ABSTRACT
Much money is borrowed for short periods and at call to purchase goods for immediate resale at a profit. Transactions on stock and produce exchanges are financed by such loans. Bank loans for such transactions are not infrequently at rates far in excess of the true market rate. The spendthrift borrower soon has his financial foundation gnawed from under him, for debts at interest mount with accelerating speed and hasten the unwary to bankruptcy. A firm rate of interest, whether high or low, accompanies a stable market with an established rate of discount. Time-discount that would take from the future in behalf of the present works contrary to saving. Low interest likewise expresses the rate of time-discount and capitalization. Low interest likewise expresses the rate of time-discount and capitalization. The entrepreneur borrows money with which to buy productive agents which will yield future valuable returns.
