These letters, addressed to Frederic Bastiat, an economist, originally appeared in a debate published in The Voice of the People, in 1849. Interest and Principal A Loan is a Service On the one hand, it is very true, as you have unquestionably established, that a loan is a service. And as every service has a value, and, in consequence, is entitled by its nature to a reward, it follows that a loan ought to have its price, or, to use the technical phrase, ought to bear interest. But it is also true, and this truth is consistent with the preceding one, that he who tends, under the ordinary conditions of the professional lender, does not deprive himself, as you phrase it, of the capital which be lends. He lends it, on the contrary, precisely bec... (From : Anarchy Archives.)
Proudhon, Pierre Joseph. System of Economical Contradictions: or, the Philosophy of Misery Electronic Text Center, University of Virginia Library Chapter 3 CHAPTER III. ECONOMIC EVOLUTIONS. -- FIRST PERIOD. -- THE DIVISION OF LABOR. The fundamental idea, the dominant category, of political economy is VALUE. Value reaches its positive determination by a series of oscillations between supply and demand. Consequently, value appears successively under three aspects: useful value, exchangeable value, and synthetic, or social, value, which is true value. The first term gives birth to the second in contradiction to it, and the two together, absorbing each other in reciprocal penetration, produce the third: so that the contradiction or antagonism of ideas appears as the point of departure of all economic science, allowing us to...