takes no part in the management of any industrial concern, but merely lends his money at usury, living on the interest he receives. There is so much confusion of thought on this subject, so much idea that a man has "a right" to invest money at interest, that it is necessary to try to get at the "bed-rock" of the question. Take the case of a man who earns 30s. in a week; suppose he spends 20s. and saves 10s. For the 20s. he spends he receives their equivalent in commodities, and these he consumes; he has had his "money's worth", and he is content, and if he requires more commodities he knows he must labor again to earn their equivalent in money. The 10s. he has saved, however, are to have a different fate; they represent, also, so much possibility of possession of their equivalent in commodities which he could consume; but he desires to defer this consumption to a future day, to defer it, perhaps, until he is too old to give labor in exchange for his needs. One might suppose that the equivalent of commodities for the 10s. would be as satisfactory as the equivalent of commodities for the 20s. But it is not so. He desires to invest his 10s. at interest; let us suppose he invests it at 5 per cent.; at the end of twenty years he will have received back his 10s. by instalments of 6d. a year, and will have exchanged it for 10s. worth of commodities; yet at the end of the twenty years he expects to receive back in addition his full 10s.; to have spent it all, and yet to find it undiminished; so that for his 10s. saved he expects to receive 20s. worth of commodities in twenty years, to have his labor paid for twice over. In the case of money only is it possible to eat your cake and have it, and after you have eaten it to pass it on as large as ever to your descendants, so that they may eat it and yet find it, like the widow's cruse, ever miraculously renewed.
Those who defend usury do so generally on its supposed collateral advantages, rather than on its central theory. It is argued that "if a man gets no interest on his savings, he has no incitement to work". To this it may be answered: (a) That there is clearly no incitement to work on the part of those who live on interest, since their money comes tumbling in whether they work or idle; it is the labor of others on which the interest-receiver lives. (b) That the incitement to work would be greater if the reward of work were not diminished by the imposition on it of a tax for the benefit
