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Rh which in his opinion would place the burden of banking expenses upon the borrowers instead of upon the people. The answer to this is simple and decisive: the burden of discount, no matter what elements, many or few, may constitute it, falls ultimately, under any system, not on the borrowers, but on the people. Broadly speaking, all the interest paid is paid by the people. Under mutual banking the expenses of the banks would, it is true, be paid directly by the borrowers, but the latter would recover this from the people in the prices placed upon their products. And it seems to me much more scientific that the people should thus pay these expenses through the borrowers in the regular channels of exchange than that they should follow the communistic method of paying them through the public treasury.

Mr. Bilgram's statement that money-lenders who, besides being compensated for risk, are compensated for their labor as bankers and for their incidental expenses "thereby obtain an income from the mere loan of money" is incomprehensible to me. He might just as well say that under government banking the officials who should receive salaries from the treasury for carrying on the business would thereby obtain an income from the mere loan of money. Under a free system the banker is as simply and truly paid only the normal wage of his labor as is the official under a government system.

But, since Mr. Bilgram does not propose to place any restriction upon private banking, I have no quarrel with him. He is welcome to his opinion that private banking could not compete with the governmental institution. I stoutly maintain the contrary, and the very existence of the financial prohibitions is the best evidence that I am right. That which can succeed by intrinsic merit never seeks a legal bolster.

I am agreeably disappointed. In challenging Mr. Bilgram on this point, I, knowing his intellectual acumen, had braced myself to withstand the most vigorous onslaught possible against Anarchism in finance, but it was a needless strain. Mr. Bilgram has struck me with a feather.