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53 that it has become a source of national conniption, has diminished the value of human testimony, and shaken the confidence which men naturally place in the word of their fellow-creatures.

The open vices and, what is much more dangerous, the hidden corruption thus generated in the midst of society by the ignorant interference of Christian rulers is indeed a painful subject; but it is one which I could not omit in an analysis of the causes of civilization. It would be easy to push the inquiry still further, and to show how legislators, in every attempt they have made to protect some particular interests and uphold some particular principles, have not only failed, but have brought about results diametrically opposite to those which they proposed. We have seen that their laws in favor of industry have injured industry; that their laws in favor of religion have increased hypocrisy; and that their laws to secure truth have encouraged perjury. Exactly in the same way, nearly every country has taken steps to prevent usury and keep down the interest of money; and the invariable effect has been to increase usury and raise the interest of money. For since no prohibition, however stringent, can destroy the natural relation between demand and supply, it has followed that when some men want to borrow, and other men want to lend, both parties are sure to find means of evading a law which interferes with their mutual rights. If the two parties were left to adjust their own bargain undisturbed the usury would depend on the circumstances of the loan, such as the amount of security and the chance of repayment. But this natural arrangement has been complicated by the interference of government. A certain risk being always incurred by those who disobey the law, the usurer very properly refuses to lend his money unless he is also compensated for the danger he is in from the penalty hanging over him. This compensation can only be made by the borrower, who is thus obliged to pay what in reality is a double interest: one interest for the natural risk on the loan, and another interest for the extra risk from the law. Such, then, is the position in which every European legislature has placed itself. By enactments against usury it has