Note 185-4 — Chapter IV

D. Hume, Discourses No. 4 On Interest. Per contra, see Locke, Considerations of the Consequences of the Lowering of Interest; Law, sur l'Usage des Monaies, 1697 (Daire); and Montesquieu, Esprit des Lois XXII, 6. Cantillon draws a very nice distinction: If the increased amount of money in a state comes into the hands of loaners, it will decrease the current rate by increasing the number of loaners; but if it comes into the hands of consumers, the rate rises, because now the demand for commodities is so much greater. (Nature du Commerce, 284.)