Chapter 16. Interest on Money Loans
1. Some money-lenders in cities get 10% a day from fruit-vendors for the advance of small sums of money, and the losses are very slight. Pawnbroking pays frequently 25 to 100% per year. In these cases what affects the rate of interest?
2. Through what agency does the Western farmer borrow Eastern capital?
3. How do Englishmen invest in American railroads?
4. In what ways can a lender collect a high rate of interest without appearing to do so?
5. What would be the effect upon the rate of interest in a new state if it passed a law preventing the collection of loans by outside lenders?
6. Why has interest been about 10% in the West, 7% in the Central States, 5% in New York, 4% in Germany?
7. What is the money market? Who are the buyers and sellers, and what do they buy and sell?
8. In a panic, interest rises on short loans and prices fall, while it is almost impossible to borrow money; does this show that the amount of money determines the interest rate?
9. When gold is leaving England, the bank raises the rate of discount (interest); does this show that the quantity of money determines the rate of interest?