Page:Reflections on the Formation and the Distribution of Riches by Anne Turgot.djvu/96

Rh to demand interest for it is to talk as absurdly as if one should say that a Baker who demands money for the bread he sells takes advantage of the Purchaser's need of bread. If, in the latter case, the money is the equivalent of the bread the Purchaser receives, the money which the Borrower receives to-day is equally the equivalent of the capital and of the interest which he promises to return at the expiration of a certain time; for, in short, it is an advantage for the Borrower to have during this interval the money he stands in need of, and it is a disadvantage to the Lender to be deprived of it. This disadvantage is capable of being estimated, and it is estimated; the interest is the price of it. This price ought to be higher if the Lender runs a risk of losing his capital by the insolvency of the Borrower. The bargain, therefore, is perfectly equal on both sides, and consequently fair. Money considered as a physical substance, as a mass of metal, does not produce anything; but money employed in advances for enterprises in Agriculture, Manufacture, and Commerce procures a definite profit. With money one can purchase an estate, and thereby procure a revenue. The person, therefore, who lends his money does not merely give up the barren possession of that money; he deprives himself of the profit or of the revenue which he would have been able to procure by it; and the interest which indemnifies him for this privation cannot be regarded as unjust. The Schoolmen, compelled to acknowledge the justice of these considerations, have allowed that interest for money may be taken provided that the capital is alienated, that is to say, provided that the