,POV]TY3 ,ITS ,ILLEGAL ,CAUSES & ,LEGAL ,CURES 

#ahdf 

,PEOPLE 3 

,AU?OR 3 ,LYS&] ,SPOON] 

,TAGS 3 FRUITS ( HIS [N LABOR1 FRUITS ( !IR LABOR1 RI<T ( PROP]TY1 RATE ( 9T]E/1 BILL ( SALE1 CONTRACT ( DEBT1 PROMISE TO PAY1 CAPITAL & LABOR1 NATURE ( DEBT1 RI<TS ( PROP]TY4 

,SECTIONS 7,T,O,C7 3 
     

O ,*APT] #a 3 ,ILLEGAL ,CAUSES ( ,POV]TY 

      #$a ,WORDS2 #c1#e#c ,*>ACT]S     

O ,*APT] #b 3 ,ECONOMICAL ,PROPOSITIONS 

      #i1#f#a ,WORDS2 #e#e1#g#d#b ,*>ACT]S     

O ,*APT] #c 3 ,ECONOMICAL ,RESULTS FROM ! ,PREC$+ ,PROPOSITIONS 

      #b1#i#b#i ,WORDS2 #a#g1#b#f#c ,*>ACT]S     

O ,*APT] #d 3 ,SOCIAL1 ,MORAL1 ,9TELLECTUAL1 & ,POLITICAL ,RESULTS FROM ! ,PREC$+ ,PROPOSITIONS 

      #g1#d#d ,WORDS2 #d#e1#a#i#e ,*>ACT]S     

O ,*APT] #e 3 ,! ,LEGAL ,NATURE ( ,DEBT 

      #h1#h#a#i ,WORDS2 #e#a1#h#d ,*>ACT]S     

O ,*APT] #f 3 ,! ,LEGAL ,NATURE ( ,DEBT1 ,CONT9U$ 

      #a#c1#f#f#h ,WORDS2 #g#f1#e#b#i ,*>ACT]S 

,SECTIONS 7,CONT5T7 3 

O ,*APT] #a 3 ,ILLEGAL ,CAUSES ( ,POV]TY 
,LYS&] ,SPOON]1 ,POV]TY3 ,ITS ,ILLEGAL ,CAUSES & ,LEGAL ,CURES4 ,BO/ON3 ,BELA ,M>%1 ,NO4 #be ,CORNHILL4 #a#h#d#f4 

,*,A,P,T,] #a3 ,I,L,L,E,G,A,L ,C,A,U,S,E,S ,( ,P,O,V,],T,Y 

,! EXI/+ POV]TY W\LD BE RAPIDLY REMOV$1 & FUTURE POV]TY ALMO/ 5TIRELY PREV5T$1 A MORE EQUAL DI/RIBUTION ( PROP]TY ?AN N[ EXI/S ACCOMPLI%$1 & ! AGGREGATE WEAL? ( SOCIETY GREATLY 9CREAS$1 IF ! PR9CIPLES ( NATURAL LAW1 & ( \R NATIONAL & /ATE CON/ITUTIONS G5]ALLY1 W]E ADH]$ TO BY ! JUDICI>Y 9 !IR DECISIONS 9 REG>D TO CONTRACTS4 

,!SE PR9CIPLES >E VIOLAT$ BY ! JUDICI>Y 9 V>I\S WAYS1 TO WIT3 

#a4 ,9 A MANN] TO UPHOLD >BITR>Y & UNCON/ITUTIONAL /ATUTES AGA9/ FRE$OM 9 BANK+1 & FRE$OM 9 ! RATE ( 9T]E/2 ?US D5Y+ ! NATURAL & CON/ITUTIONAL RI<T ( ! PEOPLE TO MAKE TWO CLASSES ( CONTRACTS1 :I* WILL H]EAFT] BE %[N TO BE ( VITAL IMPORTANCE1 BO? TO ! G5]AL 9CREASE & TO ! MORE EQUAL DI/RIBUTION ( WEAL?4 

#b4 ,9 A MANN] TO EXT5D ! OBLIGATION ( C]TA9 CONTRACTS BEYOND !IR NATURAL & LEGAL LIMIT1 & HOLD M5 LIABLE TO PAY DEBTS NO LONG] DUE2 !REBY CONDEMN+ L>GE NUMB]S ( M5 TO P]PETUAL POV]TY & DE/ITUTION1 BY MAK+ !IR EXPIR$ DEBTS A BURD5 UPON !IR FUTURE ACQUISITIONS1 & AN OB/RUCTION TO !IR OBTA9+ CR$IT = ! CAPITAL NECESS>Y TO ! SUCCESSFUL EMPLOYM5T ( !IR 9DU/RY4 

#c4 ,9 A MANN] TO R$UCE ! OBLIGATION ( ! CONTRACTS ( CORPORATE BODIES BEL[ !IR NATURAL & LEGAL LIMIT1 & ?US 5ABLE ! PRIVILEG$ DEBTORS1 :O HAVE ! MEANS ( PAYM5T1 TO )HOLD PAYM5T ( DEBTS ACTUALLY DUE1 & MAKE !MSELVES RI* BY MAK+ O!RS POOR4 

#d4 ,9 A MANN] TO D5Y ! LEGAL RI<TS ( CR$ITORS1 RELATIVELY TO EA* O!R1 9 ! PROP]TY ( !IR DEBTORS2 5ABL+ &1 9 CASES ( 9SOLV5CY1 COMPELL+ DEBTORS TO SW9DLE ONE PORTION ( !IR CR$ITORS = ! B5EFIT ( ANO!R2 MAK+ IT IMPOSSIBLE = CAPITALI/S TO DET]M9E1 ) ANY REASONABLE ACCURACY1 ! VALUE ( P]SONAL SECURITY = LOANS2 R5D]+ IT UNSAFE = !M TO LOAN CAPITAL AT ALL TO M]E LABOR]S2 & ?US PREV5T+ ! NATURAL & MORE EQUAL DIFFUSION ( CR$IT AMONG ALL ?OSE POOR M51 :O >E 9 WANT ( CAPITAL UPON :I* TO BE/[ !IR LABOR1 & :O1 = ! WANT ( SU* CAPITAL1 >E COMPELL$ TO SELL !IR LABOR TO O!RS = A PRICE MU* BEL[ ! AM\NT ( ITS ACTUAL PRODUCTS4 

,!SE ]RONE\S DECISIONS ( ! JUDICI>Y >E MADE1 9 SOME ( ! CASES1 9 OB$I5CE TO >BITR>Y & UNCON/ITUTIONAL LEGISLATION2 9 O!RS1 ?R\< IGNORANCE ( ! NATURAL LAW APPLICABLE TO CONTRACTS1 :]E NO SPECIAL LEGISLATION HAS BE5 HAD4 

,IT WILL BE ! OBJECT ( ! FOLL[+ ESSAYS TO E/ABLI% ! ILLEGALITY ( !SE V>I\S DECISIONS1 & TO EXPLA9 !IR EFFECTS 9 OB/RUCT+ ! 9CREASE & MORE EQUAL DI/RIBUTION ( WEAL?4 

,BUT BE=E PROCE$+ TO ANY LEGAL DISCUSSIONS1 LET US1 /ATE C]TA9 ECONOMICAL PROPOSITIONS1 ?AT >E OBVI\SLY CONDUCIVE1 IF NOT 9DISP5SABLY NECESS>Y1 TO ! GREATE/ AGGREGATE 9CREASE1 & MO/ EQUAL DI/RIBUTION ( WEAL?1 ?AT CAN BE ACCOMPLI%$ CONSI/5TLY ) ! NATURAL RI<T ( EA* MAN TO ! CONTROL ( HIS [N PROP]TY4 ,HAV+ /AT$ !SE PROPOSITIONS1 WE WILL !N SEE :E!R ?OSE PR9CIPLES ( NATURAL & CON/ITUTIONAL LAW1 :I* \R JUDICI>Y >E B\ND TO ADH]E TO1 W\LD SECURE ! E/ABLI%M5T OR REALIZATION ( ! PROPOSITIONS !MSELVES4 

O ,*APT] #b 3 ,ECONOMICAL ,PROPOSITIONS 
,LYS&] ,SPOON]1 ,POV]TY3 ,ITS ,ILLEGAL ,CAUSES & ,LEGAL ,CURES4 ,BO/ON3 ,BELA ,M>%1 ,NO4 #be ,CORNHILL4 #a#h#d#f4 

,*,A,P,T,] #b3 ,E,C,O,N,O,M,I,C,A,L ,P,R,O,P,O,S,I,T,I,O,N,S 

,PROPOSITION #a4 ,EV]Y MAN-SO F> AS1 CONSI/5TLY ) ! PR9CIPLES ( NATURAL LAW1 HE CAN ACCOMPLI% IT-%\LD BE ALL[$ TO HAVE ! FRUITS1 & ALL ! FRUITS ( HIS [N LABOR4 

,?AT ! PR9CIPLE ( ALL[+ EA* MAN TO HAVE1 7SO F> AS IT IS CONSI/5T ) ! PR9CIPLES ( NATURAL LAW ?AT HE CAN HAVE17 ALL ! FRUITS ( HIS [N LABOR1 W\LD CONDUCE TO A MORE JU/ & EQUAL DI/RIBUTION ( WEAL? ?AN' N[ EXI/S1 IS A PROPOSITION TOO SELF-EVID5T ALMO/ TO NE$ ILLU/RATION4 ,IT IS AN OBVI\S PR9CIPLE ( NATURAL JU/ICE1 ?AT EA* MAN %\LD HAVE ! FRUITS ( HIS [N LABOR2 & ALL >BITR>Y 5ACTM5TS BY GOV]NM5TS1 9T]F]+ ) ?IS RESULT1 >E NO?+ BETT] ?AN ROBB]Y4 ,IT IS ALSO AN OBVI\S FACT1 ?AT ! PROP]TY PRODUC$ BY SOCIETY1 IS N[ DI/RIBUT$ 9 V]Y UNEQUAL PROPORTIONS AMONG ?OSE :OSE LABOR PRODUC$ IT1 & ) V]Y LITTLE REG>D TO ! ACTUAL VALUE ( EA* ONE'S LABOR 9 PRODUC+ IT4 ,& ?IS FACT IS NOT ! RESULTEXCEPT 9 A P>TIAL DEGREE-( ! SUP]IOR M5TAL CAPACITIES1 :I* 5ABLE SOME M51 CONSI/5TLY ) HONE/Y & FAIR COMPETITION1 TO COMPASS MORE ( ! MEANS ( ACQUIR+ WEAL? ?AN O!RS2 BUT IT IS ! RESULT1 9 A V]Y IMPORTANT MEASURE1 ( >BITR>Y & UNJU/ LEGISLATIVE 5ACTM5TS1 & FALSE JUDICIAL DECISIONS1 :I* ACTUALLY DEPRIVE A L>GE PORTION ( MANK9D ( !IR RI<T TO ! FAIR & HONE/ EX]CISE ( !IR NATURAL P[]S1 9 COMPETITION ) !IR FELL[M54 ,?AT SU* IS ! TRU? WILL BE SE5 H]EAFT]4 

,?AT ! PR9CIPLE ( ALL[+ EA* MAN TO HAVE ! FRUITS ( HIS [N LABOR1 W\LD ALSO CONDUCE TO ! AGGREGATE 9CREASE ( WEAL?1 IS OBVI\S1 = ! REASON ?AT EA* MAN BE+1 AS HE !N W\LD BE1 DEP5D5T UPON HIS [N LABOR1 9/EAD ( ! LABOR ( O!RS1 = HIS SUBSI/5CE & WEAL?1 W\LD BE UND] ! NECESSITY TO LABOR1 & CONSEQU5TLY W\LD LABOR4 ,! AGGREGATE WEAL? ( SOCIETY W\LD !RE=E BE 9CREAS$ BY JU/ SO MU* AS ! LABOR ( ALL ! MEMB]S ( SOCIETY %\LD BE MORE PRODUCTIVE ?AN ! LABOR ( A P>T4 ,IT W\LD ALSO BE' 9CREAS$ BY ! OP]ATION ( ANO!R PR9CIPLE1 TO WIT3 ,:5 A MAN KN[S ?AT HE IS TO HAVE ALL ! FRUITS ( HIS LABOR1 HE LABORS ) MORE ZEAL1 SKILL1 & PHYSICAL 5]GY1 ?AN :5 HE KN[S-AS 9 ! CASE ( ONE LABOR+ = WAGES-?AT A PORTION ( ! FRUITS ( HIS LABOR >E GO+ TO ANO!R4 ,UND] ! 9FLU5CE1 !N1 ( ?IS PR9CIPLE1 ?AT EA* MAN %\LD HAVE ALL ! FRUITS ( HIS [N LABOR1 ! AGGREGATE WEAL? ( SOCIETY W\LD BE 9CREAS$ 9 TWO WAYS1 TO WIT1 FIR/1 ALL M5 W\LD LABOR1 9/EAD ( A P>T ONLY2 &1 SECONDLY1 EA* MAN W\LD LABOR ) MORE SKILL1 5]GY1 & EFFECT1 ?AN HIR$ LABOR]S DO N[4 

,PROPOSITION #b4 ,9 ORD] ?AT EA* MAN MAY HAVE ! FRUITS ( HIS [N LABOR1 IT IS IMPORTANT1 AS A G5]AL RULE1 ?AT EA* MAN %\LD BE HIS [N EMPLOY]1 OR WORK DIRECTLY = HIMSELF1 & NOT = ANO!R = WAGES2 BECAUSE1 9 ! LATT] CASE1 A P>T ( ! FRUITS ( HIS LABOR GO TO HIS EMPLOY]1 9/EAD ( COM+ TO HIMSELF4 

,PROPOSITION #c4 ,?AT EA* MAN MAYBE HIS [N EMPLOY]1 IT IS NECESS>Y ?AT HE HAVE MAT]IALS1 OR CAPITAL1 UPON :I* TO BE/[ HIS LABOR4 

,PROPOSITION #d4 ,IF A MAN HAVE NOT CAPITAL ( HIS [N1 UPON :I* TO BE/[ HIS LABOR1 IT IS NECESS>Y ?AT HE BE ALL[$ TO OBTA9 IT ON CR$IT4 ,& 9 ORD] ?AT HE MAY BE ABLE TO OBTA9 IT ON CR$IT1 IT IS NECESS>Y ?AT HE BE ALL[$ TO CONTRACT = SU* A RATE ( 9T]E/ AS WILL 9DUCE A MAN1 HAV+ SURPLUS CAPITAL1 TO ,IOAN IT TO HIM2 = ! CAPITALI/ CANNOT1 CONSI/5TLY ) NATURAL LAW1 BE COMPELL$ TO LOAN HIS CAPITAL AGA9/ HIS WILL4 ,ALL LEGISLATIVE RE/RA9TS UPON ! RATE ( 9T]E/1 >E1 !RE=E1 NO?+ LESS ?AN >BITR>Y & TYRANNICAL RE/RA9TS UPON A MAN'S NATURAL CAPACITY & NATURAL RI<T TO HIRE CAPITAL1 UPON :I* TO BE/[ HIS LABOR4 ,&1 ( CONSEQU5CE1 !Y >E NO?+ LESS ?AN >BITR>Y & TYRANNICAL RE/RICTIONS UPON ! EX]CISE ( HIS RI<T TO OBTA9 ALL ! FRUITS1 ?AT HE HONE/LY CAN OBTA91 FROM HIS LABOR4 

,! RATE ( 9T]E/1 :I* ! CAPITALI/ WILL DEM&1 WILL DEP5D UPON A V>IETY ( CIRCUM/ANCES1 & ESPECIALLY UPON ! RISK ( LOSS ATT5DANT UPON ! LOAN-9 O!R WORDS1 UPON ! *>ACT] ( ! SECURITY (F]$ BY ! BORR[] = ! PAYM5T ( ! LOAN4 ,?IS SECURITY & CONSEQU5T RISK WILL DIFF] 9 ! CASES ( DIFF]5T 9DIVIDUALS4 ,! LEGISLATION1 !RE=E1 ?AT PRESCRIBES A FIX$ RATE ( 9T]E/1 BEYOND :I* NO CONTRACTS MAY GO-ESPECIALLY IF ?AT LIMIT BE1 AS IT USUALLY IS1 ! L[E/ AT :I* CAPITALI/S WILL LOAN MONEY ON ! MO/ APPROV$ SECURITY-9 EFFECT DEPRIVES ALL ?OSE1 :O CANNOT (F] ! MO/ APPROV$ SECURITY1 ( !IR RI<T ( HIR+ CAPITAL AT ALL4 

,! GREAT MASS ( ?OSE1 :O1 BY REASON ( NOT HAV+ ! MO/ APPROV$ SECURITY TO (F]1 CANNOT BORR[ CAPITAL AT ALL AT SIX P]C5T1 C\LD YET1 )\T DIFFICULTY1 BORR[ 5\< TO EMPLOY !IR [N H&S UPON1 7SAY FROM TWO TO T5 HUNDR$ DOLL>S17 ON ! CR$IT ( !IR SKILL1 9DU/RY1 9TEGRITY1 & ABILITY1 & ( ! VALUE :I* !IR LABOR W\LD ADD TO ! CAPITAL BORR[$1 IF !Y W]E ALL[$ TO CONTRACT = SEV51 EI<T1 N9E1 OR T5 P]C5T 9T]E/ 5\< TO PAY = ! RISK ( LIFE1 HEAL?1 LOSSES BY FIRE1 !FT1 ROBB]Y1 @&C42 :I* RISKS IT IS P]FECTLY RI<T ?AT ! CAPITALI/ %\LD BE GU>D$ AGA9/ BY AN ADDITIONAL RATE ( 9T]E/4 

,! EFFECT ( USURY LAWS1 !N1 IS TO GIVE A MONOPOLY ( ! RI<T ( BORR[+ MONEY1 TO ?OSE FEW1 :O CAN (F] ! MO/ APPROV$ SECURITY4 ,A MAN (F]+ ! MO/ APPROV$ SECURITY1 CAN OBTA9 MONEY AT SIX P]C5T2 :ILE ANO!R1 :OSE SECURITY IS NOT SO ACCEPTABLE1 BUT :O1 NEV]!LESS1 C\LD OBTA9 MONEY AS READILY AT SEV51 EI<T1 OR N9E P]C5T1 AS ! O!R DOES AT SIX1 CANNOT N[ OBTA9 IT AT ALL1 SIMPLY BECAUSE HE IS =BIDD5 TO CONTRACT = SU* A ,TATE ( 9T]E/ AS W\LD1 9 ! AV]AGE ( LOANS1 COMP5SATE CAPITALI/S = ! ADDITIONAL RISK OR 9CONV5I5CE ATT5DANT UPON ! ONLY K9D ( SECURITY HE HAS TO (F]4 

,! CONSEQU5CE IS ?AT ! LOANABLE CAPITAL ( SOCIETY IS MONOPOLIZ$ ALMO/ 5TIRELY BY ?OSE FEW1 ?OSE V]Y FEW1 :O WI% TO BORR[1 & CAN (F] ! MO/ APPROV$ SECURITY :ILE ! MASS ( ?OSE1 :O HAVE NOT CAPITAL ( !IR [N1 BUT :O1 IF LEFT FREE TO MAKE !IR [N CONTRACTS1 W\LD BE ABLE TO OBTA9 A PORTION SUFFICI5T TO EMPLOY !IR [N H&S UPON1 >E N[1 = ! WANT ( CAPITAL ON :I* TO BE/[ !IR LABOR1 COMPELL$ TO SELL !IR LABOR TO ?OSE :O HAVE1 BY MEANS ( ! USURY LAWS1 MONOPOLIZ$ ! CAPITAL4 ,& !Y >E COMPELL$ TO SELL !IR LABOR AT SU* A PRICE AS WILL 5ABLE ! EMPLOY] TO MAKE A L>GE PR(IT UPON !IR LABOR2 OR1 9 O!R WORDS1 5ABLE HIM TO PUT 9TO HIS [N POCKET AN IMPORTANT PORTION ( ! FRUITS ( !IR LABOR4 ,ALL ?IS IS ! EFFECT ( ! USURY LAWS4 ,! SAME LAWS ?AT 5ABLE HIM TO MONOPOLIZE ! LOANABLE CAPITAL1 5ABLE HIM ALSO TO MONOPOLIZE ! LABOR ( ?OSE :O CANNOT BORR[ CAPITAL ON :I* TO BE/[ !IR LABOR4 

,TO ILLU/RATE ! OP]ATION ( ?IS PR9CIPLE1 LET US SUPPOSE ?AT A CAPITAL ( FIVE HUNDR$ DOLL>S IS NECESS>Y TO EMPLOY ! LABOR ( ONE MAN2 ?AT1 UND] ! USURY LAWS1 ,A1 [+ TO ! APPROV$ *>ACT] ( ! SECURITY HE HAS TO (F]1 CAN BORR[1 & DOES BORR[1 AT SIX P]C5T 9T]E/1 FIVE HUNDR$ DOLL>S CAPITAL MORE ?AN HE WANTS TO EMPLOY HIS [N H&S UPON2 ?AT ,B IS A POOR MAN1 :O CANNOT BORR[ CAPITAL AT SIX P]C5T1 &1 !RE=E1 [+ TO ! PROHIBITION ( ! USURY LAWS1 CANNOT BORR[ IT AT ALL2 ?AT HE IS CONSEQU5TLY COMPELL$ TO SELL HIS LABOR TO ,A1 :O HAS BORR[$ ! NECESS>Y CAPITAL TO EMPLOY HIS LABOR2 ?AT ,A BUYS ,B'S LABOR = A YE>1 &1 AFT] PAY+ HIS WAGES1 & ! 9T]E/ ON ! FIVE HUNDR$ DOLL>S ON :I* HE HAS EMPLOY$ ,B TO LABOR1 HE 7,A7 REALIZES ONE HUNDR$ DOLL>S PR(IT4 

,?IS PROBABLY IS NOT AN EXTRAVAGANT SUPPOSITION2 = IT IS PROBABLE ?AT EMPLOY]S1 :O BORR[ !IR CAPITAL AT SIX P]C5T1 & MANAGE !IR BUS9ESS JUDICI\SLY1 DO G5]ALLY REALIZE AT LEA/ AN HUNDR$ DOLL>S PR(IT FROM ! LABOR ( EA* ADULT MALE LABOR] !Y EMPLOY4 

,N[ IT IS PLA9 ?AT IF ,B HAD BE5 ALL[$ TO BORR[1 & HAD BORR[$1 7AS HE PROBABLY C\LD HAVE DONE17 ?IS SAME FIVE HUNDR$ DOLL>S CAPITAL AT N9E P]C5T1 & HAD !N EMPLOY$ HIS [N H&S UPON IT1 HE C\LD HAVE PUT 9TO HIS [N POCKET EI<TY-FIVE DOLL>S MORE ( ! FRUITS ( HIS LABOR ?AN HE DID :5 LABOR+ = ,A = WAGES-= HE C\LD HAVE HAD ALL ! FRUITS ( HIS LABOR1 7?AT IS1 ! AM\NT BO? ( HIS WAGES & ! PR(ITS MADE BY ,A17 ) BUT ?IS ABATEM5T1 VIZ41 ?AT BE MU/ HAVE PAID ?REE P]C5T MORE 9T]E/ = HIS CAPITAL ?AN WAS PAID BY ,A4 ,?IS ?REE P]C5T 9T]E/1 ON FIVE HUNDR$ DOLL>S1 W\LD BE FIFTE5 DOLL>S-:I*1 D$UCT$ FROM ! HUNDR$ DOLL>S ?AT W5T 9TO ,A'S POCKET AS PR(IT1 LEAVES EI<TY-FIVE DOLL>S TO GO 9TO ,B'S [N POCKET1 OV] & ABOVE ! AM\NT HE RECEIV$ AS WAGES :5 LABOR+ = ,A4 

,?IS SUPPOSITION ILLU/RATES FAIRLY ! OP]ATION ( USURY LAWS1 9 DEPRIV+ ! MASS ( M5 ( ! FRUITS ( !IR LABOR4 ,!SE LAWS GIVE A MONOPOLY ( ! LOANABLE CAPITAL TO A FEW 9DIVIDUALS4 ,!SE 9DIVIDUALS1 HAV+ A MONOPOLY ( CAPITAL1 >E ABLE TO TAKE ADVANTAGE ( ! NECESSITIES ( ALL ?OSE :O HAVE NOT CAPITAL ( !IR [N1 & >E =BIDD5 TO BORR[ ANY1 ON :I* TO LABOR4 ,!Y ?US COMPEL !M TO SELL !IR LABOR AT A PRICE ?AT WILL GIVE !IR EMPLOY] A L>GE SLICE \T ( ! PRODUCTS ( !IR LABOR4 ,! LAWS !MSELVES >E ! CONTRIVANCES1 NOT ( ! RETIR$ RI* M51 :O HAVE CAPITAL TO LOAN- = !Y1 ( C\RSE1 WI% TO C>RY !IR MONEY TO ! L>GE/ & FREE/ M>KET -BUT ( ?OSE FEW 05T]PRIS+0 0BUS9ESS M510 AS !Y >E CALL$1 :O1 9 & \T ( LEGISLATURES1 >E MORE 9FLU5TIAL ?AN EI!R ! RI* OR ! POOR2 :O CONTROL ! LEGISLATION ( ! C\NTRY1 & :O1 BY MEANS ( USURY LAWS1 CAN SPONGE MONEY FROM ?OSE :O >E RI*]1 & LABOR FROM ?OSE :O >E POOR] ?AN !MSELVES-& ?US MAKE =TUNES4 ,& !Y >E ALMO/ ! ONLY M5 :O DO MAKE =TUNES-= ALMO/ ALL =TUNES >E MADE \T ( ! CAPITAL & LABOR ( O!R M5 ?AN ?OSE :O REALIZE !M4 ,9DE$1 L>GE =TUNES C\LD R>ELY BE MADE AT ALL BY ONE 9DIVIDUAL1 EXCEPT BY HIS SPONG+ CAPITAL & LABOR FROM O!RS4 ,& ! USURY LAWS >E ! MEANS BY :I* HE DOES IT4 

,! REASON GIV5 = USURY LAWS IS1 ?AT !Y PROTECT ! POOR FROM ! EXTORTIONS ( ! RI*4 ,BUT ?IS REASON IS A FALSE ONE-= !RE IS NO MORE EXTORTION 9 LOAN+ CAPITAL TO ! BE/ BIDD]1 ?AN 9 SELL+ A HORSE1 OR R5T+ A H\SE TO ! BE/ BIDD]4 ,! TRUE & FAIR PRICE ( CAPITAL1 AS ( EV]Y?+ ELSE1 IS ?AT PRICE :I* IT WILL BR+ 9 FAIR & OP5 M>KET4 ,& ?OSE :O FALSELY PRET5D TO BE 9T]E/$ TO PREV5T ! RI* EXTORT+ MONEY FROM ! POOR1 9 ! %APE ( 9T]E/ ON CAPITAL1 >E ! V]Y M5 :O WANT NO?+ BUT AN OPPORTUNITY = !MSELVES BO? TO EXTORT CAPITAL FROM ! RI*1 & LABOR FROM ! POOR1 ?AT !Y MAY ?US FILL !IR [N POCKETS AT ! EXP5SE ( O!R M5'S RI<TS4 ,! PROTECTION !Y (F] TO ! POOR1 IS ! PROTECTION ( =BIDD+ !M TO BORR[ CAPITAL ON :I* TO EMPLOY !IR LABOR1 & ?US COMPELL+ !M TO SELL !IR LABOR AT A PRICE ?AT 5ABLES ! PUR*AS] TO MAKE A L>GE PR(IT UPON IT2 IT IS ! PROTECTION1 :I*1 AS 9 ! CASE ALREADY SUPPOS$1 W\LD REALLY EXTORT FROM !M EI<TY-FIVE DOLL>S ( !IR LABOR1 TO SAVE !M FROM ! PRET5D$ EXTORTION ( FIFTE5 DOLL>S 9 ! %APE ( 9T]E/4 ,LEAVE ! RI* & ! POOR TO MAKE !IR [N B>GA9S 9 REG>D TO ! 9T]E/ ( CAPITAL1 & IT IS AS C]TA9 AS ! LAWS ( NATURE1 ?AT CAPITAL WILL F9D ITS WAY 9TO ! H&S ( ?OSE :O >E TO P]=M ! LABOR UPON IT4 ,9 FACT1 ! USURY LAWS IMPLI$LY ADMIT ?AT SU* W\LD BE ! RESULTELSE :Y DO !Y PRESCRIBE SU* RATES ( 9T]E/ AS MU/ NECESS>ILY CONF9E ALL LOANS TO A FEW 9DIVIDUALS8 

,( ALL ! FRAUDS1 BY :I* LABOR IS *EAT$ \T ( ITS E>N+S BY LEGISLATION1 & ( ALL ! MONOPOLIES E/ABLI%$ BY LEGISLATION1 PROBABLY NO ONE IS MORE PURELY TYRANNICAL 9 ITS *>ACT]1 OR MORE DE/RUCTIVE AT ONCE ( ! NATURAL RI<T ( 9DIVIDUALS TO MAKE !IR [N CONTRACTS1 & ( ! JU/ DI/RIBUTION ( WEAL?1 ?AN ?AT MONOPOLY ( ! RI<T ( BORR[+ MONEY1 :I* =BIDS ! MASS ( M5 TO OBTA9 CAPITAL1 ON :I* TO BE/[ !IR LABOR1 & ?US COMPELS !M TO SELL !IR LABOR AT A PRICE F> BEL[ ! AM\NT ( ITS ACTUAL PRODUCTS4 

,! LAW1 ?AT ALL[S ALL M51 )\T DI/9CTION1 TO BORR[ CAPITAL1 PROVID$ !Y CAN BORR[ IT AT SIX P]C5T 9T]E/1 IS1 9 ! EQUALITY ( ITS OP]ATION1 LIKE A LAW ?AT %\LD ALL[ EV]Y MAN P]FECT FRE$OM TO PR(ESS & 5JOY HIS [N PECULI> RELIGION1 PROVID$ HIS PECULI> RELIGION WAS ! P>TICUL> >ID ONLY ONE ?AT WAS ALL[$ BY ! ,/ATE TO BE PR(ESS$ & 5JOY$ BY ANY ONE4 

,A /ATUTE1 ?AT %\LD =BID ONE MAN TO BORR[1 AT ANY RATE ( 9T]E/ :ATEV]1 MORE CAPITAL ?AN LIE C\LD MANAGE BY HIS [N LABOR ALONE1 W\LD NOT BE TOL]AT$1 = ! REASON ?AT IT W\LD BE AN 9FR+EM5T ( M5'S NATURAL RI<TS TO BORR[ ALL !Y C\LD2 YET IT W\LD NOT BE HALF SO UNEQUAL OR P]NICI\S1 NOR SO UNJU/ AN 9FR+EM5T ( 9DIVIDUAL RI<TS1 NOR PROBABLY SO DE/RUCTIVE ( ! EQUAL DI/RIBUTION ( WEAL?1 AS >E ! USURY LAWS1 :I* ALL[ ONE MAN TO BORR[ 5\< TO EMPLOY A HUNDR$ LABOR]S UPON1 :ILE !Y =BID ! HUNDR$ LABOR]S TO BORR[ EA* 5\< TO EMPLOY HIS [N H&S UPON4 

,:AT A *ANGE W\LD BE WR\<T UPON ! FACE ( SOCIETY1 IF EA* ADULT MALE LABOR]1 :O IS ,D,[ OBLIG$ TO SELL HIS LABOR1 W]E TO RECEIVE1 DUR+ ! PRIME ( HIS LIFE1 EI<TY-FIVE DOLL>S ANNUALLY ( ! FRUITS ( HIS LABOR MORE ?AN HE DOES N[2 & IF ALL OLD] & Y\NG] P]SONS1 & FEMALES1 :O >E ,D[ OBLIG$ TO SELL !IR LABOR1 W]E ALSO TO RECEIVE A SIMIL> GREAT] PROPORTION ( ! FRUITS ( !IR LABOR4 ,YET IF ! SUPPOSITION BE=E MADE BE CORRECT1 :AT PREV5TS SU* A RESULT8 ,IF ! ABOLITION ( ! USURY LAWS ALONE W\LD NOT ACCOMPLI% IT1 ! ABOLITION ( !SE & ! O!R TYRANNICAL & UNCON/ITUTIONAL RE/RA9TS UPON ! FRE$OM ( 9DU/RY1 & M5'S RI<TS ( CONTRACT1 H]EAFT] TO BE PO9T$ \T1 W\LD1 ,I ?9K1 C]TA9LY ACCOMPLI% IT1 AT LEA/ 9 ! CASE ( ALL HONE/1 9DU/RI\S1 & ORD9>ILY SKILLFUL LABOR]S4 

,PROPOSITION #e4 ,! LABOR] NOT ONLY WANTS CAPITAL1 ON :I* TO BE/[ HIS LABOR1 BUT HE WANTS TO OBTA9 ?IS CAPITAL AT ! L[E/ RATE ( 9T]E/1 AT :I*1 9 ! NATURE ( ?+S1 HE CAN OBTA9 IT4 ,?AT HE MAY OBTA9 IT AT ! L[E/ POSSIBLE RATE ( 9T]E/1 IT IS NECESS>Y ?AT FREE BANK+ BE ALL[$4 

,! CORRECTNESS ( ?IS PROPOSITION WILL BE SE51 :5 IT IS2 CONSID]$ :AT BANK+ REALLY IS4 ,BANK+ IS LOAN+ ONE'S CR$IT1 7= CIRCULATION AS CURR5CY17 9/EAD1 ( LOAN+ MONEY4 

,IF A MAN CAN AF=D TO LOAN MONEY = SIX P]C5T 9T]E/1 HE CAN C]TA9LY AF=D TO LOAN HIS CR$IT = ?REE4 ,& :Y #a ,BECAUSE :ATEV] PR(IT A MAN MAKES BY LOAN+ HIS CR$IT1 IS CLE> GA94 ,IT CO/S HIM NO?+2 = HE1 /ILL 5JOYS ! USE ( ! H\SES1 L&S1 OR O!R PROP]TY1 ON :I* HIS CR$IT IS BAS$1 9 ! SAME MANN] AS IF HE HAD NOT LOAN$ ! CR$IT BAS$ UPON !M4 ,BUT ! 9COME1 :I* A MAN D]IVES FROM ! LOAN ( MONEY ITSELF1 IS OBTA9$ ONLY BY ! SACRIFICE1 OR AT ! EXP5SE ( ! CROPS1 R5TS1 OR O!R 9COMES1 :I* HE MI<T D]IVE FROM ! L&S1 H\SES1 OR O!R PROP]TY1 :I* HIS MONEY W\LD PUR*ASE4 ,IF1 !RE=E1 A MAN CAN AF=D1 = SIX P]C5T 9T]E/ ON HIS MONEY1 TO GIVE UP ALL' ! CROPS1 R5TS1 & O!R 9COMES1 :I* HE MI<T OBTA9 FROM ! L&S1 H\SES1 OR O!R PROP]TY1 :I* HIS MONEY W\LD PUR*ASE-1 IT IS PLA9 ?AT = ?REE P]C5T HE C\LD AF=D TO LOAN HIS CR$IT1 :I* CO/S HIM NO?+ BUT ! RISK & TR\BLE ATT5DANT UPON ! LOAN1 7:I* RISK & TR\BLE1 BY ! WAY1 >E NOT MAT]IALLY1 &1 9 G5]AL1 P]HAPS NO GREAT]1 ?AN 9 ! LOAN ( MONEY47 

,IT CAN H>DLY BE SAID ?AT !RE IS ANY PR(IT 9 LOAN+ MONEY ITSELF2 = ! 9T]E/ OBTA9$ IS G5]ALLY NO MORE ?AN A FAIR PRICE OR EQUIVAL5T = ! CROPS1 R5TS1 OR O!R 9COMES1 :I* ! PROP]TY ?AT MI<T BE PUR*AS$ ) ! MONEY1 W\LD YIELD4 ,BUT 9 ! LOAN ( CR$IT1 !RE IS AN ACTUAL PR(IT ( ! :OLE AM\NT ?AT IS RECEIV$ AS 9T]E/1 AFT] PAY+ ! TR\BLE & RISK ( BANK+4 

,IT IS CLE>1 !RE=E1 ?AT IF MONEY CAN BE LOAN$1 AS IT N[ IS1 = SIX P]C5T 9T]E/1 CR$IT C\LD BE LOAN$ AT TWO1 ?REE1 OR F\R P]C5T4 

,S9CE1 !N1 ALL BANK+ PR(IT IS A NET PR(IT )\T CO/1 & NOT1 LIKE ! 9T]E/ ON MONEY1 AN EQUIVAL5T = ! CROPS1 R5TS1 & O!R 9COMES ( PROP]TY1 ?AT ! L5D] MI<T HAVE RETA9$ & 5JOY$2 & AS ! MAT]IALS = BANK+ CR$IT >E ABUNDANT1 & ALMO/ SUP]ABUNDANT1 IT IS OBVI\S ?AT IF FREE COMPETITION 9 BANK+ W]E ALL[$1 ! RATE ( 9T]E/ ON BANK+ CR$IT W\LD BE BR\<T V]Y L[1 & BANK LOANS W\LD BE )9 ! REA* ( EV]YBODY :OSE BUS9ESS & *>ACT] %\LD MAKE HIM A REASONABLY SAFE P]SON TO LOAN TO4 ,PROBABLY EV]Y SU* P]SON C\LD BORR[1 AT SIX P]C5T1 CAPITAL 5\< TO EMPLOY HIS [N H&S UPON2 & MANY W\LD D\BTLESS BE ABLE TO BORR[ IT = FIVE1 F\R1 OR EV5 ?REE P]C5T4 

,SUPPOSE SU* W]E ! RESULT1 & SUPPOSE FIVE HUNDR$ DOLL>S CAPITAL TO BE 5\< TO EMPLOY EA* MAN'S LABOR1 ! ONLY DIFF]5CE BETWE5 ! ANNUAL 9COME ( A MAN1 :O %\LD [N HIS CAPITAL1 & ( ONE :O %\LD BORR[ HIS7 W\LD BE B>ELY ! 9T]E/ PAID BY ! LATT]-?AT IS1 FIFTE51 TW5TY1 TW5TY-FIVE1 OR ?IRTY DOLL>S1 ACCORD+ AS HE %\LD PAY ?REE1 F\R1 FIVE1 OR SIX P]C5T 9T]E/4 ,:AT A *ANGE W\LD BE RAPIDLY WR\<T 9 ! CONDITION ( MANK9D BY A SY/EM ?AT %\LD SUPPLY ALL ! DE/ITUTE ) ! USE ( CAPITAL ON SU* T]MS AS !SE4 

,IF FREE BANK+ W]E ALL[$1 ! LOANABLE CR$IT C\LD NOT BE MONOPOLIZ$ BY A FEW BORR[]S1 AS ! LOANABLE MONEY N[ IS4 ,! MAT]IALS = BANK+ CR$IT >E SO IMM5SE1 SO NE>LY ILLIMITABLE 9DE$1 & EXI/ 9 SU* A V>IETY ( %APES1 & >E DI/RIBUT$ AMONG SO MANY PROPRIETORS1 ?AT IT W\LD BE IMPOSSIBLE TO CONC5TRATE !M1 AS MONEY IS N[ CONC5TRAT$1 9 ! H&S1 OR BR+ !M UND] ! CONTROL ( A FEW CORPORATIONS1 OR CONF9E ! LOANS BAS$ UPON !M TO A FEW FAVORITE 9DIVIDUALS4"9#a 

,BANK+ CR$IT IS ! BE/ K9D ( CR$IT = ! BORR[]-& = !SE REASONS4 

#a4 ,IT IS OBTA9$ AT ! L[E/ POSSIBLE RATE ( 9T]E/4 

#b4 ,IT !N 5ABLES ! BORR[] TO BUY1 AT CA% PRICES1 :ATEV] HE WI%ES TO BUY4 

#c4 ,CIRCULAT+ LIKE MONEY ITSELF1 & DIVISIBLE LIKE MONEY ITSELF 9TO SMALL AM\NTS1 IT 5ABLES ! BORR[] TO BUY HIS COMMODITIES1 OR MAT]IALS1 9 SU* QUANTITIES1 ( SU* QUALITIES1 & ( SU* P]SONS AS IT WILL BE MO/ = HIS 9T]E/ TO BUY !M-9/EAD ( HIS BE+ COMPELL$1 AS HE IS :5 HE BUYS HIS COMMODITIES ON CR$IT1 TO BUY !M 9 SU* QUANTITIES1 ( SU* QUALITIES1 & ( SU* P]SONS1 AS IT MAY *ANCE ?AT HE CAN BUY !M ON CR$IT4 

,SO GREAT >E ! NECESSITIES ( ! POOR = MAT]IALS UPON :I* TO BE/[ !IR LABOR1 & = ! NECESS>IES ( LIFE1 SU* AS FOOD1 CLO?+ & FUEL2 & SO GREAT >E ! DIFFICULTIES 9 ! WAY ( GETT+ CA% TO MAKE !IR PUR*ASES )1 ?AT !Y >E COMPELL$ TO MAKE MO/ ( !IR PUR*ASES ON CR$IT2 TO MAKE !M ( P]SONS :O DO NOT WI% TO GIVE !M CR$IT1 & :O WILL NOT GIVE !M CR$IT1 EXCEPT AT EXTRAVAGANT PRICES2 & ALSO (T5 TO BUY COMMODITIES NOT ! BE/ ADAPT$ TO !IR WANTS4 ,9 MAK+ !IR PUR*ASES T9D] !SE CIRCUM/ANCES1 !Y NOT ONLY SUFF] S]I\S LOSSES 9 ! K9DS & QUALITIES ( ! COMMODITIES PUR*AS$1 BUT !Y >E ALSO OBLIG$ TO PAY FIVE1 T51 FIFTE51 OR TW5TY P]C5T MORE = !M1 ?AN !Y W\LD HAVE TO PAY IF !Y HAD CA% TO BUY )4 ,PROBABLY ALSO ! RETAIL] 7( :OM MANY ( !IR PUR*ASES >E MADE7 HAS HIMSELF B\<T HIS GOODS ON CR$IT ( ! :OLESALE DEAL]1 & PAID FIVE1 T51 OR FIFTE5 P]C5T MORE ?AN IF FIE HAD B\<T ) CA%4 ,& ?IS 9CREAS$ PRICE1 PAID BY ! RETAIL]1 F9ALLY FALLS UPON ! CONSUM]1 9 ADDITION TO ! 9CREAS$ PRICE :I* ! CONSUM] ALSO PAYS ON ACC\NT ( HIS [N WANT ( CA% TO BUY )4 ,FREE BANK+ W\LD OBVIATE ALMO/ 5TIRELY !SE 5HANC$ PRICES ( COMMODITIES1 & !SE LOSSES FROM ! WANT ( ADAPTATION 9 ! COMMODITIES TO ! WANTS ( ! PUR*AS]S2 BECAUSE1 IF FREE BANK+ W]E ALL[$1 ALMO/ EV]YBODY1 :O WAS WOR?Y ( CR$IT AT ALL1 BO? RETAIL] & CONSUM]1 C\LD OBTA9 IT AT ! BANKS1 & !N MAKE HIS PUR*ASES = CA%2 &1 HAV+ 1CA% TO PUR*ASE )1 HE W\LD BE UND] NO NECESSITY TO BUY ONLY SU* COMMODITIES AS W]E BE/ ADAPT$ TO HIS WANTS4 

,IT W\LD PROBABLY BE A MOD]ATE E/IMATE TO SUPPOSE ?AT ! POOR SUFF] AN AV]AGE LOSS-9CLUD+ ! LOSSES ON PRICE1 QUALITY1 & ADAPTATION TO !IR WANTS-( FIFTE5 OR TW5TY P]C5T ON ALL !IR PUR*ASES1 OV] :AT !Y W\LD PAY T9D] A SY/EM ( FREE CR$IT CURR5CY4 ,SUPPOS+ !IR PUR*ASES TO BE FROM TWO TO F\R HUNDR$ DOLL>S A YE>1 !IR LOSSES1 AT ! RATE M5TION$1 W\LD BE FROM ?IRTY TO EI<TY DOLL>S ANNUALLY-AN AM\NT SUFFICI5T1 IF LO/1 TO KEEP !M POOR2 OR1 IF SAV$1 TO GIVE !M A COMPET5CY4 

,PROPOSITION #f4 ,ALL CR$IT %\LD BE BAS$ UPON :AT A MAN HAS1 & NOT UPON :AT HE HAS NOT4 ,A DEBT %\LD BE A LI5 ONLY UPON ! PROP]TY ?AT A MAN HAS BE=E & :5 ! DEBT BECOMES DUE2 & NOT UPON HIS E>N+S AFT] ! DEBT IS DUE4 ,IF1 !RE=E1 A MAN BE ABLE TO PAY A DEBT :5 IT BECOMES DUE1 HE %\LD PAY IT 9 FULL2 IF UNABLE TO PAY IT 9 FULL1 HE %\LD PAY TO ! EXT5T ( HIS ABILITY2 & ?AT PAYM5T %\LD BE ! 5D ( ?AT TRANSACTION4 ,! DEBT %\LD BE NO LI5 UPON HIS FUTURE ACQUISITIONS4 

,! ONLY EXCEPTIONS TO ?IS RULE %\LD BE1 #a1 :]E ! DEBTOR1 PREVI\S TO ! DEBTS BECOM+ DUE1 HAS DI%ONE/LY SQU&]$ OR MISAPPLI$ ! MEANS1 :I* BE %\LD HAVE RETA9$ = ! PAYM5T ( HIS DEBT2 &1 #b1 :]E HE HAS OMITT$ TO DO SOME?+1 :I* HE WAS PLA9LY B\ND TO DO1 T[>DS PUTT+ HIMSELF 9 A CONDITION TO PAY4 ,BUT IF HE HAVE BE5 HONE/ & FAI?FUL 9 ! P]=MANCE ( EV]Y?+1 ?AT1 ON HIS P>T1 HE WAS B\ND TO DO1 ! DEBT %\LD BE B9D+ ONLY TO ! EXT5T ( HIS ABILITY AT ! TIME ! DEBT %\LD BECOME DUE4 ,& ?IS1 IT WILL BE SE5 H]EAFT]1 9 ! *APT]S ON ! LEGAL NATURE ( DEBT1 IS ! :OLE LEGAL OBLIGATION ( A DEBT 9 ANY CASE2 &1 9 ! CASE ( MO/ DEBTS1 IT IS ALSO ! :OLE MORAL OBLIGATION4 

,UND] ! OP]ATION ( ?IS PR9CIPLE1 NE>LY ALL DEBTS W\LD BE SETTL$ AT ONCE ON !IR BECOM+ DUE2 & BE !N SETTL$ F9ALLY & =EV]4 ,! CR$ITOR W\LD !N KN[ :AT HE HAD GOT1 & W\LD HAVE NO OCCASION TO SP5D ANY FUR!R TIME1 ?\<T1 OR MONEY1 9 H>ASS+ ! DEBTOR BY ATTEMPTS TO GET MORE4 ,& ! DEBTOR1 ON HIS P>T1 W\LD KN[ ?AT HE WAS A FREE MAN2 & W\LD AT ONCE 5GAGE 9 ! BE/ EMPLOYM5T HE C\LD F9D1 )\T BE+ LIABLE TO BE DI/URB$ OR OB/RUCT$ BY HIS =M] CR$ITOR1 9 ! PROSECUTION ( IT4 ,?US CR$ITOR & DEBTOR W\LD BE LIKELY !NCE=? TO BE MORE USEFUL1 BO? TO !MSELVES & SOCIETY1 T9D] ?IS >RANGEM5T1 ?AN T9D] ! OPPOSITE ONE1 :I* MAKES ! CR$ITOR ! 5EMY ( ! DEBTOR1 & 9CITES HIM TO AN EXP5SIVE1 CRUEL1 P]PETUAL1 DE/RUCTIVE & G5]ALLY PR(ITLESS W> UPON HIM1 HIS FAMILY1 & HIS & !IR 9DU/RY4 

,IT MAY BE SUPPOS$ BY SOME1 ?AT CR$IT W\LD ,DOT BE GIV51 IF ! LEGAL OBLIGATION ( DEBTS W]E LIMIT$ 9 ?IS MANN]4 ,BUT M5 W\LD AS LIEF GIVE CR$IT ON ?IS PR9CIPLE1 AS ON ANY O!R1 IF !Y W]E TO UND]/&1 :5 ! CONTRACT WAS MADE1 ?AT SU* WAS ITS LEGAL EFFECT2 & IF !Y W]E ALSO TO BE AT LIB]TY TO MAKE !IR [N B>GA9S 9 REG>D TO ! RATE ( 9T]E/ -= !Y W\LD !N *>GE AN ADDITIONAL 9T]E/ SUFFICI5T TO COV] ! ADDITIONAL RISK1 IF ANY1 ?AT !Y MI<T SUPPOSE TO RESULT FROM ?IS PR9CIPLE1 ,& IT W\LD BE F> BETT] = DEBTORS TO PAY A SLI<T ADDITIONAL 9T]E/1 & HAVE ! B5EFIT ( ?IS PR9CIPLE1 ?AN TO MAKE !IR CONTRACTS UND] ALL ! LIABILITIES ( ! ,OPPOSITE ONE4 ,! PAYM5T ( A SLI<T ADDITIONAL 9T]E/ W\LD BE EQUIVAL5T TO PAY+ A SLI<T PREMIUM = BE+ 9SUR$ AGA9/ ! CALAMITY ( AN >RE>AGE ( DEBT & P]PETUAL POV]TY1 9 CASE ( ANY MISCALCULATION OR MIS=TUNE ON !IR P>T4 

,BUT ! PROBABILITY IS1 ?AT ! RISK TO CR$ITORS W\LD BE NO GREAT]1 NOT EV5 SO GREAT1 UND] ! OP]ATION ( ?IS PR9CIPLE1 AS IT IS )\T IT-& = !SE REASONS4 

#a4 ,?IS PR9CIPLE W\LD BR+ AB\T A G5]AL PRACTICE ( %ORT CR$ITS1 & PROMPT SETTLEM5TS2 :I*1 = A V>IETY ( REASONS1 TOO OBVI\S TO NE$ 5UM]ATION1 >E ALTOGE!R SAF] & BETT] = BO? DEBTORS & CR$ITORS4 

#b4 ,! DEBTOR1 UND] ?IS PR9CIPLE1 HAS A MU* /RONG] MOTIVE ?AN HE HAS UND] ! OPPOSITE ONE1 TO ! PRACTICE ( HONE/Y1 9DU/RY1 & FRUGALITY1 &-IF UNABLE TO PAY ! :OLE ( HIS DEBT-TO ! PAYM5T ( ! MO/ ?AT IT IS 9 HIS P[] TO PAY1 :5 ! DEBT BECOMES DUE4 ,= HE KN[S ?AT HE CAN ?US NOT ONLY CANCEL HIS DEBT1 AT ITS MATURITY1 & BE FREE FROM IT =EV]1 BUT SAVE HIS *>ACT] & CR$IT ALSO4 ,BUT UND] ! PR9CIPLE ( P]PETUAL LIABILITY1 :5EV] A MAN F9DS ?AT HE HAS MADE AN ]ROR 9 HIS CALCULATIONS1 & ?AT IT WILL BE IMPOSSIBLE = HIM TO PAY HIS DEBT 9 FULL1 ?AT NO EX]TION ON HIS P>T CAN SAVE HIM FROM AN >RE>AGE ( DEBT1 HE IS APT TO ?9K & FEEL ?AT HE IS RU9$1 NOT ONLY 9 HIS PRES5T =TUNE1 BUT 9 HIS FUTURE CR$IT & PROSPECTS4 ,HE !RE=E BECOMES DI%E>T5$1 1& P]HAPS IDLE1 PRODIGAL1 & DI%ONE/- SAY+ TO HIMSELF4 0,I MAY AS WELL DIE = A L>GE SUM AS A SMALL ONE40 ,SO F> AS ?IS FEEL+ OP]ATES UPON ! DEBTOR-& ?AT IT WILL OP]ATE TO A GREAT] OR LESS EXT5T UPON ALL DEBTORS IS 9EVITABLE-! CR$ITOR SUFF]S A CORRESPOND+ P]C5TAGE ( LOSS ON HIS DEBT-A LOSS ?AT1 UND] ! OPPOSITE PR9CIPLE1 W\LD HAVE BE5 SAV$4 

,BUT :5 A DEBTOR CONTRACTS A DEBT ) ! KN[L$GE ?AT1 AT ITS MATURITY1 ALL ?AT CAN BE REQUIR$ ( HIM BY HIS CR$ITOR1 WILL BE1 ?AT HE %ALL HAVE PRACTIC$ 9TEGRITY1 9DU/RY1 & FRUGALITY1 & ?AT HE %ALL MAKE SU* PAYM5T AS ! PRACTICE ( !SE VIRTUES MAY HAVE 5ABL$ HIM TO MAKE1 & ?AT1 UND] !SE CIRCUM/ANCES1 ,DOT ONLY HIS DEBT WILL BE CANCEL$1 BUT HIS *>ACT] & CR$IT SAV$1 HE HAS ! /IMULUS ( ALL !SE MOTIVES OP]AT+ UPON HIM DUR+ ! :OLE P]IOD FROM ! TIME ! DEBT IS CONTRACT$1 UNTIL IT BECOMES DUE4 ,& :5 A MAN IS GOV]N$ BY !SE MOTIVES1 DUR+ ! :OLE P]IOD M5TION$1 HE WILL ALMO/ UNI=MLY BE ABLE TO PAY1 AT !IR MATURITY1 ALL SU* DEBTS AS W]E PRUD5TLY CONTRACT$2 UNLESS HE MEET ) SOME UNUSUALLY H>D =TUNE4 ,& EV5 9 ! CASE ( H>D =TUNE1 HE W\LD /ILL BE ABLE G5]ALLY TO PAY ! GREAT] P>T ( HIS DEBT2 = IT IS NOT (T51 IF EV]1 ?AT A MAN1 9 ! %ORT 9T]VAL BETWE5 ! TIME ( CONTRACT+ A DEBT1 & ! TIME ! SAME DEBT BECOMES DUE1 MEETS ) SU* HEAVY MIS=TUNES AS TO SWALL[ UP EV]Y?+ 9 HIS H&S4 

#c4 ,IF ?IS PR9CIPLE ( LAW W]E ACT$ UPON1 WE %\LD HAVE NO 9SOLV5T OR BANKRUPT LAWS1 AS N[1 DIS*>G+ M5 FROM !IR CONTRACTS >BITR>ILY1 )\T REG>D+ :E!R !Y HAVE BE5 HONE/ OR DI%ONE/1 PRUD5T OR PR(LIGATE1 FRUGAL OR EXTRAVAGANT1 =TUNATE OR UN=TUNATE4 ,UND] ! PRES5T SY/EM1 9SOLV5T & BANKRUPT LAWS >E 9DISP5SABLE TO SAVE HONE/ DEBTORS FROM HOPELESS & P]PETUAL POV]TY & WANT4 ,YET AS !SE LAWS APPLY TO L>GE NUMB]S ( DEBTS1 9/EAD ( A S+LE ONE1 IT IS IMPOSSIBLE ?AT !Y %\LD MAKE SU* DISCRIM9ATIONS BETWE5 ! HONE/ & DI%ONE/1 ! FRUGAL & ! EXTRAVAGANT1 ! =TUNATE & ! UN=TUNATE DEBTOR1 AS W\LD BE MADE 9 ! CASE ( A S+LE DEBT1 DEBTOR1 & CR$ITOR4 ,! CONSEQU5CE IS1 ?AT UND] ! PRES5T SY/EM1 CR$ITORS HAVE1 & CAN HAVE1 LITTLE O!R SECURITY = ! HONE/Y ( !IR DEBTORS1 ?AN :AT ! PR9CIPLES & 9T]E/S ( ! LATT] MAY AF=D4 ,BUT UND] ! O!R SY/EM1 ! DEBTOR W\LD BE HELD LIABLE1 ON EA* DEBT1 TO ! SCRUT9Y ( HIS CR$ITOR2 & W\LD FAIL ( A RELEASE FROM HIS LIABILITY1 IF DI%ONE/Y1 PR(LIGACY1 OR EXTRAVAGANCE W]E PROV$ AGA9/ HIM4 

,:I* ( !SE TWO SY/EMS AF=DS ! BE/ SECURITIES TO CR$ITORS1 IT H>DLY NE$S FUR!R >GUM5T TO DEMON/RATE4 

#d4 ,UND] ! PRES5T SY/EM1 DEBTORS1 UND] C]TA9 CIRCUM/ANCES1 >E ALMO/ COMPELL$1 BY ! NECESSITIES ( !IR CONDITION1 TO WRONG !IR CR$ITORS4 ,= 9/ANCE-A DEBTOR1 BE=E HIS DEBT BECOMES DUE1 F9DS ?AT IT WILL BE \T ( HIS P[] TO PAY ! :OLE ( HIS DEBT AT ! TIME IT BECOMES DUE4 ,HE KN[S ?AT ?IS >RE>AGE WILL BE A BURD5 UPON HIS FUTURE ACQUISITIONS1 & ?AT1 IF HE SUFF] IT TO BECOME KN[N1 IT WILL ALSO BE AN OB/ACLE TO HIS OBTA9+ SU* FUR!R CR$IT AS MAY BE NECESS>Y = ! SUCCESSFUL PROSECUTION ( HIS 9DU/RY4 ,BUT HIS DEBT NOT BE+ YET DUE1 & HIS 9SOLV5CY NOT HAV+ YET COME TO LI<T1 HE HAS /ILL A CR$IT 9 ! COMMUNITY4 ,HE AVAILS HIMSELF ( ?IS CR$IT 9 ! DESP]ATE HOPE TO RETRIEVE HIS =TUNE1 & SAVE HIS CR$IT2 OR1 IF ?IS CANNOT BE1 ) ! 9T5TION ( PUTT+ AS F> (F AS POSSIBLE ! EVIL DAY ( OP5 9SOLV5CY & RU94 ,HE ADOPTS ! PR9CIPLE ?AT HE WILL NEV] /OP PAYM5T SO LONG AS HIS CR$IT IS AVAILABLE4 7,& PUBLIC OP9ION JU/IFIES HIM 9 ADOPT+ ?IS PR9CIPLE4 ,! PUBLIC G5]ALLY REG>D A MAN AS A FOOL1 OR A C[>D1 :O SUBMITS TO OP5 9SOLV5CY SO LONG AS HE CAN GET CR$IT47 ,HE1 !RE=E1 MAKES NEW DEBTS TO PAY OLD ONES2 BORR[S MONEY AT RU9\S RATES ( 9T]E/2 MAKES DESP]ATE MOVES 9 HIS BUS9ESS2 EV]Y /RUGGLE TO EXTRICATE HIMSELF ONLY S9KS HIM DEEP] 9 ! MIRE2 F9ALLY HE GETS TO ! 5D ( HIS CR$IT2 HIS RACE IS RUN2 ! 9SOLV5T LAWS COME 9 TO SETTLE ! MATT]2 & HIS :OLE >RE>AGES ( DEBT1 & ! CONSEQU5T LOSSES ( HIS CR$ITORS1 >E P]HAPS T51 TW5TY1 OR FIFTY TIMES GREAT] ?AN !Y W\LD HAVE BE51 IF HE HAD SETTL$ ) HIS FIR/ CR$ITOR1 BY PAY+ ALL HE HAD TO PAY1 :5 BE FIR/ F\ND ?AT HE WAS 9 >RE>S4 ,:I* ( ! TWO SY/EMS1 !N1 IS ! BE/ = CR$ITORS1 AS A CLASS8 

#e4 ,CR$ITORS1 AS A CLASS-M5 :O HAVE MONEY & CAPITAL TO LOAN-HAVE AN 9T]E/ ?AT !IR CU/OM]S1 ! BORR[+ CLASS1 %\LD CANCEL !IR DEBTS1 BY PAY+ :AT !Y CAN1 AS SOON AS !Y F9D !MSELVES 9 S]I\S >RE>S1 NOT ONLY = ! REASON ?AT !IR >RE>S WILL !N USUALLY BE MANY TIMES LESS ?AN :5 SETTLEM5TS >E PO/PON$1 AS N[1 TO ! LATE/ POSSIBLE P]IOD1 BUT BECAUSE ! DEBTORS WILL !N BECOME GOOD & SAFE CU/OM]S TO ! MONEY L5D]S AGA94 

#f4 ,! PR9CIPLE1 ?AT A DEBT IS OBLIGATORY ONLY TO ! EXT5T ( ! DEBTOR'S MEANS :5 ! DEBT BECOMES DUE1 W\LD NE>LY1 IF NOT :OLLY1 PUT AN 5D TO A CLASS ( CONTRACTS1 ?AT >E IMMORAL & FRAUDUL5T1 9 9T5T1 IF NOT 9 LAW1 ON ! P>T ( ! CR$ITORS1 & :I* \<T NEV] TO BE 5=C$ AGA9/ DEBTORS4 ,!SE CONTRACTS >E ( ?IS K9D4 ,AN OLD & EXP]I5C$ MAN TAKES ADVANTAGE ( ! 9EXP]I5CE & ! SANGU9E ANTICIPATIONS ( A Y\NG MAN1 TO SELL HIM PROP]TY AT 5ORM\S PRICES1 GIV+ HIM CR$IT = ! :OLE1 OR A P>T1 BUT WELL KN[+1 FROM HIS [N SUP]IOR JUDGM5T & EXP]I5CE1 ?AT ! Y\NG MAN WILL NOT AT ALL REALIZE HIS ANTICIPATIONS1 OR EV5 REALIZE 5\< FROM ! PROP]TY TO CANCEL HIS LIABILITY4 ,BUT HE SELLS ! PROP]TY TO HIM ON ! CALCULATION ?AT ! LATT] WILL BE ABLE TO PAY AT LEA/ ! REAL VALUE ( ! PROP]TY2 & ?AT1 AS = ! BALANCE1 HE IS A Y\NG MAN1 HE WILL BE ABLE TO WORK IT \T2 OR HIS FRI5DS WILL PAY IT = HIM2 OR ! POSSESSION ( ?IS PROP]TY WILL 5ABLE HIM TO GET CR$IT ( O!RS1 & ?US HE WILL BE 5ABL$ TO PAY ?IS DEBT BY ?R[+ AN EQUIVAL5T AM\NT ( LOSS UPON SOMEBODY ELSE4 ,SU* CONTRACTS >E PLA9LY IMMORAL & FRAUDUL5T1 ON ! P>T ( ! CR$ITOR1 BO? T[>DS ! DEBTOR1 & T[>DS O!RS"9#b-AL?\< !IR IMMORALITY & FRAUD >E ( A *>ACT] NOT SUSCEPTIBLE ( BE+ LEGALLY PROV$ & DEFEAT$ 9 P>TICUL> CASES4 ,! ONLY WAY ( DEFEAT+ !M SEEMS TO BE1 TO ADOPT ! PR9CIPLE ?AT NO CONTRACT IS B9D+ BEYOND ! LIMITS ( ! DEBTOR'S MEANS4 

,BUT IT IS UNNECESS>Y1 9 ?IS PLACE1 TO GO 9TO A DETAIL ( ALL ! B5EFITS1 ?AT W\LD RESULT TO BO? DEBTORS & CR$ITORS FROM ! ADOPTION ( ! PR9CIPLE1 ?AT A DEBT IS A LI5 ONLY UPON ! DEBTOR'S MEANS AT ! TIME ! DEBT BECOMES DUE4 ,!SE B5EFITS >E OBVI\SLY ( ! MO/ IMPORTANT *>ACT]4 ,& WE %ALL H]EAFT] SEE ?AT ! PR9CIPLE IS ONE ( NATURAL LAW1 :I* ALL C\RTS1 )\T ! AID ( LEGISLATION1 & 9 DEFIANCE ( ALL LEGISLATION1 >E B\ND TO MA9TA9 & C>RY 9TO EFFECT4 

,PROPOSITION #g4 ,CR$ITORS %\LD HAVE LI5S UPON ! PROP]TY ( !IR DEBTORS1 9 ! ORD] 9 :I* !IR DEBTS >E CONTRACT$2 7) SAME EXCEPTIONS H]EAFT] TO BE NAM$27 & ! CR$ITOR HAV+ ! FIR/ LI51 %\LD BE PAID 9 FULL1 BE=E ! SECOND RECEIVES ANY PORTION ( HIS DEBT4 ,& ?IS PR9CIPLE %\LD APPLY TO ALL ! CR$ITORS RESPECTIVELY -EA* PRIOR CR$ITOR HAV+ A RI<T TO FULL PAYM5T1 BE=E A SUCCE$+ CR$ITOR CAN RECEIVE ANY?+4 ,& IT %\LD BE HELD LEGALLY FRAUDUL5T 9 A DEBTOR1 7EXCEPT 9 CASES H]EAFT] M5TION$17 TO PAY A SUBSEQU5T CR$ITOR TO ! PREJUDICE ( A PRIOR ONE4 

,!SE PR9CIPLES >E JU/ 9 !MSELVES-!Y >E ! PR9CIPLES ( NATURAL LAW-& ! EFFECT ( !M W\LD BE MU* BETT]1 = BO? DEBTORS & CR$ITORS1 ?AN ?OSE ?AT N[ PREVAIL4 

,?AT !Y >E JU/ 9 !MSELVES1 AS BETWE5 CR$ITORS1 IS OBVI\S FROM ! FACT1 ?AT A P]SONAL DEBT1 AS1 = 9/ANCE1 A PROMISSORY NOTE1 OR A BOOK ACC\NT1 IS1 9 EQUITY1 A LI5 UPON ALL A DEBTOR'S G5]AL PROP]TY1 9 V]Y NE>LY ! SAME MANN]1 EXCEPT 9 =M1 ?AT A MORTGAGE IS A LI5 UPON A SPECIFIC P>CEL ( REAL E/ATE4 ,! SECOND CR$ITOR1 !RE=E1 9 A P]SONAL DEBT1 /&S 9 ! SAME RELATION TO A PRIOR CR$ITOR1 ) REF]5CE TO ! G5]AL PROP]TY ( ! DEBTOR1 ?AT A SECOND MORTGAGEE DOES TO A PRIOR ONE1 ) REF]5CE TO A SPECIFIC P>CEL ( REAL PROP]TY1 ON :I* !Y BO? HOLD MORTGAGES4 ,HE1 9 EFFECT1 TAKES A SECOND LI5 UPON ! DEBTOR'S G5]AL PROP]TY2 & HE1 ( C\RSE1 TAKES IT1 SUBJECT TO ! 5CUMBRANCE ( ! PRIOR LI51 :I* IS 5TITL$ TO BE FIR/ SATISFI$4 

,ONE GREAT OB/ACLE 9 ! WAY ( CAPITALI/S LOAN+ CAPITAL TO POOR M51 UND] \R PRES5T SY/EM1 IS1 ?AT ! CR$ITOR HOLDS NO CLAIM UPON ! CAPITAL HE HIMSELF HAS LOAN$1 OR ITS PROCE$S1 = ! SECURITY ( HIS DEBT1 9 PREF]5CE TO SUBSEQU5T CR$ITORS4 ,IF BE C\LD HOLD ! FIR/ LI5 UPON ! CAPITAL LOAN$1 & UPON ! VALUE ?AT %\LD BE ADD$ TO IT BY ! LABOR ( ! BORR[]1 IT W\LD !N G5]ALLY BE SAFE TO L5D CAPITAL TO M5 :O W]E DE/ITUTE ( ANY O!R PROP]TY4 

,IT IS A GREAT DEFECT 9 ! DOCTR9E ( LI5S1 AS N[ ADM9I/]$1 ?AT IT 9 G5]AL RECOGNIZES ! PR9CIPLE ( LI5 ONLY 9 RELATION TO SPECIFIC >TICLES ( PROP]TY2 :I* >TICLES CAN BE US$ BY ! DEBTOR1 BUT CANNOT BE EX*ANG$ BY HIM = ANY O!R PROP]TY BETT] ADAPT$ TO HIS USE4 ,?IS PR9CIPLE DOES NOT 5ABLE A BORR[] TO GIVE HIS CR$ITOR SECURITY UPON MONEY1 :I* HIS CR$ITOR LOANS TO HIM TO BE EMPLOY$ 9 BUS9ESS1 & :I* MU/ BE EX*ANG$1 & P]HAPS PASS ?R\< HALF A DOZ5 DIFF]5T =MS BE=E IT IS REPAID TO ! CR$ITOR4 ,:AT IS WANT$ 9 ORD] TO SECURE A CR$ITOR = MONEY1 :I* HE HAS LOAN$ TO BE EMPLOY$ BY ! DEBTOR 9 BUS9ESS1 OR = PROP]TY ( ANY K9D :I* HE SELLS ON CR$IT1 & :I* ! DEBTOR IS TO BE P]MITT$ TO CONV]T 9TO PROP]TY ( ANO!R K9D1 IS1 ?AT HE 7! CR$ITOR7 %\LD HAVE A PRIOR RI<T1 OV] ANY SUBSEQU5T CR$ITOR1 TO ! PROCE$S ( ?AT MONEY1 OR O!R PROP]TY1 9TO :ATEV] %APE IT MAY AFT]W>DS BE CONV]T$ BY ! DEBTOR4 ,& ?IS OBJECT CAN BE ACCOMPLI%$ ONLY BY ADOPT+ ! G5]AL PR9CIPLE1 ?AT A PRIOR CR$ITOR HAS A PRIOR LI5 UPON ! G5]AL PROP]TY ( HIS DEBTOR1 = ! FULL SATISFACTION ( HIS DEBT4 

,IF ,A LOAN CAPITAL TO ,Z1 :5 ,Z IS FREE ( DEBT1 IT IS C]TA9LY RI<T ?AT ,A %\LD BE PAID \T ( ! PROCE$S ( ! CAPITAL HE HIMSELF HAS LOAN$1 9 PREF]5CE TO ANYBODY ELSE4 ,IT IS !RE=E RI<T ?AT HIS DEBT %\LD BE A LI5 UPON ?AT CAPITAL1 OR ITS PROCE$S1 9 ! H&S ( ,Z2 & ?AT ,Z %\LD HAVE NO ,TI<T1 )\T ! CONS5T ( ,A1 TO DISPOSE ( IT1 OR ITS PROCE$S1 TO ! PREJUDICE ( ,A1 = ! B5EFIT ( ANY ?IRD P]SON4 ,& HE %\LD HAVE NO MORE RI<T TO DISPOSE ( IT1 TO ! PREJUDICE ( ,A1 = ! B5EFIT ( A SUBSEQU5T CR$ITOR1 ?AN = ! B5EFIT ( ANY O!R P]SON4 

,IF1 !RE=E1 ,B SUBSEQU5TLY GIVE CR$IT1 OR LOAN CAPITAL TO ,Z1 BE=E ! DEBT ( ,A IS PAID1 7OR HAS EXPIR$ = WANT ( PAYM5T17 HE GIVES HIM CR$IT SUBJECT TO ALL ! DISADVANTAGES ( ! PRIOR LI5 ?AT ,A HAS UPON ! PROP]TY ( ,Z4 ,& ?IS PRIOR LI51 :I* ,A HAS UPON ! PROP]TY ( ,Z = ! CAPITAL FIR/ LOAN$ TO HIM1 WILL BE A LI5 ALSO UPON ! CAPITAL LOAN$ HIM BY ! SUBSEQU5T ,CR$ITOR1 7,B17 UNLESS ,B1 AT ! MATURITY ( ,A'S DEBT1 %ALL BE ABLE TO PROVE ?AT P>TICUL> PORTIONS ( ! DEBTOR'S PROP]TY1 /ILL REMA9+ DI/+UI%ABLE FROM ! RE/1 >E P>TS1 OR PROCE$S ( ! SPECIFIC CAPITAL LOAN$ TO HIM BY HIMSELF1 7,B47 ,?AT IS1 ! FIR/ CR$ITOR1 :5 HIS DEBT BECOMES DUE1 WILL HAVE A PRIMA FACIE LI5 UPON ALL ! PROP]TY 9 ! H&S ( ! DEBTOR2 & ! BURD5 ( PRO( WILL BE UPON ! SUBSEQU5T CR$ITORS TO %[ ?AT SPECIFIC PORTIONS ( ! PROP]TY1 :I* CAN /ILL BE DI/+UI%$ FROM ! DEBTOR'S G5]AL PROP]TY1 W]E LOAN$ TO ! DEBTOR BY !MSELVES1 & W]E !RE=E NOT 9CLUD$ 9 ! FIR/ CR$ITOR'S LI54 ,ALL ?OSE PORTIONS ( ! SUBSEQU5T LOANS1 OR !IR PROCE$S1 :I* %ALL HAVE BECOME 9DI/+UI%ABLY MIX$ ) ! FIR/ LOAN1 OR ITS PROCE$S1 OR :I* ! SUBSEQU5T CR$ITORS %ALL HAVE NO LEGAL PRO( TO DI/+UI% FROM ! FIR/ LOAN1 OR ITS PROCE$S1 WILL BE HELD ABSOLUTELY LIABLE = ! SATISFACTION ( ! FIR/ CR$ITOR'S DEBT4 

,?IS PR9CIPLE1 ( ! PRIORITY ( RI<TS ON ! P>T ( CR$ITORS1 WILL BE MORE FULLY ILLU/RAT$ H]EAFT]1 9 ! *APT]S ON ! LEGAL NATURE ( DEBT2 & ! PR9CIPLE WILL !N BE %[N TO BE A LEGAL ONE1 :I* C\RTS >E B\ND TO C>RY 9TO EFFECT4 ,9 ?IS PLACE1 ,I %ALL ONLY PO9T \T SOME ( ! ECONOMICAL RESULTS1 ?AT W\LD FL[ FROM ITS ADOPTION4 

#a4 ,ONE ( !SE RESULTS W\LD BE ?AT IT W\LD BE SAFE = A CAPITALI/ TO LOAN CAPITAL TO A POOR MAN1 IF ! LATT] W]E BUT FREE ( DEBT1 W]E A MAN ( 9TEGRITY & FRUGALITY1 ( ORD9>Y CAPACITY = BUS9ESS1 & W]E 5GAG$ 9 A BUS9ESS ?AT WAS ORD9>ILY PR(ITABLE2 BECAUSE ! CAPITALI/ W\LD HAVE A LI5 = HIS DEBT1 NOT ONLY UPON ! CAPITAL ITSELF1 ?AT HE HAD LOAN$1 7OR ITS PROCE$S17 BUT ALSO UPON ALL ! VALUE ?AT %\LD BE ADD$ TO IT BY ! LABOR ( ! DEBTOR4 ,IF1 = 9/ANCE1 A CAPITALI/ %\LD SELL TO A %OEMAK]1 ON CR$IT1 TWO HUNDR$ DOLL>S' WOR? ( LEA!R1 OR 

%\LD LOAN TO HIM TWO HUNDR$ DOLL>S ( MONEY ) :I* TO BUY LEA!R1 TO BE WR\<T BY ! LATT] 9TO %OES1 BE W\LD HOLD A LI51 9 PREF]5CE TO ANY SUBSEQU5T CR$ITOR1 NOT ONLY UPON ! LEA!R ITSELF1 BUT UPON ! %OES MANUFACTUR$ FROM ?AT LEA!R4 ,ALL ! ADDITIONAL VALUE1 ?AT %\LD BE GIV5 TO ! LEA!R BY ITS BE+ WR\<T 9TO %OES1 W\LD ADD SO MU* TO ! CR$ITOR'S SECURITY = HIS DEBT4 

,! PR9CIPAL DRAWBACK UPON ?IS SECURITY IS ?IS1 VIZ41 ?AT ! TABOR] & HIS FAMILY MU/ HAVE !IR SUBSI/5CE \T ( ! PROCE$S ( !IR LABOR-9 O!R WORDS1 FROM ! SALE ( ! %OES MANUFACTUR$4 ,! AM\NT ( ?IS DRAWBACK WILL DEP5D UPON ! NUMB]1 HEAL?1 ECONOMY1 & 9DU/RY ( ! DEBTOR'S FAMILY4 ,9 ! CASE ( A Y\NG MAN1 JU/ SETT+ \T 9 LIFE1 ) A WIFE1 & )\T *ILDR51 ! NECESS>Y CO/ ( A FRUGAL SUBSI/5CE1 SU* AS A PRUD5T & REASONABLE P]SON W\LD BE SATISFI$ )1 7AT LEA/ UNTIL HE HAD ACCUMULAT$ CAPITAL 5\< ( HIS [N TO1 EMPLOY HIS [N H&S UPON17 W\LD PROBABLY NOT CONSUME EV5 ONE HALF ! VALUE ?AT W\LD BE ADD$ TO ! CAPITAL BY HIS LABOR4 ,9 ! CASE ( L>G] FAMILIES1 A L>GE PROPORTION ( ?IS VALUE W\LD BE CONSUM$4 ,BUT 9 FEW OR NONE1 UNLESS IT W]E 9 CASE ( SICKNESS1 W\LD IT BE SO NE>LY CONSUM$ AS TO IMPAIR ! CR$ITOR'S SECURITY4 ,?IS IS EVID5T1 FROM ! FACT ?AT LABOR]S N[ SUPPORT !IR FAMILIES SIMPLY 'UPON ! WAGES !Y RECEIVE = !IR LABOR1 AL?\< !IR WAGES DO NOT AM\NT TO MORE ?AN ONE BAIT1 TWO ?IRDS1 OR ?REE F\R?S ( ! VALUE1 :I*- !IR LABOR ADDS TO ! CAPITAL ON :I* !Y >E EMPLOY$1 7! RE/ GO+ 9TO ! POCKETS ( !IR EMPLOY]S47 ,IF1 !N1 !Y W]E TO HAVE-AS1 :5 !Y W]E !IR [N EMPLOY]S1 !Y W\LD HAVE-! :OLE ( ! VALUE ?AT %\LD BE ADD$ TO ! CAPITAL BY !IR LABOR1 !Y C\LD NOT ONLY SUBSI/ AS WELL AS !Y DO1 N[1 BUT HAVE CONSID]ABLY MORE ?AN 5\< BESIDE TO REPAY ! CAPITAL BORR[$1 ) 9T]E/-BECAUSE ! CAPITAL BORR[$ WILL ITSELF BE SUFFICI5T TO REPAY ! LOAN & 9T]E/1 IF BUT SIX1 SEV51 EI<T1 N9E1 OR T5 P]C5T1 71ACCORD+ AS ! RATE ( 9T]E/ MAY BE17 %ALL BE ADD$ TO ITS VALUE BY ! LABOR]4 ,ANY LABOR]1 HAV+ ORD9>Y CAPACITIES1 C\LD ADD ?IS AM\NT ( VALUE TO TWO1 ?REE1 OR FIVE HUNDR$ DOLL>S CAPITAL1 & /ILL HAVE N9E T5?S ( ! :OLE VALUE OR PROCE$S ( HIS LABOR LEFT1 ) :I* TO SUBSI/ HIMSELF & FAMILY4 ,& !SE N9E T5?S ( ! -:OLE VALUE OR PROCE$S ( HIS LABOR1 7:5 HE HAD TWO1 ?REE1 OR LIVE HUNDR$ DOLL>S CAPITAL TO WORK )17 W\LD UNQUE/IONABLY AM\NT TO MU* MORE ?AN HE W\LD RECEIVE AS WAGES1 :5 HE SOLD HIS LABOR TO AN EMPLOY]4 

,! O!R DRAWBACKS ON ! SECURITY M5TION$1 79 ADDITION TO ! SUBSI/5CE ( ! LABOR] & HIS FAMILY17 >E ! RISKS ( ! HEAL? & LIFE ( ! BORR[]1 & ! RISK ( ACCID5TS BY FIRE1 @&C4 ,!SE RISKS1 ON ! AGGREGATE ( LOANS1 W\LD BE SMALL1 & W\LD BE GU>D$ AGA9/ BY CR$ITORS1 BY SMALL ADDITIONAL RATES ( 9T]E/1 7IF USURY LAWS W]E ABOLI%$17 BY LIFE 9SURANCE1 & BY 9SURANCE ON ! CAPITAL AGA9/ FIRE4 ,! CO/S ( GU>D+ AGA9/ ALL !SE RISKS W\LD AM\NT TO NO MORE ?AN A SMALL ADDITION TO ! RATE ( 9T]E/ ON ! CAPITAL1 &1 BE+ ?US PROVID$ =1 W\LD 9T]POSE NO S]I\S IMP$IM5T TO ! LOAN ( CAPITAL TO POOR M54 

,ONE PR9CIPAL1 IF NOT 9SUP]ABLE OB/ACLE1 9 ! WAY ( LOAN+ CAPITAL TO POOR M51 9 ! PRES5T /ATE ( ?+S1 IS ?AT ! -CR$ITOR HAS NO LEGAL SECURITY ?AT ! DEBTOR WILL NOT CONTRACT O!R DEBTS AFT]W>DS1 & ?AT ! CAPITAL1 :I* BE HAS LOAN$ TO HIM1 WILL NOT BE APPLI$1 EI!R BY ! 1DEBTOR HIMSELF1 OR BY ! 9SOLV5T LAWS1 TO ! PAYM5T ( !SE DEBTS TO O!R M54 ,?IS OB/ACLE W\LD BE 5TIRELY REMOV$ BY ! ADOPTION ( ! PR9CIPLE ( ! PRIOR RI<T ( ! PRIOR CR$ITOR4 

#b4 ,ANO!R RESULT ( ?IS PR9CIPLE W\LD BE ! G5]AL DI/RIBUTION ( CR$IT4 ,A CAPITALI/1 AB\T TO LOAN MONEY1 W\LD BE V]Y CAUTI\S ( LOAN+ TO A P]SON ALREADY 9 DEBT = CAPITAL BORR[$ ( O!RS-LE/ ! CAPITAL LOAN$ BY HIMSELF %\LD BECOME 9DI/+UI%ABLY MIX$ ) ?AT BORR[$ ( ! PRIOR CR$ITORS1 & BE DEVOT$1 9 :OLE OR 9 P>T1 TO ! PAYM5T ( SU* PRIOR CR$ITOR'S 1CLAIMS ,HE W\LD1 !RE=E1 SEEK = BORR[]S :O W]E FREE ( DEBT1 ?AT HE MI<T AT LEA/ HOLD A SECURE LI5 UPON ! CAPITAL1 :I* HE HIMSELF %\LD LOAN TO !M4 ,! PR9CIPLE W\LD ?US OBVI\SLY PREV5T ! ACCUMULATION ( L>GE CR$ITS 9 ! H&S ( S+LE 9DIVIDUALS4 ,& BY PREV5T+ L>GE ACCUMULATIONS ( CR$IT 9 ! H&S ( S+LE 9DIVIDUALS1 IT W\LD PROMOTE ! DI/RIBUTION ( ! SAME AGGREGATE AM\NT ( CR$IT1 9 SMALL] P>CELS1 AMONG A L>G] NUMB] ( 9DIVIDUALS4 ,& ! SAME AGGREGATE AM\NT ( CR$ITS1 ?AT N[ EXI/ 9 ! COMMUNITY1 IF PROP]LY DI/RIBUT$1 W\LD PROBABLY PUT 9TO ! H&S ( NE>LY OR QUITE EV]Y LABOR] 9 ! C\NTRY AIL AM\NT ( CAPITAL SUFFICI5T = HIM TO EMPLOY HIS [N H&S UPON4 

,?IS PR9CIPLE ( ! PRIOR RI<T ( ! PRIOR CR$ITOR W\LD BE NO OB/ACLE TO BANK+1 NOR TO A BANK]'S PAY+ A SECOND NOTE :ILE A PRIOR ONE WAS /ILL 9 CIRCULATION-BECAUSE A BANK]'S NOTES >E PAYABLE ON DEM&1 & >E DUE IMM$IATELY ON !IR BE+ ISSU$4 ,IF1 !RE=E1 ! HOLD] DO NOT PRES5T !M :5 DUE1 7?AT IS1 IF HE DO NOT PRES5T !M IMM$IATELY ON !IR BE+ ISSU$17 SU* OMISSION IS A VOLUNT>Y WAIV]1 ON HIS P>T1 ( HIS RI<T TO PRIORITY ( PAYM5T1 & ALL[S ! BANK] TO PAY HIS NOTES 9 ! ORD] 9 :I* !Y >E PRES5T$ = PAYM5T4 ,! SAME PR9CIPLE W\LD APPLY TO ALL O!R DEBTS ?AT W]E NOT DEM&$ :5 DUE4 

,AGA92 AL?\< ?IS PR9CIPLE1 ( ! PRIOR RI<T ( ! PRIOR CR$ITOR1 W\LD BE AN OB/ACLE 9 ! WAY ( A DEBTOR'S GETT+ A SECOND CR$IT1 7UNLESS ( ! SAME CR$ITOR17 BE=E A PRIOR ONE HAD BECOME DUE1 IT W\LD BE NO SU* OB/ACLE AFT] ! =M] ONE HAD BECOME DUE1 EV5 ?\< HE %\LD HAVE BE5 UNABLE TO PAY ! FIR/ CR$IT 9 FULL-BECAUSE1 AT ! MATURITY ( ! FIR/ CR$IT1 HE W\LD-IF ! PR9CIPLE ( ,I ,I ,PROPOSITION #f #aa BE CORRECT-CANCEL IT BY PAY+ TO ! EXT5T ( HIS MEANS1 :I* W\LD LEAVE HIM !NCE=? A FREE MAN4 

,! RESULT ( ! TWO PR9CIPLES /AT$ 9 PROPOSITIONS #f & #g1 VIZ47 #a1 ?AT A DEBT IS B9D+ UPON A DEBTOR ONLY TO ! EXT5T ( HIS MEANS2 &1 #b1 ?AT A PRIOR CR$ITOR HAS A PRIOR LI5 ON HIS DEBTOR'S PROP]TY1 W\LD BE TO 9DUCE CAPITALI/S 9DIVIDUALLY TO SEEK \T SEP>ATE LABOR]S1 ( CAPACITY1 9DU/RY1 & 9TEGRITY1 :O W]E FREE ( DEBT1 & FURNI% !M RESPECTIVELY ) :AT CAPITAL !IR BUS9ESS %\LD REQUIRE2 & ?US SAVE BORR[]S FROM ! NECESSITY ( GETT+ CR$IT1 AS !Y DO N[1 9 PETTY P>CELS1 ( SEV]AL DIFF]5T P]SONS4 ,?AT SU* W\LD BE ! RESULT IS OBVI\S - BECAUSE1 #a1 A CAPITALI/ W\LD PREF]1 AS A G5]AL RULE1 NOT TO BECOME ! SECOND CR$ITOR ( A DEBTOR2 &1 #b1 AS CAPITALI/S W\LD NOT WI% TO BECOME ! SECOND CR$ITOR ( A DEBTOR1 IT W\LD BE 9DISP5SABLE1 AS A G5]AL RULE1 ?AT ! FIR/ CR$ITOR %\LD ADVANCE CAPITAL 5\< TO 5ABLE ! DEBTOR TO PROSECUTE HIS BUS9ESS ADVANTAGE\SLY1 ELSE HE MI<T LOSE A P>T ( :AT HE %\LD LOAN HIM4 ,! DEBTOR1 HAV+ A RI<T TO CANCEL HIS DEBT1 BY PAY+ TO ! EXT5T ( HIS MEANS1 W\LD DO SO :5EV] ! CR$ITOR %\LD REFUSE TO FURNI% SUFFICI5T CAPITAL TO 5ABLE HIM TO PROSECUTE HIS BUS9ESS PR(ITABLY4 ,& ! CR$ITOR1 :5 HE %\LD SEE ?AT HIS DEBTOR WAS US+ CAPITAL ADVANTAGE\SLY1 W\LD *OOSE TO ADVANCE TO HIM :ATEV] MI<T BE NECESS>Y1 BECAUSE SU* ADVANCE W\LD BE A PR(ITABLE 9VE/M5T ( HIS CAPITAL4 ,OIL ! O!R H&1 :5EV] HE %\LD F9D ?AT HIS DEBTOR WAS NOT US+ CAPITAL ADVANTAGE\SLY1 HE W\LD )HOLD ANY FUR!R ADVANCES1 &1 AT ! MATURITY ( ! CR$IT GIV51 CLOSE ! CONNECTION ) AS LITTLE LOSS1 IF ANY1 AS POSSIBLE1 BY ACCEPT+ PAYM5T TO ! EXT5T ( ! DEBTOR'S MEANS1 9 FULL DIS*>GE ( ! DEBT4 

,! OP]ATION ( !SE PR9CIPLES1 !RE=E1 W\LD BE ! E/ABLI%M5T ( A SORT ( P>TN]%IP RELATION BETWE5 ! CAPITALI/ & LABOR]1 OR L5D] & BORR[]-! =M] FURNI%+ CAPITAL1 ! LATT] LABOR4 ,\T ( ! JO9T PROCE$S ( ?IS CAPITAL & LABOR1 ! LABOR] W\LD FIR/ TAKE 5\< = AN ECONOMICAL SUBSI/5CE :ILE P]=M+ ! LABORAS IT W\LD BE NECESS>Y ?AT HE %\LD1 9 ORD] ?AT HE MI<T P]=M IT4 ,ON ALL ! REMA9+ PROCE$S ! CAPITALI/ W\LD HOLD A LI5 = ! AM\NT ( CAPITAL LOAN$1 & ALSO = SU* AN AM\NT ( ! 9CREAS$ VALUE GIV5 TO IT BY ! LABOR1 7SAY SIX1 SEV51 EI<T1 N9E1 OR T5 P]C5T17 AS %\LD HAVE BE5 AGRE$ ON BETWE5 !M1 UND] ! NAME ( 9T]E/4 

,?IS QUASI P>TN]%IP BETWE5 ! CAPITALI/ & LABOR]1 BY :I* ! LATT] IS MADE SURE ( HIS SUBSI/5CE :ILE LABOR+1 & BY :I* ! CAPITALI/ IS MADE TO RISK HIS CAPITAL ON ! F9AL SUCCESS ( ! 5T]PRISE1 )\T ANY CLAIM UPON ! DEBTOR 9 CASE ( FAILURE1 IS ! TRUE RELATION BETWE5 CAPITAL & LABOR1 7OR1 :AT IS ! SAME ?+1 BETWE5 ! L5D] & BORR[]47 ,& :Y8 #a4 ,BECAUSE CAPITAL PRODUCES NO?+ )\T LABOR2 & IT IS IMPOSSIBLE ?AT ! LABOR] %\LD P]=M ! LABOR1 )\T HAV+ HIS SUBSI/5CE MEAN:ILE4 ,= !SE REASONS1 IT IS RI<T ?AT ! SUBSI/5CE ( ! LABOR]1 :ILE BE/[+ HIS LABOR UPON ! CAPITAL1 %\LD BE ! FIR/ *>GE UPON ! JO9T PROCE$S ( ! CAPITAL & LABOR40"9#c 

#b4 ,IT IS RI<T ?AT ! CAPITALI/ %\LD BE MADE TO RISK HIS CAPITAL ON ! F9AL SUCCESS ( ! 5T]PRISE1 )\T HAV+ ANY CLAIM UPON ! DEBTOR 9 CASE ( FAILURE1 7?AT IS1 :5 ! DEBTOR P]=MS HIS P>T 9 ! 5T]PRISE HONE/LY & FAI?FULLY27 BECAUSE1 BEYOND ?IS PO9T1 ! CAPITAL MU/ BE RISK$ BY SOMEBODY1 7! CAPITALI/ OR LABOR]17 9 EV]Y 5T]PRISE4 ,& 9ASMU* AS PR(IT 79 ! %APE ( 9T]E/7 IS AS MU* ! OBJECT ( ! CAPITALI/1 9 FURNI%+ ! CAPITAL1 AS 79 ANO!R %APE7 IT IS ( ! LABOR] 9 FURNI%+ LABOR1 IT IS AS MU* RI<T ?AT HE %\LD TAKE ! RISK ( LOS+ HIS CAPITAL1 AS IT IS ?AT ! LABOR] %\LD TAKE ! RISK ( LOS+ HIS LABOR1 7?AT IS1 ALL OV] & ABOVE HIS SUBSI/5CE47 ,! RISK IS !N FAIRLY DIVID$ BETWE5 !M2 :]EAS IT W\LD NOT BE1 IF ! LABOR] W]E TO RISK BO? HIS LABOR & ! CAPITAL4 ,IF ! PR(IT IS TO BE DIVID$ 9 CASE ( PR(IT1 ! LOSS \<T TO BE DIVID$ 9 CASE ( LOSS4 ,IT IS SUFFICI5T TO MAKE ! 5T]PRISE A JO9T ONE1 IF ! PR(IT IS TO BE DIVID$ 9 CASE ( PR(IT4 ,& IF IT BE A JO9T 5T]PRISE1 IT IS AS MU* RI<T ?AT ! RISK ( LOSS %\LD BE JO9TLY BORNE1 AS ?AT ! *ANCE ( PR(IT %\LD BE JO9TLY 5JOY$4 

,BUT ?IS JO9T RISK1 BETWE5 ! CAPITALI/ & LABOR]1 OR L5D] & BORR[]1 AS TO ! F9AL RESULT ( AN 5T]PRISE1 9 :I* ! LABOR ( ! ONE & ! CAPITAL ( ! O!R >E TO BE JO9TLY EMPLOY$1 = !IR JO9T PR(IT1 IS NOT ONLY RI<T AS BETWE5 ! IMM$IATE P>TIES1 BUT IT IS ALSO RI<T & EXP$I5T ON G5]AL PR9CIPLES ( ECONOMY-& = ?IS REASON1 VIZ41 ?AT :5 BO? CAPITALI/ & LABOR] >E 9T]E/$ 9 ! RISKS & RESULTS ( AN 5T]PRISE1 ! 5T]PRISE WILL !N HAVE ! B5EFIT ( TWO HEADS1 9/EAD ( ONE1 9 JUDG+ ( ITS FEASIBILITY & PROBABLE RESULTS1 & ALSO 9 DECID+ UPON ! BE/ PLAN ( EXECUTION4 ,9JUDICI\S 5T]PRISES WILL !N BE MORE ,IIKELY TO BE AVOID$2 & LESS LABOR & CAPITAL WILL1 !RE=E1 BE WA/$ ON SU* 5T]PRISES ?AN N[ >E4 ,:5 A CAPITALI/ LOANS MONEY TO A LABOR]1 & KN[S ?AT HE WILL HAVE A CLAIM ON ! SUBSEQU5T E>N+S ( ! LABOR] = ANY CAPITAL ?AT MAY BE SUNK 9 ! 5T]PRISE1 HE 7! CAPITALI/7 DOES NOT LOOK1 = HIMSELF1 9TO ! M]ITS ( ! 5T]PRISE AS HE W\LD IF HE KNEW ?AT HIS ULTIMATE SECURITY = HIS CAPITAL DEP5D$ SOLELY UPON ! SUCCESS ( ! 5T]PRISE1 9/EAD ( DEP5D+ ALSO UPON ! SUBSEQU5T E>N+S ( ! LABOR]4 

.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.- 

      "9#a ,ONE ( ! GREATE/-PROBABLY ! GREATE/-( ALL ! EVILS RESULT+ FROM ! EXI/+ SY/EM ( PRIVILEG$ CORPORATIONS = BANK+ PURPOSES1 IS ?AT !SE 9CORPORATIONS AMASS1 OR BR+ TOGE!R1 & PLACE UND] ! CONTROL ( A S+LE DIRECTORY1 ! LOANABLE CAPITAL ?AT WAS PREVI\SLY SCATT]$ OV] ! C\NTRY1 9 SMALL AM\NTS1 9 ! H&S ( A L>GE NUMB] ( SEP>ATE [N]S4 ,IF ?IS CAPITAL HAD BE5 SUFF]$ TO REMA9 ?US SCATT]$1 IT W\LD HAVE BE5 LOAN$ BY ! SEP>ATE [N]S1 9 SMALL SUMS1 TO A L>GE NUMB] ( P]SONS2 EA* ( :OM W\LD ?US HAVE BE5 SUPPLI$ ) CAPITAL SUFFICI5T TO EMPLOY HIS [N H&S UPON1 ) ! MEANS ( CONTROLL+ HIS [N LABOR1 & !REBY ( SECUR+ TO HIMSELF ALL ! FRUITS ( HIS LABOR1 EXCEPT :AT HE %\LD PAY AS 9T]E/4 ,BUT :5 ALL ?IS SCATT]$ CAPITAL IS COLLECT$ 9TO ONE HEAP1 & PLAC$ UND] ! CONTROL ( A S+LE DIRECTORY1 IT IS USUALLY LOAN$ 9 L>GE SUMS1 TO A FEW 9DIVIDUALS-G5]ALLY TO ! DIRECTORS !MSELVES & A FEW O!R FAVORITES4 ,IT PROBABLY IS NOT LOAN$ TO ONE T5?1 ONE TW5TIE?1 OR ONE FIFTIE? AS MANY DIFF]5T ,P]SONS1 AS IT W\LD HAVE BE5 IF IT HAD BE5 SUFF]$ TO REMA9 9 ITS ORIG9AL /ATE1 & HAD BE5 LOAN$ BY ITS SEP>ATE [N]S4 ,9DIVIDUALS1 9/EAD ( BORR[+ ONE1 TWO1 ?REE1 OR FIVE HUNDR$ DOLL>S TO EMPLOY !IR [N B&S UPON1 AS W\LD BE ! CASE BUT = !SE 9CORPORATIONS ( CAPITAL1 N[ BORR[ FIVES1 T5S1 & HUNDR$S ( ?\S&S ( DOLL>S1 UPON :I* TO EMPLOY ! LABOR ( O!RS4 ,?IS PROCESS ( CONC5TRATION1 MONOPOLY1 & 9CORPORATION1 BY MEANS ( :I* ONE MAN1 A DIRECTOR1 OR A FAVORITE ( A BANK1 IS 5ABL$ TO BORR[ CAPITAL 5\< TO EMPLOY ! LABOR ( T51 TW5TY1 OR AN HUNDR$ M51 ( C\RSE DEPRIVES T51 TW5TY1 OR AN HUNDR$ O!R M5 ( ! ABILITY TO BORR[ EV5 CAPITAL 5\< TO EMPLOY !IR [N H&S UPON4 ,( CONSEQU5CE IT COMPELS !M TO SELL !IR LABOR TO HIM :O HAS MONOPOLIZ$ ! CAPITAL4 ,& !Y MU/ SELL !IR LABOR TO HIM AT A PRICE ?AT WILL GIVE HIM A PR(IT-G5]ALLY A L>GE PR(IT4 ,?AT IS1 !Y MU/ SELL IT = MU* LESS ?AN ! AM\NT ( WEAL? IT PRODUCES4 ,9 ?IS WAY T51 TW5TY1 OR AN HUNDR$ M5 >E LIT]ALLY ROBB$ ( AN IMPORTANT PORTION ( ! FRUITS ( !IR LABOR1 SOLELY ?AT A S+LE MONOPOLI/ MAY BE GORG$ ) WEAL?4 ,IT IS ?US ?AT ! LEGISLATION1 :I* CREATES !SE L>GE 9CORPORATIONS ( PRIVILEG$ BANK]S1 OP]ATES TO PLUND] ! MANY ( ! FRUITS ( !IR LABOR1 & PAMP] ! FEW ) ! SPOILS47,RETURN7 

      "9#b ,MUTUAL B5EFIT IS ! ONLY F\NDATION = ! MORALITY ( CONTRACTS2 OR1 AT LEA/1 TO BE MORAL1 A CONTRACT %\LD CONTEMPLATE NO 9JURY TO EI!R P>TY47,RETURN7 

      "9#c ,IF ! CAPITALI/ W]E TO HIRE HIS LABOR1 9/EAD ( ! LABOR] HIR+ ! CAPITAL1 ! SUBSI/5CE ( ! LABOR] W\LD /ILL BE AS MU* A *>GE UPON ! CAPITAL1 AS IT IS :5 ! LABOR] HIRES ! CAPITAL1 & MAKES HIS [N LIV+ ! FIR/ *>GE UPON 1! JO9T PROCE$S ( ! CAPITAL & LABOR47,RETURN7 

O ,*APT] #c 3 ,ECONOMICAL ,RESULTS FROM ! ,PREC$+ ,PROPOSITIONS 
,LYS&] ,SPOON]1 ,POV]TY3 ,ITS ,ILLEGAL ,CAUSES & ,LEGAL ,CURES4 ,BO/ON3 ,BELA ,M>%1 ,NO4 #be ,CORNHILL4 #a#h#d#f4 

,*,A,P,T,] #c3 ,E,C,O,N,O,M,I,C,A,L ,R,E,S,U,L,T,S ,F,R,O,M ,! ,P,R,E,C,$,+ ,P,R,O,P,O,S,I,T,I,O,N,S 

  

,! LA/ F\R ( ! PREC$+ PROPOSITIONS ASS]T ! FOLL[+ PR9CIPLES1 TO WIT3 

#a4 ,! RI<T ( ! P>TIES TO CONTRACTS TO MAKE !IR [N B>GA9S 9 REG>D TO ! RATE ( 9T]E/4 

#b4 ,! RI<T ( FREE COMPETITION 9 ! BUS9ESS ( BANK+4 

#c4 ,?AT ! LEGAL OBLIGATION ( A DEBT1 ) SPECIFIC EXCEPTIONS1 IS EXT+UI%$ BY ! DEBTOR'S MAK+ PAYM5T TO ! EXT5T ( HIS MEANS1 :5 ! DEBT BECOMES DUE4 

#d4 ,?AT ! SEV]AL CR$ITORS ( ! SAME DEBTOR HOLD SUCCESSIVE LI5S UPON HIS PROP]TY1 = ! FULL AM\NT ( !IR DEBTS1 9 ! ORD] 9 :I* !IR DEBTS RESPECTIVELY W]E CONTRACT$4 

,IT WILL H]EAFT] BE %[N ?AT !SE SEV]AL PR9CIPLES >E LEGAL ONES1 F\ND$ 9 NATURAL & CON/ITUTIONAL LAW1 ?AT IS B9D+ UPON ALL \R JUDICIAL TRIBUNALS1 & 9CAPABLE ( BE+ 9VALIDAT$1 OR SET ASIDE1 BY ANY LEGISLATIVE 5ACT95TS ?AT >E )9 ! CON/ITUTIONAL P[] ( ANY ( \R GOV]NM5TS4 

,IT HAS ALREADY BE5 %[N1 9 P>T1 H[ !SE PR9CIPLES >E ADAPT$ TO ! ACCOMPLI%M5T ( ! FOLL[+ OBJECTS1 TO WIT3 

#a4 ,?AT ( 5ABL+ EA* POOR MAN TO OBTA91 ON CR$IT1 CAPITAL SUFFICI5T TO EMPLOY HIS [N H&S UPON4 

#b4 ,?AT ( 5ABL+ HIM TO OBTA9 ?IS CAPITAL ON ! MO/ ADVANTAGE\S T]MS AS TO 9T]E/1 & 9 ! MO/ ADVANTAGE\S =M = HIS USE4 

#c4 ,?AT ( 5ABL+ HIM TO OBTA9 ?IS CAPITAL ON CR$IT1 )\T ! RISK ( 9CURR+ AN >RE>AGE ( DEBT 9 CASE ( MIS=TUNE1 OR ( MISCALCULATION1 ON HIS P>T1 AS TO HIS ABILITY TO PAY 9 FULL4 

#d4 ,?AT ( 5ABL+ CAPITALI/S TO LOAN CAPITAL TO POOR M51 & HOLD ! FIR/ LI5 UPON IT1 9 ! H&S ( ! DEBTOR1 = !IR PAYM5T2 & )\T ! RISK ( HAV+ ! CAPITAL SO LOAN$ TAK5 & APPLI$1 EI!R BY ! LAW1 OR BY ! DEBTOR1 TO ! PAYM5T ( DEBTS TO O!R M54 

,IF SU* BE ! OP]ATION ( !SE PR9CIPLES1 IT SEEMS TO FOLL[1 ?AT1 IF !Y W\LD NOT FULLY1 !Y W\LD YET V]Y NE>LY ACCOMPLI% ! OBJECT ( SECUR+ TO EV]Y POOR MAN1 :O WAS HONE/1 9DU/RI\S1 & ORD9>ILY SKILLFUL1 ! 5JOYM5T ( HIS RI<T TO LABOR TO ! BE/ POSSIBLE ADVANTAGE1 7BY 5ABL+ HIM TO OBTA9 CAPITAL UPON :I* TO LABOR17 & ALSO ( HIS RI<T TO ! POSSESSION ( ALL ! FRUITS ( HIS LABOR1 EXCEPT :AT1 9 ! NATURE ( ?+S1 MU/ BE PAID = ! USE ( ! CAPITAL UPON :I* HE LABORS4 

,IF !RE CAN BE ANY D\BT AS TO SU* BE+ ! RESULT ( !SE PR9CIPLES1 IT CAN >ISE ONLY FROM A D\BT :E!R CAPITALI/S W\LD LOAN !IR CAPITAL TO LABOR]S1 OR POOR M51 IF ! PR9CIPLES ( LAW APPLICABLE TO ! LOAN1 W]E SU* AS HAVE BE5 DESCRIB$4 ,?IS QUE/ION1 !RE=E1 BECOMES IMPORTANT1 VIZ41 :E!R CAPITALI/S W\LD LOAN CAPITAL TO POOR M5 UND] SU* CIRCUM/ANCES8 

,! TRUE ANSW] TO ?IS QUE/ION IS1 ?AT1 AL?\< !Y MI<T NOT DO IT IMM$IATELY1 !Y YET W\LD DO IT SPE$ILY-& = ! FOLL[+ REASONS3 

#a4 ,IT IS OBVI\S ?AT1 O!R ?+S BE+ EQUAL1 IT W\LD BE MU* MORE SAFE = CAPITALI/S1 ESPECIALLY :5 !Y LOAN ON P]SONAL SECURITY1 TO LOAN !IR CAPITAL 9 SMALL SUMS TO A L>GE NUMB] ( 9DIVIDUALS1 :O W]E EA* !IR [N EMPLOY]S1 ?AN 9 L>GE SUMS TO A SMALL NUMB]1 :O EMPLOY$ ! LABOR ( O!RS4 ,IT W\LD1 = 9/ANCE1 BE MU* MORE SAFE TO LOAN FIFTY ?\S& DOLL>S1 9 SUMS ( FIVE HUNDR$ DOLL>S EA*1 TO ONE HUNDR$ M51 :O %\LD EA* BE/[ !IR [N LABOR UPON IT1 ?AN TO LOAN ! :OLE FIFTY ?\S& TO ONE MAN1 :O %\LD EMPLOY AN HUNDR$ O!R LABOR]S 9 ! MANAGEM5T ( IT4 ,EA* ( ! ONE HUNDR$ M5 W\LD BE MORE LIKELY TO REPAY ! :OLE ( HIS FIVE HUNDR$ DOLL>S1 ?AN ! ONE MAN TO REPAY ! :OLE ( HIS FIFTY ?\S& DOLL>S4 ,& :Y8 ,BECAUSE A MAN CAN MANAGE1 ) F> LESS RISK & WA/E1 & ) MU* MORE COMP>ATIVE PR(IT1 A CAPITAL ( FIVE HUNDR$ DOLL>S1 ON :I* HE EXP5DS HIS [N1 & ONLY HIS [N LABOR1 SKILL1 & CALCULATION1 ?AN HE CAN A CAPITAL ( FIFTY ?\S& DOLL>S1 ON :I* HE IS OBLIG$ TO EMPLOY ! LABOR ( AN HUNDR$ O!RS1 :OSE SKILL1 9DU/RY1 & ECONOMY HE CANNOT /IMULATE TO ! SAME DEGREE1 TO :I* !Y W\LD BE /IMULAT$1 :5 LABOR+ = !MSELVES4 ,SMALL BORR[]S >E ALSO LESS LIKELY TO SQU&] !IR LOANS 9 EXTRAVAGANT LIV+1 & 9 EXTRAVAGANT1 FANCIFUL1 & HAZ>D\S 5T]PRISES1 ?AN L>GE BORR[]S4 ,! COMM& ( L>GE BORR[$ CAPITALS (T5 9TOXICATES M5 ) ! CONCEIT ( !IR SUP]IOR JUDGM5T 9 ! MANAGEM5T ( PROP]TY1 OR ) A VA9 AMBITION = DISPLAY1 OR ) DREAMS ( SUDD5 WEAL?1 OR ) A PASSION = MAGNIFIC5T S*EMES-! CONSEQU5CES ( ALL :I* >E TOLD 9 DEEP1 P]HAPS RU9\S LOSSES TO !IR CR$ITORS4 ,ON ! O!R H&1 A MAN :O BORR[S M]ELY CAPITAL 5\< TO EMPLOY HIS [N H&S UPON1 AVOIDS ?IS 9TOXICATION 5TIRELY4 ,HE ?9KS ONLY ( RESULTS1 & ( SKILL1 9DU/RY1 & FRUGALITY1 AS ! MEANS4 ,! SMALL BORR[] IS !RE=E MU* MORE LIKELY1 ?AN ! L>GE BORR[]1 TO BE ABLE TO REPAY HIS LOAN4 ,HE IS ALSO MU* MORE LIKELY TO BE WILL+ TO REPAY IT4 ,! TEMPTATION TO FRAUD 9 HIS CASE IS TRIVIAL1 COMP>$ ) ?AT 9 ! CASE ( ! O!R4 

#b4 ,9 ! CASE ( SMALL LOANS TO A L>GE NUMB] ( 9DIVIDUALS1 EA* 9DIVIDUAL IS NOT ONLY MORE LIKELY1 = ! REASONS ALREADY GIV51 TO REPAY ! LOAN1 ?AN ! S+LE 9DIVIDUAL IS 9 ! CASE ( A L>GE LOAN1 BUT !RE IS ?IS FUR!R SECURITY1 :I* IS ( GREAT CONSID]ATION ) CAPITALI/S1 :O LOAN MONEY1 VIZ41 ?AT 9 CASES ( MIS=TUNE OR FRAUD ON ! P>T ( A DEBTOR1 ! LOSS IS SMALL1 NOT RU9\S4 ,IF ! HUNDR$? DEBTOR FAIL TO PAY1 ! N9ETY-N9E >E /ILL SOLV5T4 ,! CAPITALI/ IS NOT RU9$4 ,HE LOSES BUT ONE P]C5T ( HIS :OLE CAPITAL4 ,BUT 9 ! CASE ( ! L>GE LOAN1 IF ! DEBTOR FAIL1 ! CR$ITOR IS RU9$1 OR S]I\SLY 9JUR$-SIMPLY BECAUSE HE HAS EMB>K$ A L>GE FREI<T 9 ONE %IP4 

,CAPITALI/S UND]/& !SE PR9CIPLES1 AS WE SEE 9 ! CASE ( 9SURANCE COMPANIES1 :I* ACT UNI=MLY ON ! POLICY ( TAK+ A L>GE NUMB] ( SMALL RISKS1 9 PREF]5CE TO A FEW L>GE ONES4 

#c4 ,!RE IS /ILL ANO!R CONSID]ATION 9 FAVOR ( SMALL LOANS TO A L>GE NUMB] ( 9DIVIDUALS1 :O >E !IR [N EMPLOY]S1 OV] L>GE LOANS TO A SMALL NUMB]1 :O EMPLOY ! LABOR ( O!RS4 ,IT IS ?IS4 ,! LABOR ( 9DIVIDUALS1 :O LABOR = !MSELVES ALONE1 BE+1 = ! REASONS ALREADY GIV51 MU* MORE PRODUCTIVE1 ECONOMICAL1 & PR(ITABLE1 ?AN ! LABOR ( HIREL+S1 9DIVIDUALS C\LD AF=D TO PAY A HI<] RATE ( 9T]E/-MU* HI<] IF IT W]E NECESS>Y= ! LITTLE CAPITAL ?AT EA* MAN NE$S TO EMPLOY HIS [N H&S UPON1 ?AN !Y CAN = CAPITAL ON :I* TO EMPLOY ! LABOR ( HIREL+S4 

,! HI<] SELF-RESPECT ALSO1 :I* A MAN FEELS1 & ! HI<] SOCIAL POSITION HE 5JOYS1 :5 HE IS MA/] ( HIS [N 9DU/RY1 ?AN :5 HE LABORS = ANO!R1 W\LD 9DUCE HIM1 IF IT W]E NECESS>Y1 TO PAY EV5 SU* A RATE ( 9T]E/ = CAPITAL AS W\LD CUT D[N ! NET PR(ITS ( HIS LABOR TO ! SAME AM\NT ?AT HE W\LD RECEIVE AS A LABOR] = WAGES4 

,! 9EVITABLE RESULT ( !SE PR9CIPLES W\LD BE ?AT ! CLASS ( EMPLOY]S1 :O N[ /& BETWE5 ! CAPITALI/ & LABOR]1 &1 BY MEANS ( USURY LAWS1 SPONGE MONEY FROM ! =M]1 & LABOR FROM ! LATT]1 & PUT ! PLUND] 9TO !IR [N POCKETS1 W\LD BE =C$ ASIDE2 & ! CAPITALI/ & LABOR] W\LD COME TOGE!R1 FACE TO FACE1 & MAKE SU* B>GA9S ) EA* O!R1 AS ?AT ! :OLE PROCE$S ( !IR JO9T CAPITAL & LABOR W\LD BE DIVID$ BETWE5 !MSELVES1 9/EAD ( BE+ BE/[$1 9 P>T1 AS N[1 AS A GRATUITY1 UPON AN 9T]M$IATE 9TRUD]4 ,! CAPITALI/ W\LD NOT ONLY GET ALL HE N[ GETS AS 9T]E/1 & ! LABOR] ALL HE N[ GETS AS WAGES1 BUT !Y W\LD ALSO DIVIDE BETWE5 !MSELVES ?AT SUM :I* N[ GOES 9TO !1 POCKETS ( ! EMPLOY]4 ,:AT PORTION ( ?IS LATT] SUM W\LD GO TO ! LABOR]1 & :AT TO ! CAPITALI/1 W\LD DEP5D UPON ! CIRCUM/ANCES & B>GA9S 9 EA* P>TICUL> CASE4 ,! PROBABILITY IS ?AT = ! FIR/ FEW YE>S AFT] !SE PR9CIPLES W5T 9TO OP]ATION1 CAPITALI/S W\LD ASK & OBTA9 A PRETTY HI< RATE ( 9T]E/4 ,! COMPETITION AMONG LABOR]S1 9 !IR BIDS = CAPITAL1 W\LD PRODUCE ?IS EFFECT4 ,BUT AS ! G5]AL SAFETY ( ! SY/EM %\LD BE TE/$1 & AS LABOR]S %\LD GRADUALLY MAKE ACCUMULATIONS1 :I* W\LD S]VE AS SOME SECURITY = LOANS1 & AS ! BUS9ESS ( BANK+ %\LD BE 9CREAS$1 ! RATE ( 9T]E/ W\LD GRADUALLY DECL9E1 UNTIL -PROBABLY )9 T5 OR TW5TY YE>S-CAPITAL W\LD GO BEGG+ = BORR[]S1 & ! CURR5T RATE ( 9T]E/ W\LD PROBABLY NOT EXCE$ ?REE OR F\R P]C5T4 ,& ALL ! PROCE$S ( LABOR & CAPITAL1 OV] & ABOVE ?IS 9T]E/1 W\LD GO 9TO ! POCKETS ( ! LABOR]4 

,!RE OBVI\SLY W\LD BE LITTLE OR NO RISK 9 LOAN+ CAPITAL TO ! G5]ALITY ( LABOR]S1 IF ! L5D] C\LD HOLD ! FIR/ LI5 UPON ! CAPITAL LOAN$2 = 9DU/RY1 GUID$ BY ORD9>Y SKILL & JUDGM5T 9 ! APPLICATION ( LABOR1 IS ALMO/ C]TA9 TO ADD MORE VALUE TO ! CAPITAL EMPLOY$ ?AN IS NECESS>Y = ! COM=TABLE SUBSI/5CE ( ! LABOR]4 ,! CASES1 :]E IT W\LD FAIL ( DO+ ?IS1 >E FEW1 & EV5 9 ?OSE FEW CASES ! DEFICI5CY W\LD BE V]Y SMALL4 ,! PR9CIPAL RISK1 !N1 9 LOAN+ TO A POOR MAN1 W\LD BE ! RISK ( HIS DEA?1 & ( LOSS 9 W9D+ UP HIS AFFAIRS4 ,BUT ?IS RISK C\LD BE GU>D$ AGA9/ BY ! DEBTOR'S KEEP+ HIS LIFE 9SUR$4 ,! CO/ ( KEEP+ HIS LIFE 9SUR$ = AN AM\NT EQUAL TO ! CAPITAL BE HIR$1 W\LD NOT ORD9>ILY BE MORE ?AN ONE1 OR AT MO/ TWO P]C5T UPON ?AT CAPITAL4 ,& HE W\LD ?US ACCOMPLI% ! D\BLE PURPOSE ( GIV+ HIS CR$ITORS A GU>ANTEE = !IR LOANS 9 CASE ( HIS DEA?1 & ( SECUR+ SOME?+ = ! SUPPORT ( HIS FAMILY4 

,! RISK ( LOSS TO ! CR$ITOR1 FROM ! DEA? ( HIS DEBTOR1 IS N[ MADE ALTOGE!R GREAT] ?AN IT O!RWISE W\LD BE1 BY ?OSE LAWS ?AT GIVE TO A DECEAS$ DEBTOR'S FAMILY1 7AT ! DISCRETION ( A ,PROBATE ,JUDGE17 ! :OLE1 OR A P>T1 ( ! EFFECTS 9 HIS B&S1 9 PREF]5CE TO APPLY+ !M TO ! PAYM5T ( HIS DEBTS4 ,SU* LAWS >E AS 9JURI\S T[>DS DEBTORS1 AS A CLASS1 AS !Y >E UNJU/ T[>DS CR$ITORS4 ,!Y VIRTUALLY =BID CAPITALI/S TO LOAN CAPITAL TO A POOR MAN1 UND] P5ALTY ( BE+ COMPELL$ TO CONTRIBUTE ! AM\NT ( SU* LOANS TO ! SUPPORT ( HIS FAMILY1 9 CASE ( HIS DECEASE4 ,SU* ABSURD & DI%ONE/ LEGISLATION DEFEATS ! V]Y OBJECT IT PR(ESSES TO HAVE 9 VIEW4 ,9/EAD ( ITS ACCOMPLI%+ ! PURPOSE ( COMPELL+ CR$ITORS TO SUPPORT ! FAMILIES ( ,POOR M51 IT ONLY S]VES1 AS A G5]AL RULE1 TO DET] CAPITALI/S FROM BECOM+ ! CR$ITORS ( POOR M5 AT ALL4 ,?US ! LAWS NOT ONLY FAIL ( PROVID+ = A POOR MAN'S FAMILY AFT] HIS DEA?1 BUT !Y CONTRIBUTE L>GELY TO MAKE IT IMPOSSIBLE = HIM1 :ILE LIV+1 TO BORR[ CAPITAL UPON :I* TO LABOR1 & ?US TO MAKE ANY ACCUMULATIONS ( HIS [N = !IR SUPPORT4 

,!RE IS NO JU/ICE1 OR EV5 APPE>ANCE ( JU/ICE1 9 SU* LAWS4 ,IF ,A HAVE LOAN$ CAPITAL TO ,B1 & TAK5 A NOTE = IT1 HE1 9 EQUITY1 HOLDS A LI5 UPON ?AT PROP]TY = HIS DEBT4 ,IT IS UNREASONABLE TO EXPECT HIM TO LOAN HIS CAPITAL TO A POOR MAN ON ANY O!R CONDITION4 ,& !RE IS NO MORE REASON :Y HE %\LD BE COMPELL$ TO SUPPORT ! DEBTOR'S FAMILY1 BY LOS+ HIS LI51 9 CASE ( ! DEBTOR'S DECEASE1 ?AN !RE IS :Y ANY O!R P>TICUL> 9DIVIDUAL %\LD BE COMPELL$ BY LAW TO SUPPORT !M BY GIFTS FROM HIS [N POCKET4 ,IF1 UND] !SE CIRCUM/ANCES1 A DEBTOR DIE1 LEAV+ HIS FAMILY DE/ITUTE1 !Y MU/ DEP5D1 = !IR SUPPORT1 UPON !IR [N LABOR1 & ! ASSI/ANCE ( RELATIVES & FRI5DS1 OR UPON SU* PROVISION AS ! PUBLIC MAKE1 BY G5]AL TAXATION1 = ! SUPPORT ( ALL :O HAVE NO O!R MEANS ( SUBSI/5CE4 ,!RE IS NO JU/ICE 9 COMPELL+ ?OSE FEW 9DIVIDUALS1 :O MAY HAVE BEFRI5D$1 OR LOAN$ CAPITAL TO ! DEBTOR1 9 HIS LIFETIME1 TO ASSUME ! BURD5 ( SUPPORT+ HIS FAMILY AFT] HIS DEA?1 BY GIV+ UP TO !M !IR LI5 ON ! CAPITAL !Y HAVE LOAN$ HIM4 ,IF A POOR MAN WI% TO PROVIDE = HIS FAMILY1 9 CASE ( HIS DEA?1 HE %\LD KEEP HIS LIFE 9SUR$4 ,HE WILL ?US PROVIDE = HIS FAMILY1 & HIS CR$ITORS TOO4 

,ONE OBJECT ( !SE LAWS IS TO ?R[ UPON ! CR$ITORS ( A DECEAS$ P]SON A BURD51 ?AT MI<T O!RWISE FALL UPON ! PUBLIC AT L>GE4 ,BUT !IR EFFECT IS TO CREATE T5 TIMES AS MU* PAUP]ISM AS !Y PREV5T-BECAUSE !Y DET] CAPITALI/S FROM LOAN+ CAPITAL TO POOR M51 & ?US PREV5T ! LATT] FROM MAK+ SU* ACCUMULATIONS1 9 !IR LIFETIMES1 AS !Y O!RWISE MI<T1 = ! SUPPORT ( !IR FAMILIES AFT] !IR DEA?4 

,IT WILL BE %[N1 9 A SUBSEQU5T *APT]1 ?AT ALL LEGISLATION1 ( ! K9D M5TION$1 :I* DE/ROYS A CR$ITOR'S LI51 ON ! EFFECTS ( HIS1 DEBTOR1 9 ORD] TO GIVE !M TO ! DEBTOR'S FAMILY1 IS UNCON/ITUTIONAL & VOID4 

,IF ! RISK ( LOSS TO ! CR$ITOR1 BY ! DEA? ( ! DEBTOR1 W]E OBVIAT$ 9 ! MANN] N[ SUGGE/$1 & IF ! PRIOR CR$ITOR HELD A PRIOR LI5 UPON ! PROP]TY ( HIS DEBTOR11 !RE W\LD BE LITTLE OR NO DANG] 9 LOAN+ CAPITAL TO POOR M51 9 AM\NTS SUFFICI5T TO EMPLOY !IR [N H&S RESPECTIVELY4 

,! RISK ( ! DEBTOR'S SUCCESS 9 BUS9ESS W\LD BE SMALL-AS SMALL AS ! RISK ( SUCCESS CAN BE 9 ANY BUS9ESS1 9 :I* CAPITAL IS HAZ>D$-BECAUSE ! BUS9ESS1 9 :I* EA* DEBTOR W\LD EMPLOY HIS BORR[$ CAPITAL1 W\LD BE SU* AS BO? HIMSELF & HIS1 CR$ITOR %\LD HAVE APPROV$- 9ASMU* AS ! CR$ITOR W\LD NOT ( C\RSE LOAN HIS CAPITAL TO A POOR MAN1 UNLESS HE %\LD HAVE FIR/ ASC]TA9$ ! BUS9ESS 9 :I* IT WAS TO BE EMPLOY$1 & SATISFI$ HIMSELF ?AT IT WAS A SAFE ONE4 ,! BUS9ESS1 !RE=E1 9 :I* EA* DEBTOR W\LD EMPLOY HIS BORR[$1 CAPITAL1 W\LD BE SU* AS COMM5D$ ITSELF1 79 ITS PROSPECTS ( PR(IT17 TO ! JUDGM5TS ( BO? DEBTOR & CR$ITOR4 ,SU* BUS9ESS W\LD ORD9>ILY BE MORE SAFE ?AN ?AT1 9 ! PLANN+ ( :I* ! JUDGM5T ( ONLY ONE P]SON HAD BE5 CONSULT$4 

,! RISKS FROM FIRE1 !FT1 SICKNESS ( ! DEBTOR & HISFAMILY1 & O!R EXTRAORD9>Y MIS=TUNES1 W\LD BE NO GREAT] ?AN ?OSE TO :I* PROP]TY IS ALWAYS LIABLE1 & W\LD BE GU>D$ AGA9/ BY ! CR$ITOR BY ! RATE ( 9T]E/4 

,! ONLY REMA9+ RISK1 TO ! CR$ITOR1 IS ?AT ( ! FRUGALITY & 9DU/RY ( ! DEBTOR4 

,!RE >E UND\BT$LY P]SONS1 :O1 IF !Y C\LD BORR[ MONEY1 W\LD BE IDLE & PRODIGAL SO LONG AS IT LA/$1 ) LITTLE REG>D EI!R TO ! RI<TS ( !IR CR$ITORS1 OR TO !IR [N SUBSEQU5T 9T]E/S4 ,BUT SU* P]SONS >E V]Y FEW1 & !IR PRODIGAL HABITS G5]ALLY BECOME SO PUBLICLY KN[N ?AT CAPITALI/S W\LD BE 9 V]Y LITTLE DANG] ( LOAN+ MONEY TO !M ?R\< IGNORANCE ( !IR *>ACT]S4 

,BUT ! MASS ( M51 :5 !Y HAVE1 9 !IR H&S1 ! MEANS ( BETT]+ !IR CONDITION1 >E ZEAL\S TO DO IT2 & IF !Y C\LD BORR[ CAPITAL1 ON :I* TO BE/[ !IR LABOR1 & C\LD HAVE ALL ! FRUITS ( !IR LABOR EXCEPT :AT !Y %\LD PAY AS 9T]E/1 !Y W\LD ALMO/ UNIV]SALLY EX]T !MSELVES1 BO? BY 9DU/RY & FRUGALITY1 TO MAKE SU* ACCUMULATIONS AS W\LD PLACE !MSELVES BEYOND ! REA* EI!R ( POV]TY1 OR ( DEP5D5CE UPON LOANS FROM O!RS4 ,& :]E SU* EX]TIONS W]E MADE1 !Y W\LD BE SUCCESSFUL1 ) BUT FEW EXCEPTIONS2 & ?OSE FEW EXCEPTIONS W\LD G5]ALLY BE ! RESULT ONLY ( SOME SU* UNUSUAL MIS=TUNE AS PROP]TY & BUS9ESS >E ALWAYS LIABLE TO4 ,9 FEW OR NO CASES W\LD ANY CONSID]ABLE PORTION ( ! LOAN BE SUNK BY MISMANAGEM5T1 OR ]RONE\S JUDGM5T1 ON ! P>T ( ! DEBTOR-= AS LOANS W\LD USUALLY BE MADE = NO LONG] ?AN ?REE OR SIX MON?S EA*1 !RE W\LD NOT BE OPPORTUNITY = MU* WA/E ( CAPITAL1 UNLESS BY MISMANAGEM5T ?AT WAS SO GROSS AS TO BE CULPABLE1 OR BY MIS=TUNES ,( ,T>E & EXTRAORD9>Y *>ACT]4 ,9 ALL O!R CASES1 !N1 CAPITALI/S W\LD EI!R OBTA9 ! :OLE ( !IR LOANS ) 9T]E/1 OR AT LEA/ ! GREAT] P>T ( !IR LOANS4 ,! PROBABILITY IS1 ?AT 9 ! AGGREGATE ( LOAN-1 ! :OLE AM\NT ( LOSSES W\LD NOT BE ONE FIF?1 OR EV5 ONE T5? AS GREAT AS CAPITALI/S /IFF] UND] ! PRES5T SY/EM4 ,! SY/EM1 AS A SY/EM-AT LEA/ DUR+ ! FIR/ FEW YE>S ( ITS OP]ATION-W\LD BE ALTOGE!R BETT] = CAPITALI/S ?AN ! PRES5T ONE-= ! LOSSES W\LD BE LESS1 & ! RATES ( 9T]E/ HI<]4 ,COMPETITION ON ! P>T ( BORR[]S W\LD PRODUCE ?IS RESULT4 

,BUT IT IS TO BE UND]/OOD ?AT ?IS /ATE ( ?+S-?IS COMPETITION AMONG BORR[]S1 >IS+ FROM POV]TY ON ! P>T ( SO L>GE A PORTION ( ! COMMUNITY AS >E N[ POOR-C\LD CONT9UE BUT A %ORT TIME4 ,MO/ ( !M-P>TICUL>LY  

O ,*APT] #d 3 ,SOCIAL1 ,MORAL1 ,9TELLECTUAL1 & ,POLITICAL ,RESULTS FROM ! ,PREC$+ ,PROPOSITIONS 
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,SOCIAL ,RESULTS4 ,TO APPRECIATE1 9 SOME MEASURE1 ! IMPORTANT SOCIAL 9FLU5CES ( ! PREC$+ PROPOSITIONS1 IT IS ONLY NECESS>Y TO CONSID] ?AT ?AT PORTION ( HUMAN VIRTUE1 :I* CONSI/S 9 ONE'S DO+ GOOD TO O!RS ?AN HIMSELF1 DEP5DS ALMO/ 5TIRELY UPON SYMPA?Y-UPON ONE'S SUSCEPTIBILITY ( BE+ AFFECT$ BY ! FEEL+S ( O!RS2 & ?AT ?IS SYMPA?Y1 OR SUSCEPTIBILITY1 IS MO/LY1 IF NOT :OLLY1 ! RESULT ( HIS HAV+ HAD1 9 SOME MEASURE1 A SIMIL> EXP]I5CE ) O!RS1 OR ( HIS HAV+ HAD SOCIAL RELATIONS ) !M4 ,?US ?OSE :O HAVE BE5 SICK1 SYMPA?IZE ) ! SICK2 ! SORR[FUL SYMPA?IZE ) ! SORR[FUL2 ! M]RY ) ! M]RY2 ! RI* SYMPA?IZE ) ! RI*2 ! POOR ) ! POOR2 ! LE>N$ ) ! LE>N$2 ! VICI\S ) ! VICI\S2 K+S ) K+S2 SLAVES ) SLAVES2 AMID ALL M5 MORE OR LESS ) !IR IMM$IATE P]SONAL ACQUA9TANCES4 ,& IT IS FROM ! SYMPA?Y1 ?US EXCIT$ BY P]SONAL 9T]C\RSE1 OR BY A SIMIL>ITY ( EXP]I5CE1 ?AT MU*1 P]HAPS MO/ ( ! K9DNESS1 %[N BY ONE HUMAN BE+ T[>DS ANO!R1 RESULTS4 ,ON ! O!R HUMID1 MU* ( ! 9DIFF]5CE1 OR WANT ( K9DNESS1 MANIFE/$ BY ONE MAN T[>DS ANO!R1 IS ! NATURAL RESULT ( HIS HAV+ HAD LITTLE OR NO SIMIL> EXP]I5CE1 OR LITTLE OR NO P]SONAL ACQUA9TANCE ) HIM4 ,?US K+S SYMPA?IZE LITTLE ) ! PEOPLE1 & ! PEOPLE LITTLE ) K+S2 SLAVES SYMPA?IZE LITTLE ) MA/]S1 & MA/]S LITTLE ) SLAVES2 ! RI* SYMPA?IZE LITTLE ) ! POOR1 & ! POOR LITTLE ) ! RI*2 & FEW SYMPA?IZE MU* ) /RANG]S4#d4 

,SO AGA91 MO/1 OR ALL1 ( ! HATR$ & 9JU/ICE1 FELT & PRACTIC$ BY ONE MAN T[>DS ANO!R1 RESULTS FROM ! FACT1 ?AT ! PO9TS ( COLLISION 9 M5'S *>ACT]S & 9T]E/S >E NOT R\ND$1 & SMOO!D1 & S(T5$ BY ! K9DLY 9FLU5CES ( SYMPA?Y & ACQUA9TANCE4 ,MU* ( ! HATR$ EXI/+ AMONG MANK9D IS ! HATR$ ( CLASS AGA9/ CLASS-( CLASSES AGA9/ O!R CLASSES1 ) :OM !Y HAVE LITTLE P]SONAL ACQUA9TANCE1 OR LITTLE COMMON EXP]I5CE4 ,! RI* DO NOT HATE ! RI*1 AS A CLASS2 NOR ! POOR1 ! POOR4 ,BUT ! RI* HATE & DESPISE ! POOR1 & ! POOR HATE & 5VY ! RI*2 & IT IS SOLELY1 OR PR9CIPALLY1 BECAUSE !SE TWO CLASSES HAVE NOT SUFFICI5T P]SONAL ACQUA9TANCE1 & SUFFICI5T SIMIL>ITY ( EXP]I5CE ) EA* O!R1 TO AWAK5 !IR SYMPA?IES1 & ?9S S(T5 OR AV]T ! COLLISION ( !IR FEEL+S1 9T]E/S1 & RI<TS@9 ,?US ! RI* WILL (T5 DEFRAUD1 OPPRESS1 AMID 9SULT ! POOR1 & ! POOR DEFRAUD & COMMIT VIOL5CE UPON ! RI*1 ) LESS COMPUNCTION ?AN ! SAME 9DIVIDUALS W\LD HAVE DEFRAUD$1 9JUR$1 OR 9SULT$ ONE ( !IR [N NUMB]4 ,& EV]Y MAN1 :O WILL DEFRAUD O!RS AT ALL1 WILL MORE WILL+LY DEFRAUD A /RANG] ?9 AN ACQUA9TANCE4 

,SU* BE+ ! LAWS ( M5'S M9DS1 & SU* ! CONDITIONS ON :I* SO L>GE A PORTION ( M5'S VIRTUE T[>DS EA* O!R DEP5DS1 IT IS OBVI\SLY A MATT] ( ! HI<E/ SOCIAL IMPORTANCE1 ?AT M5-SO F> AS IT CAN BE EFFECT$ )\T 9FR++ !IR 9DIVIDUAL LIB]TIES & RI<TS- %\LD OCCUPY SU* SITUATIONS AMID CIRCUM/ANCES RELATIVELY TO EA* O!R1 AS WILL PROMOTE ! WIDE/ P]SONAL ACQUA9TANCE1 & ! NE>E/ SIMIL>ITY ( EXP]I5CE AMONG !M ALL4 ,TO ! ACCOMPLI%M5T ( ?IS 5D1 P]HAPS NO?+ IS MORE CONDUCIVE OR 9DISP5SABLE1 ?AN AN APPROXIMATION TO EQUALITY 9 !IR PECUNI>Y CONDITIONS4 ,EXTREMES ( DIFF]5CE1 9 !IR PECUNI>Y CIRCUM/ANCES1 DIVIDE SOCIETY 9TO CA/ES2 

SET UP B>RI]S TO P]SONAL ACQUA9TANCE2 PREV5T OR SUPPRESS SYMPA?Y2 GIVE TO DIFF]5T 9DIVIDUALS A WIDELY DIFF]5T EXP]I5CE1 & ?US BECOME ! F]TILE S\RCE ( ALI5ATION1 CONTEMPT1 5VY1 HATR$1 & WRONG4 ,BUT GIVE TO EA* MAN ALL ! FRUITS ( HIS [N LABOR1 & A COMP>ATIVE EQUALITY ) O!RS 9 HIS PECUNI>Y CONDITION1 & CA/E IS BROK5 D[N2 $UCATION IS GIV5 MORE EQUALLY TO ALL2 & ! OBJECT IS PROMOT$ ( PLAC+ EA* ON A SOCIAL LEVEL ) ALL3 ( 9TRODUC+ EA* TO ! ACQUA9TANCE ( ALL2 & ( GIV+ TO EA* ! GREATE/ AM\NT ( ?AT EXP]I5CE1 :ELM1 BE+ COMMON TO ALL1 5ABLES HIM TO SYMPA?IZE ) ALL1 & 9SURES TO HIMSELF ! SYMPA?Y ( ALL4 ,& ?US ! SOCIAL VIRTUES ( MANK9D W\LD BE GREATLY 9CREAS$4 

,MORAL ,RESULTS4 ,IMPORTANT MORAL RESULTS1 O!R ?AN ?OSE ALREADY M5TION$ AS SOCIAL1 W\LD BE ACCOMPLI%$ BY C>RY+ 9TO OP]ATION ! PR9CIPLES ?AT HAVE BE5 SET =? 9 ! PREC$+ PROPOSITIONS4 ,TO BE CONV9C$ ( ?IS1 WE HAVE ONLY TO LOOK AT ALL ! CRIM9AL & VICI\S 9DIVIDUALS 9 ! COMMUNITY1 & SEE H[ MANY ( !IR CRIMES & VISES CALM BE TRAC$ EI!R TO !IR SUP]ABUNDANT WEAL?1 !IR EXTREME POV]TY1 !IR DESIRE = WEAL?1 OR !IR FE> ( POV]TY4 

#a4 ,?OSE GROSS] (F5SES AGA9/ ! RI<TS ( PROP]TY1 ?AT >E PUNI%ABLE BY SOCIETY AS CRIMES1 SU* AS !FT1 ROBB]Y1 =G]Y1 & SW9DL+1 RESULT1 NOT FROM ! LOVE ( CRIME1 BUT ALMO/ )\T EXCEPTION FROM ONE OR ANO!R ( !SE ?REE S\RCES1 VIZ41 ! SUFF]+S ( ACTUAL POV]TY2 ! FE> ( COM+ POV]TY2 OR A DESIRE = ?OSE LUXURI\S DISPLAYS AMID 9DULG5CES1 :I* ! P]PETRATORS SEE TO BE 5JOY$ BY ! POSSESSORS ( WEAL?4 ,& ALL !SE MOTIVES TO CRIME >E AGGRAVAT$1 & 9DIVIDUALS >E (T5 GOAD$ TO RECKLESSNESS & AUDACITY BY ?AT HATR$ ( SOCIETY1 & ?AT S5SE ( \TRAGE & WRONG1 :I* RESULT FROM ! OBS]VATION ( ?OSE GROSS 9EQUALITIES ( CONDITION1 ?OSE EXTREMES ( POV]TY & WEAL?1 :I* >E BR\<T AB\T BY ?AT MONOPOLIZ+ & 9IQUIT\S LEGISLATION1 :I*1 :ILE IT DEPRIVES ! MANY ( !IR NATURAL RI<T TO OBTA9 CAPITAL ON :I* TO LABOR1 & ( !IR NATURAL RI<T TO ALL ! FRUITS ( !IR LABOR1 >BITR>ILY GIVES TO ! FEW ! COMM& ( ALL ! LOANABLE CAPITAL1 & CONSEQU5TLY ! CONTROL1 & A L>GE P>T ( ! FRUITS ( O!R M5'S LABOR4 

,BUT IF ! PR9CIPLES ( ! PREC$+ *APT]S W]E ADM9I/]$ AS LAW1 ! CRIMES RESULT+ FROM !SE S\RCES W\LD MO/LY DISAPPE>4 ,! CAUSES N[ IMPELL+ TO ! CO9-MISSION ( !M W\LD R>ELY EXI/4 ,NE>LY EV]Y MAN W\LD BE ABLE TO CONTROL HIS [N LABOR1 & SECURE TO HIMSELF ! :OLE ( ITS FRUITS1 7EXCEPT :AT LIE %\LD PAY AS 9T]E/ ON HIS CAPITAL27 AMID !SE W\LD SAVE HIM FROM ?AT EXTREME POV]TY :I* 9/IGATES TO CRIME4 ,MONOPOLIES ALSO BE+ BROK5 D[N1 !RE W\LD BE LITTLE OR NO GREAT WEAL?1 9 ! H&S ( S+LE 9DIVIDUALS1 TO EXCITE HIS 5VY1 OR HIS DESIRE = LUXURY & DISPLAY4 ,HE W\LD BE ABLE1 )\T CRIME1 TO MA9TA9 A POSITION NE> 5\< TO ! G5]AL LEVEL ( SOCIETY TO SAVE HIM FROM ! TEMPTATION TO CRIME4 

#b4 ,?OSE 9NUM]ABLE FRAUDS ?AT P]VADE EV]Y DEP>TM5T ( TRAFFIC1 HUT >E NOT ( ?AT TANGIBLE *>ACT] ?AT CAN BE PROV$ & PUNI%$ BY SOCIETY1 RESULT1 9 AN IMPORTANT PORTION ( ! CASES1 FROM A FE> ( POV]TY1 &1 9 ANO!R IMPORTANT PORTION1 FROM A DESIRE ( ?AT SUP]IOR WEAL?1 :I* ! FEW ACQUIRE BY MEANS ( MONOPOLIZ+ LEGISLATION1 & :I* CON/ITUTES ONE ( ! PR9CIPAL DI/9CTIONS ( SOCIETY4 ,BUT IF ! PROPOSITIONS1 ADVOCAT$ 9 ! PREC$+ *APT]S1 W]E C>RI$ 9TO EFFECT1 ! MOTIVES TO !SE FRAUDS W\LD BE1 9 A GREAT MEASURE1 EXT+UI%$2 BECAUSE1 #a1 !RE W\LD BE NO SU* LIABILITY TO EXTREME POV]TY AS N[2 & #b1 !RE BE+ !N FEW OR NO GREAT =TUNES 9 SOCIETY1 BUT1 ON ! CONTR>Y1 A SOME:AT G5]AL EQUALITY 9 WEAL?1 L>GE =TUNES W\LD NOT1 AS N[1 CON/ITUTE ! F\NDATION = CA/ES & DI/9CTIONS2 CONSEQU5TLY !Y W\LD NOT BE OBJECTS ( SU* G5]AL AMBITION AS N[2 &1 ( C\RSE1 W\LD NOT PROMPT M51 SO (T5 AS N[1 TO ! COMMISSION ( FRAUDS = ! SAKE ( OBTA9+ !M4 ,NEI!R W\LD ! POSSESSION ( !M1 :5 ACQUIR$ BY FRAUD1 BE SU* A SALVE TO A MAN'S *>ACT]1 AS N[4 ,WEAL? IS N[ SU* A M>K ( DI/9CTION & HONOR1 ?AT SOCIETY PALLIATE1 IF !Y DO NOT JU/IFY1 ALMO/ ANY MEASURE1 %ORT ( OP5 CRIME1 TO SECURE IT4 ,BUT UND] A SY/EM1 :]E EV]Y MAN C\LD EASILY OBTA9 CAPITAL1 ON :I* TO LABOR1 & C\LD HAVE ALL ! FRUITS ( HIS LABOR2 & :]E !RE WAS SU* A G5]AL EQUALITY ( WEAL? AS W\LD NECESS>ILY RESULT FROM ?OSE TWO CAUSES1 !RE W\LD BE NO CA/E OR DI/9CTION F\ND$ ON WEAL?2 SUP]IOR WEAL? W\LD NOT BE AT ALL NECESS>Y TO GIVE ONE REPUTATION2 ALL M51 AS A G5]AL RULE1 C\LD HONE/LY OBTA9 ALL ! WEAL? ?AT W\LD BE NECESS>Y TO !IR RESPECTABILITY2 & !Y W\LD HAVE LITTLE TEMPTATION1 AS N[1 TO =FEIT !IR *>ACT] = 9TEGRITY1 = ! SAKE ( ACQUIR+ A DEGREE ( WEAL? ?AT W\LD GIVE !M NO M>K$ IMPORTANCE 9 SOCIETY4 

,IT IS MANIFE/ ALSO ?AT ! PRES5T PREC>I\SNESS ( M5'S PECUNI>Y CONDITION IS A GREAT PROVOCATIVE TO 9JU/ICE & FRAUD4 ,IT IS NOT NATURAL TO MANK9D TO DESIRE TO DEFRAUD OR 9JURE EA* O!R4 ,BUT ! :EEL ( =TUNE1 III ! PRES5T /ATE ( TIM+S1 IS ( SU* 5ORM\S DIAMET]2 ?OSE ON ITS TOP >E ON SO %[Y A HEI<T2 & ?OSE UND]NEA? IT >E 9 SU* A PIT ( DEBT1 OPPRESSION1 & DESPAIR2 & ITS REVOLUTIONS >E SO RAPID1 UN/EADY1 & CONVULSIVE1 ?AT IT IS NO SUBJECT ( WOND] ?AT ?OSE ON ITS SIDES %\LD FEEL COMPELL$1 BY ! NECESSITY ( SELF-PRES]VATION1 TO JO/LE & *EAT EA* O!R \T ( !IR FOOT+1 9 ORD] NO SEIZE A SECURE ONE = !MSELVES4 ,BUT UND] ! SY/EM PROPOS$1 =TUNE C\LD H>DLY BE REPRES5T$ BY A :EEL2 = IT W\LD PRES5T NO SU* HEI<T1 NO SU* DEP?1 NO SU* IRREGUL>ITY ( MOTION1 AS N[4 ,IT %\LD RA!R BE REPRES5T$ BY AN EXT5D$ SURFACE1 V>I$ SOME:AT BY 9EQUALITIES1 BUT /ILL EXHIBIT+ A G5]AL LEVEL1 AF=D+ A SAFE POSITION = ALL1 & CREAT+ NO NECESSITY1 = EI!R =CE OR FRAUD1 ON ! P>T ( ANY ONE1 TO 5ABLE HIM TO SECURE HIS /&+4 

#c4 ,9TEMP]ANCE IS ANO!R ( ! VISES ATT5DANT UPON SUP]ABUNDANT WEAL?1 & EXTREME POV]TY4 ,! RI* (T5 BECOME LUXURI\S1 GLUTTON\S1 & DRUNK51 APP>5TLY BECAUSE LIFE HANGS HEAVY ON !IR H&S4 ,BE+ RELIEV$ FROM ! NECESSITY TO LABOR1 !Y FEEL LITTLE MOTIVE TO ?AT HEAL?FUL 9DU/RY1 :I* IS ! COMPANION & GU>DIAN ( TEMP]ANCE2 & !IR M9DS HAV+ BE5 />V$ :ILE !Y W]E 5GAG$ 9 HO>D+ !IR WEAL?1 !Y >E N[ 9CAPABLE ( 9TELLECTUAL PURSUITS1 & HAVE LITTLE OR NO RES\RCE AGA9/ 5NUI BUT 9 ANIMAL 9DULG5CES4 ,ON ! O!R H&1 ! 9TEMP]ANCE ( ! POOR IS ! NATURAL CONSEQU5CE ( ! EXTREMITIES ( !IR CONDITION4 ,! EXCITEM5T1 OR ! /UPOR ( 9TOXICATION1 BR+S AT LEA/ A TEMPOR>Y RELIEF FROM ! ANXIETIES ?AT H>ASS & UNSETTLE !IR M9DS1 & DRIVE !M TO DESP]ATION4 

#d4 ,GAMBL+ ALSO NATURALLY RESULTS FROM TOO MU* WEAL?1 & TOO SEV]E POV]TY4 ,! RI* GAMBLE = EXCITEM5T1 & BECAUSE !Y CAN AF=D1 OR ?9K !Y CAN AF=D ! RISKS4 ,! POOR GAMBLE 9 ! HOPE ( GA9-TEMPT$ BY ! PROSPECT ( FLEEC+ ! RI*1 OR DRIV5 TO IT BY ! HOPELESSNESS ( !IR [N CONDITION4 

#e4 ,LEWDNESS-! DE/ROY+ VISE ( SOCIETY-IS 5ORM\SLY 9CREAS$1 IF NOT MA9LY SUPPORT$1 BY ! PREC>I\SNESS & ! 9EQUALITY ( M5'S PECUNI>Y CONDITION4 ,! RI* BECOME LU/FUL & LIBID9\S FROM IDL5ESS & LUXURY1 & !IR WEAL? 5ABLES !M TO PUR*ASE ! GRATIFICATION ( !IR DESIRES4 ,! POOR BECOME RECKLESS FROM WANT1 OR FROM 5VY ( ! RI*2 & SELL !IR VIRTUE = BREAD1 OR = ! MEANS ( DISPLAY4 ,PURITY DWELLS ) MOD]ATE COMPET5CE1 ) ! SIMPLE BO>D1 ) ! MODE/ G>B1 & ) *E]FUL 9DU/RY4 

,! RU9 ( ! Y\NG1 P>TICUL>LY ( Y\NG FEMALES1 IS MO/LY ACCOMPLI%$ BY MEANS ( !IR ABS5CE FROM HOME4 ,!Y >E G5]ALLY SAFE 9 !IR FA!R'S H\SE4 ,BUT ! SAME WANT ( CAPITAL ?AT COMPELS A POOR MAN TO SELL HIS [N LABOR1 COMPELS HIM ALSO TO SELL ! ,LABOR ( HIS *ILDR5 & TO S5D !M1 9 !IR Y\?1 BEYOND HIS [N RO( OR F>M1 TO OCCUPY SOME M5IAL SITUATION 9 A RI* MAN'S S]VICE1 :]E TOIL1 OPPRESSION1 9SULT1 NEGLECT1 AMID L\D NESS >E !IR LOT2 :]E FEW OR NO K9D C\NSELS MEET !IR E>S2 :]E NO FRI5DLY EYE WAT*ES OV] !IR WAYS1 & NO GU>DIAN H& PROTECTS !M FROM ! DANG]S ?AT CR[D >\ND !M4 ,:AT >MIES ( ! Y\? ( BO? SEXES >C ANNUALLY DRIV51 BY POV]TY1 FROM ! P>5TAL RO(1 & P>5TAL C>E1 TO SEEK M5IAL EMPLOYM5T III MANUFACTUR+ & COMM]CIAL T[NS1 & TO FALL SACRIFICES TO !IR [N 9EXP]I5CE1 & ! 5TICEM5TS ( ! LIB]T9ES ?AT SW>M 9 SU* PLACES4 

,IF EV]Y MAN C\LD OBTA9 ! CAPITAL NECESS>Y TO EMPLOY HIS [N H&S & ! H&S ( HIS FAMILY1 *ILDR5 W\LD BE RE>$ AT HOME MU* MORE G5]ALLY ?AN N[4 ,IT W\LD R>ELY BE NECESS>Y = DAU<T]S TO GO ABROAD = EMPLOYM5T2 & NEV] TO OCCUPY S]VILE & DEGRAD$ SITUATIONS AS N[4 ,& IF DAU<T]S ONLY W]E TO BE RE>$ UNI=MLY AT HOME1 SOCIETY W\LD BE PURE COMP>$ ) :AT IT IS N[4 ,IT W\LD (T5 BE NECESS>Y = SONS TO GO FROM HOME TO LE>N SONIC DIFF]5T CALL+ FROM ?AT FOLL[$ BY !IR FA!RS2 BUT !Y W\LD NOT BE DRIV5 FROM HOME BY POV]TY4 ,& NOT BE+ DRIV5 FROM HOME BY POV]TY1 !Y W\LD NOT BE DRIV5 9TO S]VILE & DEGRAD$ SITUATIONS1 :]E !IR LONEL9ESS & MIS]Y W\LD URGE !M 9TO VISE4 ,AS !RE W\LD !N BE NO SU* EXTREMES ( POV]TY & WEAL?1 AS N[1 A SON HEAV+ HIS FA!R'S H\SE = EMPLOYM5T1 W\LD NOT LEAVE AN ABODE ( WANT TO BECOME A M5IAL 9 ! MANSION ( ! RI*2 HE W\LD M]ELY LEAVE ONE COM=TABLE & VIRTU\S HOME = ANO!R ( LIKE *>ACT]1 ,9 A FAMILY SITUAT$ 9 PECUNI>Y RESPECTS MU* LIKE HIS [N1 & ,9 :I* HE W\LD BE AN EQUAL & RESPECT$1 P]HAPS *]I%$ MEMB]1 9/EAD ( A M5IAL & AN \TCA/4 ,9 SU* A SITUATION HIS MORALS W\LD BE MU* MORE SAFE ?AN :5 DRIV5 BY POV]TY 9TO A S]VILE & LONELY CONDITION1 :]E HE W\LD MEET NO SYMPA?Y FROM ! FAMILY ) :I* HE LIV$1 & F9D NO VIRTU\S COMPANION%IP TO KEEP HIM FROM VISE4 

,?AT G5]AL EQUALITY ( CONDITION1 & ?AT PECUNI>Y 9DEP5D5CE1 :I* %\LD 5ABLE P>5TS ALWAYS TO RO> !IR *ILDR5 AT HOME1 OR :I* %\LD M]ELY SAVE !M FROM ! NECESSITY ( PLAC+ !M ABROAD1 EXCEPT 9 SITUATIONS & FAMILIES :]E ! WANT ( P>5TAL K9DNESS & WAT*FULNESS W\LD BE1 9 SONIC GOOD MEASURE1 SUPPLI$ TO !M1 W\LD SAVE ALMO/ C\NTLESS MULTITUDES ( ! Y\? ( BO? SEXES FROM ! RU9 ?AT N[ OV]TAKES ! NEGLECT$ & \TCA/ *ILDR5 ( POV]TY4 

,BUT ! SY/EM PROPOS$ W\LD PROMOTE *A/ITY ,9 /ILL ANO!R1 & P]HAPS EV5 MORE EFFECTUAL WAY1 TO WIT1 BY MAK+ M>RIAGE NE>LY UNIV]SAL1 & BY 9DUC+ IT 9 E>LY LIFE4 ,CELIBACY IS ! GREAT CAUSE ( LIC5TI\SNESS4 ,IF ALL M5 W]E TO BE M>RI$ 9 E>LY LIFE1 !RE W\LD BE V]Y LITTLE LIB]T9ISM-= AL?\< LIB]T9ISM N[ 9VADES M>RI$ LIFE1 IT DOES NOT ORIG9ATE !RE4 ,ITS PR9CIPAL S\RCE IS 9 ! UNNATURAL & SOLIT>Y /ATE ( L>GE NUMB]S ( BO? SEXES4 ,! SEXES >E SO NE>LY EQUAL 9 NUMB] ?AT IF ALL ( EI!R SEX W]E M>RI$1 !RE W\LD NOT1 BE 5\< ( ! O!R LEFT UNM>RI$ TO GIVE RISE TO ANY G5]AL PR(LIGACY4 

,! DESIRE ( MATRIMONY IS SO /RONG & UNIV]SAL1 AMID MANIFE/S ITSELF SO E>LY 9 LIFE1 ?AT NE>LY ALL W\LD BE M>RI$ AT AN E>LY AGE1 IF !IR PECUNI>Y CIRCUM/ANCES W\LD ADMIT ( IT4 ,! CAUSES1 ( A PECUNI>Y NATURE1 ?AT PREV5T UNIV]SAL & E>LY M>RIAGES1 >E !SE3 

#a4 ,Y\NG M5 CANNOT E/ABLI% !MSELVES 9 BUS9ESS ( !IR [N1 IMM$IATELY ON ATTA9+ !IR MAJORITY1 BECAUSE !Y CANNOT OBTA9 CAPITAL ON :I* TO EMPLOY !IR LABOR4 ,UNTIL !Y CAN OBTA9 CAPITAL1 & ?US E/ABLI% !MSELVES1 !Y DO NOT WI% TO M>RY1 BECAUSE !IR /ATION 9 SOCIETY WILL NOT BE AGREEABLE1 OR BECAUSE !IR 9COME1 :ILE LABOR+ = O!RS1 WILL NOT GIVE !M A SUFFICI5T SUPPORT4 ,BUT IF FRE$OM 9 BANK+1 & FRE$OM 9 ! RATE ( 9T]E/1 & ! PRIOR RI<T ( ! PRIOR CR$ITOR TO ! PROP]TY ( ! DEBTOR1 W]E RECOGNIZ$ AS LAW1 !RE W\LD BE NO DIFFICULTY 9 A Y\NG MAN'S BORR[+ CAPITAL 5\< TO EMPLOY HIS [N H&S UPON2 & HIS BE+ M>RI$ W\LD IMPROVE1 9/EAD ( 9JUR+ HIS *ANCE ( OBTA9+ IT2 BECAUSE HIS BE+ M>RI$ W\LD AF=D HIS CR$ITOR AN ADDITIONAL GU>ANTEE = HIS 9DU/RY1 ECONOMY1 & MORALITY4 ,O!R ?+S BE+ EQUAL1 A M>RI$ MAN CAN ALWAYS OBTA9 BO? CR$IT & EMPLOYM5T1 9 PREF]5CE TO AN UNM>RI$ ONE4 

#b4 ,M5'S =TUNES1 9 ! PRES5T /ATE ( ?+S1 >E SO PREC>I\S-!RE IS SO MU* DANG] ?AT A MAN1 :O IS 9 COM=TABLE CIRCUM/ANCES TO-DAY1 MAY1 BY SONIC ( ! HAZ>DS ( TRADE1 LOSE HIS PROP]TY TO-MORR[2 & NOT ONLY LOSE IT1 BUT BE LEFT ) A DEBT UPON HIM1 :I* WILL BE A *>GE UPON HIS FUTURE E>N+S1 & AN OB/ACLE 9 ! WAY ( HIS BORR[+ ! CAPITAL NECESS>Y TO MAKE HIS 9DU/RY LUCRATIVE-!RE >E SO MANY DANG]S ( ?IS K9D1 ?AT A PRUD5T MAN D>E NOT M>RY UNTIL HE HAS ACCUMULAT$1 AS HE ?9KS1 PROP]TY 5\< TO PROTECT HIM1 TO SOME REASONABLE EXT5T1 AGA9/ ! *ANCES ( MIS=TUNE1 LIE !RE=E LIVES UNM>RI$ = YE>S SOLELY TO MAKE ?IS ACCUMULATION4 ,BUT IF ! OBLIGATION ( DEBTS ATTA*$ ONLY TO ! PROP]TY ?AT A MAN %\LD HAVE :5 HIS DEBT %\LD BECOME DUE1 & NOT TO HIS E>N+S AFT]W>DS1 SO ?AT HE %\LD ALWAYS ACQUIT HIMSELF ( HIS DEBTS BY PAY+ TO ! EXT5T ( HIS MEANS1 ?IS DANG] ( BE+ OV]:ELM$ 9 DEBT & CONSEQU5T POV]TY1 W\LD BE REMOV$4 ,HE W\LD KN[ ?AT HE C\LD ALWAYS BE AT LEA/ A FREE MAN1 IF NOT A RI* ONE2 & ?AT HE C\LD ALWAYS BE SURE AT LEA/ ( HIS E>N+S = ! SUPPORT ( HIS FAMILY2 & ?AT4 IF HE C\LD GET CAPITAL1 7AS HE C\LD UND] ! SY/EM PROPOS$17 SUFFICI5T TO EMPLOY HIS [N H&S UPON1 HE C\LD ALWAYS SUPPORT !M 9 A CONDITION ( RESPECTABILITY4 

#c4,A ?IRD MOTIVE1 ) MANY P]SONS1 = PO/PON+ MATRIMONY1 IS ! DESIRE ( FIR/ ACCUMULAT+ SUFFICI5T WEAL? TO 5ABLE !M TO MA9TA9 A DOME/IC E/ABLI%M5T ( SU* ELEGANCE & CO/ AS WILL BR+ !M )9 ! CA/E OR CIRCLE DI/+UI%$ BY WEAL? & DISPLAY4 ,BUT IF ! SY/EM PROPOS$ W]E C>RI$ 9TO EFFECT1 IT W\LD PRODUCE SU* A COMP>ATIVE EQUALITY 9 M5'S CONDITIONS1 ?AT !RE W\LD BE NO RANK OR CA/E F\ND$ ON SU* DI/9CTIONS2 AMID ?US ?IS MOTIVE TO ! PO/PONEM5T ( M>RIAGE W\LD LIE REMOV$4 

,?US ! V>I\S MOTIVES1 ( A PECUNI>Y NATURE1 :I* N[ OP]ATE TO DISSUADE OR DET] M5 FROM E>LY MATRIMONY1 W\LD HE1 9 A GREAT MEASURE1 REMOV$ BY ! SY/EM PROPOS$2 & ! MORALS ( SOCIETY W\LD BE V]Y GREATLY PURIFI$ BY ! *ANGE4 

,UND] ! PRES5T SY/EM1 WE SEE SOCIETY AGITAT$ BY ! EF=TS ( 9DIVIDUALS1 ASSOCIATIONS1 & ( SOCIETY AT L>GE1 TO *ECK ! SEV]AL CRIMES1 FRAUDS1 & VISES1 ?AT HAVE N[ BE5 5UM]AT$1 AMID ?AT SEEM SOMETIMES TO ?REAT5 ALL HUMAN VIRTUE4 ,LEGISLATURES1 C\RTS1 PRISONS1 *UR*ES1 S*OOLS1 & MORAL ASSOCIATIONS ( ALL SORTS1 >E SU/A9$ AT AN IMM5SE CO/ ( TIME1 LABOR1 TAL5T1 & MONEY4 ,YET !Y ONLY MITIGATE1 !Y DO NOT CURE ! DISEASE4 ,& LIKE ALL O!R EF=TS TO CURE DISEASES1 )\T REMOV+ ! CAUSE1 !Y MU/ ALWAYS BE 9ADEQUATE TO ! 5D 9 VIEW4 ,! CAUSES ( VISE1 FRAUD1 & CRIME1 TO WIT1 EXCESSIVE WEAL? AMID EXCESSIVE POV]TY1 MU/ BE REMOV$1 BE=E SOCIETY CAN BE GREATLY *ANG$4 ,JU/ 9 PROPORTION1 OR V]Y NE>LY 9 PROPORTION1 AS !SE CAUSES >E REMOV$1 WILL ! IGNORANCE1 ! VISES1 ! FRAUDS1 & ! CRIMES ( ALL SORTS NATURALLY RESULT+ FROM !M1 DISAPPE>4 

,9TELLECTUAL ,RESULTS4 ,! 9TELLECTUAL ADVANCEM5T ( SOCIETY W\LD BE IMM5SELY PROMOT$ BY ! ADOPTION ( ! SY/EM PROPOS$4 ,TO BE CONV9C$ ( ?IS1 WE HAVE ONLY TO CONSID] ! FOLL[+ FACTS3 

#a4 ,! M5TAL 9DEP5D5CE ( EA* 9DIVIDUAL W\LD BE GREATLY PROMOT$ BY HIS PECUNI>Y 9DEP5D5CE4 ,FRE$OM ( ?\<T1 & ! FREE UTT]ANCE ( ?\<T1 >E1 TO A GREAT DEGREE1 SUPPRESS$1 ON ! P>T ( A L>GE PORTION ( ! POEM 9 ALL C\NTRIES1 BY !IR DEP5D5CE UPON ! WILL AMID FAVOR ( O!RS1 = ?AT EMPLOYM5T BY :I* !Y MU/ OBTA9 !IR DAILY BREAD4 ,!Y D>E NOT 9VE/IGATE1 OR IF !Y 9VE/IGATE1 D>E NOT FREELY AV[ AMID ADVOCATE ?OSE MORAL1 SOCIAL1 RELIGI\S1 POLITICAL1 & ECONOMICAL TRU?S1 :I* ALONE CALM RESCUE !M FROM !IR DEGRADATION1 LE/ !Y %\LD !REBY SACRIFICE !IR BREAD BY /IRR+ ! JEAL\SY ( ?OSE \T :OM !Y >E DEP5D5T1 AMID :O D]IVE !IR P[]1 WEAL?1 & CONSEQU5CE FRONT ! IGNORANCE & S]VITUDE ( ! POOR4 

#b4 ,! MASS ( ! POOR 9 ALL C\NTRIES HAVE BUT LITTLE LEISURE1 OR MEANS1 OR OPPORTUNITY = 9TELLECTUAL CULTIVATION4 ,:]EV] CAPITAL IS 9 ! H&S ( ! FEW1 ! COMPETITION = EMPLOYM5T AMONG LABOR]S BECOMES SO GREAT AS TO R$UCE ! PRICE ( LABOR TO A SUM ?AT WILL GIVE ! LABOR] BUT A MEAN & WRET*$ SUBSI/5CE 9 RETURN LOT- ! SEV]E/ TOIL ( :I* HIS BODY IS CAPABLE4 ,UND] !SE CIRCUM/ANCES1 9TELLECTUAL CULTURE1 TO ANY CONSID]ABLE EXT5T1 BECOMES IMPOSSIBILITY4 ,EV5 ! DESIRE ( IT IS 9 A GREAT MEASURE CRU%$1 & BUT FEEBLY ANIMATES ! BREA/ ( ! MASS ( !M4 ,!IR ?\<TS >E CONF9$1 BY ! PRESSURE ( !IR PHYSICAL NECESSITIES1 ALMO/ :OLLY TO ! QUE/IONS ( :AT !Y %AH EAT1 & H[ !Y %ALL LIVE4 

,:5 IT IS CONSID]$ H[ L>GE A PORTION ( ! HUMAN RACE HAVE 9 ALL AGES BE5 ?9S CONDEMN$1 BY EXTREME POV]TY1 TO AN ALMO/ BRUTI% & M]ELY ANIMAL EXI/5CE2 ?AT !IR M9DS W]E1 NEV]!LESS1 NATURALLY SUSCEPTIBLE ( ! SAME CULTIVATION AMID DEVELOPM5T AS ?OSE O!R M9DS ?AT HAVE BE5 CULTIVAT$ & DEVELOP$2 ?AT !Y NE$$1 = !IR GR[?1 BUT SU* AN OPPORTUNITY AS ALL MI<T HAVE 5JOY$1 IF EA* MAN C\LD HAVE CONTROLL$ HIS [N LABOR1 & POSSESS$ ITS FRUITS2 ?AT !IR 9TELLECTS1 ?US 5LI<T5$1 W\LD HAVE CONTRIBUT$ !IR %>E1 EQUALLY ) O!RS1 TO ! G5]AL PROGRESS ( KN[L$GE2 ?AT AMONG !M MU/ HAVE BE5 A DUE PROPORTION ( SUP]IOR M9DS1 CAPABLE ( BECOM+ DISCOV]]S 9 SCI5CE1 9V5TORS 9 ! >TS1 AMID TEA*]S 9 MORALS1 RELIGION1 & LAW2 :5 WE CONSID] !SE FACTS1 WE CANNOT 5TIRELY %UT \T ! IDEA1 AL?\< WE CAN =M NO ADEQUATE IDEA1 ( :AT ! WORLD MI<T N[ HAVE BE51 IF SO L>GE A PORTION ( ITS 9TELLECTUAL LI<T HAD NOT BE5 ?US NE$LESSLY & WICK$LY EXT+UI%$4 

#c4 ,! SY/EM PROPOS$ W\LD SPE$ILY RESULT 9 ! UNIV]SAL $UCATION ( *ILDR54 ,! UNIV]SAL $UCATION ( *ILDR5 CAN1 9 ! FUTURE ( ?+S1 NEV] BE ACCOMPLI%$ EXCEPT ?R\< ! UNIV]SAL ABILITY ( P>5TS TO PROVIDE ! MEANS ( $UCAT+ !IR [N *ILDR5 RESPECTIVELY4 ,9 SOME SNAIL PORTIONS ( ! MO/ CIVILIZ$ P>TS ( ! WORLD1 $UCATIONAL SY/EMS HAVE BE5 E/ABLI%$1 :I* GIVE KN[L$GE TO ! *ILDR5 ( ! POOR1 AT ! PUBLIC EXP5SE4 ,YET UND] !SE SY/EMS *ILDR5 >E BUT P>TIALLY & POORLY $UCAT$1 9 COMP>ISON ) :AT !Y W\LD BE1 IF ALL P>5TS W]E ABLE TO MEET ! NECESS>Y EXP5SES ( $UCAT+ !IR [N *ILDR54 ,!SE SY/EMS TOO1 DEFECTIVE & 9ADEQUATE AS !Y >E1 PREVAIL 9 BUT SMALL DI/RICTS ( ! WORLD2 & IF EXT5D$ AT ALL1 CAN BE EXT5D$ BUT SL[LY4 ,MOREOV] !Y >C BUT ! UNNATURAL & =C$ PRODUCTIONS ( AN UNNATURAL /ATE ( SOCIETY1 CONSEQU5T ON ! UNNATURAL DI/RIBUTION ( WEAL?4 ,!Y M]ELY CON/ITUTE ONE ( ! REM$IES1 BY :I* GOV]NM5T ATTEMPTS TO MITIGATE ! EVILS ( ITS [N 9JU/ICE1 TO WIT1 ! EVILS ( ?AT MONOPOLIZ+ LEGISLATION1 BY :I* !Y KEEP CAPITAL 9 ! H&S ( ! FEW2 DEPRIVE ! MANY ( !IR RI<T TO LABOR 9DEP5D5TLY = !MSELVES2 ROB !M ( ! FRUITS ( !IR LABOR2 & ?US R5D] IT IMPOSSIBLE = !M TO $UCATE !IR *ILDR54 ,SU* BE+ ! *>ACT] ( PUBLIC SY/EMS ( $UCATION1 !IR P]PETUITY CANNOT BE RELI$ ON2 NOR CAN IT EV5 BE ADVOCAT$1 EXCEPT ON ! SUPPOSITION ?AT A L>GE1 OR AT LEA/ SOME:AT CONSID]ABLE1 PORTION ( ! PEOPLE >E ALWAYS 7CM REMA9 TOO POOR TO $UCATE !IR [N (FSPR+4 ,& IF !Y CANNOT BE RELI$ ON AS P]MAN5T 9/ITUTIONS :]E !Y ALREADY EXI/1 /ILL LESS CAN !Y BE LOOK$ TO AS ! MEANS BY :I* ! WORLD AT L>GE IS OV] TO BE UNIV]SALLY $UCAT$4 ,! UNIV]SAL $UCATION ( *ILDR5 CAN1 9 ! NATURE ( ?+S1 NEV] COME FROM ANY O!R S\RCE !N ! UNIV]SAL ABILITY ( P>5TS TO PROVIDE = !IR $UCATION4 ,& ?IS UNIV]SAL ABILITY ( P>5TS CAN COME FROM NO O!R S\RCES ?AN !IR LIB]TY TO LABOR2 !IR LIB]TY TO BORR[ CAPITAL ON :I* TO LABOR2 & !IR LIB]TY ?US TO SECURE TO !MSELVES ALL ! LEGITIMATE FRUITS ( !IR LABOR4 

#d4 ,! 9TELLECT ( SOCIETY W\LD BE MU* BETT] DIRECT$1 T9D] ! SY/EM PROPOS$1 ?AN UND] ANY ?AT HAS EV] EXI/$4 ,IT W\LD BE DIRECT$ MORE TO ! S]VICE & IMPROVEM5T ( MAN1 AS MAN2 & LESS TO ! AGGR&IZEM5T ( ONE PORTION ( MANK9D1 AT ! EXP5SE ( ! O!R PORTIONS1 ?AN IT IS1 OR EV] HAS BE5 UND] SY/EM :]E WEAL? & P[] >E DI/RIBUT$ BY >BITR>Y1 9/EAD ( NATURAL & EQUAL LAWS4 ,?IS SY/EM W\LD PRES5T NO SU* GREAT PRIZES1 EI!R ( WEAL? OR P[]1 AS >E PRES5T$ BY EXI/+ SY/EMS1 TO TEMPT ! AV>ICE & AMBITION ( ?OSE /RONG] M9DS1 ?AT HAVE GREAT CAPACITIES = BO? GOOD & EVIL1 & ?AT G5]ALLY FOLL[ GOOD OR EVIL ACCORD+ TO ! RESPECTIVE 9FLU5CES ( EA* UPON !IR [N ELEVATION4 ,! SY/EM PROPOS$ W\LD BR+ SU* M5 D[N V]Y NE>LY TO ! SAME SOCIAL1 POLITICAL1 & PECUNI>Y LEVEL ) ! MASS ( M52 & PLACE 5TIRELY BEYOND !IR REA* & !IR HOPES ?OSE GREAT =TUNES1 & ?AT GREAT POLITICAL P[]1 :I* CAN N[ BE OBTA9$1 & :I* CAN ONLY BE OBTA9$1 BY MOANS ( ?OSE >BITR>Y POLITICAL >RANGEM5TS ?AT PRODUCE A CORRESPOND+ POV]TY & SUBJECTION ON ! P>T ( ! MASSES4 

,SO LONG AS SOCIETY1 OR ITS 9/ITUTIONS1 (F] A FEW GREAT PRIZES1 EI!R ( WEAL? OR P[]1 = ! ACQUISITION ( ANY ONE1 SO LONG MANY ( ! MORE P[]FUL M9DS WILL BE 5GROSS$ 9 ! PURSUIT ( 7ITEM4 ,UNABLE TO OBTA9 !M1 79ASMU* AS !Y >E 9 !IR NATURE UNATTA9ABLE17 CONSI/5TLY ) ! EQUAL RI<TS ( ALL1 !Y WILL PROPOSE TO SECURE !M BY SACRIFIC+ ! RI<TS ( A P>T1 & %>+ ! SPOILS ) !IR ADH]5TS1 BY MEANS ( P>TIAL & MONOPOLIZ+ LEGISLATION4 ,?US !IR CONTE/S ) EA* O!R WILL BE MADE TO 9VOLVE ! 9T]E/S1 WELF>E1 & RI<TS ( EV]Y O!R TITAN-= EV]Y O!R MAN IS TO BE MADE EI!R A VICTIM OR A B5EFICI>Y ( SOME ONE OR MORE ( ! V>I\S S*EMES PROPOS$ BY ! DIFF]5T COMPETITORS4 ,?US NE>LY EV]Y 9DIVIDUAL M9D 9 ! COMMUNITY BECOMES OCCUPI$1 NECESS>ILY OCCUPI$1 AS A P>TY 9T]E/$1 ON ONE SIDE OR ! O!R1 9 !SE /RIFES1 :]E P[] & PLUND] >E ! OBJECTS ( ! ASSAILANTS1 & DEF5SE & RETALIATION ! OBJECTS ( ! ASSAIL$4 ,SU* CONTE/S NOT ONLY NECESS>ILY SUSP5D1 TO A GREAT DEGREE1 ALL ?OSE LABORS & /UDIES ?AT REALLY ADVANCE MAN AS AN 9TELLECTUAL & MORAL BE+1 OR PROMOTE ! IMP>TIAL WELF>E ( ! RACE1 BUT !Y ACTUALLY DIV]T A VA/ MASS ( M9D 9TO PURSUITS - ( MONOPOLY & W> - ?AT HAVE = !IR OBJECTS1 9JURY AMID DE/RUCTION TO MANK9D AT L>GE4 ,MU* ( ! 9TELLECT ( SOCIETY1 T9D] SU* CIRCUM/ANCES1 IS NOT M]ELY WA/$1 AS REG>DS PURPOSES REALLY B5EFICIAL TO ALL MANK9D2 IT IS WORSE ?AN WA/$2 IT IS EX]T$ = PURPOSES ( POSITIVE DETRIM5T & 9JURY4 

,SU* SELFI%1 ABSORB+1 & DE/RUCTIVE AGITATIONS C\LD EVID5TLY F9D NO PLACE UND] 9/ITUTIONS1 :I*1 9/EAD ( (F]+ DAZZL+ PRIZES TO ! FEW1 %\LD1 ON ! CONTR>Y1 SECURE TO EA* 9DIVIDUAL1 )\T DISCRIM9ATION1 ! FULL 5JOYM5T ( HIS RI<T TO LABOR1 TO HIRE CAPITAL ON :I* TO LABOR1 & TO HOLD ALL ! LEGITIMATE FRUITS ( HIS LABOR4 ,! MASS ( M51 UND] SU* CIRCUM/ANCES1 C\LD NOT BE )DRAWN FROM ! QUIET 5JOYM5T ( !IR JU/ & NATURAL RI<TS1 & ! PURSUIT ( !IR HI<E/ 9T]E/S1 TO 5LI/1 AS !Y N[ DO1 AS M]C5>IES UND] ! LEAD ( AMBITI\S1 RAPACI\S1 & UNPR9CIPL$ M51 OR TO L5D !MSELVES AS TOOLS III !IR 9IQUIT\S 5T]PRISES ( AV>ICE & AGGR&IZEM5T4 ,AMBITION1 !RE=E1 = WANT ( TROOPS1 IF = NO O!R REASON1 W\LD BE OBLIG$ TO AB&ON ITS W> UPON ! EQUAL RI<TS ( M52 & TO APPLY ITSELF TO A*IEVEM5TS ?AT PROMISE GOOD1 9/EAD ( EVIL1 TO MAN 9 ! AGGREGATE4 ,?US PREEM95T M9DS1 ?AT >E N[ EMPLOY$ & EXHAU/$ 9 ! PROJECTION & EXECUTION ( GREAT PLANS ( RAPACITY & P[]1 9 FI]CE /RUGGLES = ! ELEVATION ( ! FEW1 & ! CORRESPOND+ PRO/RATION ( ! MANY1 W\LD BE DRIV51 BY A SORT ( MORAL NECESSITY1 TO SEEK MORE PEACEFUL EMPLOYM5TS4 ,& !SE O!R EMPLOYM5TS W\LD G5]ALLY BE ( SU* PHILOSOPHICAL1 SCI5TIFIC1 OR LIT]>Y K9DS1 AS ACTIVE M9DS DELI<T 91 & SU* AS CONDUCE TO ! PHYSICAL1 9TELLECTUAL1 OR MORAL ADVANCEM5T ( ! HUMAN FAMILY AT L>GE4 ,& MANK9D AT L>GE1 BE+ ?US RELIEV$ FROM MANY ( ?OSE TURBUL5T COLLISIONS1 :I* N[ 9FLAME !IR PASSIONS1 & P]V]T !IR JUDGM5TS1 & HAV+ MORE LEISURE & QUIET = 9TELLECTUAL PURSUITS1 W\LD RAPIDLY ACQUIRE A MORE HUMANE & 9TELLECTUAL *>ACT]4 

,POLITICAL ,RESULTS4 ,IF ! SEV]AL PROPOSITIONS /AT$ 9 *APT] SECOND1 W]E RECOGNIZ$ AS LAW1 & IF !IR EFFECTS UPON ! PECUNI>Y CONDITIONS ( M5 %\LD BE SU* AS IT IS H]E CLAIM$ !Y W\LD BE1 ! ONLY TRUE & RI<TFUL 5DS ( ALL POLITICAL 9/ITUTIONS1 SO F> AS !Y RELATE TO MAN'S PECUNI>Y CONDITIONS1 W\LD SEEM TO BE V]Y #hNE>LY ACCOMPLI%$4 ,= :AT RI<TFUL OBJECTS HAVE POLITICAL 9/ITUTIONS1 9 REF]5CE TO PECUNI>Y MATT]S1 BEYOND ?AT ( SECUR+ TO EA* 9DIVIDUAL ! FREE EX]CISE ( HIS NATURAL RI<T TO ACQUIRE ALL HE CAN BY HONE/ & MORAL MEANS1 & ( HIS RI<T TO ! CONTROL & DISPOSITION ( ALL HIS HONE/ ACQUISITION'S ,EA* MAN HAS ! NATURAL RI<T TO ACQUIRE ALL HE HONE/LY CAN1 & TO 5JOY & DISPOSE ( ALL ?AT HUE HONE/LY ACQUIRES2 & ! PROTECTION ( !SE RI<TS IS ALL ?AT ANY ONE HAS A RI<T TO ASK ( GOV]NM5T 9 RELATION TO !M4 ,IT IS ALL ?AT HE CAN HAVE1 CONSI/5TLY ) ! EQUAL RI<TS ( O!RS4 ,IF GOV]NM5T GIVE ANY 9DIVIDUAL MORE ?AN ?IS1 IT CAN DO IT ONLY BY TAK+ IT FROM O!RS4 ,IT1 !RE=E1 9 DO+ SO1 ONLY ROBS ONE ( A PORTION ( HIS NATURAL1 JU/1 & EQUAL RI<TS1 9 ORD] TO GIVE TO ANO!R MORE ?AN HIS NATURAL1 JU/1 & EQUAL RI<TS4 ,TO DO ?IS1 IS ( ! V]Y ESS5CE ( TYRANNY4 ,& :E!R IT BE DONE BY MAJORITIES1 OR M9ORITIES1 BY ! SWORD1 ! /ATUTE1 OR ! JUDICIAL DECISION1 IT IS EQUALLY & PURELY USURPATION1 DESPOTISM1 & OPPRESSION4 

,LABOR IS ONE ( ! MEANS1 :I* EV]Y MAN HAS A NATURAL RI<T TO EMPLOY = ! ACQUISITION ( PROP]TY4 ,BUT 9 ORD] ?AT A MAN MAY 5JOY HIS NATURAL RI<T TO LABOR1 & TO ACQUIRE ALL ! PROP]TY ?AT LIE HONE/LY CAN BY IT1 IT IS 9DISP5SABLE ?AT HE 5JOY FULLY & FREELY HIS NATURAL RI<T TO MAKE CONTRACTS2 = IT IS ONLY BY CONTRACT ?AT HE CAN PROCURE CAPITAL ON :I* TO BE/[ HIS LABOR4 ,& 9 ORD] ?AT HE MAY OBTA9 CAPITAL ( ! BE/ POSSIBLE T]MS1 IT IS 9DISP5SABLE ?AT HIS NATURAL RI<T ( CONTRACT BE 5TIRELY MM RE/RICT$ BY ANY >BITR>Y LEGISLATION2 ALSO ?AT ALL ! CONTRACTS HUE MAKES HE HELD OBLIGATORY FULLY TO ! EXT5T1 & ONLY TO ! EXT5T1 TO :I*1 ACCORD+ TO NATURAL LAW1 !Y CALM BE B9D+4 

,BUT NE>LY ALL ! POSITIVE LEGISLATION1 ?AT HAS EV] BE5 HAD 9 ?IS C\NTRY1 EI!R ON ! P>T ( ! G5]AL OR /ATE GOV]NM5TS1 T\*+ MAN'S RI<T TO LABOR1 OR !IR RI<T TO ! FRUITS ( !IR LABOR1 OR !IR RI<TS ( CONTRACT-:E!R SU* LEGISLATION HAS HAD REF]5CE DIRECTLY TO BANKS & BANK+1 TO ! RATES ( 9T]E/1 TO 9SOLV5CY & BANKRUPTCY1 TO ! DI/RIBUTION ( ! DEBTOR'S EFFECTS AMONG HIS CR$ITORS1 OR TO ! OBLIGATION OR 5=CEM5T ( CONTRACTS - NE>LY ALL HAS BE5 M]ELY AN ATTEMPT TO SUB/ITUTE >BITR>Y = NATURAL LAWS2 TO ABOLI% M5'S NATURAL RI<TS ( LABOR1 PROP]TY1 & CONTRACT1 & 9 !IR PLACE E/ABLI% MONOPOLIES & PRIVILEGES2 TO CREATE EXTREMES 9 BO? WEAL? & POV]TY2 TO OBLIT]ATE ! ET]NAL LAWS ( JU/ICE & RI<T1 & SET UP ! NAK$ WILL ( AV>ICE & P[]2 9 %ORT1 TO ROB ONE PORTION ( MANK9D ( !IR LABOR1 OR ! FRUITS ( !IR LABOR1 & GIVE ! PLUND] TO ! O!R PORTION4 

,SOME ( ?IS LEGISLATION HAS PROBABLY BE5 ! RESULT ( >T IGNORANCE ( NATURAL LAW2 BUT V]Y MU* ( IT HAS UND\BT$LY BE5 ! RESULT ( DELIB]ATE DESIGN4 

,! SY/EM PROPOS$ W\LD TAKE M5'S PECUNI>Y 9T]E/S1 9 A GREAT MEASURE1 \T ( ! H&S ( ! LEGISLATIVE BRAN* ( ! GOV]NM5T1 & LEAVE !M TO RE/ IMPORT IMMUTABLE PR9CIPLES ( NATURAL LAW1 TO BE ASC]TA9$ BY ! JUDICI>Y4 ,IF ?IS W]E ACCOMPLI%$1 ! 0NATURAL1 9H]5T1 & 9ALI5ABLE RI<T ( 9DIVIDUALS TO ACQUIRE1 POSSESS1 & DISPOSE ( PROP]TY10 W\LD !N HAVE AT LEA/ A SEMBLANCE ( REALITY 9 ACTUAL LIFE2 & W\LD CEASE TO BE TREAT$1 AS IT N[ IS1 AS A M]E PRIVILEGE TO BE 5L>G$1 CONTRACT$1 OR UTT]LY )HOLD51 AS ?OSE :O ADM9I/] ! GOV]NM5T MAY >BITR>ILY DICTATE4 ,BUT SO LONG AS ?IS RI<T IS ADMITT$ TO HE A SUBJECT ( >BITR>Y LEGISLATION1 SO LONG IT WILL BE P]PETUALLY 9FR+$1 9VAD$1 & D5I$1 BY 9NUM]ABLE LEGISLATIVE DEVICES ( ! CUNN+ >ID ! /RONG1 :I* A L>GE PORTION ( SOCIETY1 ! IGNORANT1 ! WEAK1 & ! POOR1 CAN NEI!R F]RET \T1 NOR RESI/4 

,IF ! JUDICI>Y %\LD ASS]T & MA9TA91 7AS !Y >E CON/ITUTIONALLY B\ND TO DO17 ! NATURAL RI<T ( ALL M5 TO ACQUIRE1 POSSESS1 & DISPOSE ( PROP]TY1 9 ACCORDANCE ) ! PR9CIPLES ( NATURAL LAW1 !Y W\LD DO SU* A DE$ = FRE$OM1 HUMANITY1 & RI<T1 AS HAS NEV] YET BE5 DONE S9CE GOV]NM5T WAS 9/ITUT$4 ,& :Y DO !Y NOT DO IT8 ,MANY1 IF NOT ALL \R /ATE CON/ITUTIONS DECL>E1 EI!R 9 =M OR SUB/ANCE1 ?AT 0! RI<T TO ACQUIRE1 POSSESS1 TIMID DISPOSE ( PROP]TY1 IS A NATURAL1 9H]5T1 AMID 9ALI5ABLE RI<T40 ,! LEGAL AU?ORITY ( ?IS CON/ITUTIONAL DECL>ATION1 IS TO PROHIBIT & ANNUL ALL LEGISLATIVE 5ACTM5TS :ATSOEV]1 ?AT W\LD 9FR+E ! RI<T ( ANY 9DIVIDUAL TO ACQUIRE & DISPOSE ( PROP]TY ON ! PR9CIPLES ( NATURAL LAW4 ,?IS PR9CIPLE MAY NOT1 P]HAPS1 BE DI/9CTLY ASS]T$ 9 ALL \R /ATE CON/ITUTIONS2 BUT IT IS1 NEV]!LESS1 EV]Y:]E LAW2 LAW1 BY AN ,9F9ITELY HI<] AU?ORITY ?AN CON/ITUTIONS & /ATUTES4 ,! RI<T1 7:E!R PRACTICALLY ACKN[L$G$1 OR NOT17 IS AN 09H]5T1 ESS5TIAL1 9ALI5ABLE RI<T0 ( HUMAN NATURE3 IT IS ! NATURAL & NECESS>Y RI<T ( PROVID+ = ONE'S [N SUBSI/5CE2 & CAN NO ,IMMURE BE SURR5D]$ TO GOV]NM5T1 7:I* IS BUT AN ASSOCIATION ( 9DIVIDUALS17 ?AN TO A S+LE 9DIVIDUAL4 ,IT IS1 !RE=E1 9 ! NATURE ( ?+S1 IMPOSSIBLE ?AT ANY GOV]NM5T CAN HAVE ! RI<T1 7H[EV] IT MAY HAVE ! P[]17 TO 9FR+E IT4 ,:Y1 !N1 DO NOT ! JUDICI>Y SU/A9 ?IS PR9CIPLE1 & ANNUL ALL ! >BITR>Y LEGISLATION AGA9/ BANK+8 AGA9/ P>TICUL> RATES ( 9T]E/8 & ALL ! O!R LEGISLATION1 BY :I* 9DIVIDUALS >E DEPRIV$ ( !IR NATURAL RI<T TO MAKE CONTRACTS1 NATURALLY LAWFUL1 = ! ACQUISITION & DISPOSAL ( PROP]TY8 & BY :I* A FEW MONOPOLI/S >E 5ABL$ TO CONTROL SO L>GE A PORTION ( ! LABOR & CAPITAL ( ! COMMUNITY8 ,IS ! REASON TO BE F\ND 9 !IR IGNORANCE8 !IR C[>DICE8 !IR BIGOTRY8 OR 9 !IR CORRUPT SUBS]VI5CY TO ! O!R DEP>TM5TS ( ! GOV]NM5T1 FROM :OM !Y RECEIVE !IR APPO9TM5TS & SAL>IES1 & TO :OM ALONE !Y >E MADE AM5ABLE = !IR CONDUCT8 

,W]E ! JUDICI>Y TO ASS]T ?IS PR9CIPLE1 7?AT IS1 ! NATURAL RI<T ( M5 TO MAKE ALL CONTRACTS1 ?AT >E 9 !IR NATURE LAWFUL1 = ! ACQUISITION AMID DISPOSAL ( PROP]TY17 AMID C>RY IT \T 9 ALL ITS RAMIFICATIONS1 AS !Y >E MORALLY AMID LEGALLY B\ND TO DO1 GOV]NM5T W\LD NO LONG] BE1 :AT IT N[1 TO A GREAT EXT5T1 EV]Y:]E IS1 AN ORGANIZ$ SY/EM ( PLUND]1 USURPATION1 & TYRANNY1 BY :I* ! 9TELLIG5T1 ! RAPACI\S1 & ! /RONG CONT9UALLY PREY UPON ! IGNORANT1 ! WEAK1 & ! POOR4#e  

,%\LD ! JUDICI>Y EV] TAKE ?IS GR\ND1 GOV]NM5T WILL !N BE R$UC$ TO A V]Y SIMPLE & H>MLESS AFFAIR1 9 COMP>ISON ) :AT IT N[ IS4 ,ALL ?OSE 9NUM]ABLE1 >BITR>Y1 CONFLICT+1 & OV] *ANG+ LEGISLATIVE 5ACTM5TS1 :I* ANNUALLY COME UPON US LIKE VISITATIONS FROM SOME 9C>NAT$ SPIRIT ( AN>*Y AMID 9JU/ICE1 TO ELEVATE1 DEPRESS1 & *ANGE ! RELATIVE VALUES ( DIFF]5T K9DS ( PROP]TY1 7!REBY PUTT+ 9TO ONE SET ( POCKETS =TUNES TAK5 FROM O!RS17 & TO 5L>GE1 DIM9I%1 & D5Y M5'S NATURAL & EQUAL RI<TS ( ACQUIR+ !IR SUBSI/5CE1 WILL !N GIVE PLACE TO JUDICIAL DECISIONS F\ND$ UPON ! UN*ANG+ PR9CIPLES ( NATURAL LAW1 & AFFECT+ UNI=MLY ! RI<TS ( ALL 2 & TO A FEW SIMPLE LEGISLATIVE PROVISIONS = C>RY+ !SE DECISIONS 9TO EFFECT4 

,NO REASONABLE OBJECTION CAN BE MADE TO ?IS DOCTR9E ON ! GR\ND ?AT NATURAL LAW1 9 ITS APPLICATION TO ALL POSSIBLE CASES1 IS NOT ALREADY FULLY & ABSOLUTELY KN[N4 ,IF IT HE NOT1 9 ANY P>TICUL> CASE1 KN[N1 ?AT IS ONLY A REASON :Y IT %\LD BE S\<T AFT]1 & ASC]TA9$1 7BY ! PROP] TRIBUNAL1 ! JUDICI>Y27 & NOT :Y IT %\LD BE >BITR>ILY SET AT DEFIANCE :]E IT IS PLA9 & PALPABLE4 ,! TRU?S ( MA!MATICS >E NOT FULLY KN[N 9 !IR APPLICATION TO ALL POSSIBLE CASES2 YET IS ?AT ANY REASON :Y !Y %\LD NOT BE ADH]$ TO SO F> AS !Y >E KN[N1 OR CAN BE ASC]TA9$8 ,IS IT ANY REASON :Y ! RUL+ P[] ( A /ATE %\LD 9NOVATE UPON MA!MATICAL PR9CIPLES BY LEGISLATION1 & 5ACT ?AT ?REE & F\R %ALL BE C\NT$ AS FIFTE51 & EI<T & SIX AS =TY2 & ?AT ! AM\NT ( M5'S DIMES TO EA* O!R %ALL BE DET]M9$ BY SU* PROCESSES AS !SE8 ,AS MU* REASON W\LD !RE BE 9 SU* A PROC$URE1 AS !RE IS 9 LEGISLATURES ATTEMPT+ TO PRESCRIBE M5'S RI<TS ( PROP]TY1 OR !IR RI<TS TO ! ACQUISITION ( PROP]TY1 9 DEFIANCE ( ! PR9CIPLES ( NATURAL LAW4 ,NATURAL LAW IS ! SCI5CE ( M5'S RI<TS1 AS MA!MATICS IS ! SCI5CE ( NUMB]S & QUANTITIES4 ,IT IS IMPOSSIBLE1 9 ! NATURE ( ?+S1 ?AT M5 CAN HAVE ANY RI<TS1 7EI!R ( P]SON OR PROP]TY17 9 VIOLATION ( NATURAL LAW-= NATURAL LAW IS JU/ICE ITSELF4 ,& JU/ICE IS A SCI5CE1 TO BE LE>N$2 NOT AN >BITR>Y RULE1 TO BE MADE4 ,! NATURE ( JU/ICE CAN NO MORE BE ALT]$ BY LEGISLATION1 ?AN ! NATURE ( NUMB]S CAN BE ALT]$ BY ! SAME MEANS4 

,NATURAL LAW1 9 REG>D TO ALL HUMAN RI<TS1 IS CAPABLE ( BE+ ASC]TA9$ ) NE>LY ABSOLUTE C]TA9TY4 ,!RE >E NO ,GORDIAN KNOTS 9 IT1 ?AT MU/ BE CUT BY LEGISLATION4 ,IT HAS BE5 SAID ) V]Y GREAT REASON1 & PROBABLY ) 5TIRE TRU?1 ?AT NO?+ APPROA*ES SO NE> ! C]TA9TY ( MA!MATICS1 AS ! REASON+S ( ! LAW4 ,SIR ,WILLIAM ,JONES1 A MAN PREEM95TLY LE>N$ 9 ! LAWS ( DIFF]5T NATIONS1 ANCI5T & MOD]N1 SAYS1 0,IT IS PLEAS+ TO REM>K ! SIMIL>ITY1 OR RA!R ID5TITY1 ( ?OSE CONCLUSIONS1 :I* PURE UNBIAS$ REASON1 9 ALL AGES & NATIONS1 SELDOM FAILS TO DRAW1 9 SU* JURIDICAL 9QUIRIES AS >E NOT FETT]$ & MANACL$ BY POSITIVE 9/ITUTIONS40#f 

,! SCI5CE ( JU/ICE1 !N1 IS1 9 ITS NATURE1 C]TA92 & ITS TRU?S >E SUSCEPTIBLE ( BE+ ASC]TA9$1 TO A V]Y GREAT EXT5T1 AS ABSOLUTELY AS ANY O!R TRU?S ( AN AB/RACT NATURE4 ,WE HAVE ALSO1 9 ?IS C\NTRY1 GREAT] FACILITIES = PROGRESS 9 ! SCI5CE ( ! LAW1 7IF LAW W]E SUFF]$ TO RE/ ON NATURAL PR9CIPLES17 ?AN 9 ANY O!R C\NTRY4 ,9DIVIDUAL RI<TS1 ! ONLY BASIS ( NATURAL LAW1 >E ALREADY ACKN[L$G$ TO A GREAT] EXT5T H]E ?AN ELSE:]E4 ,WE HAVE ALSO A L>GE NUMB] ( SEP>ATE /ATES1 EA* HAV+ AIM 9DEP5D5T JUDICATURE4 ,! DECISIONS ( !SE SEP>ATE C\RTS >E CONT9UALLY COM+ UND] EXAM9ATION 9 ALL ! O!RS4 ,IF AN ]ROR IS COMMITT$ BY ONE ( !M1 ?R\< WANT ( 9VE/IGATION1 OR ANY O!R CAUSE1 ! SAME QUE/ION1 :5 IT >ISES 9 ! O!RS1 IS 9DEP5D5TLY & MORE ?OR\<LY SCRUT9IZ$1 & ?US ! TRU? IS NE>LY C]TA9 TO BE ASC]TA9$4 ,! SCI5CE ( ! LAW1 !RE=E1 BUT = ?AT LEGISLATION :I* 9NOVATES UPON IT1 & SETS ALL NATURAL PR9CIPLES AT DEFIANCE1 W\LD BE C>RI$ FUR!R T[>DS P]FECTION 9 ?IS C\NTRY ?AN IT EV] HAS BE5 ELSE:]E4 

,IF1 H[EV]1 ! >BITR>Y COMM&S ( LEGISLATIVE BODIES >E BETTOR /&>DS ( RI<T1 ?AN ! EV]LA/+ PR9CIPLES ( JU/ICE & NATURAL LAW1 :Y >E NOT ! =M] SUB/ITUT$ = ! LATT] 9 ALL CASES :ATSOEV]8 ,:Y DO NOT LEGISLATURES MAKE ?OR\< WORK 9 DEMOLI%+1 OBLIT]AT+1 & ]AS+ EV]Y?+ LIKE NATURAL RI<T8 ,WE HAVE /ILL1 NE>LY :OLE BRAN*ES ( LAW1 ON :I* LEGISLATION HAS NOT YET D>$ TO LAY ITS ,V&AL H&4 ,:Y >E !Y SP>$8 ,IS IT BECAUSE ! UTT] EXT9CTION ( JU/ICE W\LD DEFEAT ! PURPOSES ( RAPACITY ITSELF1 BY NOT ALL[+ M5 TO PRODUCE 5\< TO BE WOR? ! ROBB+8 ,OR IS IT BECAUSE KN[L$GE1 & CONSEQU5T P[]1 HAVE AT L5G? BECOME SO F> DIFFUS$ AMONG ! MASS ( MANK9D1 ?AT NO V]Y CONSID]ABLE PORTION ( !M CAN N[ BE R$UC$ BY ! O!RS TO UNQUALIFI$ S]VITUDE8 

#d4 ,!RE IS1 ( C\RSE1 SOME SYMPA?Y BETWE5 ALL M51 = A COMMON NATURE COMPELS IT2 BUT IT IS NOT QUICK OR /RONG BETWE5 OPPOSITE CLASSES OR /RANG]S1 AS IT IS BETWE5 SIMIL> CLASSES & ACQUA9TANCES4 ,RETURN 

#e4 ,! JUDICI>Y PROBABLY W\LD ASS]T ?IS PR9CIPLE1 ,9 ?IS C\NTRY1 7& UND] A SY/EM ( UNIV]SAL SUFFRAGE !Y W\LD BE SU/A9$ ,9 DO+ IT17 W]E IT NOT ?AT1 BY \R CON/ITUTIONS1 !Y >E PLAC$1 9 A GREAT MEASURE1 BEYOND ! REA* ( EI!R ! APPROBATION OR C5SURE ( ! PEOPLE AT L>GE1 & MADE DEP5D5T UPON1 & ! M]E CREATURES (1 ! V]Y DEP>TM5TS1 :OSE USURPATIONS !Y >E1 9 !ORY1 DESIGN$ TO RE/RA94 ,!Y RECEIVE !IR (FICES & SAL>IES FROM1 & >E MADE AM5ABLE BY IMPEA*M5T SOLELY TO ! O!R DEP>TM5TS2 &1 AS MI<T BE EXPECT$1 !Y S]VILELY & CORRUPTLY SU/A9 ALL !IR >BITR>Y MEASURES1 9 DEFIANCE ( ALL ! MORAL & CON/ITUTIONAL OBLIGATIONS !Y >E REALLY UND] 9 ! PREMISES4 

,AL?\< ! NATURAL RI<TS ( ALL M5 TO ACQUIRE1 POSSESS1 & DISPOSE ( PROP]TY-- :I*1 ( C\RSE1 9VOLVES ! RI<T TO MAKE ALL ! CONTRACTS1 NATURALLY LAWFUL1 BY :I* PROP]TY MAY BE ACQUIR$ OR DISPOS$ (--IS SO CLE>LY ANN\NC$ 9 MO/ ( \R CON/ITUTIONS2 AL?\<1 AS A PR9CIPLE ( NATURAL LAW1 IT IS TOO MANIFE/ TO BE D\BT$1 OR D5I$2 AL?\< ,IT ,IS A RI<T1 9 ITS NATURE VITAL TO ! WELL BE+1 & EV5 TO ! SELF--PRES]VATION ( EV]Y MAN2 & AL?\< ALL \R /ATUTE LOOKS AB\ND ) 5ACTM5TS1 9FR++1 D5Y+1 OR )HOLD+ ?IS RI<T1 ON ! P>T ( A GREAT] OR LESS PORTION ( ! PEOPLE2 IT IS NEV]!LESS H>DLY PROBABLE ?AT A S+LE ONE ( ALL !SE ?\S& 5ACTM5TS HAS EV] YET 5C\NT]$ ! VETO ( ! JUDICI>Y4 ,:AT A SICK5+ PRO( ?IS1 ( ! DEGRADATION1 CORRUPTION1 & S]VILITY ( ?AT BRAN* ( ! GOV]NM5T :I* HOLDS ALL \R RI<TS 91 ITS H&S4 

,! JUDICI>Y %\LD BE MADE 5TIRELY 9DEP5D5T ( ! EXECUTIVE & LEGISLATIVE BRAN*ES ( ! GOV]NM5T4 ,!Y %\LD NEI!R RECEIVE !IR APPO9TM5TS NOR SAL>IES FROM !M2 NOR BE AM5ABLE TO !M BY IMPEA*M5T4 ,WE MI<T !N HOPE ?AT !Y W\LD ACT AS A *ECK UPON !IR USURPATIONS1 9/EAD ( ACT+ AS !Y G5]ALLY DO N[1 AS M]E PIMPS & P&]S TO !M1 L5D+ ! COV]+ ( !IR SANCTION TO HIDE ! CRIMES ( ! LEGISLATURES FROM ! ]A ( ! VICTIMS4 ,JUDGES %\LD HE ELECT$ BY ! PEOPLE2 = %ORT T]MS2 !IR SAL>IES %\LD BE FIX$ BY ! CON/ITUTIONS2 & !Y %\LD BE AM5ABLE1 BY IMPEA*M5T1 TO 9DEP5D5T TRIBUNALS SPECIALLY 9/ITUT$ = ! PURPOSE4 ,!Y %\LD ALSO BE SEP>ATELY *OS5 AS SEP>ATE P]IODS1 & BY SEP>ATE DI/RICTS ( ! PEOPLE -- ?AT NO P>TY H[EV] P[]FUL 9 ! NATION1 OR 9 ! /ATE1 MI<T BE ABLE TO *OOSE ! :OLE ( ! JUDICI>Y4 

,! JUDICI>Y IS ALTOGE!R ! MO/ IMPORTANT DEP>TM5T ( ! GOV]NM5T2 OR RA!R W\LD BE SO1 IF IT W]E PROP]LY CON/ITUT$4 ,9DE$1 IF JUDGES W]E L9T HONE/ & CAPABLE1 !RE W\LD BE V]Y LITTLE = ! LEGISLATIVE DEP>TM5T TO DO1 9 REG>D TO PROP]TY1 EXCEPT TO PROVIDE ! MEANS = C>RY+ ! DECISIONS ( ! JUDICI>Y 9TO EFFECT4 ,RETURN 

#f4 ,JONES ON ,BAILM5TS1 P4 #acc ,RETURN 

O ,*APT] #e 3 ,! ,LEGAL ,NATURE ( ,DEBT 
,LYS&] ,SPOON]1 ,POV]TY3 ,ITS ,ILLEGAL ,CAUSES & ,LEGAL ,CURES4 ,BO/ON3 ,BELA ,M>%1 ,NO4 #be ,CORNHILL4 #a#h#d#f4 

,*,A,P,T,] ,V4 

,! ,L,E,G,A,L ,N,A,T,U,R,E ,( ,D,E,B,T4 

,! NATURE ( DEBT1 AMID ! EXT5T ( ITS MORAL & LEGAL OBLIGATION1 HAVE BE5 V]Y MU* MISUND]/OOD2 & FROM ?IS MISUND]/&+1 & ! ]RONE\S JUDICIAL DECISIONS CONSEQU5T !REON1 HAVE RESULT$ P]PETUAL RU9 TO A L>GE PROPORTION ( DEBTORS3 UTT] CONFUSION1 & ! VIOLATION ( ALL NATURAL LAW 9 REG>D TO ! RI<TS ( CR$ITORS1 AS AGA9/ EA* O!R1 9 ! PROP]TY ( !IR DEBTORS2 & ! DE/RUCTION1 9 A GREAT MEASURE1 ( ALL CR$IT1 ?AT IS S\ND 9 ITSELF1 & SAFE & B5EFICIAL TO BO? DEBTOR & CR$ITOR4 

,?IS *APT] & ! SUCCE$+ ONE WILL ATTEMPT TO PROVE ?AT A DEBT-SU* AS IS EVID5C$ BY A PROMISSORY NOTE1 = 9/ANCE-HAS NO LEGAL OBLIGATION1 & G5]ALLY NO MORAL CITE1 BEYOND ! MEANS ( ! DEBTOR TO PAY AT ! TIME ! DEBT BECOMES DUE4 

,SOME ILLU/RATIONS WILL H]EAFT] BE GIV5 ( CASES1 :]E A MORAL OBLIGATION TO PAY MAY REMA91 AFT] ! LEGAL ONE HAS EXPIR$4 ,! EFFECT ALSO ( FRAUD1 FAULT1 NEGLECT1 & ! VIOLATION ( GOOD FAI?1 ON ! P>T ( ! DEBTOR1 WILL BE EXPLA9$ 9 A SUBSEQU5T P>T ( ! *APT]4 ,AT PRES5T1 ! >GUM5T WILL HAVE REF]5CE SOLELY TO ! LEGAL OBLIGATION ( DEBT1 & TO CASES :]E !RE HAS BE5 NO FRAUD1 FAULT1 NEGLECT1 OR VIOLATION ( GOOD FAI? ON ! P>T ( ! DEBTOR4 ,?AT ! DEBT1 9 SU* CASES1 IS LEGALLY B9D+1 AT MO/1 BUT TO ! EXT5T ( ! DEBTOR'S MEANS ( PAYM5T AT ! TIME ! DEBT BECOMES DUE1 IS PROV$ BY ! FOLL[+ >GUM5TS4 

#a4 ,! LAW REQUIRES NO IMPOSSIBILITIES ( ANY MAN4 ,IF1 !RE=E1 A MAN CONTRACT TO P]=M :AT PROVES TO BE IMPOSSIBILITY1 ! CONTRACT IS VALID ONLY = SO MU* AS IS POSSIBLE4 

,NEI!R IS A MAN B\ND1 BE=E HE 5T]S 9TO A CONTRACT1 TO KN[1 7BECAUSE IT IS IMPOSSIBLE ?AT HE %\LD KN[17 ! UTMO/ EXT5T ( HIS ABILITY2 NOR TO =ESEE1 7BECAUSE IT IS IMPOSSIBLE ?AT HE CAN =ESEE17 ALL ! CONT+5CIES & ACCID5TS ?AT MAY OCCUR TO DEFEAT HIS PURPOSES4 ,HE IS1 !RE=E1 B\ND ONLY TO ! FAI?FUL EX]CISE ( ALL HIS P[]S1 & ! FAI?FUL APPLICATION ( ALL HIS MEANS4 ,AS ?IS IS ! MO/ ?AT ! DEBTOR CAN CONTRACT =1 ! CR$ITOR IS B\ND TO KN[ IT1 &1 ( C\RSE1 MU/ ALWAYS BE PRESUM$ TO HAVE UND]/OOD ! CONTRACT1 SUBJECT TO ?AT LIMITATION4 ,A CR$ITOR IS1 !RE=E1 AS MU* B\ND TO JUDGE = HIMSELF1 :E!R ! MEANS & ABILITY ( ! DEBTOR WILL HE SUFFICI5T TO 5ABLE HIM TO FULFILL HIS CONTRACT TO ! LETT]1 AS IS ! DEBTOR HIMSELF1 UNLESS ! DEBTOR DO SOME?+ 9T5TIONALLY TO MISLEAD HIM 9 HIS JUDGM5T ( !M4 

#b4 ,A CONTRACT TO P]=M A MANIFE/ IMPOSSIBILITY IS AN IMMORAL & ABSURD CONTRACT2 & A CONTRACT1 ?AT IS EI!R IMMORAL OR ABSURD1 IS VOID FROM ! BEG9N+4 ,IT HAS NO LEGAL OBLIGATION :ATEV]4 ,& IF A P>TY PAY VALUE1 AS A CONSID]ATION = SU* A CONTRACT1 LIE MU/ LOSE IT1 UNLESS ! RECEIV] VOLUNT>ILY RE/ORE IT4 ,! LAW WILL NEI!R RE/ORE IT TO HIM1 NOR COMPEL ! FULFILLM5T ( EV5 ! POSSIBLE PORTION ( ! CONTRACT4 

,EV]Y CONTRACT W\LD BE AN IMMORAL & ABSURD ONE1 & !RE=E VOID FROM ! BEG9N+1 IF IT W]E A CONTRACT TO P]=M A P>TICUL> ACT1 OR TO PAY A P>TICUL> AM\NT ( MONEY1 AT A P>TICUL> TUNE1 AT ALL EV5TS1 & )\T ANY ,IMPLI$ RES]VATION = CONT+5CIES1 ACCID5TS1 & MISJUDGM5TS1 ?AT MAY MAKE IT IMPOSSIBLE TO FULFILL ! LETT] ( ! CONTRACT4 ,! ONLY WAY1 !RE=E1 TO MAKE ANY CONTRACT A MORAL1 REASONABLE1 &1 !RE=E1 VALID ONE1 IS TO UND]/& IT SUBJECT TO ! LIMITATION ( ALL CONT+5CIES ?AT MAY MAKE ITS FULFILLM5T IMPOSSIBLE2 & AS B9D+ ONLY TO ! EXT5T ( :AT %ALL BE POSSIBLE4 

,IF !N1 ! CONTRACT BE 5T]$ 9TO1 ) !SE LIMITATIONS IMPLI$1 IT IMPOSES NO OBLIGATION UPON ! DEBTOR TO MAKE GOOD1 \T ( MEANS ?AT HE MAY ACQUIRE AFT] ! CONTRACT %ALL HAVE EXPIR$1 ANY %ORT COM+S1 ?AT W]E OCCASION$1 NOT BY HIS FAULT1 NEGLECT1 OR BAD FAI?1 BUT BY CAUSES1 :I* FIX$ A LIMITATION UPON HIS ORIG9AL LIABILITY1 & ( :OSE EFFECTS ! CR$ITOR ( C\RSE TOOK ! RISK4#g 

#c4 ,TIME IS A MAT]IAL ELEM5T ( ! CONTRACT4 ,ALL ! LEGAL OBLIGATIONS ( ! CONTRACT1 ( NECESSITY1 COME TO MATURITY AT ! TIME AGRE$ UPON = ITS FULFILLM5T2 ELSE ! :OLE ( ! DEBT W\LD NOT BE DUE AT ?AT TIME4 ,AT ! MATURITY ( ITS LEGAL OBLIGATIONS1 IT IS PLA9 ?AT ! CONTRACT CAN ATTA* ONLY TO ! PROP]TY !N 9 ! H&S ( ! DEBTOR-= !RE IS NO?+ ELSE = IT TO ATTA* TO4 ,& IT IS PLA9 ?AT IT CAN ATTA* TO NO?+ ACQUIR$ BY ! DEBTOR SUBSEQU5TLY-BECAUSE TO ALL[ IT TO DO SO1 W\LD BE TO EXT5D ! OBLIGATIONS ( ! CONTRACT BEYOND ! TIME TO :I* !Y W]E ORIG9ALLY LIMIT$4 ,IT W\LD BE EQUIVAL5T TO CREAT+ A NEW CONTRACT1 = A NEW P]IOD ( TIME4 ,OR IT W\LD BE EQUIVAL5T TO SAY+ ?AT ! OBLIGATIONS ( ! CONTRACT HAD NOT COME TO MATURITY AT ! TIME AGRE$ UPON = ITS FULFILLM5T4 

,BUT FUR!R4 ,AL?\< ! PREC$+ CONSID]ATIONS >E SUFFICI5T TO PROVE ?AT A DEBT HAS NO LEGAL OBLIGATION BEYOND ! MEANS ( ! DEBTOR AT ! TIME ! DEBT BECOMES DUE1 !Y1 NEV]!LESS1 DO NOT CONVEY A FULL & CLE> IDEA ( ! TRUE NATURE & OBLIGATION ( ! CONTRACT ( DEBT4 ,& ?IS LEADS TO ANO!R PROPOSITION1 AS FOLL[S3 

#d4 ,A CONTRACT ( DEBT IS A M]E CONTRACT ( BAILM5T1 DIFF]+1 9 NO1 ESS5TIAL CLEM5T ( ! CONTRACT1 FROM O!R CONTRACTS ( BAILM5T4#h 

,?AT IT IS SO1 IS EASILY %[N4 ,?US A PROMISE TO PAY MONEY1 = 0VALUE10 ?AT HAS BE5 0RECEIV$10 IS EVID5TLY A M]E PROMISE TO DELIV] MONEY1 :I* HAS BE5 SOLD & PAID =2 BECAUSE ! 0VALUE10 ?AT HAS BE5 RECEIV$0 BY ! DEBTOR1 IS NO?+ ELSE ?AN ! EQUIVAL5T1 OR PRICE1 PAID BY ! CR$ITOR1 = ! MONEY :I* ! DEBTOR PROMISES TO DELIV]1 OR PAY TO HIM1 

,! RI<T ( PROP]TY1 9 ?IS MONEY1 ?AT IS TO BE DELIV]$ TO ! CR$ITOR1 7OR 9 A QUANTUM ( VALUE1 9 ! H&S ( ! DEBTOR1 SUFFICI5T TO PUR*ASE ! MONEY17 OBVI\SLY PASSES TO ITS PUR*AS]1 ! CR$ITOR1 AT ! TIME HE ?US BUYS1 & PAYS = IT2 & NOT1 AS IS G5]ALLY SUPPOS$1 AT ! TIME IT IS F9ALLY DELIV]$1 OR PAID TO HIM2 = IT IS ABSURD TO SAY ?AT :5 A MAN HAS B\<T & PAID = A ?+1 HE DOES NOT1 FROM ?AT TIME1 [N IT1 M]ELY BECAUSE IT IS NOT DELIV]$ TO HIM AT ?AT TIME4 ,A PROMISE TO DELIV]1 OR PAY MONEY1 ESPECIALLY :5 C\PL$ ) AN ACKN[L$GM5T ?AT ! EQUIVAL5T1 OR PRICE ( ! MONEY PROMIS$1 HAS BE5 0RECEIV$10 IS AS GOOD EVID5CE ?AT ! RIG_/IT ( PROP]LY 9 ! MONEY1 7OR 9 AN AM\NT ( VALUE SUFFICI5T TO PUR*ASE ! MONEY17 HAS ALREADY PASS$ TO ! PUR*AS]1 AS IS A DELIV]Y ITSELF4 

,! OBLIGATION ( DEBT1 !N1 ON ! P>T ( ! SELL] ( ! MONEY1 >ISES SIMPLY FROM ! FACT ?AT ! MONEY1 7OR AN AM\NT ( VALUE SUFFICI5T TO PUR*ASE ! MONEY17 :I* HE HAS ?US SOLD1 & RECEIV$ HIS PAY =1 & ! RI<T ( PROP]TY 9 :I* HAS ALREADY PASS$ TO ! PUR*AS]1 IS1 BY AGREEM5T1 TO REMA91 = A TIME1 9 HIS1 7! SELL]'S17 H&S1 = HIS USE4 ,& ! SUM ( HIS OBLIGATIONS1 AS A DEBTOR1 IS1 NOT1 AT ALL EV5TS1 TO PRES]VE & DELIV]1 BUT TO USE DUE DILIG5CE 

TO PRES]VE1 &1 7AT ! TIME AGRE$ UPON17 TO DELIV] TO ! PUR*AS]1 ! MONEY1 OR VALUE1 :I* HE HAS ?US SOLD TO HIM4 

,A DEBTOR1 !N1 IS A M]E SELL] ( VALUE1 7G5]ALLY MEASUR$ BY MONEY17 :I* LIE IS TO DELIV] TO ! PUR*AS] AT A TIME SUBSEQU5T TO ! SALE4 ,& A CR$ITOR IS A M]E PUR*AS] ( VALUE1 ?AT IS TO BE DELIV]$ TO HIM1 7G5]ALLY 9 ! %APE ( MONEY17 AT A TIME SUBSEQU5T TO HIS PUR*ASE ( IT4 

,BUT ! MAT]IAL PO9T TO BE REG>D$1 IS1 ?AT ! RI<T ( PROP]TY1 9 ! MONEY1 7OR 9 ! AM\NT ( VALUE TO BE MEASUR$ BY MONEY17 :I* IS ?US B\<T & SOLD1 PASSES TO ITS PUR*AS]1 BY ! SALE1 &1 ( NECESSITY1 AT ,%E TIME ( ! SALE1 & NOT AT ! TIME ( F9AL DELIV]Y1 AS IS G5]ALLY SUP POS$4 

,! COMMON ]ROR ON ?IS PO9T1 VIZ41 ?AT ! RI<T ( PROP]LY1 9 ! VALUE ?US PUR*AS$ & PAID = BY ! CR$ITOR1 DOES NOT PASS TO HIM UNTIL ! F9AL DELIV]Y ( IT TO HIM 9 ! %APE ( MONEY1 7OR 9 :ATEV] O!R %APE IT MAY BE AGRE$ TO HO DELIV]$17 IS ! S\RCE ( ALL \R ]RONE\S NOTIONS ( ! NATURE & OBLIGATIONS ( DEBT2 = IF ! RI<T ( PROP]TY1 9 ! VALUE PUR*AS$ BY ! CR$ITOR1 PASSES TO HIM AT ! TIME ( ! PUR*ASE1 !N ! SELL]1 OR DEBTOR1 FROM ?AT TIME UNTIL ! TIME AGRE$ ON = ITS DELIV]Y1 HOLDS ! VALUE1 ?US SOLD1 M]ELY AS ! BAILEE ( ! PUR*AS]1 OR CR$ITOR2 & HIS OBLIGATIONS >E ONLY SIMIL> TO ! OBLIGATIONS ( BAILEES 9 O!R CASES4 ,! VALUE ITSELF IS AT ! RISK ( ! PUR*AS]1 7OR CR$ITOR17 FROM ! TIME ( ! SALE1 UNLESS IT BE LO/ ?R\< SOME FAULT1 OR CULPABLE NEGLECT1 ON ! P>T ( ! SELL]1 7OR DEBTOR47 ,! SELL]1 7OR DEBTOR17 IS ONLY B\ND TO DUE FIDELITY & DILIG5CE 9 ! PRES]VATION ( ! VALUE1 & NOT = ITS ABSOLUTE PRES]VATION4 ,IF IT P]I% 9 HIS H&S1 OR BE LO/ \T ( HIS H&S1 )\T ANY FAULT OR CULPABLE NEGLECT ON HIS P>T1 HE IS NOT ANSW]ABLE4 ,! LOSS FALLS ON ! PUR*AS]1 & REAL [N]1 :OSE BAILEE HE 7! DEBTOR7 IS FROM ! TIME ( ! SALE4 

,! CONTRACT ( DEBT1 !RE=E1 PRESUPPOSES A PRIOR CONTRACT ( SALE1 TO WIT1 A SALE1 BY ! DEBTOR TO ! CR$ITOR1 ( ! MONEY OR VALUE1 :I* ! DEBTOR IS TO BOLD1 = A TIME1 AS TIME BAILEE ( ! CR$ITOR1 OR PUR*AS]4 

,IT IS IMPORTANT TO BE BORNE 9 M9D1 ?AT ?IS CONTRACT ( SALE1 :I*1 9 PO9T ( LAW1 PREC$ES1 AL?\< 9 PO9T ( TIME IT IS SIMULTANE\S ) ! CONTRACT ( BAILM5T1 IS1 9 REALITY1 A SALE1 NOT ( ! SPECIFIC MONEY PROMIS$1 BUT ( A C]TA9 QUANTUM ( VALUE1 \T ( ! DEBTOR'S :OLE PROP]TY1 TO WIT1 A QUANTUM ( VALUE SUFFICI5T TO PRODUCE OR PUR*ASE ! AM\NT ( MONEY PROMIS$2 & :I* IS TO BE CONV]T$ 9TO MONEY BY ! TIME AGRE$ ON = ! DELIV]Y4 

,?IS D\BLE CONTRACT ( SALE & BAILM5T ( NECESSITY IMPLIES ?AT ! DEBTOR HAS PROP]TY 9 HIS H&S1 BO? = ! SALE & BAILM5T TO ATTA* TO-O!RWISE !RE W\LD BE NO VALIDITY 9 EI!R CONTRACT4#i ,NO CONTRACT1 EI!R ( SALE1 OR BAILM5T1 IS ( ANY VALIDITY1 UNLESS !RE BE PROP]TY = ! CONTRACT TO ATTA* TO1 AT ! TIME IT IS MADE4 ,IT IS 9 ! NATURE ( ?+S IMPOSSIBLE ?AT A MAN CAN 

MAKE A CONTRACT1 EI!R ( BAILM5T OR SALE1 ?AT CAN B9D PROP]TY1 OR CONVEY ANY RI<T TO PROP]TY1 UNLESS HE HAVE PROP]TY1 AT ! TIME1 = ! CONTRACT TO ATTA* TO4 ,ALL CONTRACTS ( DEBT1 !RE=E1 :E!R MORALLY VOID1 OR NOT1 >E LEGALLY VOID1 UNLESS ! DEBTOR HAVE PROP]TY1 AT ! TIME1 = ! CONTRACT TO ATTA* TO1 & B9D4#a 

,A CONTRACT ( DEBT1 !N1 9 ORD] TO BE VALID1 MU/ ATTA* TO SU* PROP]TY AS ! DEBTOR HAS AT ! TIME ( ! CONTRACT-BECAUSE !RE IS NO?+ ELSE = IT TO ATTA* TO1 & IT MU/ ATTA* TO SOME?+1 OR BE UTT]LY 9VALID4 ,ITS VALIDITY1 AS A LEGAL CONTRACT1 DEP5DS UPON ITS ATTA*+ TO SOME?+1 AT ?AT TIME2 &1 ( CONSEQU5CE1 IT HAS NO VALIDITY BEYOND ! PROP]TY TO :I* IT !N ATTA*ES1 7& SU* AS MAY BECOME 9DI/+UI%ABLY MIX$ ) IT PRIOR TO ITS DELIV]Y27 ITS VALIDITY LIVES ONLY 9 ! LIFE ( ! PROP]TY TO :I* IT ATTA*ES2 & :5 ! PROP]TY1 TO :I* IT ATTA*ES1 IS EXHAU/$1 ITS VALIDITY1 AS A CONTRACT1 IS EXHAU/$4 ,! OBLIGATION ( ! CONTRACT IS FULFILL$1 :5 ALL ! PROP]TY1 TO :I* IT ATTA*ES1 & :I* IT B9DS1 IS DELIV]$ TO ! CR$ITOR4 

,?IS CONTRACT ( BAILM5T1 OR DEBT1 DIFF]S FROM O!R CONTRACTS ( BAILM5T1 9 NO IMPORTANT P>TICUL>1 UNLESS 9 ?OSE1 VIZ43 

#a4 ,?AT ! BAILM5T IS ( A QUANTUM ( VALUE-TO WIT1 5\< TO PUR*ASE ! AM\NT ( MONEY PROMIS$-EXI/+ 9 A =M NOT DESIGNAT$ BY ! CONTRACT1 9/EAD ( A BAILM5T ( A SPECIFIC ?+4 ,BUT ?IS IS OBVI\SLY A DIFF]5CE ( =M M]ELY1 & NOT ( PR9CIPLE4 

#b4 ,?AT IT IS ALWAYS ( A QUANTUM ( VALUE1 ?AT HAS JU/ BE5 SOLD BY ! DEBTOR TO ! CR$ITOR4 ,9DE$ ! BAILM5T IS ONE ( ! CONDITIONS ( ! SALE4 ,! DEBTOR SELLS ! VALUE TO ! CR$ITOR1 ) A PROVISO ?AT HE 7! DEBTOR7 %ALL BE ALL[$ TO RETA9 & USE IT = A TIME AGRE$ UPON4 

#c4 ,?AT ?IS QUANTUM ( VALUE1 NOT BE+ DESIGNAT$1 OR SET AP>T BY ! CONTRACT1 FROM ANY O!R VALUE1 ?AT ! DEBTOR MAY HAVE 9 HIS H&S1 IS1 9 REALITY1 M]G$ 9 ! VALUE ( ALL ! PROP]TY1 ?AT ! DEBTOR1 OR BAILEE1 HAS 9 HIS H&S4 

#d4 ,?AT ?IS VALUE IS F9ALLY TO BE CONV]T$ 9TO SOME P>TICUL> =M1 7G5]ALLY ?AT ( MONEY17 = DELIV]Y TO ! CR$ITOR1 OR BAILOR4 

#e4 ,?AT ! DEBTOR1 DUR+ ! BAILM5T1 :ILE BE/[+ HIS C>E & LABOR UPON ! :OLE PROP]TY 9 HIS H&S1 9 :I* ! VALUE BAIL$ TO HIM IS M]G$1 IS ALL[$ TO TAKE HIS NECESS>Y SUBSI/5CE \T ( ! MASS2 BY REASON ( :I* IT MAY SOMETIMES HAPP51 9 CASES ( SICKNESS1 MIS=TUNE1 OR ACCID5T1 ?AT ! VALUE BAIL$ MAY ITSELF BE DIM9I%$1 OR CONSUM$4 

#f4 ,! DEBTOR1 OR BAILEE1 IS ALL[$ TO TRAFFIC ) ! :OLE PROP]TY 9 HIS H&S1 & ( C\RSE ) ! VALUE BAIL$1 :I* IS M]G$ 9 ?AT PROP]TY4 

,9 ?IS RESPECT1 H[EV]1 ! BAILM5T ( DEBT DOES NOT DIFF]1 9 PR9CIPLE1 FROM BAILM5TS TO AG5TS1 FACTORS1 & COMMISSION M]*ANTS1 :O >E AU?ORIZ$ TO TRAFFIC )1 & EX*ANGE OR SELL ! PROP]TY 5TRU/$ TO !M4 ,:]E ?IS IS DONE1 ! SAME RI<T ( PROP]TY1 :I* ! BAILOR HAD 9 ! ORIG9AL COMMODITY BAIL$1 ATTA*ES TO ! EQUIVAL5T :I* ! BAILEE RECEIVES = IT4 ,& IT IS ! SAME 9 ! BAILM5T ( DEBT4 ,! RI<T ( PROP]TY1 :I* ! CR$ITOR HAS 9 ! ORIG9AL QUANTUM ( VALUE BAIL$ TO ! DEBTOR1 FOLL[S ?AT VALUE1 & CL+S TO IT1 ?R\< ALL ! =MS & *ANGES TO :I* ! LABOR & TRAFFIC ( ! DEBTOR MAY SUBJECT IT4 

,SOME ( !SE PO9TS WILL BE FUR!R DISCUSS$ & EXPLA9$ 9 ! NEXT *APT]4 

,?AT A CONTRACT ( DEBT IS A M]E CONTRACT ( BAILM5T1 AS HAS N[ BE5 DESCRIB$-?AT IS1 A M]E BAILM5T1 BY ! CR$ITOR TO ! DEBTOR1 ( A QUANTUM ( VALUE HOLD BY ! LATT] TO ! =M]1 & TO BE =MALLY DELIV]$ 9 ! %APE ( MONEY1 BUT 9 ! MEAN TIME TO REMA9 M]G$ 9 ! G5]AL PROP]TY ( ! DEBTOR-SEEMS TO BE TOO NE>LY SELF-EVID5T TO R5D] A MORE ELABORATE >GUM5T1 AT ?IS PO9T1 NECESS>Y4 ,IT WILL1 H[EV]1 BE FUR!R DISCUSS$ 9 ! NEXT *APT]4 

,IF DEBT BE BUT A BAILM5T1 ! VALUE BAIL$ IS AT ! RISK ( ! [N]1 7?AT IS1 ( ! CR$ITOR17 FROM ! TIME HE BUYS & PAYS = IT1 & LEAVES IT ,9 ! H&S ( ! SELL]1 OR DEBTOR1 UNTIL ! TIME AGRE$ ON = ITS DELIV]Y TO HIMSELF4 ,IF IT BE HO/ DUR+ ?IS TIME1 )\T ANY FAULT OR CULPABLE NEGLECT ON ! P>T ( ! BAILEE1 OR DEBTOR1 TIME LOSS FALLS ON ! [N]1 OR CR$ITOR4 ,ALL ! OBLIGATIONS ( ! [N] OR DEBTOR >E FULFILL$1 :5 HE HAS US$ SU* C>E & DILIG5CE1 9 ! PRES]VATION ( ! VALUE BAIL$1 AS ! LAW REQUIRES ( O!R BAITEES1 & HAS DELIV]$ TO ! CR$ITOR1 OR [N]1 AT ! TIME AGRE$ UPON1 ! VALUE BAIL$1 OR SU* P>T !RE(1 IF ANY1 AS MAY !N BE REMA9+ 9 HIS H&S4 

,IF SU* BE NOT ! NATURAL LIMIT TO ! OBLIGATION ( ! CONTRACT ( DEBT1 !N !RE IS NO NATURAL LIMIT TO IT 9 ANY CASE1 %ORT ( ! ABSOLUTE DELIV]Y ( ! AM\NT M5TION$2 A LIMIT1 ?AT REQUIRES A DEBTOR TO MAKE GOOD ANY LOSS ?AT MAY BEFALL ! PROP]TY ( ! CR$ITOR 9 HIS H&S1 :E!R ! LOSE BE OCCASION$ BY HIS FAULT1 OR NOT2 & :E!R HE EV] BE ABLE TO MAKE GOOD ! LOSS1 OR NOT2 A LIMIT1 :I*1 9 MANY CASES1 CONDEMNS ! DEBTOR & HIS FAMILY TO P]PETUAL POV]TY1 & A LIABILITY TO P]PETUAL OPPRESSION FROM ! CR$ITOR1 = A MIS=TUNE1 OR ACCID5T1 TO :I* PROP]TY IS ALWAYS LIABLE1 & = :I* ! DEBTOR IS NOT MORALLY RESPONSIBLE2 A LIMIT V]Y NE>LY ALLI$1 BO? 9 ITS LEGAL & MORAL *>ACT]1 AS WELT AS 9 ITS PRACTICAL EFFECTS1 TO ?AT1 :I*1 9 =M] TIMES1 REQUIR$ ! DEBTOR & HIS FAMILY TO BE SOLD 9TO SLAV]Y = ! SATISFACTION ( A DEBT1 :I* ! DEBTOR C\LD NOT O!RWISE PAY4#a#a 

,IF SU* BE NOT ! NATURAL LIMIT TO ! LEGAL OBLIGATION ( DEBT-?AT IS1 IF DEBTS BE NATURALLY B9D+ BEYOND ! DEBTOR'S MEANS ( PAYM5T :5 ! DEBTS BECOME DUE1 !N ALL 9SOLV5T & BANKRUPT LAWS >C PALPABLE VIOLATIONS ( ! TRUE & NATURAL OBLIGATION ( DEBTS1 &1 CONSEQU5TLY1 ( ! RI<TS ( CR$ITORS2 SU* VIOLATIONS AS NO GOV]NM5T HAS ! MORAL RI<T1 7H[EV] IT MAY HAVE A CON/ITUTIONAL AU?ORITY17 TO P]PETRATE4 

,ON ! O!R H&1 IF SU* BE ! NATURAL LIMIT TO ! LEGAL OBLIGATION ( DEBT1 ?\ WE HAVE NO NE$ ( 9SOLV5T OR BANKRUPT LAWS AT ALL1 = EV]Y CONTRACT ( DEBT 9VOLVES1 )9 ITSELF1 ! ONLY HONE/ BANKRUPT LAW1 ?AT ! CASE ADMITS (4 

,IF SU* BE ! NATURAL LIMIT TO ! OBLIGATION ( DEBT1 !N !RE IS1 AS A G5]AL RULE1 NO MORAL1 ANY MORE ?AN LEGAL OBLIGATION TO PAY1 BEYOND ! MEANS ( ! DEBTOR AT ! TIME ! DEBT BECOMES DUE2 & ANY SUBSEQU5T PROMISE TO PAY1 IS GRATUIT\S & VOID4#a#b 

,TAK+ IT = GRANT$1 = ! REMA9D] ( ?IS *APT]1 ?AT IT HAS N[ BE5 %[N ?AT A DEBTOR IS A M]E BAILEE ( ! CR$ITOR1 LET US SEE SOME ( ! CONSEQU5CES1 ?AT FOLL[ FROM ?AT PROPOSITION4 

#a4 ,AS A CONTRACT ( DEBT DOES NOT DESIGNATE ! SPECIFIC VALUE1 TO :I* IT ATTA*ES 9 ! H&S ( ! DEBTOR1 IT CANNOT BE SAID TO ATTA* TO ANY ONE P>T ( ! VALUE 9 HIS H&S MORE ?AN TO ANO!R4 ,IT !RE=E ATTA*ES TO ALL4 ,& IF IT ATTA*ES TO ALL1 IT NECESS>ILY OP]ATES AS A LION UPON ALL ?AT ! DEBTOR HAS 9 HIS H&S1 AT ! TIME ! DEBT IS CONTRACT$2 ALSO UPON ALL ?AT MAY BECOME 9DI/+UI%ABLY MIX$ ) ?AT1 PRIOR TO ITS DELIV]Y OR PAYM5T TO ! CR$ITOR4#a#c ,?IS BE+ ! FACT1 EA* DEBT ( C\RSE BECOMES A LI5 9 ! ORD] 9 :I* IT IS CONTRACT$ RELATIVELY TO ! O!RS4#a#d 

#b4 ,A SECOND CR$ITOR1 BY SELL+ VALUE TO A DEBTOR1 & GIV+ HIM CR$IT = IT1 W\LD HOLD A LI5 = HIS DEBT UPON ! SPECIFIC VALUE SO SOLD TO HIM1 SO LONG AS IT %\LD BE KEPT  SEP>ATE & CLE>LY DI/+UI%ABLE FROM ! VALUE ON :I* ! PRIOR CR$ITOR HAD A LI52 BECAUSE ! FIR/ CR$ITOR C\LD CLAIM A LIEU ONLY ON ?AT VALUE1 :I* WAS 9 ! DEBTOR'S H&S1 & TO :I* HIS CONTRACT ATTA*$1 AT ! TIME IT WAS 5T]$ 9TO2 & ON SU* O!R VALUE1 AS1 7BY LABOR DONE ON ! PROP]TY1 OR O!RWISE17 MI<T BECOME 9DI/+UI%ABLY MIX$ ) ?AT1 PRIOR TO ITS DELIV]Y1 OR PAYM5T TO HIM1 ! CR$ITOR47 

,IF ,B M+LE HIS PROP]TY1 AS GRA91 W9E1 OR MONEY1 = 9/ANCE1 9DI/+UI%ABLY ) PROP]TY ( ! SAME K9D BELONG+ TO ,A1 )\T ! KN[L$GE ( ,A1 OR )\T ANY AGREEM5T1 EXPRESS OR IMPLI$1 ?AT1 9 CASE ( A DIM9UTION ( ! MASS BY ACCID5T OR O!RWISE1 !RE %ALL BE A DIVISION ( ! REMA9D] ACCORD+ TO !IR ORIG9AL PROPORTIONS RESPECTIVELY1 ! LOSS ( ANY DIM9UTION ?AT MAY BEFALL ! MASS1 FALLS UPON ,B4 ,ON ?IS PR9CIPLE1 IF A SECOND CR$ITOR %\LD SUFF] ! VALUE1 :I* HE %\LD SELL TO A DEBTOR1 & ON :I* HE HAD A LI5 ,9 ! H&S ( ! DEBTOR1 TO BECOME 9DI/+UI%ABLY MIX$ ) VALUE 9 ! SAME DEBTOR'S H&S1 ON :I* A PRIOR CR$ITOR HAD A LI51 & !RE W]E NO AGREEM5T BETWE5 ! TWO CR$ITORS1 = A DIVISION 9 CASE ( LOSS1 ! FIR/ CR$ITOR W\LD BE 5TITL$ TO TAKE HIS :OLE DEBT \T ( ! MASS BE=E ! SECOND CR$ITOR %\LD RECEIVE ANY?+2 = IT C\LD NOT BE PRESUM$1 )\T AN EXPRESS AGREEM5T1 ?AT A PRIOR CR$ITOR W\LD AU?ORIZE HIS DEBTOR TO GIVE A SECOND CR$ITOR AN EQUAL LI5 ) HIMSELF ON ! :OLE PROP]TY 9 ! DEBTOR'S H&S1 EV5 ?\< ! SECOND CR$ITOR %\LD PAY AN EQUAL AM\NT ( VALUE 9TO ! MASS ) ?AT PAID BY ! FIR/ CR$ITOR2 BECAUSE ! FIR/ CR$ITOR MI<T SUPPOSE ! DEBTOR 9COMPET5T TO MANAGE ! TWO LOANS SO ADVANTAGE\SLY1 OR SO B5EFICIALLY = HIS 7! CR$ITOR'S7 SECURITY1 AS HE W\LD HAVE MANAG$ ONE ONLY1 & MI<T !RE=E NOT HAVE CONS5T$ TO ! MIXTURE ( ! TWO LOANS4 ON ! FOOT+ ( EQUAL LI5S4 ,! FIR/ CR$ITOR MI<T ALSO ?9K IT NECESS>Y = HIS SECURITY1 ?AT ! :OLE LABOR ( ! DEBTOR %\LD BE BE/[$ ON ! FIR/ LOAN2 & MI<T !RE=E HAVE OBJECT$ TO ! MIXTURE ( ANO!R LOAN ) IT1 TO TAKE AN EQUAL LI5 ) HIS [N4 ,& ESPECIALLY IT C\LD NOT HE SUPPOS$1 )\T AN EXPRESS AGREEM5T TO ?AT EFFECT1 ?AT A CR$ITOR W\LD HAVE SU* CONFID5CE 9 ! JUDGM5T ( ! DEBTOR1 AS TO BE WILL+ ?AT HE %\LD TAKE CAPITAL FROM O!RS1 AT HIS 7! DEBTOR'S7 [N E/IMATE ( ITS VALUE1 MIX IT ) ?AT RECEIV$ FRONT HIMSELF1 & PLACE !SE SUBSEQU5T CR$ITORS ON ! SAME FOOT+ ) HIMSELF1 AS TO !IR RI<TS 9 ! MASS4 ,! FIR/ CR$ITOR W\LD WI% AN OPPORTUNITY TO JUDGE = HIMSELF1 9/EAD ( LEAV+ IT :OLLY ) ! DEBTOR TO JUDGE1 :E!R ! VALUE CONTRIBUT$ TO ! MASS BY ! SUCCE$+ CR$ITORS1 WAS SU* AS ?AT HIS SECURITY W\LD NOT BE WEAK5$ BY ALL[+ !M TO %>E ?AT SECURITY EQUALLY ) HIMSELF1 9 PROPORTION TO !IR DEBTS4 

#c4 ,IF EA* CR$ITOR HOLDS A LI5 UPON ! VALUE ( ALL ! DEBTOR'S PROP]TY1 9 ! ORD] 9 :I* !IR DEBTS RESPECTIVELY W]E CONTRACT$1 IT W\LD ( C\RSE BE FRAUDUL5T = A DEBTOR TO PAY A SECOND CR$ITOR1 BE=E PAY+ A FIR/1 ESPECIALLY IF ! FIR/ %\LD SUFF] A LOSS 9 CONSEQU5CE4 

,= SU* A FRAUD ! DEBTOR W\LD BE LIABLE TO A PROSECUTION = SW9DL+1 & W\LD ALSO BE LIABLE 9 DAMAGES1 IF ANY DAMAGES %\LD BE SUFF]$ BY ! FIR/ CR$ITOR 9 CONSEQU5CE ( IT2 & = !SE DAMAGES HIS FUTURE E>N+S W\LD BE LIABLE =EV]1 AS 9 ! CASE BE=E M5TION$1 & NOT M]ELY HIS PRES5T PROP]TY1 AS 9 CASE ( DEBT4 

,BUT ! FIR/ CR$ITOR1 9 SU* A CASE1 W\LD HAVE A RI<T TO RECOV]1 ( ! SECOND CR$ITOR1 ! AM\NT ?US FRAUDUL5TLY PAID TO ! LATT] BY ! DEBTOR1 ON ! GR\ND ?AT HE 7! SECOND CR$ITOR7 WAS NOT AN 9NOC5T PUR*AS] = VALUE2 ?AT HE HAD M]ELY RECEIV$1 ON A DEBT ALREADY CONTRACT$1 VALUE ?AT BELONG$ TO A PRIOR CR$ITOR2 & ?AT HE 7! SECOND CR$ITOR7 NOT HAV+1 EI!R 9NOC5TLY OR O!RWISE1 PAID ANY ADDITIONAL VALUE TO ! DEBTOR1 AS AN 9DUCEM5T TO ! DEBTOR'S PAYM5T TO HIM1 W\LD BE NO WORSE CONDITION ON RE/OR+ ! VALUE TO ! FIR/ CR$ITOR1 ?AN HE W\LD HAVE BE5 IF IT HAD NOT BE5 WRONGFULLY PAID TO HIM4 

,?IS RI<T ( A PRIOR CR$ITOR TO RECOV] ( A SUCCE$+ ONE1 ANY VALUE ?AT %\LD BE PAID TO ! LATT] 9 FRAUD ( ! PRIOR CR$ITOR'S RI<TS1 TAK5 9 CONNECTION ) ! DEBTOR'S LIABILITY AS A SW9DL]1 & HIS P]PETUAL LIABILITY = ANY DAMAGES CAUS$ TO ! PRIOR CR$ITOR BY SU* FRAUDUL5T PAYM5T1 W\LD BE AN EFFECTUAL PREV5TION ( SU* PAYM5TS4 ,! PR9CIPLE ( ! PRIOR RI<T ( ! PRIOR CR$ITOR1 W\LD ?US BE FIRMLY E/ABLI%$ 9 PRACTICE2 ALL ?OSE 5DLESS FRAUDS1 BY :I* ! VALUE RI<TFULLY BELONG+ TO ONO CR$ITOR1 IS N[ ) IMPUNITY APPROPRIAT$ TO ! PAYM5T ( ANO!R1 W\LD BE PREV5T$2 & CR$IT W\LD BE PLAC$ ON ! SECURE BASIS ( EA* CR$ITOR'S KN[L$GE ( ! PROP]TY LIABLE = HIS [N DEBT4 

#d4 ,IF A CR$ITOR %\LD NOT DEM& HIS DEBT AT ! TIME IT BECAME DUE1 HIS NEGLECT TO DO SO W\LD BE A WAIV] ( HIS PRIOR RI<T TO PAYM5T1 & W\LD MAKE IT LAWFUL = ! DEBTOR TO PAY A SUBSEQU5T DEBT1 IF ! LATT] %\LD BECOME DUE BE=E ! PRIOR ONE WAS DEM&$4 

,= ?IS REASON1 7AS HAS BE=E BE5 M5TION$17 ! PR9CIPLE ( ! PRIOR RI<T ( ! PRIOR CR$ITOR1 W\LD BE NO OB/ACLE TO BANK+1 BY ! ISSUE ( NOTES PAYABLE ON DEM&2 NOR TO ! PAYM5T ( A SUBSEQU5T NOTE :ILE A PRIOR ONE WAS /ILL 9 CIRCULATION-BECAUSE A NOTE PAYABLE ON DEM& IS DUE AS SOON AS IT IS ISSU$1 & IF ITS PAYM5T BE NOT IMM$IATELY DEM&$1 ! NEGLECT IS A WAIV] ( ! RI<T ( PRIORITY4 

#e4 ,IF A DEBT W]E NOT PAID IMM$IATELY ON ITS BECOM+ DUE1 ! CR$ITOR C\LD NOT TAKE 9T]E/ = ! DELAY \T ( ! DEBTOR'S PROP]TY1 TO ! 9JURY ( A SUCCE$+ CR$ITOR-= 9T]E/1 AFT] A DEBT IS DUE1 IS NO P>T ( ! DEBT ITSELF2 IT IS ONLY ! DAMAGE ?AT IS ALL[$ = ! DET5TION4#a#e ,! FIR/ CR$ITOR HOLDS A PRIOR LI5 ON ! DEBTOR'S PROP]TY ONLY = HIS DEBT2 & NOT = ANY DAMAGE HE MAY SU/A9 BY REASON ( HIS DEBT NOT BE+ PAID :5 DUE4 ,?IS CLAIM = DAMAGE1 BE+ A SEP>ATE MATT] FROM ! DEBT ITSELF1 W\LD NOT LEGALLY ATTA* TO ! DEBTOR'S PROP]TY1 UNTIL ITS AM\NT WAS LEGALLY ASC]TA9$ & ADJUDG$2 & IT C\LD !N ATTA* TO IT ONLY 9 ITS ORD] ) REF]5CE TO O!R CLAIMS1 & NOT TO ! PREJUDICE ( ANY PRIOR ONES4 

,! EFFECT ( ?IS PR9CIPLE W\LD BE TO MAKE CR$ITORS PROMPT TO COLLECT !IR DEBTS IMM$IATELY ON !IR BECOM+ DUE1 ESPECIALLY :5 !RE WAS ANY D\BT AS TO ! SOLV5CY ( ! DEBTORS-BECAUSE1 AS !IR CLAIMS = DAMAGE W\LD NOT BE 5TITL$ TO ! SAME PRIORITY AS !IR DEBTS1 !Y W\LD BE LIABLE TO LOSE !M 5TIRELY1 OR TO BE UND] ! NECESSITY ( HOLD+ !M AGA9/ ! DEBTOR UNTIL HE %\LD HAVE MADE SOME ACCUMULATIONS OV] & ABOVE HIS DEBTS4 

,BUT ! DEBTOR W\LD *OOSE TO PAY :5 DUE1 BECAUSE = ANY DAMAGE OCCASION$ BY HIS DELAY1 7UNLESS ! DELAY W]E OCCASION$ BY SOME O!R CAUSE ?AN FAULT ON HIS P>T17 HIS FUTURE E>N+S W\LD BE LIABLE1 AS 9 ANY O!R CASE ( DAMAGE OCCASION$ BY HIS FAULT4 

#f4 IF A CR$ITOR %\LD NOT DEM&1 &1 9 CASE ( NONPAYM5T1 SUE = HIS DEBT1 IMM$IATELY1 OR AT LEA/ V]Y SOON AFT] ! DEBT BECAME DUE1 ! DELAY W\LD AF=D A PRESUMPTION ?AT ! DEBT WAS EXT9CT1 BY REASON ( ! DEBTOR'S 9ABILITY TO PAY4 ,& IF1 AT A SUBSEQU5T TIME1 ! CR$ITOR %\LD SUE = ! DEBT1 ! BURD5 ( PRO( W\LD !N BE UPON HIMSELF TO PROVE ?AT1 AT ! TIME ! DEBT BECAME DUE1 ! DEBTOR ACTUALLY HAD MEANS 9 HIS H&S TO SATISFY IT4 

,SO IF A CR$ITOR %\LD OBTA9 JUDGM5T = HIS DEBT1 & ?AT JUDGM5T %\LD REMA9 UNSATISFI$ = ANY CONSID]ABLE TIME1 ?AT FACT W\LD AF=D A PRESUMPTION ( ! DEBTOR'S 9ABILITY TO PAY1 & ?R[ UPON ! CR$ITOR ! BURD5 ( PROV+ ?AT1 AT ! TIME ! JUDGM5T WAS OBTA9$1 ! DEBTOR HAD ! MEANS ( PAY+ IT2 BECAUSE A JUDGM5T1 F\ND$ M]ELY ON A DEBT1 7& NOT ON A WRONG17 W\LD ATTA* ONLY TO ! PROP]TY ?AT ! DEBTOR HAD 9 HIS H&S AT ! TIME IT WAS R5D]$4 

#g4 ,IF A DEBTOR %\LD BE UNABLE1 :5 HIS DEBT BECAME DUE1 TO PAY ! :OLE ( IT1 IT W\LD BE HIS DUTY TO T5D] ! MO/ ?AT IT WAS 9 HIS P[] TO PAY4 ,IF ! AM\NT T5D]$ %\LD NOT BE ACCEPT$ 9 FULL DIS*>GE ( ! DEBT1 IT W\LD BE HIS DUTY TO PRES]VE IT1 7= ! CR$ITOR'S FUTURE ACCEPTANCE17 SEP>ATE & DI/9CT1 BO? FROM SUBSEQU5T ACQUISITIONS ( HIS [N1 & ALSO FROM ANY FUTURE LOANS ?AT HE MI<T PROCURE4 

,9 CASE ( A T5D] MADE BY A DEBTOR1 ! CR$ITOR C\LD AFT]W>DS OBTA9 JUDGM5T ONLY = ! AM\NT T5D]$1 ,UNLESS HE %\LD PROVE - AT LEA/ TO ! REASONABLE SATISFACTION ( A JURY-?AT ! DEBTOR HAD NOT T5D]$ ALL ?AT IT WAS 9 HIS P[] TO PAY4 ,BUT IT W\LD NOT BE NECESS>Y = A CR$ITOR1 9 ORD] TO OBTA9 JUDGM5T = MORE ?AN ! AM\NT T5D]$1 TO PROVE1 BY ACTUAL WITNESSES ( ! FACT1 ?AT ! DEBTOR HAD A L>G] AM\NT 9 HIS H&S AT ! PRECISE TIME ! DEBT BECAME DUE4 ,IT W\LD BE SUFFICI5T = HIM TO %[ ?AT ! DEBTOR HAD NOT REASONABLY ACC\NT$ = ALL ! PROP]TY ?AT HE HAD HAD 9 HIS H&S EI!R :5 ! DEBT WAS CONTRACT$1 OR AT ANY TIME PREVI\S TO ITS BECOM+ DUE4 ,= !SE REASONS1 IT W\LD BE IMPORTANT = DEBTORS1 ESPECIALLY = ?OSE :O HAD LITTLE OR NO PROP]TY 9 !IR H&S MORE ?AN 5\< TO PAY !IR DEBTS1 TO KEEP SU* ACC\NTS & V\*]S ( !IR DEAL+S1 AS W\LD 5ABLE !M ALWAYS TO ACC\NT = ANY LOSSES ?AT MI<T HAPP5 PRIOR TO !IR DEBTS BECOM+ DUE4 

#h4 ,IF A DEBTOR BE M]ELY ! BAILEE ( HIS CR$ITOR1 !N ! LAWS1 :I*1 ON ! DEA? ( A DEBTOR1 GIVE ! PROP]TY1 ?AT WAS 9 HIS H&S1 TO HIS FAMILY1 TO ! PREJUDICE ( HIS CR$ITORS1 >E ALL VOID-AS MU* SO AS W\LD BE LAWS1 ?AT %\LD >BITR>ILY GIVE ANY O!R M5'S PROP]TY TO ! SAME DEBTOR'S FAMILY4 

#i4 ,IF A DEBTOR BE M]ELY ! BAILEE ( ! CR$ITOR1 A F9E IMPOS$ UPON ! DEBTOR BY ! GOV]NM5T1 AS A PUNI%M5T = AN (F5SE1 CANNOT BE SATISFI$ \T ( PROP]TY 9 HIS H&S TO ! PREJUDICE ( HIS CR$ITORS4 ,IT CAN ONLY ATTA* TO HIS PROP]TY 9 ITS ORD] RELATIVELY ) O!R CLAIMS4 

#a4 ,IF A DEBTOR BE ! M]E BAILEE ( ! CR$ITOR1 HIS OBLIGATIONS 9 REG>D TO ! PRES]VATION ( ! VALUE BAIL$ TO HIM1 >E SIMIL> TO ! OBLIGATIONS ( BAILEES 9 O!R CASES4 

,! DEGREE ( C>E1 :I* ! LAW REQUIRES ( A BAILEE = HIRE1 IS ?AT DEGREE ( C>E1 79CAPABLE ( BE+ MEASUR$ ) P]FECT ACCURACY1 & !RE=E ONLY CAPABLE ( BE+ JUDG$ ( BY A JURY 9 EA* CASE SEP>ATELY17 :I* REASONABLE & PRUD5T M5 ORD9>ILY TAKE ( !IR [N PROP]TY4 ,! LAW1 H[EV]1 DOES NOT REQUIRE ( A BAILEE1 ?AT HE POSSESS AN EQUAL JUDGM5T ) O!R M51 = ! MANAGEM5T ( PROP]TY4 ,! BAILOR1 OR [N] ( ! PROP]TY1 MU/ TAKE ! RISK RESULT+ FROM ANY DEFECT ( JUDGM5T1 ON ! P>T ( ! BAILEE - = WEAKNESS ( M9D IS NO FAULT2 & ! BAILOR1 !RE=E1 MU/ JUDGE = HIMSELF ( ! M5TAL CAPACITY ( ! BAILEE1 BE=E HE 5TRU/ HIS PROP]TY TO HIM4 ,ALL ?AT ! LAW REQUIRES ( ! BAILEE IS1 ?AT :ATEV] JUDGM5T HE MAY POSSESS1 BE EX]CIS$ HONE/LY1 9 GOOD FAI? T[>DS HIS BAILOR1 & ) SU* C>E & DILIG5CE 9 ! USE1 CU/ODY1 & MANAGEM5T ( ! PROP]TY 5TRU/$ TO HIM1 AS PRUD5T M5 G5]ALLY EX]CISE 9 ! USE1 CU/ODY1 & MANAGEM5T ( !IR [N PROP]TY4 

,9 ! CASE ( A GRATUIT\S LOAN1 ! BAILEE IS B\ND TO EX]CISE /ILL GREAT] C>E & DILIG5CE1 9 ! PRES]VATION ( ! PROP]TY BAIL$1 ?AN 9 A CASE ( BAILM5T = HIRE4 

,A BAILM5T ( DEBT1 H[EV]1 DIFF]S FROM O!R BAILM5TS1 9 ?IS P>TICUL>1 TO WIT1 ?AT ! VALUE BAIL$ IS M]G$ 91 & 9DI/+UI%ABLY MIX$ )1 ! G5]AL PROP]TY ( ! DEBTOR4 ,! DEBTOR MU/1 ( C\RSE1 TAKE ! NECESS>Y SUBSI/5CE ( HIMSELF & FAMILY \T ( ! :OLE MASS ( PROP]TY 9 HIS H&S2 & H5CE >ISES AN OBLIGATION SOME:AT PECULI> TO ?IS SPECIES ( BAILM5T1 TO WIT1 AN OBLIGATION TO PRACTICE SU* A DEGREE ( ECONOMY & FRUGALITY 9 ONE'S MODE ( LIV+1 AS IS OBVI\SLY NECESS>Y TO SAVE ! AM\NT BAIL$ FROM CONSUMPTION1 & 5ABLE ! BAILEE TO REPAY ! :OLE LOAN TO HIS BAILOR4 ,GOOD FAI? REQUIRES ?IS ( ! BAILEE2 & ! LAW ( BAILM5TS REQUIRES ( ! BAILEE1 9 ALL CASES1 EV]Y?+ ?AT IS ESS5TIAL TO GOOD FAI?4 ,BUT :AT ?AT ECONOMY & FRUGALITY >E1 :I* GOOD FAI? T[>DS A CR$ITOR REQUIRES ( A DEBTOR1 MAY DEP5D UPON A V>IETY ( CIRCUM/ANCES1 & BE V]Y DIFF]5T 9 DIFF]5T CASES4 ,IF1 = EXAMPLE1 A MAN [$ BUT ONE ?\S& DOLL>S1 & HAD T5 ?\S& DOLL>S ( PROP]TY 9 HIS H&S1 HE C\LD1 CONSI/5TLY ) GOOD FAI? T[>DS HIS CR$ITOR1 MA9TA9 SUB/ANTIALLY ! SAME /YLE ( LIV+ ?AT A PRUD5T MAN W\LD1 :O POSSESS$ N9E ?\S& DOLL>S1 & [$ NO DEBTS AT ALL4 ,ON ! O!R H&1 IF A DEBTOR HAD NO PROP]TY AT ALL1 9 HIS H&S1 EXCEPT :AT HAD BE5 LOAN$ TO HIM2 & \T ( ?AT & ! VALUE ADD$ TO IT BY HIS LABOR1 HE WAS UND] ! OBLIGATION ( PAY+ HIS DEBT & SUPPORT+ HIS FAMILY1 GOOD FAI? T[>DS HIS CR$ITOR W\LD REQUIRE ?AT HE PRACTICE SU* A DEGREE ( ECONOMY1 7A /R+5T FRUGALITY EV5 :]E ! CASE PLA9LY DEM&$ IT17 AS W\LD BE LIKELY TO 5ABLE HIM TO ACCOMPLI% BO? OBJECTS2 BECAUSE IT CANNOT REASONABLY BE SUPPOS$ ?AT HIS CR$ITOR W\LD HAVE LOAN$ HIM ! CAPITAL1 EXCEPT UPON ! UND]/&+ ?AT HE %\LD PRACTICE ALL ! ECONOMY ?AT W\LD BE OBVI\SLY NECESS>Y1 7SETT+ ASIDE UNUSUAL & UNEXPECT$ CONT+5CIES17 TO 5ABLE HIM TO REPAY IT4 ,NEV]!LESS1 9 ! CASE ( DEBT1 ! PRECISE MEASURE ( DUTY1 ON ! P>T ( ! DEBTOR1 OR BAILEE1 CANNOT BE DEF9$ ) P]FECT ACCURACY1 ANY MORE ?AN 9 ! CASE ( ANY O!R BAILM5T4 ,ALL ?AT CAN BE SAID IS1 ?AT ! DEBTOR IS B\ND TO DO ALL ?AT GOOD FAI? T[>DS HIS CR$ITOR REQUIRES1 UND] ! P>TICUL> CIRCUM/ANCES ( EA* CASE2 & ! G5]AL RULE IS1 ?AT A BAILEE MU/ PRACTICE ! SAME C>E1 DILIG5CE1 & ECONOMY1 9 ! MANAGEM5T ( ! PROP]TY BAIL$ TO HIM1 ?AT PRUD5T M5 G5]ALLY USE 9 ! MANAGEM5T ( !IR [N PROP]TY1 9 LIKE CIRCUM/ANCES2 & ! JUDGM5T ( A JURY IS ! F9AL CRIT]ION = DET]M9+ :E!R ! C>E1 DILIG5CE1 & ECONOMY OBS]V$ BY A BAILEE HAVE BE5 SU* AS >E USUALLY OBS]V$ BY O!R M54 

#a#a4 ,IF A BAILEE1 OR DEBTOR1 BE GUILTY ( ANY FRAUD 9 PROCUR+ ! BAILM5T1 OR ( ANY FAULT1 CULPABLE NEGLECT1 OR WANT ( GOOD FAI? 9 ! CU/ODY1 USE1 OR MANAGEM5T ( ! VALUE BAIL$1 :]EBY ANY LOSS %\LD ACCRUE TO ! BAILOR1 OR CR$ITOR1 ! BAILEE OR DEBTOR WILL BE LIABLE1 NOT ON HIS CONTRACT1 BUT 9 AN ACTION ON ! CASE = DAMAGES2 & = ! SATISFACTION ( !SE DAMAGES HIS FUTURE ACQUISITIONS WILL BE LIABLE =EV]1 & NOT M]ELY HIS PRES5T PROP]TY1 AS 9 ! CASE ( DEBT4 ,! REASON ( ?IS DI/9CTION IS1 ?AT ! GR\ND ( HIS LIABILITY1 9 ! =M] CASE1 IS A WRONG DONE BY HIM2 9 ! LATT]1 A CONTRACT4 ,= A WRONG DONE TO ANO!R1 ! WRONG DO] CAN OBVI\SLY BE DIS*>G$ FROM HIS LIABILITY ONLY BY MAK+ REP>ATION4 ,BUT FROM A CONTRACT HE IS DIS*>G$ :5 HE HAS DELIV]$ ALL ! VALUE1 :I* ! CONTRACT ATTA*ES TO1 & B9DS4 

#a#b4 ,IF A DEBTOR DO NOT PAY HIS DEBT AT ! TIME IT BECOMES DUE1 7UNLESS HE HAVE SOME VALID EXCUSE = NOT PAY+ IT AT ?AT TIME17 & ALL ! PROP]TY 9 HIS H&S %\LD AFT]W>DS BE LO/1 EV5 BY ACCID5T-BY SU* AN ACCID5T AS W\LD HAVE EXCUS$ HIM =EV] FROM ! PAYM5T1 IF IT HAD HAPP5$ BE=E ! DEBT BECAME DUE-:O WILL BE LIABLE 9 DAMAGES1 7& HIS FUTURE ACQUISITIONS BE RESPONSIBLE27 BECAUSE1 BUT = HIS FAULT 9 )HOLD+ ! VALUE BEYOND ! TIME AGRE$ ON = ITS DELIV]Y1 7OR PAYM5T17 IT W\LD NOT HAVE BE5 EXPOS$ TO ! ACCID5T1 BY :I* IT WAS LO/4 ,SU* IS ! RULE 9 O!R BAILM5TS2 & ! PR9CIPLE W\LD APPLY ) EQUAL PROPRIETY TO ! BAILM5T ( DEBT4 

#a#c4 ,IF A DEBTOR1 BE=E HIS DEBT BECOMES DUE1 %\LD USE ! VALUE BAIL$ TO HIM 9 A MANN] :OLLY OR PLA9LY DIFF]5T FROM :AT C\LD BE REASONABLY PRESUM$ TO HAVE BE5 ! AGREEM5T ( ! P>TIES ?AT IT %\LD BE US$1 & ! CR$ITOR %\LD SUFF] LOSS 9 CONSEQU5CE1 ! DEBTOR W\LD BE LIABLE 9 DAMAGES1 & HIS FUTURE ACQUISITIONS WILL BE RESPONSIBLE4 

#a#d4 ,IF A DEBTOR1 PREVI\S TO HIS DEBT BECOM+ DUE1 %\LD COMM5CE ANY WA/EFUL1 PR(LIGATE1 OR MANIFE/LY UNFAI?FUL EXP5DITURE ( ! VALUE BAIL$ TO HIM1 :]EBY HE %\LD BE PLA9LY 5DANG]+ HIS CR$ITOR'S SECURITY1 ! CR$ITOR W\LD HAVE A RI<T TO ! 9T]F]5CE ( A C\RT ( EQUITY TO RE/RA9 ! DEBTOR1 &1 IF NE$ BE1 COMPEL HIM TO MAKE PAYM5T ( :AT HE HAD 9 HIS H&S BE=E ! TIME AGRE$ UPON = ! PAYM5T2 = ALL ! RI<TS ( ! DEBTOR1 TO HOLD ! PROP]TY1 BY VIRTUE ( ! CONTRACT1 >E AT AN 5D ! MOM5T HE VIOLATES ! CONDITIONS ( ! BAILM5T1 IF ! CR$ITOR *OOSE TO AVAIL HIMSELF ( ! VIOLATION TO CANCEL ! CONTRACT1 & RECOV] ! PROP]TY BAIL$4 

,SU* >E SOME ( ! LEAD+ PR9CIPLES1 DRAWN FROM ! G5]AL LAW ( BAILM5TS1 & APPLICABLE TO ! BAILM5T ( DEBT1 IF DEBT BE BUT A BAILM5T4 ,H[ MU* MORE B5EFICIAL !SE PR9CIPLES >E TO ! 9T]E/S (1 BO? CR$ITORS & DEBTORS2 H[ MU* MORE /RONGLY PROTECTIVE ( ! RI<TS ( CR$ITORS1 & H[ MU* LESS B>B>\S & ABSURD T[>DS DEBTORS2 H[ MU* MORE PROMOTIVE ( S\ND1 SAFE1 & G5]ALLY DIFFUS$ CR$IT1 ?AN >E ! PR9CIPLES1 7IF >BITR>Y RULES1 ?AT VIOLATE ALL PR9CIPLES1 & ACKN[L$GE NONE1 CAN !MSELVES BE CALL$ PR9CIPLES17 ?AT >E N[ ACT$ UPON BY LEGISLATURES & C\RTS ( LAW1 9 REF]5CE TO ! SAME SUBJECTS1 NE$ NOT BE P>TICUL>LY SET =?2 = LI<T & D>KNESS1 TRU? & FALSEHOOD1 REASON & ABSURDITY1 JU/ICE & 9JU/ICE1 PRES5T NO /RONG] CONTRA/S ?AN ?OSE TWO SY/EMS DO TO EA* O!R4 ,ONE SY/EM IS F\ND$ 9 NATURAL LAW1 &1 HIKE ALL ! PR9CIPLES ( NATURAL HAW1 IS DEF5SIVE ( ALL ! RI<TS1 & B5IGN 9 ITS 9FLU5CE UPON ALL ! LAWFUL 9T]E/S ?AT IT REA*ES4 ,! O!R IS A M]E RELIC ( ?AT B>B>\S CODE1 7AS FALSE 9 !ORY1 AS M]CILESS 9 PRACTICE17 :I* SOLD ! DEBTOR & HIS FAMILY 9TO SLAV]Y1 OR1 79 LAT] DAYS17 DOOM$ HIM TO PRISON1 LIKE A FELON1 :5EV]1 BY REASON ( CONT+5CIES1 TO :I* ALL PROP]TY IS LIABLE1 & :I* HE C\LD NOT =ESEE1 NOR BE EXPECT$ TO =ESEE1 HE PROV$ UNABLE TO FULFILL ! LETT]1 9/EAD ( ! TRUE LAW1 ( HIS CONTRACT4 

,IT REMA9S1 9 ?IS *APT]1 TO SUGGE/ ! NATURE ( ! CASES :]E A MORAL OBLIGATION TO PAY1 MAY REMA9 AFT] ! LEGAL ONE HAS EXPIR$4 

,:]E ! CONTRACT HAS BE5 5T]$ 9TO BY BO? P>TIES1 CR$ITOR AS WELL AS DEBTOR1 ) A VIEW TO PR(IT ONLY1 & AS A M]E MATT] ( BUS9ESS1 & ! LOSS HAS OCCURR$ FROM ! NECESS>Y HAZ>DS ( BUS9ESS1 OR ! CONT+5CIES TO :I* PROP]TY IS ALWAYS LIABLE1 & NOT FROM ANY FRAUD1 FAULT1 NEGLECT1 OR BAD FAI? ON ! P>T ( ! DEBTOR1 NO MORAL OBLIGATION WILL REMA9 AFT] ! LEGAL ONE IS EXT9CT4 

,BUT :]E ! CR$ITOR HAS 5T]$ 9TO ! CONTRACT1 & ADVANC$ CAPITAL TO ! DEBTOR1 NOT ) A VIEW TO PR(IT = HIMSELF1 BUT AS A MATT] ( FAVOR OR K9DNESS TO ! DEBTOR1 !RE A MORAL OBLIGATION WILL REMA9 AFT] ! LEGAL ONE HAS EXPIR$2 BECAUSE WE >E ALL UND] A MORAL OBLIGATION TO SAVE \R FRI5DS FROM SUFF]+ ANY LOSS BY REASON ( ANY K9DNESSES !Y MAY DO = US4 

,AGA94 ,:]E IT WAS ! 9T5TION ( ! CR$ITOR1 ?AT ! ONLY PROP]TY1 9 ! H&S ( ! DEBTOR1 TO :I* ! CONTRACT ( DEBT ATTA*$1 OR C\LD ATTA*1 %\LD BE CONSUM$ BY ! DEBTOR - AS1 = EXAMPLE1 :]E ONE MAN %\LD SELL FOOD TO ANO!R1 :O WAS SO DE/ITUTE ?AT HE HAD NO?+ = HIS CONTRACT ( DEBT TO ATTA* TO1 EXCEPT ! FOOD ITSELF :I* HE HAD JU/ B\<T ( ! CR$ITOR1 & :I* IT WAS ! 9T5TION ( ! CR$ITOR ?AT HE %\LD EAT1 !RE ! MORAL OBLIGATION TO PAY W\LD REMA9 AFT] ! FOOD WAS CONSUM$1 & AFT] ! LEGAL OBLIGATION ( ! CONTRACT WAS CONSEQU5TLY EXT9CT4 

,!RE >E SOME CASES1 :]E !RE W\LD BE A MORAL OBLIGATION TO PAY1 :]E NO LEGAL ONE HAD EV] ACCRU$ AT ALIAS1 = EXAMPLE1 :]E A PHYSICIAN %\LD R5D] HIS S]VICES TO A SICK MAN1 :O HAD NO PROP]TY 9 HIS H&S = A LEGAL CONTRACT ( DEBT TO ATTA* TO4 

,IT MAY BE ?\<T AN OBJECTION TO ! SY/EM H]E ADVOCAT$1 ?AT IT MAKES NO PROVISION = ! LEGAL 5=CEM5T ( MORAL OBLIGATIONS ( SO PALPABLE A *>ACT] AS ?OSE H]E M5TION$4 ,BUT ! OBJECTION \<T TO VANI%1 :5 IT IS CONSID]$ H[ V]Y FEW SU* CASES W\LD NE$ TO >ISE1 IF ! :OLE SY/EM (4 CR$IT1 :I* NATURAL LAW AU?ORIZES1 & :I* HAS BE5 H]E ADVOCAT$1 W]E 9 OP]ATION2 = FEW P]SONS ONLY1 IF ANY1 W\LD !N BE SO DE/ITUTE AS TO HAVE NO?+ = A LEGAL CONTRACT TO ATTA* TO1 OR AS TO NE$ TO RECEIVE PECUNI>Y ASSI/ANCE ON SU* GR\NDS AS !SE CASES CONTEMPLATE4 ,BESIDES1 !RE IS NO MORE REASON :Y COMP5SATION %\LD BE 5=C$ BY LAW1 = EV]Y K9DNESS ( A PECUNI>Y NATURE1 ?AT ONE MAN DOES TO ANO!R1 ?AN = K9DNESSES ( ANY O!R SORT4 ,! HONOR1 GRATITUDE1 & S5SE ( DUTY ( MANK9D MAY BE SAFELY TRU/$ TO MAKE SUITABLE RETURNS = ALL ! K9DNESSES :I* M5 WILL BE LIKELY TO %[ TO EA* O!R1 :]E !Y HAVE NO LEGAL GU>ANTEE ( COMP5SATION4 ,SU* IS ! PRUD5T *>ACT] ( M5'S B5EVOL5CE G5]ALLY1 ?AT ! NUMB] ( SU* B5EFITS CONF]R$ WILL NOT BE SO GREAT AS TO BR+ ANY S]I\S 9JURY TO !IR AU?ORS1 EV5 IF SOME ( !M %\LD ACTUALLY GO UNREQUIT$4 ,BESIDES1 ! S5SE ( GRATITUDE1 ON ! P>T ( RECEIV]S1 IS G5]ALLY COMM5SURATE ) ! G5]OSITY ( GIV]S4 ,! CASES1 :]E ! =M] FALLS %ORT ( ! LATT]1 >E TOO FEW TO BE A MATT] ( ANY CONC]N TO ! GOV]NM5T4 

#g4 ,A PROMISSORY NOTE HAS BE5 DEF9$ TO BE 0A WRITT5 PROMISE TO PAY MONEY ABSOLUTELY1 & AT ALL EV5TS40 7,BAILEY ON ,BILLS1 P4 #a4 ,K5T'S ,COMM5T>IES1 ,LECT4 #d#d47 ,& C\RTS N[ ACT ON ?AT !ORY1 & ON ! !ORY ?AT SU* A CONTRACT IS B9D+4 ,BUT IF SU* W]E ! LEGAL MEAN+ ( ! CONTRACT1 IT W\LD PLA9LY BE AN IMMORAL1 ABSURD1 &1 !RE=E1 VOID CONTRACT -- ( NO LEGAL OBLIGATION :ATEV]4 ,RETURN 

#h4 ,A BAILM5T IS :]E ONE P]SON IS TEMPOR>ILY 5TRU/$ ) ! PROP]TY (ANO!R1 EI!R = SAFE KEEP+1 AS 9 ! CASE ( A SPECIAL DEPOSIT2 OR TO BE US$1 AS 9 ! EASE ( A HORSE L5T = A ,J\RNEYS OR TO BE SOLD1 AS 9 ! CASE ( GOODS 5TRU/$ TO A COMMISSION M]*ANT2 OR = SOME O!R PURPOSE2 UND] AN AGREEM5T1 EXPRESS OR IMPLI$1 ?AT HE WILL COMPLY ) ! CONDITIONS ON :I* IT IS 5TRU/$ TO HIM1 & F9ALLY RE/ORE IT TO ! [N]1 7OR ITS EQUIVAL5T1 IF IT BE SOLD17 OR O!RWISE DISPOSE ( IT AGREEABLY TO ! [N]'S DIRECTIONS4 ,! [N] IS CALL$ ! BAILOR-- ! P]SON 9TRUD$1 ! BAILEE4 ,IF ! PROP]TY BE LO/ OR 9JUR$ 9 ! H&S ( ! BAILEE1 )\T ANY FAULT1 OR CULPABLE NEGLECT ON HIS P>T1 ! LOSS FALLS ON ! [N]4 ,RETURN 

#i4 ,! VALUE SOLD BY ! DEBTOR TO ! CR$ITOR MAY (T5 BE ! SAME 0VALUE10 :I* HE HAS JU/ 0RECEIV$0 ( ! CR$ITOR4 ,IT MU/ BE ! SAME1 :]E ! DEBTOR HAS NO O!R PROP]TY4 ,BUT :]E HE HAS O!R PROP]TY1 ! VALUE ?AT HE SELLS TO ! CR$ITOR IS M]G$ 9 ! VALUE ( HIS :OLE PROP]TY1 & CONT9UES SO UNTIL IT IS F9ALLY SEP>AT$ FROM IT TO BE DELIV]$ TO ! CR$ITOR4 ,RETURN 

#a4 ,ON ?IS PO9T MORE H]EAFT]4 ,RETURN 

#a#a4 ,TO SAY ?AT VALUE 5TRU/$ TO A DEBTOR WAS LO/ ?R\< HIS 9CAPACITY = ! JUDICI\S MANAGEM5T ( IT1 7AS IT (T5 REALLY IS1 9/EAD ( BY ACCID5T17 MAKES ! CASE NO /RONG] 9 FAVOR ( ! P]PETUAL LIABILITY ( ! DEBTOR2 BECAUSE A WANT ( CAPACITY IS NO?+ = :I* ! DEBTOR IS CULPABLE1 OR = :I* HE CAN RI<TFULLY BE HELD LIABLE4 ,! CR$ITOR1 !RE=E1 MU/ JUDGE = HIMSELF1 & MUTT ALWAYS BE PRESUM$ TO HAVE JUDG$ = HIMSELF1 & TO HAVE TAK5 ! RISK ( ! DEBTOR'S CAPACITY1 OR 9CAPACITY1 BE=E HE 5TRU/$ HIS PROP]TY TO HIM4 ,ALL HE C\LD EXPECT1 OR HAVE A RI<T TO REQUIRE ( ! DEBTOR1 WAS ! FAI?FUL EX]CISE ( :ATEV] CAPACITY HE POSSESS$4 ,IT IS NEI!R POLICY1 EQUITY1 NOR LAW1 ?AT A MAN %ALL BE PROTECT$ AGA9/ ! LEGITIMATE CONSEQU5CES ( HIS [N NEGLIG5CE1 OR BE P]MITT$ TO ?R[ !M EV5 UPON ANO!R P]SON EQUALLY NEGLIG5T2 MU* LESS UPON AN 9NOC5T P]SON4 ,! LAW REQUIRES DILIG5CE ( ALL4 ,?IS PR9CIPLE1 !RE=E1 =BIDS ?AT A CR$ITOR1 :O HAS BE5 SO NEGLIG5T AS TO 5TRU/ HIS PROP]TY TO AN 9COMPET5T DEBTOR1 %\LD HOLD ! DEBTOR RESPONSIBLE = ITS LOSS1 :5 ! LATT] HAS FAI?FULLY EX]CIS$ HIS BE/ ABILITY = ITS PRES]VATION4 ,RETURN 

#a#b4 ,IF ,I %ALL H]EAFT] HAVE OCCASION TO SPEAK ( ! EXCEPTIONS TO ?IS RULE1 & TO %[ 9 :AM CASES A MORAL OBLIGATION TO PAY MAY REMA91 AFT] ! LEGAL ONE HAS EXPIR$4 ,RETURN 

#a#c4 ,?IS PO9T WILL BE MORE FULLY E/ABLI%$ 9 ! NEXT *APT]4 ,RETURN 

#a#d4 ,?AT IS1 EA* DEBT BECOMES A LI5 9 ! ORD] 9 :I* IT IS CONTRACT$1 IF ! DEBTOR PRACTICE NO FRAUD4 ,BUT ,IF A DEBTOR %\LD FRAUDUL5TLY CONCEAL A =M] DEBT1 :5 CONTRACT+ A SUCCE$+ ONE1 ! FIR/ CR$ITOR MI<T !REBY LOSE HIS PRIOR LI51 & ! SECOND CR$ITOR BECOME 5TITL$ TO IT1 9 PREF]5CE TO HIM4 ,TUE PR9CIPLE1 ON :I* ! DEBTOR'S FRAUD W\LD HAVE ?IS EFFECT AGA9/ ! RI<TS ( HIS FIR/ CR$ITOR IS ?IS4 ,POSSESSION IS PRIMA FACIE EVID5CE ( PROP]TY4 ,!RE IS NO EXCEPTION TO ?IS RULE1 UNLESS 9 CASES ( REAL E/ATE1 :]E LEGISLATION HAS SUB/ITUT$ PUBLIC RECORDS1 = POSSESSION1 AS EVID5CE ( PROP]TY4 ,!RE BE+ NO EXCEPTION TO ! RULE AS TO P]SONAL PROP]TY1 ALL P]SONS >E B\ND TO KN[ IT1 & GOV]N !MSELVES ACCORD+LY4 ,IF1 !RE=E1 ,A PUT HIS P]SONAL PROP]TY 9TO ! B&S ( #a#c--NO MATT] ON :AT PRIVATE AGREEM5T BETWE5 !MSELVES1 :E!R ON ! BAILM5T ( DEBT1 OR ANY O!R BAILM5T -- HE !REBY VIRTUALLY & LEGALLY ASS]TS1 TO ! WORLD1 ?AT ,B IS ! [N] ( ,IT2 & HE CANNOT RETRACT ?AT ASS]TION TO ! 9JURY ( ANY ?IRD P]SON1 :O HAS BE5 DECEIV$ BY IT1 OR :O HAS PUR*AS$1 )\T NOTICE ( ! CONTR>Y1 & ACTUALLY PAID VALUE = ! PROP]TY4 ,! SALE1 WILL1 !RE=E1 BE A VALID ONE TO ! PUR*AS]1 & ! ORIG9AL [N] CAN LOOK ONLY TO HIS BAILEE = ! DAMAGES4 

,?IS PR9CIPLE MAKES IT NECESS>Y ?AT ! [N] ( PROP]TY %\LD TAKE UPON HIMSELF ! RISK 7AS HE EVID5TLY \<T7 ( ANY DI%ONE/ SALES ( BY ?OSE1 TO :OM HE VOLUNT>ILY 5TRU/S IT1 & :OM HE HOLDS \T TO ! WORLD AS ! [N]S1 ,9/EAD ( 5ABL+ HIM TO ?R[ ?IS RISK UPON 9NOC5T & IGNORANT PUR*AS]S1 :O PROCE$ ACCORD+ TO LAW 9 PRESUOL+#a 7:]E !Y >E NOT 9=M$1 OR PUT UPON 9QUIRY TO ! CONTR>Y17 ?AT ! ONE HAV+ ! PROP]TY 9 HIS POSSESSION1 IS ?9 TRUE [N] ( ,IT4 

,ON ?IS PR9CIPLE1 A SECOND DEBT1 7:I* 9VOLVES A SATE ( VALUE 9 ! DEBTOR'S H&S17 CONTRACT$ BY CONCEAL+ FROM ! CR$ITOR ! EXI/5CE ( A =M] DEBT1 MI<T HE VALID AGA9/ ! PRIOR CR$ITOR1 & OP]ATE AS A PRIOR LI5 ON ! DEBTOR'S PROP]TY4 

,BUT !RE W\LD BE LITTLE OR NO DANG] ( SU* TRANSACTIONS2 BECAUSE1 FIR/1 ! HABIT ( OBTA9+ CR$IT IS SO G5]AL1 AS TO S]VE AS REASONABLE NOTICE TO PUT CR$ITORS ON 9QUIRY2 & EV]Y CR$ITOR W\LD !RE=E BE H\ND EI!R TO TAKE ! RISK ( ANY PRIOR DEBTS1 OR TO MAKE SPECIAL 9QUIRY ( HIS DEBTOR1 BE=E GIV+ HIM CR$IT1 :E!R HE W]E ALREADY 9 DEBT8 ,IF HIS DEBTOR W]E TO ANSW] FALSELY1 & !REBY 9DUCE HIM TO GIVE HIM CR$IT ON ! IDEA ?AT HIS 7! DEBTOR'S7 PROP]TY WAS FREE FROM ANY PRIOR LI51 ! ACT W\LD BE ONE ( SW9DL+ T[>DS ! PRIOR CR$ITOR1 & W\LD BE PROP]LY PUNI%ABLE AS SW9DL+1 ESPECIALLY IF ! PRIOR CR$ITOR %\LD SUFF] ANY ACTUAL H>M FROM ! SECOND LI52 & P]HAPS ,IT W\LD BE ! SAME IF HE DID NOT SUFF] ANY4 ,! CASE W\LD BE P>ALLEL TO ?AT ( A MAN1 :O1 AFT] HAV+ GIV5 ONE MORTGAGE ( L&1 %\LD AFT]W>DS1 BE=E ?AT MORTGAGE WAS RECORD$1 GIVE ANO!R MORTGAGE TO ANO!R P]SON1 :O HA% NO KN[L$GE ( ! FIR/ MORTGAGE2 WI% %\LD !REBY DEPRIVE ! FIR/ MORTGAGEE ( HIS PRIOR LI54 

,DEBTORS W\LD HAVE LITTLE OR NO TEMPTATION TO PRACTICE SU* FRAUDS2 = ,IT W\LD NOT ONLY MAKE !M LIABLE AS SW9DL]S1 HUT ALSO LIABLE 9 DAMAGES1 :]E ANY ACTUAL LOSS %\LD BE SUFF]$ BY ! FIR/ CR$ITOR2 & = ?OSE DAMAGES !IR FUTURE E>N+S W\LD BE LIABLE =EV]1 AS WILL H]EAFT] BE %[N1 & NOT M]ELY !IR PRES5T PROP]TY1 AS 9 CASE ( DEBT4 ,IF1 !RE=E1 A DEBTOR %\LD HE UNABLE TO OBTA9 A SECOND CR$IT ON ACC\NT ( ! LI5 ( A PRIOR ONE ON HIS PROP]TY1 HIS TRUE C\RSE W\LD BE TO DO ! BE/ HO C\LD ) ! MEANS 9 HIS H&S1 UNTIL HIS PRES5T DEBT %\LD COME TO MATURITY1 !N PAY IT1 OR PAY TO ! EXT5T ( HIS ABILITY1 & ?US CANCEL IT4 ,HE W\LD !N BE FREE TO CONTRACT A NEW ONE4 

,IT P]HAPS MI<T BE EXP$I5T = DEBTORS1 :5 CONTRACT+ SECOND DEBTS1 TO TAKE WRITT5 ACKN[L$GM5TS FROM !IR CR$ITORS ?AT !IR =M] DEBTS 7NAM+ !M7 W]E DISCLOS$ TO !M4 ,?IS W\LD PUT IT \T ( ! P[] ( CR$ITORS TO ,IMPUTE FRAUD TO !IR DEBTORS2 & W\LD ALSO PREV5T ANY COLLISION BETWE5 CR$ITORS AS TO ! ORD] ( !IR RESPECTIVE RI<TS4 ,PROBABLY1 H[EV]1 ?IS PRECAUTION W\LD BE UNNECESS>Y1 = ! BURD5 ( PRO( W\LD ALWAYS BE UPON ! SECOND CR$ITOR TO %[ ! FRAUDUL5T CONCEALM5T1 & NOT UPON ! DEBTOR TO PROVE HIS DISCLOSURE1 OR ?AT NO DISCLOSURE WAS ASK$4 ,! SECOND CR$ITOR'S [N TE/IMONY W\LD BE 9ADMISSIBLE TO GIVE HIMSELF A PRIOR LI52 &1 UNCORROBORAT$1 IT W\LD BE SUSPICI\S TE/IMONY EV5 9 A CRIM9AL PROSECUTION = SW9DL+4 ,! PROBABILITY1 !RE=E1 IS1 ?AT = WANT ( PRO( ( ANY FRAUD1 IF = NO O!R REASON1 !RE W\LD BE NO COLLISION AMONG CR$ITORS1 AS TO ! ORD] ( !IR RESPECTIVE LI5S1 UNLESS SECOND CR$ITORS1 AT ! TIME ( GIV+ CR$IT1 %\LD TAKE WRITT5 DECL>ATIONS FROM !IR DEBTORS ?AT !RE W]E NO PRIOR LI5S ON !IR PROP]TY4 ,& DEBTORS W\LD NOT1 ( C\RSE1 D>E TO PUT FALSE DECL>ATIONS ( ?AT K9D 9 WRIT+1 BECAUSE !Y W\LD !REBY CONVICT !MSELVES ( SW9DL+4 ,SO ?AT !RE W\LD BE NO COLLISION AMONG CR$ITORS ON ?IS GR\ND UNLESS 9 SOME FEW CASES1 :]E DEBTORS MI<T BE SU* OP5 VILLA9S AS TO PUT !IR FRAUDUL5T REPRES5TATIONS 9 WRIT+4 

,! PR9CIPLE /AT$ 9 ?IS NOTE W\LD BE NO OB/ACLE TO A DEBTOR'S SELL+ OR EX*ANG+ ANY PROP]TY ,9 HIS H&S = AN EQUIVAL5T VALUE ( A DIFF]5T K9D1 PROVID$ HE %\LD ACT ACCORD+ TO HIS BE/ JUDGM5T1 & ) NO 9T5T TO LESS5 ! VALUE ( HIS CR$ITOR'S SECURITY2 BECAUSE ! LI5 ( HIS CR$ITOR IS NOT A SPECIAL LIEU ON SPECIFIC >TICLES ( PROP]TY1 7NONE SU* BE+ DESIGNAT$ BY ! CONTRACT17 BUT UPON ! AM\NT ( VALUE ?AT ADH]ES 9 ALL ! PROP]TY 9 HIS H&S--:I* VALUE HE HAS AN IMPLI$ AU?ORITY FROM ! CR$ITOR TO CONV]T 9TO DIFF]5T =MS1 BY LABOR & TRAFFIC1 AT HIS DISCRETION1 7AS WILL BE MORE FULLY %[N 9 ! NEXT *APT]47 ,& :5 HE SOILS AN >TICLE = MONEY1 OR MAKES AN EX*ANGE ( IT = ANO!R COMMODITY1 ! EX*ANGE IS A M]E CONV]SION ( ! SAME VALUE 9TO A DIFF]5T =M4 ,! CR$ITOR'S RI<T ATTA*ES TO IT1 OR ADH]ES TO IT1 9 ITS NEW =M1 9 ! SAME MANN]1 & TO ! SAME EXT5T1 ?AT IT DID 9 ITS ORIG9AL ONE4 ,RETURN 

#a#e4 ,OGD5 VS4 ,SAUND]S1 #ab ,:EATON1 P4 #c#d4 ,RETURN 

O ,*APT] #f 3 ,! ,LEGAL ,NATURE ( ,DEBT1 ,CONT9U$ 
,LYS&] ,SPOON]1 ,POV]TY3 ,ITS ,ILLEGAL ,CAUSES & ,LEGAL ,CURES4 ,BO/ON3 ,BELA ,M>%1 ,NO4 #be ,CORNHILL4 #a#h#d#f4 

,*,A,P,T,] ,V,I4 

,! ,L,E,G,A,L ,N,A,T,U,R,E ,( ,D,E,B,T4 - 7,C,O,N,T,9,U,$47 

,S,O,M,E P]SONS MAY NOT HAVE BE5 CONV9C$1 BY ! >GUM5TS ALREADY (F]$1 ?AT DEBT IS BUT A BAILM5T4 ,! DOCTR9E IS ALSO TOO IMPORTANT TO BE DISMISS$ )\T (F]+ ALL ! >GUM5TS ?AT GO TO SU/A9 IT4 ,SOME FUR!R EXPLANATIONS ( COLLAT]AL QUE/IONS >E ALSO NECESS>Y4 ,!SE ADDITIONAL >GUM5TS & EXPLANATIONS HAVE BE5 RES]V$ = A SECOND *APT]1 = ! REASON ?AT1 TO MANY M9DS1 ,I APPREH5D1 !Y WILL BE UNNECESS>Y1 & !RE=E T$I\S2 & = ! FUR!R REASON ?AT ! MATT] WILL BE SIMPLIFI$ BY PRES5T+ !M SEP>ATELY FROM ?OSE 9 ! PREC$+ *APT]4 

,!RE REMA9 TWO L9ES ( >GUM5T1 :I* GO TO PROVE ! SAME PO9T1 TO WIT1 ?AT DEBT IS BUT A BAILM5T-& :I*1 = ! SAKE ( DI/9CTNESS1 WILL BE PRES5T$ SEP>ATELY4 ,IT WILL BE IMPOSSIBLE1 9 PRES5T+ !M1 TO AVOID 5TIRELY A REPETITION ( SOME ( ! IDEAS ALREADY EXPRESS$4 

,F,I,R,/ ,>,G,U,M,5,T4 

,9 ORD] TO GET AT ! TRUE NATURE & OBLIGATION ( DEBT1 IT IS NECESS>Y TO CONSID] ?AT A PROMISE TO PAY MONEY IS ( NO LEGAL IMPORTANCE1 EXCEPT AS EVID5CE ( DEBT4 ,IT DOES NOT1 ( ITSELF1 CREATE ! DEBT4 ,IT ONLY AIDS TO PROVE IT4 

,NEI!R DO ! TRUE NATURE & OBLIGATION ( DEBT CONSI/ 91 NOR EV5 RE/ AT ALL UPON1 ! M]ELY MORAL OBLIGATION ( A PROMISE TO PAY4 ,A NAK$ PROMISE TO PAY MONEY IS ( NO OBLIGATION1 9 LAW1 H[EV] S9C]E MAY HAVE BE5 ! 9T5TION ( ! MAK] TO FULFILL IT4 ,! LEGAL OBLIGATION ( DEBT NEV] >ISES FROM ! FACT ?AT A MAN HAS MADE A PROMISE TO PAY MONEY4 ,IT IS 5TIRELY IMMAT]IAL TO ! VALIDITY ( A DEBT1 :E!R ! DEBTOR HAVE MADE ANY PROMISE OR NOT4 ,! DEBT DOES NOT >ISE FROM ! PROMISE2 ! PROMISE IS ONLY GIV5 AS EVID5CE ( ! DEBT4 

,! LEGAL OBLIGATION ( A DEBT1 !N1 IS SOME?+ 5TIRELY DI/9CT FROM ! MORAL OBLIGATION ( A PROMISE1 OR ! MORAL OBLIGATION TO KEEP ONE'S WORD4 ,! PROMISE IS GIV5 M]ELY BECAUSE ! DEBT IS DIME1 & AS EVID5CE ?AT ! DEBT IS DUE4 ,IT IS NO P>T ( ! LEGAL OBLIGATION ( ! DEBT ITSELF4 

,IF A PROMISE BE MADE :5 NO DEBT IS DUE1 ! PROMISE IS ( NO IMPORTANCE 9 LAW4 ,ON ! O!R H&1 IF A DEBT BE DUE1 & NO PROMISE HAVE BE5 GIV51 ! DEBT IS EQUALLY VALID1 AS IF A PROMISE HAD BE5 GIV54 ,!SE FACTS %[ ?AT ! PROMISE IS NO?+ MAT]IAL1 EI!R TO ! EXI/5CE OR TO ! OBLIGATION ( A DEBT4 ,A DEBT MAY BE CREAT$ )\T GIV+ A PROMISE2 & A PROMISE MAY BE GIV5 )\T TREAT+ A DEBT4 

,9 ORD]1 !RE=E1 TO GET AT ! TRUE NATURE ( DEBT1 IT IS NECESS>Y TO SEP>ATE IT 5TIRELY FROM ! IDEA ( A PROMISE4 ,IT IS ?IS FALSE IDEA ( ! LEGAL OBLIGATION ( A PROMISE1 ?AT 9T]POSES ITSELF BE=E \R M9DS1 & PREV5TS \R SEE+ ! TRUE NATURE & OBLIGATION ( ! DEBT4 

,BUT IT IS SAID BY ! LAWY]S1 ?AT :5 A MAN HAS 0RECEIV$ VALUE10 AS A 0CONSID]ATION0 = HIS 0PROMISE10 HIS PROMISE IS B9D+4 ,BUT IT IS AN 5TIRE MIS/ATEM5T ( FACT1 & CONVEYS :OLLY ]RONE\S IDEAS ( ! NATURE ( DEBT1 TO SAY ?AT ! DEBTOR RECEIVES VALUE1 AS A CONSID]ATION = HIS PROMISE4 ,A MAN NEV] PAYS A CONSID]ATION = A PROMISE-= A PROMISE1 AS WE HAVE SE51 HAS1 ( ITSELF1 NO LEGAL OBLIGATION1 & IS ( NO CONSEQU5CE TO ! VALIDITY ( A DEBT4 ,TO SAY1 !RE=E1 ?AT A MAN PAYS A CONSID]ATION = A PROMISE1 IS EQUIVAL5T TO SAY+ ?AT A MAN PAYS HIS MONEY = NO?+-= ?AT :I* HAS NO VALUE ( ITSELF1 & IS ( NO LEGAL OBLIGATION4 

,IF1 !N1 ! CR$ITOR DO NOT PAY 0VALUE0 TO ! DEBTOR AS A CONSID]ATION = ! DEBTOR'S PROMISE1 = :AT DOES HE PAY IT TO HIM8 ,OBVI\SLY AS ! CONSID]ATION1 OR PRICE1 ( ! ?+ PROMIS$- ?AT IS1 AS ! PRICE ( ! EQUIVAL5T1 :I* ! DEBTOR SELLS TO HIM 9 EX*ANGE4 ,IF1 = 9/ANCE1 ,A SELLS TO ,B A HORSE = AN HUNDR$ DOLL>S1 & TAKES ,B'S PROMISSORY NOTE !RE=1 HE DOES NOT SELL ! HORSE = ! NOTE1 BUT = ! HUNDR$ DOLL>S2 & HE TAKES ! NOTE M]ELY AS EVID5CE ?AT HE HAS B\<T ! HUNDR$ DOLL>S1 & PAID AN EQUIVAL5T 7OR VALUE7 = !M1 & ?AT !Y >E !RE=E N[ HIS1 BY RI<T ( PROP]TY2 ALSO AS EVID5CE ( ! TIME :5 !Y >E TO BE DELIV]$ TO HIM4 

,?IS BR+S US TO A P]CEPTION ( ! FACT1 ?AT ! 0VALUE RECEIV$0 BY ! DEBTOR FROM ! CR$ITOR1 & ! SUM1 OR VALUE1 :I* ! DEBTOR 'PROMISES TO PAY OR DELIV] TO ! CR$ITOR1 >E M]ELY EQUIVAL5TS1 :I* HAVE BE5 MUTUALLY SOLD OR EX*ANG$ = EA* O!R4 

,IF !SE EQUIVAL5TS HAVE BE5 MUTUALLY SOLD1 OR EX*ANG$ = EA* O!R1 EA* EQUIVAL5T HAS B\<T & PAID = ! O!R2 &1 ( NECESSITY1 ! RI<T ( PROP]TY 9 EA* EQUIVAL5T PASS$ TO ITS PUR*AS]1 AT ! SAME TIME ?AT ! RI<T ( PROP]TY 9 ! O!R EQUIVAL5T PASS$ TO ITS PUR*AS] - ?AT IS1 AT ! TIME ( ! CONTRACT4 

,BUT ?AT1 :I* MAKES ONE ( !SE P>TIES ! DEBTOR ( ! O!R1 :5 !RE HAS BE5 M]ELY AN EX*ANGE1 OR A MUTUAL PUR*ASE & SALE ( EQUIVAL5TS1 BETWE5 !M1 IS SIMPLY ?IS1 VIZ41 ?AT ! VALUE1 :I* IS SOLD BY ONE ( 7HE P>TIES TO ! O!R1 IS1 BY AGREEM5T1 TO REMA91 = A TIME1 9 ! H&S ( ! SELL]1 = HIS USE4 

,A DEBTOR1 !RE=E1 IS ONE1 :O1 HAV+ SOLD VALUE TO ANO!R1 & PASS$ ! RIG_/A ( PROP]TY 9 IT TO ! PUR*AS]1 RETA9S IT = USE UNTIL A TIME AGRE$ UPON = ITS DELIV]Y4 ,AT ! 5D ( ?IS TIME1 ! CR$ITOR CAN CLAIM ?IS VALUE1 BECAUSE IT IS HIS1 HE HAV+ PREVI\SLY B\<T IT1 & PAID = IT-& NOT BECAUSE ! DEBTOR HAS PROMIS$ TO DELIV] IT AT ?AT TIME4 ,! DEBTOR'S PROMISE TO PAY1 OR DELIV]1 ?IS VALUE TO ! CR$ITOR1 AT ! TIME AGRE$ UPON1 IS NOT ( ! ESS5CE ( ! CONTRACT1 BY :I* ! CR$ITOR ACQUIR$ HIS RI<T ( PROP]TY TO ! VALUE PROMIS$2 & IT IS ( NO IMPORTANCE :ATEV] EXCEPT AS EVID5CE ?AT ! VALUE1 ?US PROMIS$ TO BE PAID1 OR DELIV]$ TO ! CR$ITOR1 HAS BE5 ALREADY SOLD TO HIM1 PAID = BY HIM1 & N[ BELONGS TO HIM2 & ?AT ! DEBTOR HAS NO RI<T TO RETA9 IT1 = USE1 BEYOND ! TIME :5 HE HAS PROMIS$ TO DELIV] IT4 ,! PROMISE1 !RE=E1 9/EAD ( BE+ EVID5CE ?AT ! RI<T ( PROP]TY1 9 ! VALUE PROMIS$1 HAS NOT PASS$ TO ! CR$ITOR1 IS ONLY EVID5CE ?AT IT HAD 79 PO9T ( LAW7 PASS$ TO HIM BE=E ! PROMISE TO DELIV] IT WAS MADE4 

,! RI<T ( PROP]TY1 91 ! VALUE TO BE PAID BY ! DEBTOR1 MU/ HAVE PASS$ TO ITS PUR*AS]1 ! CR$ITOR1 AT ! SAME TIME ?AT ! RI<T ( PROP]TY1 9 ! 0VALUE0 PAID BY ! CR$ITOR1 PASS$ TO ITS PUR*AS]1 ! DEBTOR-?AT IS1 AT ! TIME ( ! CONTRACT2 ELSE ! CR$ITOR W\LD HAVE P>T$ ) HIS 0VALUE10 OR PROP]TY1 7?AT :I* HE PAID TO MITE DEBTOR17 )\T RECEIV+ ANY EQUIVAL5T = IT4 ,HE W\LD M]ELY HAVE RECEIV$ A PROMISE1 :I*1 AS WE HAVE SE51 IS ( NO LEGAL VALUE1 ( ITSELF1 & C\LD BE US$ ONLY AS EVID5CE4 ,& IT C\LD BE US$ AS EVID5CE ONLY TO PROVE ?AT ! CR$ITOR HAD PAID VALUE TO ! DEBTOR 9 EX*ANGE = AN EQUIVAL5T2 ?AT HE HAD ?US B\<T ! EQUIVAL5T2 & ?AT LIE WAS !N1 ( C\RSE1 ! [N] ( ! EQUIVAL5T ?US B\<T & PAID =- NOT)/&+ IT WORE /ILL REMA9+ 9 ! H&S ( ! DEBTOR4 

,! PROMISE1 !RE=E1 W\LD BE ( NO AVAIL1 EV5 AS EVID5CE1 UNLESS ! RI<T ( PROP]TY 9 ! VALUE PROMIS$ TO BE PAID1 OR DELIV]$1 HAD ALREADY PASS$ TO ! CR$ITOR- = ?AT IS ! ONLY FACT1 79 CASE ( DEBT17 :I* ! PROMISE CAN BE US$ TO PROVE4 

,BUT P]HAPS IT WILL BE SAID1 7& ?IS IS ALL ?AT CAN BE SAID ON ! O!R SIDE17 ?AT ! PROMISE1 & ! ACKN[L$GM5T ( ! RECEIPT ( VALUE1 BY ! DEBTOR1 MAYBE US$ TO PROVE ?AT ! CR$ITOR HAS PAID VALUE TO ! DEBTOR 9 EX*ANGE = AN EQUIVAL5T1 :I* ! DEBTOR WAS TO DELIV]1 OR PAY1 TO ! CR$ITOR AT A FUTURE TIME4 ,TRUE IT MAY2 IT CAN BE US$ = ?AT PURPOSE1 & NO O!R4 ,BUT ?AT IS1 9 REALITY1 ONLY ASS]T+1 9/EAD ( CONTRADICT+1 :AT HAS ALREADY BE5 /AT$1 VIZ41 ?AT ! PROMISE MAY BE US$ TO PROVE ?AT TIME CR$ITOR HAS B\<T VALUE ( ! DEBTOR1 & PAID = IT2 & ?AT IT1 7! VALUE ?US B\<T & PAID =17 IS !RE=E N[ HIS1 7! CR$ITOR'S17 BY RI<T ( PROP]TY1 & HAS BE5 HIS EV] S9CE HE B\<T & PAID = IT1 TO WIT1 EV] S9CE LIE PAID HIS VALUE TO ! DEBTOR-= 7AS HAS BE=E BE5 M5TION$7 IT IS ABSURD TO SAY1 :5 A MAN HAS B\<T & PAID = A ?+1 ?AT HE DOES NOT [N IT1 7HAS NOT ! RI<T ( PROP]TY 9 IT17 M]ELY BECAUSE IT WAS LEFT = A TIME 9 ! H&S ( ! SELL]4 

,! ESS5TIAL ]ROR 9 ! COMMON !ORY ( DEBT1 IS1 ?AT IT SUPPOSES ?AT ! CR$ITOR ACQUIRES NO PRES5T RI<T ( PROP]TY-AT ! TIME ! CONTRACT IS MADE1 OR AT ! TIME HE PAYS HIS VALUE TO ! DEBTOR-9 ! EQUIVAL5T :I* ! DEBTOR PROMISES TO PAY OR DELIV] TO HIM2 ?AT LIE ONLY ACQUIRES A RI<T ( PROP]TY 9 ?IS EQUIVAL5T :5 IT IS F9ALLY DELIV]$1 OR PAID TO HIM-:I* MAY BE DAYS1 MON?S1 OR YE>S AFT] HE HAS REALLY B\<T IT & PAID = IT4 ,IT SUPPOSES ?AT HE PAYS HIS VALUE TO ! DEBTOR1 & PASSES HIS RI<T ( PROP]TY 9 IT TO ! DEBTOR1 )\T AT ! TIME ACQUIR+1 9 RETURN1 ANY EQUIVAL5T RI<T ( PROP]TY 9 ! VALUE :I* ! DEBTOR IS TO PAY1 OR TO DELIV] TO HIM4 

,?IS ]ROR RESULTS1 9 P>T1 9 ?IS WAY1 TO WIT2 BECAUSE ! VALUE SOLD BY ! DEBTOR TO ! CR$ITOR1 IS1 AT ! TIME ( ! SALE1 M]G$ 9 ! :OLE VALUE ( ALL ! DEBTOR'S PROP]TY1 AMID IS TO REMA9 SO M]G$ UNTIL IT IS F9ALLY SEP>AT$ & CONV]T$ 9TO MONEY1 = ! PURPOSE ( DELIV]Y1 WE OV]LOOK ! FACT1 ?AT ! RI<T ( PROP]TY 9 IT HAS NEV]!LESS AS MU* PASS$ TO ! PUR*AS]1 7?AT IS1 TO ! CR$ITOR17 AS IF IT W]E ALREADY SEP>AT$ FROM ! MASS ( ! DEBTOR'S PROP]TY1 & DELIV]$ TO ! CR$ITOR4#a#f 

,?IS ]ROR IS FUR!R /R5G!N$ BY \R CONF\ND+1 9 ! FIR/ PLACE1 ! IDEA ( A PROMISE1 & ! OBLIGATION ( ! DEBT2 &1 9 ! SECOND PLACE1 ! RI<T ( PROP]TY1 & ! DELIV]Y ( ! PROP]TY ITSELF4 ,! PROMISE1 & ! OBLIGATION ( ! DEBT1 AS WE HAVE ALREADY SE51 >E 5TIRELY DI/9CT MATT]S4 ,SO ALSO ! RI<T ( PROP]TY1 & ! DELIV]Y ( PROP]TY1 >E 5TIRELY DI/9CT MATT]S4 ,NEI!R DEP5DS AT ALL UPON ! O!R4#a#g ,! RI<T ( PROP]TY IS ACQUIR$ :5 IT IS B\<T & PAID =2 ! DELIV]Y ONLY GIVES ! [N] ! POSSESSION ( :AT WAS ALREADY HIS4 ,A CR$ITOR1 !RE=E1 ACQUIRES A RI<T ( PROP]TY 9 ! VALUE PROMIS$ TO HIM1 AT ! TIME HE PAYS HIS VALUE = IT- :E!R ! ACTUAL DELIV]Y OR PAYM5T ( ! VALUE PROMIS$ TAKES PLACE AT ?AT TIME1 OR MON?S1 OR YE>S AFT]W>DS4 ,IF ?IS W]E NOT SO1 ! CR$ITOR1 DUR+ ! :OLE P]IOD1 BETWE5 ! TIME :5 HE PAYS HIS VALUE TO ! DEBTOR1 & ! TIME :5 ! DEBTOR F9ALLY DELIV]S OR PAYS TO HIM ! EQUIVAL5T VALUE1 IS )\T ANY RI<T ( PROP]TY AT ALL1 EI!R 9 ! VALUE HE HAS P>T$ )1 OR 9 ! VALUE ?AT HE IS TO RECEIVE = IT4 ,& IF HE HAS NO RI<TS ( PROP]TY1 DUR+ ALL ?IS TIME1 TO EI!R ( !SE VALUES1 HE HAS1 ( NECESSITY1 NO RI<TS AT ALL 9 REF]5CE TO !M2 & NEV] CAN HAVE BY VIRTUE ( HIS CONTRACT4 ,HE ONLY HOLDS A PROMISE1 :I* C\LD BE US$ AS EVID5CE ( HIS RI<TS ( PROP]TY1 IF LIE HAD ANY SU* RI<TS2 BUT :I*1 ON ! !ORY ?AT HE HAS LIT7 SU* RI<TS1 CAN BE ( NO USE :ATEV]4 

,IF IT BE N[ E/ABLI%$1 ?AT ! VALUE PAID BY ! CR$ITOR TO ! DEBTOR1 & ! VALUE PROMIS$ BY ! DEBTOR TO ! CR$ITOR1 >E M]ELY- EQUIVAL5TS1 ?AT >E MUTUALLY B\<T & SOLD = EA* O!R2 & IF IT BE ALSO E/ABLI%$ ?AT ! RI<T ( PROP]TY1 9 EA* ( !SE EQUIVAL5TS1 PASSES TO ITS PUR*AS]1 AT ! SAME TIME ?AT ! RI<T ( PROP]TY 9 ! O!R EQUIVAL5T PASSES TO ITS PUR*AS]1 TO WIT1 AT ! TIME ( ! CONTRACT1 9/EAD ( AT ! TIME ( DELIV]Y1 !SE FACTS FURNI% US ) AN EXPLANATION1 OR DEF9ITION ( ! TRUE LEGAL OBLIGATION ( A DEBT4 ,!Y DEF9E ?IS OBLIGATION TO BE ! OBLIGATION ( A SELL] TO PRES]VE =1 & DELIV] TO HIS PUR*AS] AT A TIME AGRE$ UPON1 VALUE1 :I* HE HAS SOLD HIM1 & ! RI<T ( PROP]TY 9 :I* HAS ALREADY PASS$ TO HIM4 

,IF ?IS DEF9ITION BE CORRECT1 A DEBT 7OR SUM DUE7 IS M]ELY AN AM\NT ( VALUE1 :I* HAS BE5 SOLD BY ONE P]SON TO ANO!R1 & IS TO BE DELIV]$ TO HIM AT A TIME SUBSEQU5T TO ! SALE4 ,& A DEBTOR IS M]ELY ONE1 :O HAS SOLD VALUE TO ANO!R1 BUT RETA9S ! CU/ODY & USE ( IT = A TIME AFT] ! SALE1 & IS B\ND TO DELIV] IT TO ! PUR*AS]1 ON DEM&1 OR AT A FUTURE TIME AGRE$ UPON4 

,IF !SE DEF9ITIONS ( DEBT1 DEBTOR1 & ! OBLIGATION ( A DEBT1 >E CORRECT1 !Y PROVE ?AT FROM ! TIME ! CONTRACT 7BY :I* ! DEBT IS CREAT$7 IS 5T]$ 9TO1 UP TO ! TIME ! VALUE DUE IS TO BE DELIV]$1 ! DEBTOR IS ! M]E BAILEE ( ! CR$ITOR2 = A MAN1 :O CONT9UES TO HOLD PROP]TY1 ?AT HE HAS SOLD TO ANO!R1 IS M]ELY ! BAILEE ( ! PUR*AS]2 LIE IS ! M]E HOLD]1 US]1 & HIR] ( ! VALUE1 :I* HE HIMSELF HAS SOLD1 BUT NOT DELIV]$2 & ALL ! NECESS>Y CONSEQU5CES ( BAILM5T FOLL[2 & ! LEGAL PR9CIPLES ( BAILM5T APPLY4 ,ONE ( !SE PR9CIPLES1 AS HAS BE=E BE5 /AT$1 IS ?AT IF 7LIE PROP]TY BAIL$ HE LO/ OR 9JUR$ DUR+ ! BAILM5T1 )\T ANY FAULT OR CULPABLE NEGLECT ON ! P>T ( ! BAILEE1 ! LOSS FALLS ON ! BAILOR1 OR [N]4 

,S,E,C,O,N,D ,>,G,U,M,5,T4 

,IT IS A PR9CIPLE ( NATURAL LAW1 ?AT A CONTRACT = ! CONVEYANCE ( PROP]TY IS VOID1 UNLESS !RE BE PROP]TY [N$ BY ! MAK]1 = ! CONTRACT TO ATTA* TO1 AT ! TIME IT IS MADE4 ,IF1 = 9/ANCE1 ,A %\LD GIVE TO ,B1 A DE$ ( A F>M1 :I* ,A DID NOT [N1 ! DE$ W\LD BE VOID4 ,IT W\LD CONVEY NO RI<TS TO ,B1 SIMPLY BECAUSE ,A [N$ NO SU* F>M = ! CONTRACT TO ATTA* TO - OR1 :AT IS ! SAME ?+1 BECAUSE IT IS1 9 ! NATURE ( ?+S1 IMPOSSIBLE ?AT HE C\LD CONVEY TO ,B ANY RI<TS1 :I* HE DID NOT HIMSELF POSSESS4 ,& EV5 IF ,A %\LD AFT]W>DS BECOME ! [N] ( ! F>M1 ! DE$ ?AT HE HAD PREVI\SLY GIV5 ( IT TO ,B1 W\LD GIVE ,B NO TITLE TO IT4 ,TO CONVEY ! F>M TO ,B1 A NEW DE$ W\LD HAVE TO BE GIV51 SIMPLY BECAUSE1 AT ! TIME ! FIR/ DE$ WAS GIV51 ,A HAD NO RI<T ( PROP]TY 9 ! F>M1 = HIS CONTRACT TO ATTA* TO & CONVEY4 ,HIS FIR/ DE$ BE+ VOID1 AT ! TIME IT WAS GIV51 IT C\LD NEV] AFT]W>DS BE MADE A LEGAL CONVEYANCE ( RI<TS SUBSEQU5TLY ACQUIR$4 

,AGA94 ,IF ,A %\LD MAKE A CONTRACT1 PURPORT+ TO CONVEY TO ,B HIS 7,A'S7 RI<T1 AS HEIR1 9 HIS FA!R'S E/ATE1 :ILE HIS FA!R WAS YET LIV+1 ! CONTRACT W\LD BE VOID1 SIMPLY BECAUSE1 :ILE HIS FA!R WAS LIV+1 HE HAD NO RI<T1 AS HEIR1 9 HIS E/ATE4 ,& EV5 AFT] HIS FA!R %\LD HAVE DI$1 & HE %\LD HAVE BECOME HEIR TO HIS E/ATE1 ,B C\LD NOT HOLD IT UND] ANY CONTRACT ?AT HAD BE5 MADE PRIOR TO ,A'S BECOM+ 5TITL$ AS HEIR-ALL = ! SIMPLE REASON1 ?AT AT ! TIME ! CONTRACT WAS 5T]$ 9TO1 !RE WAS NO LEGAL RI<T OR PROP]TY 9 ,A1 = HIS CONTRACT TO ATTA* TO & CONVEY4 ,& IF IT ATTA*$ TO NO?+ AT ! TIME IT WAS 5T]$ 9TO1 IT NEV] C\LD ATTA* TO ANY?+4 ,NO CONTRACT1 ?AT A MAN CAN 5T] 9TO AT ONE TIME1 CAN1 9 ! NATURE ( ?+S1 BE MADE A LEGAL CONVEYANCE ( ANY RI<TS :I* HE DID NOT !N POSSESS1 & :I* HE %\LD ONLY ACQUIRE SUBSEQU5TLY4 

,IF ,A W]E TO GIVE TO ,B1 A BILL ( SALE ( A HORSE1 :I* HE 7,A7 DID NOT [N1 ,B W\LD ACQUIRE NO RI<TS TO ! HORSE BY IT2 SIMPLY BECAUSE ,A HAD1 AT ! TIME1 NO [N]%IP1 OR RI<T TO ! HORSE1 ?AT HE C\LD CONVEY4 ,& EV5 IF ,A %\LD AFT]W>DS BECOME ! [N] ( ! HORSE1 ,B C\LD NOT HOLD HIM1 OR CLAIM HIM1 UND] ! BILL ( SALE ?AT HAD BE5 PREVI\SLY GIV5-SOLELY = ! REASON ?AT1 AS !RE WAS NO RI<T ( PROP]TY1 9 ,A1 TO ! HORSE1 AT ! TIME ! BILL ( SALE WAS GIV51 ! CONTRACT WAS VOID4 ,IT CONVEY$ NO?+1 BECAUSE ! MAK] ( IT HAD NO RI<TS ?AT HIS CONTRACT C\LD CONVEY4 ,!RE WAS NO?+ = ! CONTRACT TO ATTA* TO4 ,! CONTRACT BE+ VOID AT ! TIME IT WAS 5T]$ 9TO1 NO?+ ?AT MI<T HAPP5 AFT]W>DS C\LD MAKE IT A VALID CONVEYANCE ( RI<TS SUBSEQU5TLY ACQUIR$4 ,B C\LD !N GET ! HORSE ONLY BY A NEW SALE1 OR A NEW CONTRACT1 TO BE MADE AFT] ,A HAD BECOME ! [N] ( ! HORSE4 

,9 ALL !SE ?REE CASES1 ?AT HAVE BE5 NAM$1 :]E ! SALE PROV$ VOID1 = ,WANT ( ANY RI<T 9 ,A TO ! ?+ PURPORT$ TO BE SOLD1 ,B C\LD RECOV] BACK HIS CONSID]ATION MONEY1 ON ! GR\ND ( ITS HAV+ BE5 PAID )\T ANY EQUIVAL5T1 OR VALUE RECEIV$4 ,& 9 AN ACTION TO RECOV] IT1 HE C\LD USE ! DE$1 BILL ( SALE1 OR O!R CONTRACT1 AS EVID5CE ?AT HE HAD PAID ! CONSID]ATION MONEY2 BUT ! CONTRACT ITSELF W\LD CONVEY HIM NO RI<TS1 EI!R TO ! L&1 ! 9H]ITANCE1 OR ! HORSE1 SIMPLY BECAUSE ,A1 AT ! TIME ( MAK+ ! CONTRACT1 HAD NO RI<TS ?AT LIE C\LD CONVEY4 ,& ,B W\LD RECOV] HIS CONSID]ATION MONEY1 SOLELY BECAUSE ! GRANT OR CONTRACT HAD CONVEY$ HIM NO RI<TS4 

,!SE CASES >E PUT SIMPLY TO ILLU/RATE ! PR9CIPLE1 ?AT A CONTRACT1 = ! CONVEYANCE ( PROP]TY1 IS VOID1 & CONVEYS NO RI<TS :ATEV] TO ! GRANTEE1 UNLESS ! GRANTOR BE ! POSSESSOR1 AT ! TIME ! CONTRACT IS 5T]$ 9TO1 ( ! RI<TS HIS CONTRACT PURPORTS TO CONVEY4 ,ANY SUBSEQU5T [N]%IP1 ?AT LIE MAY ACQUIRE1 IS NOT TRANSF]R$ TO ! GRANTEE BY ANY CONTRACT MADE PREVI\S TO HIS BECOM+ ! [N]4 ,!RE BE+1 9 ! GRANTOR1 AT ! TIME ! GRANT IS MADE1 NO SU* RI<TS AS ! CONTRACT PURPORTS TO CONVEY1 ! CONTRACT IS VOID1 9OP]ATIVE2 & BE+ VOID AT ?AT TIME1 NO?+ CAN GIVE IT VALIDITY AT A FUTURE TIME4 ,IT CAN ONLY BE US$ AS EVID5CE ?AT ! GRANTEE HAS PAID HIS MONEY )\T CONSID]ATION1 & \<T TO RECOV] IT BACK4 ,& IF HE WI%ES TO ACQUIRE ! SPECIFIC PROP]TY CONTRACT$ =1 :5EV] IT MAY AFT]W>DS HAPP5 TO COME 9TO ! H&S ( ! GRANTOR1 HE MU/ DO IT BY A NEW CONTRACT-! OLD ONE BE+ ABSOLUTELY 9]T1 LIFELESS1 9VALID1 = ANY PURPOSE ( A CONVEYANCE4 ,& IT IS EQUALLY 9VALID1 SO F> AS ANY CONVEYANCE ( RI<TS IS CONC]N$1 :E!R ! GRANTEE HAVE ACTUALLY RECOV]$ HIS CONSID]ATION MONEY1 OR NOT4 ,IT MAY BE USEFUL1 AS EVID5CE1 TO 5ABLE ! GRANTEE TO RECOV] ! MOTLEY LIE HAS PAID2 BUT IT IS 9CAPABLE ( ANY VALIDITY AS A CONVEYANCE4 

,! =CE & JU/NESS ( ?IS PR9CIPLE WILL BE MORE CLE>LY SE51 :5 IT IS CONSID]$ :AT A CONTRACT REALLY IS4 ,IT IS M]ELY A CONS5T1 AGREEM5T1 ASS5T- A M]E OP]ATION ( ! M9D4 ,! WRITT5 9/RUM5T1 CALL$ A CONTRACT1 IS ONLY ! EVID5CE ( ! M5TAL CONTRACT1 OR CONS5T4 ,I,L HAS NO VALIDITY O!RWISE ?AN AS SU* EVID5CE4 ,! ONLY REALLY MAT]IAL MATT] IS ! M5TAL OP]ATION1 OR ASS5T4#a#h ,N[ ?IS M5TAL EX]CISE1 OR ASS5T1 CAN OBVI\SLY PRODUCE NO EFFECT1 EXCEPT :ILE IT IS 9 ACTION4 ,IT MU/ !RE=E PASS ! RI<T ( PROP]TY !N1 OR NEV]4 ,IF1 :ILE IT IS 9 ACTION1 ! RI<T ( PROP]TY BE 9 ! P]SON :O EXP]I5CES ?IS ASS5T1 ! ASS5T PASSES ! RI<T ( PROP]TY TO ANO!R4 ,BUT IF ! RI<T ( PROP]TY BE NOT 9 HIM1 :ILE EXP]I5C+ ?IS S5SATION ( ASS5T1 ! S5SATION ACCOMPLI%ES NO?+1 BECAUSE !RE IS NO?+ ON :I* IT CAN OP]ATE4 ,& IF ! P]SON %\LD EV] AFT] BECOME ! PROPRIETOR ( ! ?+ TO BE CONVEY$1 HE MU/ EXP]I5CE ! S5SATION AGA91 9 ORD] TO MAKE ! CONVEYANCE1 BECAUSE HIS =M] CONS5T WAS ( NO =CE EXCEPT :ILE IT CONT9U$4 

,?IS PR9CIPLE BE+ E/ABLI%$1 ?AT A CONTRACT = ! CONVEYANCE ( PROP]TY1 HAS NO LEGAL =CE1 OR VALIDITY1 AS A CONVEYANCE- ?AT IS1 ?AT IT ATTA*ES TO NO?+1 & CONVEYS NO RI<T TO ANY?+-UNLESS ! MAK]1 AT ! TIME ! CONTRACT IS MADE1 BE ! [N] ( ! RI<TS HE PURPORTS TO CONVEY1 LET US APPLY ! PR9CIPLE TO ! CASE ( A PROMISSORY NOTE4 

,A PROMISSORY NOTE IS A CONTRACT 7OR1 MORE ACCURATELY SPEAK+1 ! EVID5CE ( A CONTRACT7 = ! CONVEYANCE ( PROP]TY-?AT IS1 ( MONEY4 ,IT IS A BILL ( SALE ( MONEY1 ?AT HAS BE5 SOLD & PAID =1 & IS TO BE DELIV]$ AT A FUTURE TIME4 ,IT DIFF]S1 9 SOME P>TICUL>S1 FROM ! CONTRACTS JU/ M5TION$1 9 REG>D TO L&1 A HORSE1 @&C42 BUT IT DOES NOT DIFF] FROM !M1 9 ANY P>TICUL> ?AT IS ESS5TIAL TO ! PR9CIPLE JU/ /AT$1 TO WIT1 ?AT A CONTRACT = ! CONVEYANCE ( PROP]TY1 ATTA*ES ONLY TO ! PROP]TY ?AT A MAN HAS :5 ! CONTRACT IS 5T]$ 9TO-7&1 ( CONSEQU5CE1 TO SU* O!R PROP]TY AS MAY BECOME 9DI/+UI%ABLY MIX$ ) IT PRIOR TO ! DELIV]Y47 ,! RI<TS1 :I* A CR$ITOR ACQUIRES BY A PROMISSORY NOTE1 7OR BY ! CONTRACT ( :I* ! NOTE IS ! EVID5CE17 >E RI<TS :I* ATTA* TO ! DEBTOR'S PROP]TY ! MOM5T ! CONTRACT IS 5T]$ 9TO1 EV5 ?\< ! MONEY IS NOT TO BE DELIV]$ = MON?S OR YE>S AFT]W>DS4 ,& IF ! DEBTOR HAVE NO PROP]TY = ! CONTRACT TO ATTA* TO1 AT ! TIME ! CONTRACT IS 5T]$ 9TO1 ! CONTRACT IS VOID1 & CAN NEV] AFT]W>DS ATTA* TO ANY?+4 ,& ?IS IS ON ! SAME PR9CIPLE1 ?AT A DE$ ( A F>M ATTA*ES TO ! F>M FROM ! MOM5T ! DE$ IS MADE1 & ?AT ! RI<T ( PROP]TY 9 ! F>M PASSES1 AT ?AT MOM5T1 FROM ! SELL] TO ! BUY]1 EV5 ?\< ! POSSESSION ( ! F>M IS1 BY AGREEM5T1 NOT TO BE DELIV]$ = MON?S OR YE>S AFT]W>DS4 ,SO ALSO A BILL ( SALE ( A HORSE1 ATTA*ES TO ! HORSE1 & ! RI<T ( PROP]TY 9 ! HORSE PASSES FROM ! SELL] TO ! BUY] AT ! MOM5T ! CONTRACT ( SALE IS 5T]$ 9TO1 EV5 ?\< ! HORSE1 BY AGREEM5T1 IS NOT TO BE DELIV]$ UNTIL A SUBSEQU5T TIME4 ,ON ! SAME PR9CIPLE1 ! RI<T CONVEY$ BY A PROMISSORY NOTE1 7:I* IS M]ELY A CONTRACT = ! SALE & DELIV]Y ( MONEY17 ATTA*ES TO ! DEBTOR'S PROP]TY1 & ! LI5 PASSES TO ! CR$ITOR AT ! MOM5T ! CONTRACT IS 5T]$ 9TO1 EV5 ?\< ! MONEY IS NOT TO BE DELIV]$ UNTIL MON?S OR YE>S SUBSEQU5T4 ,! RI<T ( ! CR$ITOR MU/ ATTA* AT ! TIME ! CONTRACT IS 5T]$ 9TO1 OR1 = ! REASONS ALREADY GIV51 IT CAN NEV] ATTA* AT ALL2 & W\LD !RE=E CONVEY NO RI<TS AT ALL TO ! CR$ITOR4 

,! PR9CIPAL PO9TS1 9 :I* A DE$ ( L&1 OR A BILL ( SALE ( A HORSE1 7:]E ! POSSESSION IS TO BE DELIV]$ AT A TIME SUBSEQU5T TO ! CONTRACT17 DIFF]S FROM A PROMISSORY NOTE1 >E !SE3 

#a4 ,A DE$ ( L&1 OR A BILL ( SALE ( A HORSE1 NECESS>ILY DESCRIBES OR DESIGNATES A P>TICUL> PIECE ( L&1 OR A P>TICUL> HORSE2 & IT NECESS>ILY APPLIES OR ATTA*ES ONLY TO ! ONE SO DESCRIB$1 BECAUSE !RE IS1 & CAN BE NO O!R PRECISELY LIKE IT4 ,BUT A PROMISSORY NOTE DOES NOT DESCRIBE ! P>TICUL> DOLL>S1 ?AT >E SOLD1 OR >E TO BE DELIV]$1 BUT ONLY TIME NUMB] ( !M4 ,IT !RE=E DOES NOT APPLY1 OR ATTA* TO1 ANY P>TICUL> DOLL>S2 & IT IS NOT NECESS>Y ?AT IT %\LD1 BECAUSE ALL DOLL>S >E ( EQUAL VALUE1 & !RE=E IT IS IMMAT]IAL :AT P>TICUL> DOLL>S %ALL BE DELIV]$4 

#b4 ,AS A PROMISSORY NOTE DOES NOT DESCRIBE OR DESIGNATE ! ID5TICAL DOLL>S SOLD1 IT CANNOT APPLY1 OR ATTA* TO ANY P>TICUL> DOLL>S1 ANY MORE ?AN TO ANY O!R DOLL>S ?AT ! DEBTOR MAY HAVE4 

#c4 ,AS A PROMISSORY NOTE DOES NOT DESCRIBE1 DESIGNATE1 OR ATTA* TO ANY P>TICUL> DOLL>S1 9 PREF]5CE TO O!RS1 IT DOES NOT IMPLY ?AT ! ID5TICAL DOLL>S1 ?AT >E F9ALLY TO BE DELIV]$1 N[ EXI/ 9 ! H&S ( ! DEBTOR4 ,& IF IT DOES NOT IMPLY ?AT ?OSE ID5TICAL 7DOLL>S N[ EXI/ 9 ! HALIDE ( ! DEBTOR1 IT DOES NOT OV5 IMPLY ?AT ! AM\NT ( VALUE1 :I* ! DOLL>S CONTA91 OR 79 O!R WORDS17 ! AM\NT ( VALUE :I* ! NOTE CONVEYS1 N[ EXI/S 79 ! H&S ( ! DEBTOR7 9 ! %APE ( DOLL>S1 ANY MORE ?AN ?AT IT EXI/S 9 ANY O!R P>TICUL> %APE1 FROM :I* IT CAN1 BY ! TIME AGRE$ ON = ! DELIV]Y1 BE CONV]T$ 9TO ! P>TICUL> DOLL>S ?AT %ALL F9ALLY BE DELIV]$1 OR 9TO ANY DOLL>S ?AT ! DEBTOR MAY HAVE A RI<T TO DELIV] 9 FULFILLM5T ( HIS CONTRACT4 ,AS ! NOTE DOES NOT DESCRIBE OR DESIGNATE ! ID5TICAL DOLL>S1 ?AT >E SOLD BY ! CONTRACT1 IT DOES NOT IMPLY OR DESCRIBE ! P>TICUL> %APE1 9 :I* ! AM\NT ( VALUE SOLD1 N[ EXI/S2 = IF IT DO NOT IMPLY ?AT IT EXI/S 9 ! %APE ( ! ID5TICAL DOLL>S ?AN >E TO BE DELIV]$1 IT DOES NOT IMPLY ?AT IT EXI/S 9 ! %APE ( ANY O!R DOLL>S1 ANY MORE ?AN ?AT IT EXI/S ,9 ! %APE ( CO/1 WOOL1 OR IRON4 ,IT ONLY IMPLIES1 !RE=E1 ?AT IT EXI/S1 7?AT IS1 ?AT ! AM\NT OR VALUE CONVEY$ BY ! NOTE EXI/S17 9 ! H&S ( ! DEBTOR1 9 SOME OR O!R1 FROM :I* ,IT ,IS SUSCEPTIBLE ( BE+ CONV]T$ 9TO DOLL>S BY ! TIME AGRE$ ON = ! DELIV]Y4 

#d4 ,AS ! NOTE DOES NOT DESCRIBE ! P>TICUL> %APE 9 :I* ! VALUE CONVEY$ BY IT N[ EXI/S1 & DOES NOT EV5 IMPLY ?AT IT N[ EXI/S 9 ! %APE ( DOLL>S1 ! NOTE IS1 9 EFFECT1 AN LI5 UPON ALL A2 MAN'S PROP]TY = ! NUMB] ( DOLL>S M5TION$ 9 ! NOTE2 OR IT IS A SALE ( SO MU* VALUE1 EXI/+ 9 SOME %APE OR O!R1 AS WILL PROCURE1 OR EX*ANGE = ! NUMB] ( DOLL>S M5TION$ 9 ! NOTE1 RA!R ?AN A SALE ( ANY P>TICUL> DOLL>S !MSELVES4 ,?AT SU* IS ! FACT1 IS EVID5T FROM TWO CONSID]ATIONS1 TO WIT2 FIR/1 ?AT ! ID5TICAL DOLL>S SOLD >E NOT DESCRIB$1 & !RE=E CANNOT BE KN[N2 &1 SECONDLY1 ?AT ! DEBTOR IS TO HAVE ! USE ( !M UNTIL ! TIME AGRE$ UPON = ! DELIV]Y4 ,AS ! DOLL>S1 :ILE REMA9+ 9 ! SPECIFIC %APE ( DOLL>S1 CAN BE ( NO USE TO ! DEBTOR1 & CAN1 BE US$ BY HIM ONLY BY CONV]T+ !M 9TO O!R COMMODITIES1 & AS !Y >E TO BE LEFT 9 HIS H&S1 = A C]TA9 TIME1 SOLELY ?AT HE MAY USE 7LI5S1 IT FOLL[S ?AT ,IT MU/ HAVE BE5 ! 9T5TION ( ! P>TIES ?AT ! DEBTOR %\LD HAVE ! RI<T ( CONV]T+ !M 9TO O!R COMMODITIES ?AT MI<T HE PRODUCTIVE1 OR SUSCEPTIBLE ( USE ,9 ! MEAN TIME- ?AT IS1 UNTIL ! TUNE ( DELIV]Y2 &1 !RE=E1 ?AT ! CR$ITOR %\LD HAVE HIS LI5 UPON !M1 OR UPON AN AM\NT ( VALUE EQUIVAL5T TO !M1 ,9TO :ATEV] %APE !Y MI<T BE CONV]T$1 OR ?R\< :ATEV] *ANGES !Y MI<T PASS1 PREVI\S TO DELIV]Y2 & ?AT1 9 TIME = ! DELIV]Y1 ?IS AM\NT OR VALUE WAS TO BE CONV]T$ AGA9 9TO DOLL>S = ?AT PURPOSE4#a#i 

#e4 ,AS ! CONTRACT1 TO BE ( ANY VALIDITY1 7?AT IS1 TO CONVEY ANY RI<TS17 MU/1 FROM ! MOM5T ,IT IS 5T]$ 9TO1 ATTA* TO SOME?+ OR OILI] 9 ! H&S ( ! DEBTOR2 & AS ,IT DOTS NOT DESIGNATE1 OR !RE=E PURPORT TO ATTA* TO ! ID5TICAL DOLL>S ?AT >E TO BE DELIV]$1 ,IT CAN ONLY ATTA* TO ! G5]AL PROP]TY ( ! DEBTOR1 AS A LI5 = ! NUMB] ( DOLL>S TO BE DELIV]$4 ,UNLESS IT ?US ATTA* TO ! G5]AL PROP]TY ( ! DEBTOR AS A LI51 IT W\LD1 ( NECESSITY1 BE A NULLITY1 HAV+ NO LEGAL OP]ATION :ATEV]1 SIMPLY BECAUSE !RE IS NO?+ ELSE = IT TO ATTA* TO4 

,A PROMISSORY NOTE1 !RE=E1 = AN HUNDR$ DOLL>S TO HE DELIV]$ AT A FUTURE TIME1 IS1 9 REALITY1 A CONTRACT ( SALE ( SO MU* VALUE1 EXI/+1 9 SOME %APE OR O!R1 9 ! H&S ( ! DEBTOR1 AS WILL PRODUCE AN HUNDR$ DOLL>S4 ,SU* A CON TRACT IS1 9 EFFECT1 A LI51 = ?AT AM\NT1 UPON A MAN'S :OLE PROP]TY1 EV5 ?\< HIS :OLE PROP]TY %\LD BE EQUAL TO ALL HUNDR$ TIMES ?AT AM\NT- & :Y8 ,BECAUSE1 AS ! P>TICUL> AM\NT ( VALUE1 OR PROP]TY1 TO :I* ! CONTRACT1 ATTA*ES1 ,IS NOT DESCRIB$1 OR SET (F DI/9CTLY FROM ! RE/ ( HIS PROP]TY1 ! DEBTOR CAN NEV] %[1 AS LONG AS ANY PORTION ( HIS PROP]TY REMA9S 9 HIS H&S1 & ! DEBT ,IS UNPAID1 ?AT ! PORTION REMA9+ 9 HIS H&S IS NOT ! PORTION ?AT WAS SOLD1 & PROMIS$ TO BE DELIV]$4 ,BESIDES1 IF1 BY ! TIME ( DELIV]Y1 IT %ALL APPE> ?AT ALL HIS PROP]TY HAS DISAPPE>$ EXCEPT A S+LE HUNDR$ DOLL>S1 IT IS MORE REASONABLE TO SUPPOSE ?AT HE HAS DISPOS$ ( HIS [N PROP]TY1 ?AN ?AT HE HAS DISPOS$ ( ?AT TO :I* HIS CR$ITOR HAD AN EQUITABLE RI<T4 

,A PROMISSORY NOTE1 !N1 = AN HUNDR$ DOLL>S1 ,IS A M]E BILL ( SALE ( AN HUNDR$ DOLL>S1 ?AT >E TO BE DELIV]$ AT A FUTURE TIME2 OR RA!R A BILL ( SALE ( SO MU* VALUE1 7N[ EXI/+1 OR PRESUM$ TO EXI/1 9 SOME O!R %APE ?AN ?AT ( ! ID5TICAL DOLL>S :I*1 >E TO BE DELIV]$17 AS WILL PUR*ASE AN HUNDR$ DOLL>S AT ! TIME AGRE$ UPON = ! DELIV]Y4 ,AL?\<1 !N1 A PROMISSORY NOTE DIFF]S FROM A BILL ( SALE ( A HORSE1 OR A DE$ ( L&1 9 NOT DESCRIB+ OR DESIGNAT+ ! ID5TICAL DOLL>S SOLD1 & !RE=E 9 NOT ATTA*+ TO ANY P>TICUL> DOLL>S :I* ! DEBTOR MAY HAVE ON L9$ AT ! TIME ! CONTRACT IS 5T]$ ,9TO1 IT ,IS NEV]!LESS PRECISELY LIKE A BILL ( SALE ( A HORSE1 OR A DE$ ( L&1 9 ?IS RESPECT1 TO WIT1 ?AT ! RI<TS ( ! CR$ITOR ATTA*1 FROM ! MOM5T ! CONTRACT IS MADE1 TO AN AM\NT ( VALUE1 7EXI/+ 9 ! H&S ( ! DEBTOR1 9 SOME %APE OR O!R17 SUFFICI5T TO PRODUCE1 OR BE CONV]T$ 9TO1 ! NUMB] ( DOLL>S M5TION$ 9 ! NOTE4 

,BUT P]HAPS SOME MAY BE DISPOS$ TO D5Y ?AT !RE IS ANY SU* ANALOGY1 AS ,I HAVE SUPPOS$1 BETWE5 A PROMISSORY NOTE & A DE$ ( L&1 OR A BILL ( SALE ( A HORSE2 OR ANY ANALOGY ?AT MAKES IT NECESS>Y ?AT !RE %\LD BE ANY PROP]TY1 ,9 ACTUAL EXI/5CE1 = ! CONTRACT EXPRESS$ 9 ! NOTE1 TO ATTA* TO4 ,& P]HAPS !Y WILL SAY ?AT ! DIFF]5T =M ( A PROMISSORY NOTE FROM ?AT ( A DE$1 OR BILL ( SALE - ! =M] BE+ A 0PROMISE TO PAY0 AT A FUTURE TIME1 & ! TWO LATT] BE+ EXPRESS GRANTS 9 ?9 PRES5T T5SE - IMPLIES ?AT ! NOTE CONVEYS NO SU* PRES5T RI<T ( PROP]TY TO ! PAYEE1 AS A DE$ DOES TO ! GRANTEE1 OR A BILL ( SALE TO ! V5DEE4 

,TO SEE ! FALLACY ( ?IS OBJECTION1 IT IS NECESS>Y TO GET RID ( WORDS1 & GET AT ,IDEAS2 OR RA!R TO GET RID ( ?AT CONFUSION ( IDEAS1 :I* RESULTS FROM ! HABIT ( >BITR>ILY US+ DIFF]5T WORDS TO CONVEY ! SAME ESS5TIAL IDEAS4 ,= 9/ANCE4 ,WE 0PAY0 MONEY = A HORSE1 & WE 0SELL0 A HORSE = MONEY- SU* IS ! COMMON USE ( WORDS4 ,YET1 9 REALITY1 WE AS MU* 0PAY0 ! HORSE = ! MONEY1 AS ! MONEY = ! HORSE4 ,& WE AS MU* SELL ! MONEY = ! HORSE1 AS ! HORSE = ! MONEY4 ,! HORSE BUYS ! MONEY1 AS MU* AS ! MONEY BUYS ! HORSE4 ,! HORSE & ! MONEY >E EQUIVAL5TS1 :I* >E MUTUALLY EX*ANG$ = EA* O!R2 :I* MUTUALLY BUY EA* O!R2 :I* >E MUTUALLY SOLD = EA* O!R2 :I* MUTUALLY PAY = EA* O!R4 ,9 EV]Y EX*ANGE ( EQUIVAL5TS ( ?IS K9D1 !RE >E TWO PUR*ASES1 & TWO SALES4 ,ONE ( ! P>TIES SELLS HIS HORSE = MONEY1 ! O!R HIS MONEY = A HORSE4 ,ONE ( ! P>TIES BUYS A HORSE ) MONEY1 ! O!R BUYS MONEY ) A HORSE4 ,& ?IS IS ! :OLE MATT]4 

,:51 !RE=E1 A MAN SELLS A HORSE = MONEY1 & PROMISES TO DELIV] ! HORSE AT A FUTURE TIME1 ! CONTRACT IS ( PRECISELY ! SAME ESS5TIAL NATURE AS :]E A MAN SELLS MONEY = A HORSE1 & PROMISES TO DELIV]1 OR 0PAY0 ! MONEY AT A FUTURE TIME4 ,! HORSE & ! MONEY >E ! EQUIVAL5TS1 ?AT >E EX*ANG$ = EA* O!R2 ?AT IS1 ! RI<T ( PROP]TY 9 EA* ,IS EX*ANG$ = ! RI<T ( PROP]TY 9 ! O!R4 ,& ! RI<T ( PROP]TY ,9 EA* EQUIVAL5T PASSES AT ! SAME 9/ANT ?AT ! RI<T ( PROP]TY 9 ! O!R EQUIVAL5T PASSES-ELSE ! CONTRACT IS NOT RECIPROCAL1 MUTUAL1 OR EQUAL1 & ONE ( ! P>TIES RECEIVES NO EQUIVAL5T1 OR CONSID]ATION1 = ! PROP]TY HE SELLS4 ,& IT IS ( NO CONSEQU5CE :5 ! DELIV]Y1 EI!R ( ! HORSE1 OR ( ! MONEY1 ACTUALLY TAKES PLACE-:E!R 9 A MON? OR A YE> ALT] ! CONTRACT-OR :E!R ! DELIV]Y ( BO? EQUIVAL5TS TAKES PLACE AT ONE & ! SAME LIME1 OR NOT4 ,! RI<T ( PROP]TY 9 BO? EQUIVAL5TS PASSES AT ! TIME ( ! CONTRACT1 :E!R ! DELIV]Y ( EI!R OR BO? TAKES PLACE !N OR NOT4 ,! DELIV]Y IS A M]E 9CID5T TO ! CONTRACT1 & IS ( NO ,IMPORTANCE 9 ITSELF1 AS AFFECT+ ! RI<TS ( PROP]TY1 :I* EA* ( ! P>TIES HAS ACQUIR$ BY ! CONTRACT4 ,ALT] ! CONTRACT IS MADE1 ! HORSE BELONGS TO ITS PUR*AS]1 AS MU* BE=E IT IS DELIV]$ TO HIM AS AFT]W>DS2 &1 BY ! SAME RULE1 ! MONEY BELONGS TO ITS PUR*AS] AS MU* BE=E IT IS DELIV]$1 OR 0PAID0 TO HIM1 AS AFT]W>DS4 ,! SAME IS TRUE 9 REG>D TO ! SALE ( L&4 ,! RI<T ( PROP]TY 9 ! L& PASSES AT ! TIME ! CONTRACT IS MADE1 OR ! DE$ GIV51 ?\< ! POSSESSION ( ! L& ITSELF BE NOT DELIV]$ UNTIL A SUBSEQU5T TIME4 ,&1 ( CONSEQU5CE1 ! RI<T ( PROP]TY 9 ! EQUIVAL5T1 ! CONSID]ATION1 ! MONEY1 = :I* ! L& IS SOLD1 OR EX*ANG$1 PASSES ALSO AT ! TIME ( ! CONTRACT1 ?\< ?IS EQUIVAL5T1 OR MONEY ,ITSELF1 BE NOT DELIV]$1 OR PAID1 UNTIL A SUBSEQU5T TIME-ELSE ! CONTRACT W\LD NOT BE MUTUAL1 RECIPROCAL1 OR EQUAL1 & ! SELL] ( ! L& W\LD HAVE P>T$ ) HIS RI<T ( PROP]TY ,9 ! L&1 )\T RECEIV+ ANY CONSID]ATION !RE= - ?AT IS1 )\T RECEIV+ ANY EQUIVAL5T RI<T ( PROP]TY 9 EX*ANGE4 ,! DELIV]Y ( MONEY1 !N1 ON A NOTE OR CONTRACT MADE PREVI\SLY TO ! DELIV]Y1 CORRESPONDS ) A DELIV]Y ( ! POSSESSION ( L&1 ON A DE$ ?AT HAS BE5 PREVI\SLY GIV54 ,! DELIV]Y HAS NO?+ TO DO ) ! RI<T ( PROP]TY 9 EI!R CASE - = ?AT 7! RI<T ( PROP]TY7 HAS PREVI\SLY PASS$1 TO WIT1 AT ! TIME ! CONTRACT WAS 5T]$ 9TO4 

,:AT WE CALL 0PAY+0 MONEY ON A NOTE1 IS ! M]E DELIV]Y ( MONEY ?AT L9E BE5 PREVI\SLY SOLD & PAID =1 & ! RI<T ( PROP]TY 9 :I* HAS PREVI\SLY PASS$ TO ! PUR*AS]4 ,& IT IS SOLELY BECAUSE ! MONEY HAS BE5 PREVI\SLY SOLD & PAID =1 & ! RI<T ( PROP]TY 9 IT HAS PASS$ TO ! PUR*AS]1 ?AT ! MONEY ITSELF IS PAID1 OR DELIV]$4 ,IT IS BECAUSE ! MONEY HAS BE5 PREVI\SLY B\<T BY ANO!R1 & !RE=E BELONGS TO HIM1 IS [N$ BY HIM1 IS1 9 FACT1 HIS PROP]TY1 ?AT IT IS PAID1 OR DELIV]$ TO HIM4 ,IF IT HE NOT PAID TO HIM = ?IS REASON1 OR IF IT BE NOT HIS PROP]TY BE=E ,IT IS DELIV]$1 ! DELIV]Y IS A GRATUITY2 IT IS :AT HE CANNOT CLAIM AS A RI<T - = PLA9LY A MAN CANNOT CLAIM1 ON A CONTRACT1 ?AT PROP]TY BE DELIV]$1 OR PAID TO HIM1 AS HIS1 UNLESS HE HAS1 BY ! CONTRACT1 FIR/ ACQUIR$ ! [N]%IP ( IT4 

,CONTRACT RI<TS TO ?+S1 !N1 >E ACTUAL BONA FIDE RI<TS ( PROP]TY 9 & TO ! ?+S CONTRACT$ =4 ,NO O!R 9TELLIGIBLE MEAN+ CAN BE GIV5 ( CONTRACT RI<TS TO ?+S4 ,A RI<T TO A M]E PR(USE1 OR A M]ELY MORAL CLAIM TO ! FULFILLM5T ( A PROMISE1 IS NO?+ 9 LAW4 ,! LAW1 ?AT GOV]NS M5'S TITLE TO PROP]TY1 CANNOT TAKE NOTICE ( ANY SU* UNC]TA91 9TANGIBLE1 & SPECULATIVE RI<TS1 AS ?AT ( A M]ELY MORAL CLAIM TO ! FULFILLM5T ( A PROMISE1 IF SU* A CLAIM1 7DEP5D+1 AS IT MAY1 UPON A ?\S& CONT+5CIES NOT 9 !IR NATURE SUSCEPTIBLE ( PRO(17 CAN BE CALL$ A RI<T4 ,! LAW1 9 REG>D TO PROP]TY1 CAN TAKE NOTICE ( NO?+ LESS DEF9ITE1 C]TA91 OR TANGIBLE1 ?AN ACTUAL1 PROPRIET>Y RI<TS1 9 ACTUAL1 EXI/+ ?+S4 ,& UNLESS A MAN ACQUIRE A RI<T ( PROP]TY 9 A ?+1 BY HIS CONTRACT1 HE REQUIRES1 LEGALLY SPEAK+11 NO RI<T BUT ALL BY HIS CONTRACT4 ,!RE IS NO O!R LEGAL RI<T TO OR 9 ?+S1 ?AT HE CAN ACQUIRE BY CONTRACT4 ,& ?IS PROPRIET>Y RI<T IS ACQUIR$- ,9 ALL CASES :5 IT IS ACQUIR$ AT ALL - ! MOM5T ! CONTRACT IS MADE_/ :E!R IT BE AGRE$ ?AT ! DELIV]Y %ALL TAKE PLACE AT ?AT OR A FUTURE TIME4 ,& ?IS PR9CIPLE APPLIES AS WELL TO MONEY ?AT IS SOLD = A HORSE1 OR = L&1 & IS AGRE$ TO BE DELIV]$1 OR PAID1 AT A FUTURE TIME1 AS IT DOES TO L&1 OR A HORSE1 ?AT IS SOLD = MONEY1 & IS AGRE$ TO BE DELIV]$ AT A FUTURE TIME4#b 

,BUT P]HAPS IT WILL BE SAID ?AT ! WORDS1 0,I PROMISE10 :I* >E CONTA9$ 9 ! NOTE >E NOT CONTA9$ 9 ! BILL ( SALE ( A HORSE1 OR DE$ ( L&2 & ?AT !SE WORDS 9DICATE SOME ESS5TIAL DIFF]5CE 9 ! NATURE ( !SE DIFF]5T CONTRACTS4 

,BUT ! WORDS1 ,I 0PROMISE10 >E NO ESS5TIAL P>T ( ! CONTRACT4 ,NOR IS A =MAL PROMISE 9 ANY CASE ESS5TIAL TO ! VALIDITY ( A DEBT-?AT IS1 TO ! OBLIGATION TO DELIV] MONEY ?AT HAS BE5 SOLD & PAID =4 ,A MAN MAY MAKE AS MANY NAK$ PROMISES TO PAY MONEY1 AS HE PLEASES1 & !Y >E ( NO OBLIGATION 9 L[4 ,ON ! O!R H&1 IF A MAN HAVE RECEIV$ VALUE FROM ANO!R1 ) ! UND]/&+ ?AT IT IS NOT A GIFT1 OR ?AT AM1 EQUIVAL5T IS TO BE PAID = IT1 ! DEBT IS OBLIGATORY - ?AT IS1 ! OBLIGATION TO DELIV] ! EQUIVAL5T IS B9D+-:E!R !RE HE ANY =MAL PROMISE TO PAY OR NOT4 ,?IS WE SEE 9 ! EASE ( GOODS SOLD1 & *>G$ ON ACC\NT4 ,& TIME OBLIGATION TO DELIV] ! EQUIVAL5T CONSI/S 9 ?IS - ?AT IT1 7! EQUIVAL5T OR MONEY17 HAS BE5 B\<T AMID PAID =1 & N[ ACTUALLY BELONGS TO ! CR$ITOR1 OR PUR*AS]1 AS A MATT] ( PROP]TY4 ,! PROMISE1 !N1 IS A MATT] ( M]E =M 9 ANY CASE1 & ( NO IMPORTANCE TO ! VALIDITY ( AN OBLIGATION TO DELIV] AN EQUIVAL5T1 ?AT L9E1 BY CONTRACT1 7CONS5T17 BE5 EX*ANG$ = VALUE ?AT HAS BE5 RECEIV$4 ,IT MAY LIE IMPORTANT US EVID5CE ( ! CONTRACT2 BUT IT IS NO P>T ( ! CONTRACT ITSELF2 ?AT IS1 IT1 ( ITSELF1 CONVEYS NO RI<TS ( PROP]TY TO ! PROMISEE1 & NO RI<TS ( ANY K9D1 TO ! EQUIVAL5T PROMIS$1 :I* LIE W\LD NOT HAVE )\T ANY =MAL PROMISE4 

,BUT IT MAY BE SAID1 7& ?IS IS ! LANGUAGE ( ! LAWY]S17 ?AT :]E A MAN HAS PAID A CONSID]ATION = A PROMISE1 !RE ! PROMISE IS B9D+4 ,BUT ! TRU? IS1 7AS HAS BE=E LIV5 /AT$17 ?AT A MAN NEV] PAYS A CONSID]ATION = A PROMISE4 ,HE SIMPLY PAYS AN EQUIVAL5T1 A PRICE1 OR CONSID]ATION1 = ! ?+ PROMIS$4 ,& HIS RI<T ( PROP]LY TO ! ?+ PROMIS$1 ( C\RSE1 ATTA*ES AT ! TIME ( ! CONTRACT - AT ! TIME HE PAYS ! EQUIVAL5T = IT - OR IT CAN NEV] ATTA* AT ALL4 FLUID !N LIMO PROMISE TO DELIV]1 OR PAY IT1 7! ?+ PROMIS$17 IS MADE SOLELY AS EVID5CE ?AT IT 7! ?+ PROMIS$7 HAS BE5 SOLD1 & N[ BELONGS TO ! PROMISEE AS A MATT] ( PROP]TY4 

,A PROMISSORY NOTE1 !N1 ?AT ,IS GIV5 = MONEY1 IS1 9 ITS ESS5CE1 PRECISELY LIKE A BIII ( SALE1 ?AT IS GIV5 ( A HORSE1 & ?AT CONTA9S AN AGREEM5T TO DELIV] ! HORSE AT A FUTURE LIMO2 OR IT IS PRECISELY LIKE A DE$ ?AT ,IS GIV5 ( L&1 & ?AT EMBRACES AN AGREEM5T1 OR MEMOR&UM1 ?AT ! POSSESSION ( ! L& ,IS TO BE GIV5 AT A FUTURE TIME4 ,TIME LANGUAGE ( !SE ?REE CONTRACTS >E1 9 !IR LEGAL PURPORT1 ESS5TIALLY TIME SAME4 ,= 9/ANCE4 ,! PROMISSORY NOTE RUNS ?US4 

0,?IRTY 7LAYS FROM DATE ,I PROMISE TO PAY ,A4 ,B4 ONE HUNDR$ DOLL>S1 = VALUE RECEIV$40 ,SIGN$ ,C4 ,D4 

,! BILL ( SALE RUNS ?US4 

,A4 ,B4 B\<T ( ,C4 ,D4 ONE HORSE1 LOBE DELIV]$ 9 ?IRTY 7LAYS FROM DATE4 ,RECEIV$ PAYM5T40 ,SIGN$ ,C4 ,D4 

,TIME DE$ ( L& RUNS ?US4 

0,9 CONSID]ATION ( ONE HUNDR$ DOLL>S1 PAID BY ,A #a#c1 ! RECEIPT ( :I* IS H]EBY ACKN[L$G$1 ,I H]EBY GRANT1 CELL1 & CONVEY TO ,A ,B1 ONE ACRE ( L&1 POSSESSION TO LIE DELIV]$ ,9 ?IRTY DAYS FROM ! DATE H]E(40 ,SIGN$ ,C4 ,D4 

,:AT DIFF]5CE IS !RE 9 !SE ?REE CONTRACTS1 SO F> AS A CONVEYANCE ( PROPRIET>Y RI<TS TO ! ?+ PROMIS$ TO HE PAID1 OR DELIV]$1 IS CONC]N$8 ,OBVI\SLY NONE :ATEV]4 ,! BILL ( SALE SAYS1 9 SUB/ANCE1 ?AT ! HORSE HAS BE5 SOLD1 NOT JU/ ?IS 0PAYM5T10 ! VALUE1 OR ! EQUIVAL5T1 HAS !N 0RECEIV$20 & ?AT TIME HORSE - :I*1 HAV+ BE5 ?US SOLD & PAID =1 N[ ( C\RSE BELONGS TO ! PU*AS]- IS TO BE DELIV]$ TO HIM 9 ?IRTY DAYS4 ,! DE$ SAYS ?AT ! LAUD IS SOLD1 & ITS EQUIVAL5T1 OR 0CONSID]ATION10 HAS BE5 0PAID0 NOT 0RECEIV$ & ?AT ! POSSESSION ( ! L&- 7:I*1 HAV+ BE5 ?US SOLD & PAID =1 N[ ( C\RSE BELONGS TO ! PUR*AS]7 - ,IS TO BE GIV5 9 ?IRTY DAYS4 ,! NOTE SAYS ?AT ! 0VALUE0 - ?AT IS1 ! EQUIVAL5T1 ! 0PAYM5T10 !0 CONSID]ATION10 = ! MONEY PROMIS$1 HAS BE5 0RECEIV$10 7:I* ,IMPLIES ?AT ! MONEY PROMIS$ HAS BE5 SOLD1 & N[ BELONGS TO ! PUR*AS]17 & ?AT ! MONEY ,IS TO BE DELIV]$1 OR PAID1 9 ?IRTY DAYS4 

,:AT POSSIBLE GR\ND IS !RE = SAY+ ?AT ! RI<T ( PROP]TY 9 ! L&1 OR 9 ! HORSE1 IS CONVEY$ BY ! CONTRACT EXPRESS$ 9 ! =EGO+ DE$1 OR BILL ( SOLE1 & ?AT ! RI<T ( PROP]TY 9 ! MONEY1 7OR 9 AN AM\NT ( VALUE SUFFICI5T TO PUR*ASE ! MONEY17 IS NOT CONVEY$ BY ! CONTRACT EXPRESS$ 9 ! NOTE8 ,NONE1 NONE :ATEV]4 

,SUPPOSE ,A AMID #ad %\LD MAKE A CONTRACT ) EA* O!R = ! EX*ANGE - OR1 :ET IS ! SAME ?+1 = ! MUTUAL PUR*ASE & SALE - ( ONE HUNDR$ DOLL>S 9 MONEY1 & A HORSE2 ?AT ,IS1 ,A %\LD SELL TO ,B A HORSE = AN HUNDR$ DOLL>S 9 MONEY1 & #ac %\LD SELL TO ,A AN HUNDR$ DOLL>S 9 MONEY = A HORSE2 AMID ?AT BO? ! MONEY & ! HORSE >E TO BE DELIV]$ 9 TW5TY DAYS FROM ! TIME ( ! CONTRACT4 ,! PROMISE ( ONE W\LD BE TO 0PAY0 ! MONEY 9 ?IRTY DAYS1 & ( !SE !N TO 0DELIV]0 ! HORSE 9 ?IRTY DAYS4 ,YET DO NOT !SE MUTUAL PROMISES1 OR UND]TAK+S1 MEAN PRECISELY ! SAME TIM+8 ,& IS NOT ! CONTRACT1 ON1 ! P>T ( EA*1 PRECISELY ! SAME ?R\<\T1 ?AT IT IS ON ! P>T ( ! O!R8 ,TIM ALSO IS ! EQUIVAL5T ( ! MONEY1 & TIME MONEY ( ! HORSE4 ,! MONEY IS SOLD = ! HORSE1 AS MU* AS ! HORSE IS SOLD = ! MONEY4 ,AMID ! HORSE BUYS ! MONEY1 AS MU* AS ! MONEY BUYS ! HORSE4 ,TIME AGA9 IS RECIPROCAL & EQUAL 9 EV]Y RESPECT4 ,! MUTUAL PUR*ASE & SALE HAVE BEETS A M]E EX*ANGE ( ! RI<TS ( PROP]TY 9 C]TA9 VALUES1 OR EQUIVAL5TS4 ,:Y1 !N1 ATTA* A DIFF]5T MEAN+ TO ! WORD 0PAY10 :5 APPLI$ TO ! MONEY1 FROM :I* WE ATTA* TO ! WORD 0DELIV]10 :5 APPLI$ TO ! HORSE8 ,:Y SAY ?AT TIME RI<T ( PROP]TY 9 ! HORSE PASSES TO ! PUR*AS] ( ! HORSE AT ! TIME ( ! CONTRACT1 LIMIT !N ! RI<T ( PROP]TY 9 ! MONEY1 7OR 9 AN AM\NT ( VALUE SUFFICI5T TO PUR*ASE ! MONEY17 DOES NOT PASS TO ! PUR*AS] ( ! MONEY UNTIL ! DELIV]Y1 ?IRTY DAYS AFT]W>DS8 ,CLE>LY !RE IS HO REASON = IT4 ,EVID5TLY1 ! RI<T ( PROP]TY 9 ONE EQUIVAL5T PASSES AT ?IS SAME TIME ?AT ! RI<T ( PROP]TY 9 ! O!R EQUIVAL5T PASSES1 TO WIT1 AT ! TIME ( ! CONTRACT1 )\T ANY REG>D TO ! TIME ( ! DELIV]Y4 

,! REAL1 EQUITABLE1 BONA FIDE RI<T ( PROP]TY 9 EA* ( !SE >TICLES1 7TIME HORSE & HUE MONEY17 IS EX*ANG$ BY TIME CONTRACT1 & !RE=E NECESS>ILY PASSES AT ! TIME ( ! CONTRACT4 ,! POSSESSION M]ELY ( EA* REMA9S ) ! SELL] = ?IRTY DAYS4 ,ALL WILL AGREE ?AT ! RI<T ( PROP]TY 9 ! HORSE PASSES AT ! TIME ( TIME CONTRACT1 & ?AT ! POSSESSION M]ELY REMA9S ) ! SELL] DUR+ ! ?IRTY DAYS4 ,:Y DOES NOT ! RI<T ( PROP]TY1 9 ! HUNDR$ DOLL>S1 7OR 9 AN AM\NT ( VALUE EQUIVAL5T TO ! HUNDR$ DOLL>S17 PASS EQUALLY AT ! TIME ( ! CONTRACT1 M9D ! POSSESSION M]ELY REMA9 ) ! SELL] ( ! MONEY = ?IRTY DAYS8 ,! MUTUAL PUR*ASE & SALE ( ! HORSE & ! MONEY IS A M]E EX*ANGE ( EQUIVAL5TS- A RECIPROCAL CUD EQUAL CONTRACT2 & PRECISELY ! SAME RI<TS ( PROP]TY1 :I* PASS TO TIME PUR*AS] ( ! HORSE1 PASS ALSO TO ! PUR*AS] ( ! MONEY4 ,C]TA9LY1 IF ! RI<T ( PROP]TY 9 ! HORSE1 PASSES TO ! PUR*AS] ( TIME HORSE1 BY =CE ( ! CONTRACT1 & AT ! TIME ( !E CONTRACT1 TIME SAME RI<T ( PROP]TY 9 ! MONEY PASSES ALSO TO ! PUR*AS] ( ! MONEY1 BY =CE ( CONTRACT1 & AT ! TIME ( ! CONTRACT4 ,NO PROPOSITION1 9 LAW1 IT SEEMS TO ME1 CAN LIE MORE SELL-EVID5T ?AN ?IS4 

,WELL1 !M1 SUPPOS+ ?IS PO9T TO HE E/ABLI%$1 ?AT ! RI<T ( PROP]TY1 9 MONEY ?AT IS PROMIS$-OR RA!R 9 AN AM\NT ( VALUE EXI/+1 9 SOME %APE OR O!R1 9 ! H&S ( ! DEBTOR1 SUFFICI5T TO PUR*ASE ! AM\NT ( MONEY PROMIS$ - PASSES TO ITS PUR*AS] AT ! TIME ! CONTRACT IS 5T]$ 9TO1 9/EAD ( ! TIME ( DELIV]Y - :AT FOLL[S8 

,FROM ! TIME ?AT PROP]TY IS SOLD1 UNTIL IT IS DELIV]$1 ! SELL] IS ! M]E BAILEE ( ! PUR*AS]2 & ! PROP]TY ITSELF ,IS AT ! RISK ( ! PUR*AS]1 UNLESS ! SELL] BE GUILTY ( SOME FAULT1 OR CULPABLE NEGLECT1 9 REG>D4 TO ! CU/ODY OR USE ( IT4 

,= 9/ANCE4 ,9 ! CASE BE=E SUPPOS$1 :]E ,A SELLS TO ,B A HORSE1 = AN HUNDR$ DOLL>S1 GIV+ HIM A BILL ( SALE !RE(2 & ,B SELLS TO ,A AN HUNDR$ DOLL>S = TIME HORSE1 GIV+ HIM A PROMISSORY NOTE !RE= - ! HORSE & MONEY TO BE EA* DELIV]$ TO !IR RESPECTIVE PUR*AS]S 9 ?IRTY DAYS FROM ! TIME ( ! CONTRACT-,A HOLDS ! CU/ODY OH ! HORSE1 = ?OSE ?IRTY DAYS1 AS ! H\SE ( ,B4 ,& IF ! HORSE1 DUR+ ?OSE ?IRTY DAYS1 DIE1 BE /OL51 OR O!RWISE LO/ OR 9JUR$1 BY ANY ( ! CASUALTIES TO :I* HORSES >E LIABLE1 )\T ANY FAULT1 OR CULPABLE NEGLIG5CE1 ON TIME P>T ( ,A1 ! LOSS FALLS UPON ,B1 ! PUR*AS]4 ,ALL LAWY]S WILL AGREE ?AT ?IS IS TIME LAW ,9 REG>D TO ! HORSE4 ,ON ! SAME PR9CIPLE1 !M1 ?AT ,A IS TIME M]E BAILEE ( ! HORSE = ?OSE ?IRTY DAYS1 ,B IS ! M]E BAILEE ( ! MONEY1 7OR ( AN AM\NT ( VALUE EQUIVAL5T TO ! MONEY17 DUR+ ! SAME TIME2 ?AT IS1 ?IS MONEY OR VALUE REMA9S 9 ! H&S ( ,B1 = HIS USE1 ! REAL [N]%IP BE+ 9 ,A2 & IF ! MONEY1 DUR+ ! ?IRTY DAYS ?AT ,IT IS TO REMA9 9 TIME H&S ( ,B1 = HIS USE1 BE LO/ BY FIRE1 OR !FT1 OR ANY ( ! ACCID5TS1 OR ANY ( ! CASUALTIES ( TRADE1 TO :I* MONEY IS LIABLE1 )\T ANY FAULT1 OR CULPABLE NEGLIG5CE ON ! P>T ( ,B1 ! LOSS FELLS UPON ,A1 ! PUR*AS] & REAL [N] ( ! MONEY4 ,CLE>LY ! SAME PR9CIPLES APPLY TO BO? ! >TICLES1 HORSE & MONEY4 ,! RI<T ( PROP]TY 9 EA* HAS BE5 EX*ANG$ = ! RI<T ( PROP]LY 9 TIME O!R2 & ! CU/ODY & USE ( EA* >E TO REMA9 ) ITS SELL] = ?IRTY DAYS4 ,EA* PUR*AS]1 ( C\RSE1 TAKES ! SAME RISK AS ! O!R1 ( ! COMMODITY HE HAS PUR*AS$1 :ILE IT REMA9S 9 ! H&S ( ITS SELL]4 

,IF ,A1 ! SELL] ( ! HORSE1 :ILE ! HORSE REMA9S 9 HIS POSSESSION1 AFT] ! SALE1 %\LD USE IT 9 ANY MODE DIFF]5T FROM :AT IT WAS UND]/OOD ?AT HE %\LD USE IT2 OR %\LD NEGLECT TO TAKE SU* REASONABLE C>E1 9 ! USE & TREATM5T ( ! HORSE1 AS GOOD FAI? T[>DS ! [N] ( ! HORSE REQUIR$ ( HIM2 & %\LD !REBY ! TIME CAUSE ( 9JURY OR DEA? TO ! HORSE1 HE 7! SELL]7 W\LD BE /ILL LIABLE = ! VALUE ( ! HORSE2 NOT1 H[EV]1 ON HIS CONTRACT1 NOR 9 AN ACTION ( TROV] = ! HORSE ITSELF1 BUT 9 AN ACTION ON ! CASE = DAMAGES1 = ! LOSS OCCASION$ BY HIS 9T5T1 AS HAS BE=E BE5 EXPLA9$4 ,BY ! SAME RULE1 IF ,B1 ! SELL] ( ! MONEY1 :ILE IT REMA9$ 9 HIS POSSESSION1 W\LD 9T5TIONALLY OR NEGLIG5TLY EXPOSE IT TO ANY O!R ?AN ! USUAL RISKS1 TO :I* IT WAS UND]/OOD ?AT IT WAS TO BE EXPOS$1 & !REBY ! MONEY %\LD BE LO/1 !N HE 7! SELL] ( ! MONEY7 W\LD BE %ILL LIABLE TO ! [N] ( IT = ! AM\NT 2 NOT1 H[EV]1 ON HIS CONTRACT1 NOR 9 AN ACTION ( TROM] = ! MONEY ITSELF1 BUD ,9 AN ACTION ON ! CASE = DAMAGES1 = ! LOSS OCCASION$ BY HIS FAULT4 #ba 

,BUT IF ,A1 ! SELL] ( ! HORSE1 US$ ! HORSE ) SU* REASONABLE C>E1 :ILE IT REMA9$ 9 HIS POSSESSION AFT] ! SALE1 AS ! LAW ( BAILM5TS & GOOD FAI? T[>DS ,B2 ! [N] ( ! HORSE1 REQUIR$ ( HIM1 & ! HORSE1 NEV]!LESS1 CANOE TO 9JURY OR DEA?1 ,B1 ! PUR*AS] & [N] ( ! HORSE1 MU/ BE> ! LOSS4 ,BY ! SAME RULE1 IF ,B1 ! SELL] ( ?IS MONEY1 SOME SU* C>E 9 ! PRES]VATION & MANAGEM5T ( IT1 :ILE IT REMA9S 9 HIS POSSESSION AFT] ! SALE1 AS ! LAW ( BAILM5TS & GOOD FAI? T[>DS ,A1 ! PUR*AS] ( ! MONEY1 REQUIRE ( HIM1 & IT 7! MONEY7 %\LD1 NEV]!LESS1 BE DIM9I%$ OR LO/1 ,A1 ! PUR*AS] & REAL [N] ( ! MONEY1 MU/ BE> ! LOSS4 

,N[ ! ONLY OBJECTION :I* ! LAWY]S WILL RAISE TO ?IS DOCTR9E1 OR TO ! APPLICATION ( ! PR9CIPLES ( BAILEE & BAILOR TO ! CASES ( DEBTOR AMID CR$ITOR1 ,IS SIMPLY ?IS M ,!Y WILL SAY ?AT ! SPECIFIC PROP]TY1 TO :I* TIME CONTRACT ( DEBT 7AT ! TIME ,IT IS 5T]$ 9TO7 ATTA*ES1 MAY1 BE=E ! TIME AGRE$ ON = ! DELIV]Y1 BE EX*ANG$1 BY ! DEBTOR1 = O!R PROP]TY 2 & ?AT ! SAME CONTRACT1 :I* ATTA*$ TO ! ORIG9AL PROP]TY1 CANNOT ATTA* TO ! NEW PROP]TY = :I* ?AT IS EX*ANG$4 

,!Y GET ?IS FALSE IDEA FROM LOOK+ SOLELY AT ! G5]AL RULE IT1 REG>D TO BAILM5TS1 & KEEP+ ! EXCEPTIONS & QUALIFICATIONS TO ! RULE NOT ( SI<T2 :I*1 9 FACT1 !SE EXCEPTIONS & QUALIFICATIONS COV] NE>LY OR QUITE AS MANY CASES1 9 ACTUAL LIFE1 AS ! RULE ,ITSELF4 ,= 9/ANCE ! G5]AL RULE1 9 BAILM5TS1 IS1 ?AT ! SPECIFIC ?+ LOAN$ OR 5TRU/$ TO ! BAILEE1 IS TO BE RE/OR$ TO ! BAILOR4 ,! EXCEPTIONS OR QUALIFICATIONS ORE1 :]E !RE IS EI!R AN EXPRESS1 OR IMPLI$ AU?ORITY GIV5 TO ! BAILEE TO EX*ANGE ! PROP]TY HAIL$ = SOME?+ RISE4 ,:]EV] !RE IS EI!R AN EXPRESS OR IMPLI$ AU?ORITY GIV5 TO ! BAILEE TO MAKE SU* EX*ANGE1 ! SAME RI<T ( PROP]TY :I* ! BAILOR HAS 9 ! ORIG9AL COMMODITY HAIL$1 ATTA*ES TO ! NEW COMMODITY1 OR EQUIVAL5T1 = SU* ?AT HAS BE5 EX*ANG$4 ,9 TIME CASES ( ! V>I\S K9DS ( COMM]CIAL AG5CIES1 :]E ! AG5T IS 5TRU/$ ) COMMODITIES ( ONE K9D1 TO BE EX*ANG$ BY HIM = MONEY1 OR O!R COMMODITIES1 ! RI<T ( PROP]TY 9 ! MONEY OR O!R COMMODITIES1 RECEIV$ BY ! BAILEE AS ! EQUIVAL5T ( TIME COMMODITIES BAILEE1 VE/S 9 ! BAILOR ON ! 9/ANT ( TIME EX*ANGE1 AMID NEV] BECOMES VE/$ 9 TIME HI!R4 ,MANY1 P]HAPS 9 TIME L>G] NUMB]S ( CASES ( COMM]CIAL AG5CIES1 ! BAILEE RECEIVES EXPRESS AU?ORITY = MAK+ TIME EX*ANGE2 BUT NOT ALL1 NOR NE>LY ALL4 ,9 MAMMY CASES ! AU?ORITY IS IMPLI$ FROM COLLAT]AL FACTS4 ,& AN1 IMPLI$ AU?ORITY IS AS GOOD1 9 L[1 ITS ANY CASE :ATEV]1 AS AN EXPRESS AU?ORITY4 ,ALL ?AT IS NECESS>Y1 ,IS1 ?AT !RE BE VALID GR\NDS = ! IMPLICATION4 

,CONSID]+1 !N1 ! RELATIONS ( DEBTOR & CR$ITOR TO BE ?OSE ( BAILEE OR BAILOR1 >E !RE ANY VALID GR\NDS = ! IMPLICATION ( AN AU?ORITY1 FROM TIME CR$ITOR TO TIME DEBTOR1 TO EX*ANGE1 & TRAFFIC )1 ! PROP]TY BAIL$1 OR LOAN$ TO ! CR$ITOR4 

,!RE >E SEV]AL4 

,9ASMU* AS ! CONTRACT MAKES NO DESIGNATION ( ! P>TICUL> =M 9 :I* ! VALUE1 TO :I* ! CONTRACT ATTA*ES1 EXI/S AT ! TIME ! CONTRACT IS 5T]$ 9TO1 IT1 ( C\RSE1 DESCRIBES NO P>TICUL> =M IT 9 :I* IT MU/ EXI/ AT ANY TIME1 EXCEPT AT ! TIME ( DELIV]Y1 :5 IT MU/ BE 9 MONEY4 ,S9CE1 !N1 !RE IS1 9 ! CONTRACT1 NO EXPRESS OR IMPLI$ REQUIREM5T ?AT ! DEBTOR %ALL RETA9 ! VALUE 9 ANY P>TICUL> =M1 IT 9H]5TLY ALL[S HIM TO USE ALL REASONABLE DISCRETION AS TO ! =M 9 :I* IT WILL BE EXP$I5T TO KEEP IT4 ,& SU* A DISCRETION ALL[S HIM TO CONV]T IT1 BY EX*ANGES1 9TO SU* DIFF]5T =MS AS A PRUD5T & C>EFUL MAN MI<T REASONABLY DEEM B5EFICIAL4 ,UNLESS HE W]E ALL[$ ?IS DISCRETION1 HE W\LD NOT BE ALL[$ TO CONV]T IT FROM A P]I%ABLE COMMODITY 9TO A DURABLE ONE 2 NOR FROM AN UNPRODUCTIVE 9TO A PRODUCTIVE ONE4 

#b4 ,! CAPITAL LOAN$1 IS LOAN$ TO BE US$4 ,?IS MU/ ALWAYS BE PRESUM$1 BECAUSE NO O!R REASONABLE MOTIVE = ! LOAN CAN BE SUPPOS$4 ,& IF IT BE LOAN$ TO BE US$1 & ! =M 9 :I* IT IS TO BE US$ IS NEI!R EXPRESS$ NOR IMPLI$ BY ! CONTRACT1 7AS IS ! CASE 9 ! 9/ANCE ( A PROMISSORY NOTE17 IT MU/ BE PRESUM$ ?AT IT WAS 9T5D$1 BY ! CR$ITOR1 ?AT ! DEBTOR %\LD USE IT 9 SU* MANN] AS PRUD5T M5 USE !IR [N CAPITAL4 ,& AS ! HABIT ( PRUD5T M5 IS TO CONV]T !IR [N CAPITAL1 BY EX*ANGES1 OR TRAFFIC1 FROM ONE =M 9TO ANO!R2 & AS1 9 MANY K9DS ( BUS9ESS1 !Y >E OBLIG$ TO DO SO1 TO D]IVE ANY PR(IT FROM !IR CAPITAL1 ,IT MU/ ALWAYS BE PRESUM$1 79 ! ABS5CE ( ANY EXPRESS OR IMPLI$ PROHIBITION17 ?AT ! DEBTOR WAS TO HE ALL[$ ! SAME DISCRETION 9 ! MANAGEM5T ( ! LOAN1 >ID 9 CONV]T+ IT FROM ONE =M 9TO ANO!R1 BY TRAFFIC1 AS PRUD5T M5 EX]CISE 9 ! MANAGEM5T ( !IR [N CAPITAL4 

#c4 ,! CONTRACT ( DEBT NEV] DESCRIBES ! P>TICUL> =M1 9 :I* ! AM\NT ( VALUE1 TO :I* ! CONTRACT ATTA*ES EXI/S AT ! TIME ! CONTRACT ( BAILM5T OR DEBT IS 5T]$ 9TO2 BUT ONLY ! =M 9 :I* IT IS F9ALLY TO BE DELIV]$1 TO WIT1 ?AT ( MONEY4 ,! CONTRACT1 !RE=E1 ONLY IMPLIES ?AT ! AM\NT ( VALUE EXI/S1 9 SOME %APE OR O!R1 9 ! B&S ( ! DEBTOR4 ,IF1 !RE=E1 ! DEBTOR HAVE NOT MONEY = ! CONTRACT TO ATTA* TO1 AT ! TIME IT IS 5T]$ 9TO1 IT MU/ ATTA* TO VALUE EXI/+ 9 SOME O!R =M1 ELSE ,IT W\LD ATTA* TO NO?+1 & !RE=E BE VOID4 ,:51 !N1 ! CONTRACT DOES ATTA* TO VALUE EXI/+ 9 SOME O!R =M ?AN MONEY1 IT C]TA9LY IMPLIES AN AU?ORITY TO EX*ANGE ! COMMODITIES1 79 :I* ! VALUE IS 9VE/$17 = MONEY1 AT LEA/1 IF = NO?+ ELSE 2 BECAUSE ! CONTRACT EXPRESSLY PRESCRIBES ?AT ! VALUE TO :I* ! CONTRACT ATTA*ES %ALL ONLY BE DELIV]ABLE TO ! CR$ITOR 9 ! %APE ( MONEY1 & ! DEBTOR1 !RE=E1 CANNOT FULFILL HIS CONTRACT1 UNLESS LIE C\LD CONV]T ?IS VALUE 9TO MONEY4 ,& IF ! DEBTOR IS AU?ORIZ$ TO CONV]T 9TO MONEY1 ! VALUE TO :I* ! CONTRACT ATTA*ES1 !RE IS NO REASON1 ?AT ,I KN[ (1 :Y HE HAS NOT ALL FAIR & REASONABLE DISCRETION AS TO ! MODE ( CONV]T+ IT 9TO MONEY2 NOR :Y HE MAY NOT DO IT BY MEANS ( A DOZ5 9T]M$IATE EX*ANGES1 IF HE ?9KS HE CAN ?US DO IT MORE ADVANTAGE\SLY4 

#d4 ,IF ! VALUE1 TO :I* ! CONTRACT ATTA*ES1 DO EXI/ 9 ! %APE ( MONEY AT ! TIME ! CONTRACT IS 5T]$ 9TO1 7AS 9 ! CASE :ORE MONEY ITSELF IS LOAN$1 & ! DEBTOR HAS NO O!R PROP]TY1 ?AN ! LOAN1 = ! CONTRACT TO ATTA* TO17 !N ! CONTRACT C]TA9LY IMPLIES AN AU?ORITY TO EX*ANGE ?AT MONEY = O!R COMMODITIES1 & ?OSE COMMODITIES BACK 9TO MONEY2 BECAUSE ! MONEY IS OBVI\SLY LOAN$ TO BE US$2 AS IS PROV$ BY ! FACTS1 ?AT NO O!R REASONABLE MOTIVE = ! LOAN CAN LIE SUPPOS$1 >ID ?AT1 9 MO/ CASES ! DEBTOR AGREES TO PAY UTT]$ = ITS USE1 :I* HE C\LD NOT AF=D TO DO UNLESS ! MONEY W]E TO BE MADE PRODUCTIVE TO HIM4 ,N[ MONEY ITSELF CAN NEI!R BE US$1 NOR MADE PRODUCTIVE1 9 ANY O!R WAY ?AN BY BE+ EX*ANG$ = O!R COMMODITIES1 OR BY BE+ WR\<T 9TO SOME O!R %APE ?AN CO94 ,!SE FACTS1 !N1 >E 5\< TO PROVE IT MU/ HAVE BE5 ! 9T5TION ( ! L5D]1 OR BAILOR1 ?AT ! BORR[]1 OR BAILEE1 %\LD BE AT LIB]TY TO EX*ANGE ! MONEY LOAN$1 = O!R COMMODITIES4 ,& !N ! FACT ?AT ! AM\NT ( VALUE PROMIS$ TO BE PAID TO ! CR$ITOR1 IS F9ALLY TO HE DELIV]$ TO HIM 91 ! %APE ( MONEY1 PROVES ?AT ! DEBTOR HAS ! CONS5T ( ! CR$ITOR TO CONV]T !SE O!R COMMODITIES BACK 9TO MONEY AGA94 

,:E!R1 !RE=E1 ! CONTRACT ( DEBT ATTA*1 AT ! TIME IT IS 5T]$ 9TO1 EI!R TO VALUE EXI/+ 9 ! %APE ( MONEY1 OR TO VALUE EXI/+ 9 ANY O!R %APE1 7NOT DESIGNAT$ 9 ! CONTRACT17 ! CONTRACT & ! COLLAT]AL FACTS IMPLY AN AU?ORITY TO ! DEBTOR TO TRAFFIC ) ! PROP]TY OR VALUE TO :I* ! CONTRACT ATTA*$4 ,&1 IF ?IS BE ! FACT1 !N ! RI<TS ( ! CR$ITOR1 OR BAIL]1 FOLL[ ! VALUE1 & CL+ TO IT1 9 EV]Y =M ?AT IT MAY PASS ?R\< 9 ! H&S ( ! DEBTOR1 FROM ! TIME ! CONTRACT IS MADE1 UNTIL IT IS F9ALLY DELIV]$1 OR REPAID TO HIM1 7! CR$ITOR17 9 ! %APE ( MONEY4 

,IF IT HAS N[ BE5 %[N ?AT ! TRUE RELATION SUBSI/+ BETWE5 DEBTOR & CR$ITOR IS M]ELY ! RELATION ( BAILEE & BAILOR2 ?AT A DEBTOR IS M]ELY ONE :O HAS SOLD VALUE TO ANO!R1 & RETA9S ! POSSESSION & TITLE ( IT = A TIME AFT] ! SALE2 & ?AT ! LEGAL OBLIGATION ( ! DEBTOR TO PAY MONEY1 5D ! LEGAL PURPORT ( HIS PROMISE TO PAY MONEY1 = VALUE ?AT HUE HAS RECEIV$1 >E M]ELY AN OBLIGATION & PROMISE TO DELIV] MONEY1 :I* HE HAS SOLD & RECEIV$ HIS PAY =1 & ! RI<T ( PROP]TY 9 :I* HAS ALREADY PASS$ TO ! CR$ITOR1 IT FOLL[S ?AT ! CR$ITOR'S RI<T1 ACQUIR$ BY HIS CONTRACT1 ATTA*ES TO NO?+ EXCEPT TO SU* PROP]TY AS ACTUALLY EXI/$ 9 ! H&S ( ! DEBTOR = ! CONTRACT TO ATTA* TO1 AT ! TIME ! CONTRACT WAS MADE1 & NO SU* O!R VALUE AS MAY HAVE BECOME ,9DI/+UI%ABLY MIX$ ) IT1 BETWE5 ?AT ! & ! TIME NMGREE#d UPON = ,ITS DELIV]Y OR PAYM5T4 ,& FROM !SE SEV]AL PROPOSITIONS IT ALSO FOLL[S1 ?AT AT ! TIME A DEBT BECOMES DUE1 A CR$ITOR HAS NO CLAIMS1 BY VIRTUE ( HIS CONTRACT1 UPON ANY?+ EXCEPT :AT REMA9S ( ! PROP]TY ?AT HE PUR*AS$ BY HIS CONTRACT1 5D UPON SU* O!R VALUE OR PROP]TY AS MAY HAVE BECOME 9DI/+UI%ABLY MIX$ ) IT1 7UNLESS ! DEBTOR HAVE BE5 GUILTY ( SOME FAULT OR CULPABLE NEGLECT 9 ! USE OR CU/ODY ( IT1 :]EBY IT HAS BE5 DIM9I%$ OR LO/47 

,! UTMO/ EXT5T1 !RE=E1 ( ! CR$ITOR'S CLAIM1 7:5 ! DEBTOR HAS BE5 GUILTY ( NO FAULT1 NEGLECT1 OR BAD FAI?1 ,9 ! CU/ODY OR USE ( ! PROP]TY LOAN$ TO HIM17 IS TO ! PROP]TY ACTUALLY EXI/+ 9 ! H&S ( ! DEBTOR AT ! TIME ! DEBT BECOMES DUE4 ,HE HUMS A PRIMA FACIE CLAIM TO ! :OLE ( ?IS1#b#b IF IT BE NECESS>Y = ! SATISFACTION ( HIS DEBT4 ,BUT IF IT BE 9SUFFICI5T = ! SATISFACTION ( HIS DEBT - ?AT IS1 IF HIS PUR*ASE HAVE BE5 DIM9I%$ ,9 VALUE OR AM\NT1 :ILE ,9 ! CU/ODY ( ! DEBTOR1 7)\T ANY FAULT OR CULPABLE NEGLECT ON ! P>T ( ! DEBTOR17 - HE1 ! CR$ITOR1 MU/ BE> ! LOSS4 ,! CONTRACT IS EXT9CT1 FULFILL$1 ON ! DELIV]Y ( :ATEV] REMA9S ( ! PROP]TY ORIG9ALLY BAIL$ TO ! DEBTOR4 ,& ,IF ! :OLE ( ! VALUE BAIL$ HAVE BEAMS LO/1 )\T ! FAULT ( ! DEBTOR1 ! LOSS FALLS ON ! CR$ITOR4 

,!RE IS NO ESCAPE FROM ?IS CONCLUSION BUT BY D5Y+ ?AT ! CONTRACT ATTA*$ TO ANY?+ AT ! TIME IT WAS MADE4 ,& SU* A D5IAL1 9/EAD ( PROV+ ?AT ! DEBT WAS OBLIGATORY BEYOND ! DEBTOR'S MEANS ( PAYM5T1 W\LD ONLY BE EQUIVAL5T TO A D5IAL ?AT IT EV] HAD ANY LEGAL VALIDITY AT ALL4 ,9 ORD] TO MA9TA9 ! VALIDITY ( ! CONTRACT1 WE MU/ MA9TA9 ?AT IT ATTA*$ TO SOME?+-?AT IS1 ?AT IT CONVEY$ TO ! CR$ITOR A PROPRIET>Y RI<T TO SOME VALUE EXI/+ 9 ! H&S ( ! DEBTOR AT ! TIME ! CONTRACT WAS 5T]$ 9TO4 ,& IF ! CONTRACT HAD ANY VALIDITY-?AT IS1 IF IT ATTA*$ TO ANY?+ - AT ! TIME IT WAS 5T]$ 9TO1 ITS VALIDITY LIV$ ONLY 9 ! LIFE ( TIME VALUE1 OR PROP]TY TO :I* ,IT ATTA*$2 & :5 ?AT VALUE EXPIR$1 OR BECAME EXT9CT1 ! CONTRACT1 OR1 9 O!R WORDS1 ALL ! RI<TS :I* ! CR$ITOR ACQUIR$ BY VIRTUE ( HIS CONTRACT1 NECESS>ILY EXPIR$ ) IT4 

,TAK+ IT = GRANT$ ?AT IT HAS N[ BE5 %[N ?AT A DEBTOR IS1 9 LAW1 ! M]E BAILEE ( HIS CR$ITOR1 IT MAY BE IMPORTANT TO REPEAT ! /ATEM5T ( ! PR9CIPLE1 BY :I* ?IS BAILM5T OP]ATES AS A LI5 UPON ! :OLE PROP]TY ( ! DEBTOR1 EV5 ?\< HIS PROP]TY HE MANY TIMES GREAT] ?AN ! DEBT4 ,! PR9CIPLE IS ?IS4 ,SUPPOSE ! DEBT TO BE ONE HUNDR$ DOLL>S 2 & ! :OLE AM\NT ( PROP]TY1 9 ! H&S ( ! DEBTOR1 TO BE ONE ?\S& DOLL>S4 ,! CONTRACT ATTA*ES TO AMID B9DS SO MU* VALUE1 OR PROP]TY1 9 ! H&S ( ! DEBTOR1 AS WILL BR+ ONE HUNDR$ DOLL>S4 ,BUT ! CONTRACT DOES ,COT DESIGNATE ! P>TICUL> =M1 9 :I* ! VALUE1 OR PROP]TY1 TO :I* IT ATTA*ES1 EXI/S4 ,IT1 !RE=E1 ATTA*ES TO IT 9 EV]Y =M IT EXI/S 9 ! H&S ( ! DEBTOR2 SIMPLY BECAUSE IT CANNOT BE %[N ?AT IT ATTA*ES TO ?AT :I* EXI/S 9 ONE =M1 ANY MORE ?AN TO ?AT :I* EXI/S 9 ANO!R =M4 ,ANY PORTION1 !RE=E1 ( ! DEBTOR'S PROP]TY1 OR ! :OLE ( IT1 IF IT %\LD BE NECESS>Y1 IS LIABLE TO BE TAK5 = ! SATISFACTION ( ! DEBT2 & ?IS LIABILITY ( ! :OLE MAKES ! DEBT A LI5 UPON ! :OLE4 ,IT IS ON ?IS PR9CIPLE ?AT A MORTGAGE ON L&1 = BUT A T5? P>T ( ! ACTUAL VALUE ( ! L&1 IS A LI5 UPON ! :OLE4 

,A PROMISSORY NOTE1 OR O!R P]SONAL DEBT1 :]E !RE IS NO DESIGNATION ( ! P>TICUL> >TICLES ( PROP]TY1 TO :I* ! CONTRACT ATTA*ES IS1 9 FACT1 A SALE ( ALL ! PROP]TY ! DEBTOR HAS 9 HIS H&S1 SUBJECT TO HIS RI<T ( CANCEL+ ! SALE BY PAY+ ! AM\NT ( ! DEBT 9 MONEY1 JU/ AS A MORTGAGE IS A SALE ( ! UNMORTGAG$ SUBJECT TO ! RI<T ( ! DEBTOR TO CANCEL ! SALE BY PAY+ 9 MONEY ! AM\NT = :I* ! MORTGAGE IS GIV54 

,9 O!R WORDS1 A CONTRACT ( DEBT1 )\T ANY DESIGNATION ( ! SPECIFIC PROP]TY TO :I* ! CONTRACT ATTA*ES1 IS A CONTRACT BY :I* ! DEBTOR PL$GES HIS :OLE PROP]TY = ! DELIV]Y1 OR PAYM5T ( ! AM\NT SOLD \T ( IT TO ! CR$ITOR1 VIZ41 ! AM\NT ( ! DEBT4 ,SU* A PL$GE GIVES ! CR$ITOR A SPECIAL1 OR CONDITIONAL [N]%IP (' ! :OLE PROP]TY PL$G$ 2 & ! DEBTOR !NCE=? HOLDS ! :OLE PROP]TY AS ! BAILEE ( ?AT PORTION ( ITS VALUE1 :I* ACTUALLY BELONGS TO ! CR$ITOR1 & IS M]G$ 9 ! VALUE ( HIS1 7! DEBTOR'S7 :OLE PROP]TY4 

,IF ! PO9T BE N[ E/ABLI%$1 ?AT A DEBT IS A LI5 UPON ! :OLE PROP]TY ( ! DEBTOR2 AMID IF ! DEBTOR IS ! M]E BAILEE ( ! AM\NT ( VALUE SOLD & BELONG+ TO ! CR$ITOR1 IT BECOMES NECESS>Y TO %[ ON :AT GR\NDS IT IS1 ?AT ! DEBTOR HAS ! RI<T TO APPROPRIATE = HIS SUBSI/5CE1 ANY PORTION ( ! PROP]TY ON :I* HIS CR$ITOR HOLDS A LI54 ,:]E A DEBTOR HAS MORTGAG$ L& TO HIS CR$ITOR1 HE 7! DEBTOR17 HAS NO RI<T TO SELL ANY PORTION ( ?AT L&1 NOT EV5 TO PROVIDE HIMSELF ) FOOD4 ,:Y IS IT DIFF]5T 9 ! CASE ( ! LI5S CREAT$ BY A P]SONAL DEBT1 UPON ! :OLE PROP]TY ( ! DEBTOR8 ,! REASON IS1 ?AT !RE IS AN IMPLI$ P]MISSION GIV5 BY ! CR$ITOR TO ! DEBTOR1 TO APPROPRIATE 5\< ( ! PROP]TY 9S HIS H&S = HIS SUBSI/5CE - SUBJECT TO ! CONDITION ?AT ! DEBTOR %ALL APPLY HIS C>E & LABOR TO ! 9CREASE & PRES]VATION ( ?AT PROP]TY4 ,?IS P]MISSION IS TO BE IMPLI$ FROM ! FOLL[+ FACTS3 

#a4 ,IT IS A SELF-EVID5T FACT ?AT ! DEBTOR AMID HIS FAMILY MU/ LIVE2 & BE+ A SELF-EVID5T FACT1 IT MU/ HAVE BE5 TAK5 = GRANT$ BY ! CR$ITOR AS A P>T ( ! CONTRACT-BECAUSE ALL SELF-EVID5T FACTS HAV+ ANY BE>+ ON ! CONTRACTS1 >E TAK5 = GRANT$ 9 ALL LAWFUL CONTRACTS4 

#b4 ,IF ! DEBTOR & HIS FAMILY MU/ LIVE1 IT IS SELF EVID5T ?AT !Y MU/ D]IVE !IR SUBSI/5CE1 EI!R BY SELL+ !IR LABOR = WAGES1 79DEP5D5TLY ( ANY PROP]TY 9 !IR H&S27 OR BY BE/[+ !IR C>E & LABOR UPON ! PROP]TY 9 !IR H&S1 & TAK+ !IR SUBSI/5CE \T ( IT1 & ITS PROCE$S4 

,N[ IT IS EVID5T ?AT ! CONTRACT DOES NOT CONTEMPLATE ?AT ! DEBTOR IS TO SELL HIS LABOR = WAGES TO ! NEGLECT OR DISUSE ( ! PROP]TY LOAN$ TO HIM2 = ! ONLY REASONABLE MOTIVE ?AT CAN BE SUPPOS$ = ! LOAN1 IS1 ?AT ! DEBTOR MAY USE ! CAPITAL LOAN$1 ?AT IS1 ?AT HE MAY BE/[ HIS LABOR UPON IT4 ,& IF HE BE/[ HIS LABOR UPON IT1 IT FOLL[S ?AT HE MU/ MEAN:ILE TAKE HIS SUBSI/5CE \T ( IT- BECAUSE1 :ILE BE/[+ HIS LABOR UPON ,IT1 HE CANNOT BE SELL+ HIS LABOR = WAGES1 & ( CONSE#iU5CA CANNOT D]IVE HIS SUBSI/5CE 9 ANY O!R WAY ?AN FROM ! PROP]TY 9 HIS H&S4 ,AMID AS ! CR$ITOR'S LI5 EXT5DS TO ALL ! PROP]TY 9 HIS H&S1 IT FOLL[S ?AT ! DEBTOR MU/ TAKE HIS SUBSI/5CE \T ( ?AT TO :I* ! LI5 ATTA*ES - SIMPLY BECAUSE !RE IS NO O!R PROP]TY 9 HIS H&S = HIM TO TAKE IT \T (4 

,9 ALL ?IS !RE IS A /RONG ANALOGY TO ! CASE ( A LI5 ON L&-= !RE ! DEBTOR TAKES ! PRODUCE ( ! L& = HIS SUBSI/5CE1 :I* IS H>DLY DI/+UI%ABLE 9 FACT1 & IS NOT DI/+UI%ABLE 9 PR9CIPLE1 FROM TAK+ ! L& ITSELF - 9ASMU* AS ! CROPS EXHAU/ ! F]TILITY1 & CONSUME ! VALUE ( ! L&4 

#c4 ,! CONTRACT EVID5TLY SUPPOSES ?AT ! DEBTOR1 :ILE LABOR+1 IS TO HAVE 5\< ( ! FRUIT ( HIS LABOR = HIS SUBSI/5CE1 7BECAUSE A MAN CANNOT LABOR )\T A SUBSI/5CE27 ?AT HIS LABOR IS TO HE BE/[$ UPON ! CAPITAL ON :I* ! CR$ITOR HAS A LI52 &1 ( C\RSE1 ?AT ! VALUE ( HIS LABOR IS TO BECOME 9CORPORAT$ 9DI/+UI%ABLY ) ?AT ( ! CAPITAL4 ,IT FOLL[S ?AT IT MU/ HAVE BE5 UND]/OOD1 BO? BY DEBTOR AMID CR$ITOR AS A SELF-EVID5T MATT]1 ?AT ! DEBTOR1 :ILE LABOR+1 %\LD APPROPRIATE 5\< ( ! PROP]TY 9 HIS H&S = HIS SUBSI/5CE1 BECAUSE )\T HIS SUBSI/5CE1 HE C\LD NOT BE/[ HIS LABOR UPON ! CAPITAL4 

#d4 ,! NATURE ( ! CONTRACT PROVES ?AT ! CR$ITOR IS 9T]E/$ 9 ! LABOR ( ! DEBTOR1 BECAME1 AT A GIV5 TIME1 HE 7! CR$ITOR7 IS TO RECEIVE ! CAPITAL LOAN$1 ) 9CREASE4 ,?IS1 ( C\RSE1 ! DEBTOR C\LD NOT AF=D1 NOR ! CR$ITOR EXPECT1 UNLESS ! DEBTOR W]E TO BE/[ HIS LABOR UPON ! CAPITAL4 ,& IF HE BE/[ HIS LABOR UPON ! CAPITAL1 HE MU/1 ( NECESSITY1 HAVE HIS SUBSI/5CE MEAN:ILE4 ,& IF HIS CONTRACT IS A LI5 UPON EV]Y?+ 9 HIS H&S1 IT MU/ ( NECESSITY HAVE BE5 UND]/OOD ?AT HE %\LD APPROPRIATE HIS SUBSI/5CE \T ( ! PROP]TY ?AT IS SUBJECT TO ! LI54 

,9 %ORT1 ! CONTRACT PROCE$S ?R\<\T UPON ! SUPPOSITION ?AT ! SUBSI/5CE ( ! LABOR]1 :ILE LABOR+ ON CAPITAL1 R\/ BE PROVID$ = \T ( ! CAPITOL ON :I* HE LABORS4 ,>ID ?IS SUPPOSITION IS NOT NORMALLY REASONABLE1 BUT IT IS A NECESS>Y ONE - = IT IS OBVI\S ?AT HIS SUBSI/5CE MU/ HE ?US PROVID$ =1 :E!R HE BOLD ! RELATION ( DEBTOR TO ! CAPITALI/1 OR ?AT ( A LABOR] = WAGES4 ,9 EI!R CASE1 HIS SUBSI/5CE1 :ILE LABOR+1 MU/ BE A TAX UPON ! CAPITAL ON :I* HE LABORS4 

,9 ALL ?IS !RE IS NO?+ ?AT AU?ORIZES WA/E OR PRODIGALITY ON ! P>T ( ! DEBTOR 2 OR ?AT AU?ORIZES ANY?+ EXCEPT :AT IS CONSI/5T ) SU* ECONOMY & FRUGALITY AS GOOD FAI? T[>DS ! CR$ITOR REQUIRES4 ,BUT ?IS PO9T HAS BE5 SUFFICI5TLY EXPLA9$ 9 ! PREC$+ *APT]4 

,HALT+ AT ?IS PO9T1 & LOOK+ LACK UPON ! GR\ND WE HAVE GONE OV]1 DOES RIOT ?AT GR\ND PRES5T A MORE RATIONAL VIEW ( ! NATURE ( DEBT1 ?AN ANY TIME HAS EV] BE5 PRACTIC$ UPON BY C\RTS ( LAW8 ,IS IT NOT ! ONLY VIEW ?AT CAN MAKE ! CONTRACT ( DEBT CONSI/5T1 EI!R ) MORALITY1 OR ) ! IDEA ?AT CR$ITORS ACQUIRE ANY TANGIBLE1 LEGAL RI<TS1 TO ACTUAL ?+S1 BY VIRTUE ( ?AT CONTRACT8 

,?IS VIEW ( ! CONTRACT ( DEBT PLACES ! DEBTOR & CR$ITOR1 TO A C]TA9 EXT5T1 9 ! RELATION ( P>TN]S4 ,! CR$ITOR FURNI%ES CAPITAL1 ! DEBTOR LABOR4 ,! SEP>ATE VALUES ( ?IS CAPITAL & LABOR BECOME 9DI/+UI%ABLY MIX$ - ?AT IS1 ! LABOR BE/[$ UPON ! CAPITAL ADDS TO ITS VALUE1 BY CONV]T+ IT 9TO NEW =MS - AS = 9/ANCE1 BY CONV]T+ LEA!R 9TO %OES4 ,! DEBTOR1 :ILE ?US BE/[+ HIS LABOR UPON ! CAPITAL1 RECEIVES HIS SUBSI/5CE \T ( ! MASS 2 9 O!R WORD'S1 HIS SUBSI/5CE1 :ILE LABOR+1 IS ! FIR/ *>GE 7AS 9 ALL CASES IT NECESS>ILY MU/ BE7 UPON ! COMB9$ CAPITAL & LABOR4 ,! CR$ITOR HOLDS ! NEXT LI5 UPUN ?IS COMB9$ CAPITAL AMID LABOR1 = ! AM\NT ( HIS 9VE/M5T1 & HIS /IPULAT$ PR(ITS4 ,! DEBTOR IS 5TITL$ TO ! RESIDUE1 IF ANY !RE BE1 AS ! REW>D ( HIS LABOR4 ,DUR+ ! P>TN]%IP1 ! CR$ITOR HOLDS T9E DEBTOR TO ! OBS]VANCE ( ECONOMY & GOOD FAI?4 ,UND] !SE CIRCUM/ANCES1 BO? P>TIES TAKE ! NATURAL RISKS ( ! BUS9ESS4 ,! CR$ITOR RISKS HIS CAPITOL1 ! DEBTOR HIS LABOR4#b#c 

,ALL ?IS IS OBVI\SLY A ,JO9T OP]ATION1 A BONA FIDE P>TN]%IP4 ,! CR$ITOR1 AS WELL AS ! DEBTOR1 IS TO D]IVE A PR(IT FROM IT4 ,! PROSPECT ( PR(IT IS ! CR$ITOR'S ONLY MOTIVE = 5T]+ 9TO ! CONTRACT4 ,! DEBTOR1 !RE=E1 H]O9ES A BAILEE1 NOT M]ELY = ! B5EFIT ( HIMSELF1 BUT ALSO = ! B5EFIT ( ! CR$ITOR4 ,:AT IS !RE 9 MORALITY1 OR 9 ! LEGAL RI<TS ( ! P>TIES TO ! CAPITAL & LABOR ?US COMB9$1 ?AT REQUIRES ! DEBTOR TO TAKE ! RISK1 BO? ( HIS [N LABOR & ( ! CR$ITOR'S CAPITAL1 BEYOND ! DUE EX]CISE ( HIS SKILL1 9DU/RY1 C>E1 & GOOD FAI? 9 ! PRES]VATION & MANAGEM5T ( ! LATT]8 

,! CR$ITOR ADOPTS ?IS MODE ( EMPLOY+ HIS CAPITAL1 AS BE+ ! MO/ ADVANTAGE\S TO HIMSELF4 ,HE HAS MORE CAPITAL ?AN HIS [N LABOR CAN ADVANTAGE\SLY EMPLOY4 ,HE MU/1 !RE=E1 9 ORD] TO MAKE HIS CAPITAL4 PRODUCTIVE1 EI!R LOAN IT TO O!RS1 OR EMPLOY ! LABOR ( O!RS UPON IT BY HIR+ !M1 & PAY+ !M WAGES4 ,HE CONSID]S ?AT1 BY LOAN+ IT1 & (F]+ ! DEBTOR AN 9DUCEM5T TO ! EX]CISE ( HIS BE/ SKILL1 BY A CONTRACT ?AT GIVES TO ! DEBTOR ALL ! PROCE$S ( ! JO9T LABOR & CAPITAL1 EXCEPT A /IPULAT$ AM\NT1 7CALL$ 9T]E/17 HE WILL BETT] /IMULATE ! LABOR]S 9DU/RY1 SKILL1 & C>E1 & ?US REAP A BETT] PR(IT TO HIMSELF ?AN HE WILL IF HE HIRE ! MAN AS A LABOR] = WAGES4 ,& ?IS ! REASON :Y HE LOANS HIS CAPITAL1 9/EAD ( HIR+ ! LABOR NECESS>Y TO EMPLOY IT4 ,BUT !RE IS NO?+ 9 ALL ?IS1 ?AT MORALLY OR LEGALLY 5TITLES HIS CAPITAL - :ILE IT IS 9 ! H&S TO :I* HE HAS ?US1 ) A VIEW ( HIS [N PR(IT1 *OS5 TEMPOR>ILY TO 5TRU/ IT - TO1 9 9SURANCE AGA9/ ! NECESS>Y RISKS TO :I* CAPITAL IS ALWAYS LIABLE4 ,NOR IS !RE ANY?+ 9 ALL ?IS1 ?AT MORALLY OR LEGALLY 5TITLES HIM TO MAKE ?IS BAILEE1 & P>TN]1 HIS SLAVE = LIFE1 9 CASE ( ANY MIS=TUNE TO ! P>TN]%IP BUS9ESS1 BY :I* BO? HIS CAPITAL & ! DEBTOR'S LABOR %\LD BE LO/4 ,NOR IS !RE 9 ALL ?IS1 ANY?+ ?AT GIVES HIM ANY TANGIBLE1 LEGAL1 PROPRIET>Y RI<TS1 TO PROP]TY ?AT HIS P>TN] & BAILEE MAY E>N ALT] ! P>TN]%IP1 OR BAILM5T1 %ALL HAVE T]M9AT$4 

#a#f4 ,SUPPOSE ,A SELLS TO ,B1 & RECEIVES HIS PAY =1 AN HUNDR$ BU%ELS ( GRA91 \T ( A C]TA9 MASS CONSI/+ ( A ?\S& BU%ELS2 & ,A PROMISES ?AT HE WILL SEP>ATE ! HUNDR$ BU%ELS FROM ! MASS 9 :I* !Y >E M]G$1 & DELIV] !M TO ,B ,9 ONE MON? FROM ! TIME ( ! CONTRACT4 ,9 ?IS CASE ! RI<T ( PROP]TY 9 ! HUNDR$ BU%ELS1 PASSES TO ,B1 ! PUR*AS]1 AT ! TIME ( ! CONTRACT--& IF ! MASS %\LD BE DE/ROY$ BE=E ! DELIV]Y1 7)\T ANY FAULT ON ! P>T ( ,A7 ! LOSS ( ! HUNDR$ BU%ELS W\LD FALL UPON ,B1 ! PUR*AS] & [N] ( !M4 ,& ?IS ,IS BUT A P>ALLEL TO ! EASE ( DEBT1 :]E ,A %\LD SELL TO ,B1 & RECEIVE HIS PAY =1 AN HUNDR$ DOLL>S' WOR? ( VALUE \T ( HIS 7,A'S7 :OLE E/ATE2 & %\LD PROMISE ?AT ?IS HUNDR$ DOLL>S WOR? ( VALUE %\LD BE SEP>AT$ FROM ! MASS ( HIS E/ATE1 79 :I* IT IS M]G$47 CONV]T$ ,9TO MONEY1 & DELIV]$ TO ,I,I1 ! PUR*AS]1 7OR CR$ITOR17 9 ONE MON? FROM ! TIME ( ! CONTRACT4 ,9 ?IS CASE1 AS 9 ! CASE ( ! GRA91 ! RI<T ( PROP]TY 9 ! HUNDR$ DOLL>S' WOR? ( VALUE1 W\LD PASS TO ,B1 ! PUR*AS] ( IT1 AT ! TIME ( ! CONTRACT2 & IF ! :OLE E/ATE ( ,A1 9 :I* ,B'S HUNDR$ DOLL>S' WOR? ( VALUE--WAS M]G$1 %\LD !N BE LO/ OR DE/ROY$ PRIOR TO ! DELIV]Y1 )\T ANY FAULT OR CULPABLE NEGLECT ON ! P>T ( ,A1 7! BAILEE1 OR DEBTOR17 ! LOAN ( ! HUNDR$ DOLL>S' WOR? ( VALUE W\LD FALL UPON #a#c1 ! PUR*AS] & [N] ( IT4 ,RETURN 

#a#g4 ,! DELIV]Y MAY SOMETIMES BE ,IMPORTANT AS EVID5CE ( ! RI<T ( PROP]TY1 :5 !RE IS NO O!R EVID5CE ( IT4 ,BUT IT IS ( NO ,IMPORTANCE TO ! RI<T ITSELF1 IF TIME RI<T CAN BE PROV$ BY ANY O!R TE/IMONY4 ,& A PROMISE TO DELIV] PROP]TY1 & AN ACKN[L$GM5T ?AT ! PROP]TY HAS BE5 PAID =1 7AS 9 ! EASE ( A PROMISSORY NOTE17 >E AS GOOD EVID5CE ?AT ! RI<T ( PROP]TY HAS PASS$ TO ! PROMISEE1 AS IS ! DELIV]Y ITSELF4 ,RETURN 

#a#h4 ,! VALIDITY ( ?IS ASS5T1 = ! CONVEYANCE ( PROP]TY1 RESULTS FROM ! FACTS ?AT M5 HAVE AN 9H]5T RI<T TO DISPOSE ( !IR PROP]TY2 ?AT !Y CAN DISPOSE ( ONLY BY ! CONS5T1 OR ASS5T ( !IR M9D1 OR WILLS TO DO SO2 & ?AT1 CONSEQU5TLY1 :5EV] ?IS CONS5T1 OR ASS5T1 TAKES PLACE1 IT ACTUALLY PASSES ! RI<T ( PROP]TY1 79 ! ?+ TO :I* IT APPLIES17 TO ! P]SON TO :OM ! PROPRIETOR DESIGNS IT TO GO4 ,IT IS TRUE ! LAW REQUIRES SOME \TW>D MANIFE/ATION ( ?IS ASS5T -- SU* AS A DELIV]Y ( ! ?+ SOLD1 OR A WRITT5 OR ORAL CONTRACT AS PRO( (' IT -- BE=E IT 7! LAW7 WILL DECL>E ?AT ! RI<T ( PROP]TY HAS ACTUALLY PASS$ TO ANO!R -- BUT ?IS IS REQUIR$1 NOT BECAUSE ! \TW>D MANIFE/ATION IS ( ANY 9TR9SIC IMPORTANCE1 BUT BECAUSE WE CAN HAVE NO EVID5CE ( A MAN'S M5TAL S5SATIONS EXCEPT FROM SOME \TW>D EXHIBITION ( !M4 ,RETURN 

#a#i4 ,AL?\< A DE$ ( L&1 OR A BILL ( SALE ( A HORSE MAY CONTA9 AN AGREEM5T ?AT ! POSSESSION %ALL REMA9 9 ! SELL] = A TIME2 & AL?\< SU* AN AGREEM5T W\LD IMPLY ?AT ! HORSE OR =M WAS LEFT 9 HIS POSSESSION TO BE US$ BY HIM1 /ILL ,IT W\LD NOT1 AS TO ! COOS (' A NOTE1 7OR BILL ( SATE ( DOLL>S17 IMPLY ?AT ! HORSE OR F>M MI<T1 ,9 ! MEAN TIME1 HA CONV]T$ ,9TO ANY O!R %APE = USE1 OR BE EX*ANG$ = ANY O!R COMMODITY2 BECAUSE ! HORSE & =M1 UNLIKE ! MONEY1 >E PRODUCTIVE & USEFUL ,9 !IR PRES5T %APE4 ,RETURN 

#b4 ,IT WILL BE UND]/OOD1 :5 ,I SAY ?AT ! RI<T ( PROP]TY 9 ! 0MONEY0 PASSES TO ! PUR*AS] AT ! TIME ,IT IS SOLD1 OR CONTRACT$ =1 7?\< NOT DELIV]$ UNTIL A FUTURE TIME17 ?AT ,I MEAN1 NOT ! RI<T ( PROP]TY ,9 ! ,ID5TICAL PIECES ( MONEY ?AT >E TO BE DELIV]$1 OR PAID1 BUT 7= ! REASONS H]ET(ORE GIV57 ! RI<T ( PROP]TY 9 AN AM\NT ( VALUE1 EXI/+ 9 SOME %APE OR O!R1 ,9 ! DEBTOR'S H&S1 EQUIVAL5T TO ! MONEY1 & :I* ,IS TO BE CONV]T$ ,9TO MONEY ,9 TIME = ! DELIV]Y4 ,RETURN 

#b#a4 ,?IS DI/9CTION BETWE5 ! LIABILITY ( A DEBTOR1 ON HIS CONTRACT1 = ! MONEY ITSELF1 & HIS LIABILITY = ! SAME AM\NT1 9 AN ACTION ON ! CASE = DAMAGE1 :]E ! LOSS HAS BE5 OCCASION$ BY HIS FAULT OR NEGLIG5CE1 IS AN IMPORTANT ONE 9 SEV]AL RESPECTS1 AS REG>DS BO? DEBTORS & CR$ITORS1 7AS HAS H]ET(OR BE5 %[N17 NOT)/&+ ! AM\NT RECOV]ABLE 9 EA* CASE %\LD BE ! SAME4 ,RETURN 

#b#b4 ! PRIMA FACIE CLAIM MY BE DEFEAT$ AS TO ANY P>TICUL> PROP]TY 9 ! H& ( ! DEBTOR1 CLE>LY DI/+UI%ABLE FROM ! BULK ( HIS PROP]TY1 & :I* ! DEBTOR CAN %[ TO HAVE BE5 EI!R LOAN$ OR GIV5 TO HIM S9CE HIS DEBT WAS CREAT$4 ,RETURN 

#b#c4 ,?AT IS1 HE RISKS HIS LABOR1 ALT OV] & ABOVE HIS NECESS>Y SUBSI/5CE :ILE LABOR+ 2 :I* IS NO MORE ?AN ! CAPITALI/ W\LD BE OBLIG$ TO RISK IF HE HIR$ HIS LABOR2 & :I*1 !RE=E1 IS NOT 5TITL$ TO BE CONSID]$ AS A RISK CREAT$ BY ! LOAN4 ,RETURN 

,*RONOLOGY 3 
,NOVEMB] #c1 #ahde 3 ,POV]TY3 ,ITS ,ILLEGAL ,CAUSES & ,LEGAL ,CURES -- ,PUBLICATION4 
,FEBRU>Y #a1 #bag 3 ,POV]TY3 ,ITS ,ILLEGAL ,CAUSES & ,LEGAL ,CURES -- ,ADD$4 
,DECEMB] #c1 #bba 3 ,POV]TY3 ,ITS ,ILLEGAL ,CAUSES & ,LEGAL ,CURES -- ,UPDAT$4 

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