, certainly, if the borrower puts the bag of one hundred pounds on the
shelf. In such a case, neither the plane, nor the sack of corn, would
reproduce themselves. But it is not for the sake of leaving the money in
the bag, nor the plane on the hook, that they are borrowed. The plane is
borrowed to be used, or the money to procure a plane. And if it is
clearly proved that this tool enables the borrower to obtain profits
which he would not have made without it, if it is proved that the lender
has renounced creating for himself this excess of profits, we may
understand how the stipulation of a part of this excess of profits in
favor of the lender, is equitable and lawful.

Ignorance of the true part which cash plays in human transactions, is
the source of the most fatal errors. I intend devoting an entire
pamphlet to this subject. From what we may infer from the writings of M.
Proudhon, that which has led him to think that gratuitous credit was a
logical and definite consequence of social progress, is the observation
of the phenomenon which shows a decreasing interest, almost in direct
proportion to the rate of civiliza