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Updated: May 1, 2025
The rate of interest must therefore fall, until some of the lenders give over lending, or until the increase of borrowers absorbs the whole. But a fall of the rate of interest, sufficient to enable the money market to absorb the whole of the paper-loans, may not be sufficient to reduce the profits of a lender who lends what costs him nothing, to the ordinary rate of profit upon his capital.
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