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the provinces； under the ruinous administration of their
proconsuls。 The virtuous Brutus lent money in Cyprus at
eight…and…forty per cent as we learn from the letters of Cicero。
In a country which had acquired that full complement of
riches which the nature of its soil and climate； and its
situation with respect to other countries； allowed it to acquire；
which could； therefore； advance no further； and which was not
going backwards； both the wages of labour and the profits of
stock would probably be very low。 In a country fully peopled in
proportion to what either its territory could maintain or its
stock employ； the competition for employment would necessarily be
so great as to reduce the wages of labour to what was barely
sufficient to keep up the number of labourers； and； the country
being already fully peopled； that number could never be
augmented。 In a country fully stocked in proportion to all the
business it had to transact； as great a quantity of stock would
be employed in every particular branch as the nature and extent
of the trade would admit。 The competition； therefore； would
everywhere be as great； and consequently the ordinary profit as
low as possible。
But perhaps no country has ever yet arrived at this degree
of opulence。 China seems to have been long stationary； and had
probably long ago acquired that full complement of riches which
is consistent with the nature of its laws and institutions。 But
this complement may be much inferior to what； with other laws and
institutions； the nature of its soil； climate； and situation
might admit of。 A country which neglects or despises foreign
commerce； and which admits the vessels of foreign nations into
one or two of its ports only； cannot transact the same quantity
of business which it might do with different laws and
institutions。 In a country too； where； though the rich or the
owners of large capitals enjoy a good deal of security； the poor
or the owners of small capitals enjoy scarce any； but are liable；
under the pretence of justice； to be pillaged and plundered at
any time by the inferior mandarins； the quantity of stock
employed in all the different branches of business transacted
within it can never be equal to what the nature and extent of
that business might admit。 In every different branch； the
oppression of the poor must establish the monopoly of the rich；
who； by engrossing the whole trade to themselves； will be able to
make very large profits。 Twelve per cent accordingly is said to
be the common interest of money in China； and the ordinary
profits of stock must be sufficient to afford this large
interest。
A defect in the law may sometimes raise the rate of interest
considerably above what the condition of the country； as to
wealth or poverty； would require。 When the law does not enforce
the performance of contracts； it puts all borrowers nearly upon
the same footing with bankrupts or people of doubtful credit in
better regulated countries。 The uncertainty of recovering his
money makes the lender exact the same usurious interest which is
usually required from bankrupts。 Among the barbarous nations who
overran the western provinces of the Roman empire； the
performance of contracts was left for many ages to the faith of
the contracting parties。 The courts of justice of their kings
seldom intermeddled in it。 The high rate of interest which took
place in those ancient times may perhaps be partly accounted for
from this cause。
When the law prohibits interest altogether； it does not
prevent it。 Many people must borrow； and nobody will lend without
such a consideration for the use of their money as is suitable
not only to what can be made by the use of it； but to the
difficulty and danger of evading the law。 The high rate of
interest among all Mahometan nations is accounted for by Mr。
Montesquieu； not from their poverty； but partly from this； and
partly from the difficulty of recovering the money。
The lowest ordinary rate of profit must always be something
more than what is sufficient to compensate the occasional losses
to which every employment of stock is exposed。 It is this surplus
only which is neat or clear profit。 What is called gross profit
comprehends frequently； not only this surplus； but what is
retained for compensating such extraordinary losses。 The interest
which the borrower can afford to pay is in proportion to the
clear profit only。
The lowest ordinary rate of interest must； in the same
manner； be something more than sufficient to compensate the
occasional losses to which lending； even with tolerable prudence；
is exposed。 Were it not more； charity or friendship could be the
only motive for lending。
In a country which had acquired its full complement of
riches； where in every particular branch of business there was
the greatest quantity of stock that could be employed in it； as
the ordinary rate of clear profit would be very small； so the
usual market rate of interest which could be afforded out of it
would be so low as to render it impossible for any but the very
wealthiest people to live upon the interest of their money。 All
people of small or middling fortunes would be obliged to
superintend themselves the employment of their own stocks。 It
would be necessary that almost every man should be a man of
business； or engage in some sort of trade。 The province of
Holland seems to be approaching near to this state。 It is there
unfashionable not to be a man of business。 Necessity makes it
usual for almost every man to be so； and custom everywhere
regulates fashion。 As it is ridiculous not to dress； so is it； in
some measure； not to be employed； like other people。 As a man of
a civil profession seems awkward in a camp or a garrison； and is
even in some danger of being despised there； so does an idle man
among men of business。
The highest ordinary rate of profit may be such as； in the
price of the greater part of commodities； eats up the whole of
what should go to the rent of the land； and leaves only what is
sufficient to pay the labour of preparing and bringing them to
market； according to the lowest rate at which labour can anywhere
be paid； the bare subsistence of the labourer。 The workman must
always have been fed in some way or other while he was about the
work； but the landlord may not always have been paid。 The profits
of the trade which the servants of the East India Company carry
on in Bengal may not perhaps be very far from this rate。
The proportion which the usual market rate of interest ought
to bear to the ordinary rate of clear profit； necessarily varies
as profit rises or falls。 Double interest is in Great Britain
reckoned what the merchants call a good； moderate； reasonable
profit； terms which I apprehend mean no more than a common and
usual profit。 In a country where the ordinary rate of clear
profit is eight or ten per cent； it may be reasonable that one
half