>
> michael perelman wrote:
>
> >It was Adam Smith.
>
> But Ricardo also said:
>
> "To the question, 'who would lend money to farmers, manufacturers,
> and merchants, at 5 per cent. per annum, when another borrower,
> having little credit would give 7 or 8?' I reply, that every prudent
> or reasonable man would. Because the rate of interest is 7 or 8 per
> cent. there where the lender runs extraordinary risk is this any
> reason that it should be equally high in those places where they are
> secured from such risks?"
>
> Doug
>
>
-- Michael Perelman Economics Department California State University Chico, CA 95929
Tel. 530-898-5321 E-Mail michael at ecst.csuchico.edu