Money only appears for the sake of facilitating the arrangements
between the parties.
Peter may not be disposed to lend his plough, but James may be willing
to lend his money. What does William do in this case? He borrows money
of James, and with this money he buys the plough of Peter.
But, in point of fact, no one borrows money for the sake of the money
itself; money is only the medium by which to obtain possession of
productions. Now, it is impossible in any country to transmit from one
person to another more productions than that country contains.
Whatever may be the amount of cash and of paper which is in circulation,
the whole of the borrowers cannot receive more ploughs, houses, tools,
and supplies of raw material, than the lenders altogether can furnish;
for we must take care not to forget that every borrower supposes a
lender, and that what is once borrowed implies a loan.
This granted, what advantage is there in institutions of credit? It is,
that they facilitate, between borrowers and lenders, the means of
finding and treating with each other; but it is not in their power to
cause an instantaneous increase of the things to be borrowed and lent.
And yet they ought to be able to do so, if the aim of the reformers is
to be attained, since they aspire to nothing less than to place ploughs,
houses, tools, and provisions in the hands of all those who desire them.
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