bonds of newly established cities or other municipalities.
Not all such misrepresentation is intended fraud, but the immediate
interest of the broker clouds his judgment as to conditions of final
settlement. With little to lose and everything to gain in the immediate
transaction, his judgment is necessarily biased. The merely speculative
buying and selling of stocks by margins has little to do with the general
character of indebtedness, except to increase somewhat the risks of
legitimate brokerage. The "bulls and bears" on exchange make their gains
by fluctuations in market values, and, like all gamblers, delight in
producing false impressions upon their opponents in the game. This fact
adds to the uncertainty of all standing credit, and so increases the
natural rate of interest. This effect upon interest will be noticed in
considering the nature of interest and conditions affecting it.

"_Borrowed money._"--In all the forms of deferred payment, except standing
accounts, it is customary to represent the amount of the debt as "borrowed
money," no matter how the transaction occurs. When a farmer buys his farm
with a promise to pay five years hence, his note is said to represent so
much "borrowed money," while in fact he has simply borrowed the farm. The
reason is, that the farm is represented by its value in dollars, and the
promise is to return that value in dollars at the end of five years.

The same is true, in fact, of all purchases on credit. Even when the
purchase is made by means of a note at the bank, the actual transfer of
property is from the owner of the farm to its prospective owner, the bank
simply acting as agent, and interposing its credit or capital only to
promote the exchange. In many instances no money in any form is used, and
where it is employed at some stage of the transaction, it is used, as in
any other exchange, simply as a machine of transfer. Even the final
settlement is likely to be made through the ordinary channels of trade,
without the intervention of money in any of its forms. The deferred
payment takes its place when the time of payment comes in the ordinary
everyday transactions of the universal credit system, illustrated in
banking. Even if the farm is paid for by instalments, those instalments
are simply ordinary transactions in trade, the farmer transferring the
check which he receives from the sale of his steers or his wheat to the
former owner of the farm. The money involved is simply