ABSTRACT
The service, rendered by capital, in productive operations, establishes a demand for capital to be so employed, and enables the proprietors of it to charge more or less for that service. The interest of capital lent was formerly denominated usury, that is to say, rent for its use and enjoyment; which was the correct term; for interest is nothing more than the price, paid for the enjoyment of an object of value. The public securities that are not negotiable, bear a much higher interest; such as the old personal annuities in France, a high average for young lives. Wherefore the Genevese acted with excellent judgment, in settling their annuities on thirty lives of well-known public characters. The resort to personal restraint against insolvent debtors has been generally considered as injurious to the borrower; but is, on the contrary, much in his favour. Loans are made more willingly, where the rights of the lender are best secured by law.
