Countries_.

As the increase of capital in every country is the consequence of
former productive industry, so also is it the support of future exertion.

When the capital of a country has become sufficient for all the
employment that can be procured for it, the first effect is the lowering
of interest, which sinks down under the rate appointed by law, and
under the rate at which it is lent out at in other countries.

When capital is not in sufficient quantity, those who want to borrow
are more numerous than those who have money to lend; then the
competition is amongst the borrowers to obtain the preference, and
they all give as high an interest as the law allows, and would give
more if they could avoid the penalty, which, in all countries, has been
attached to accepting more than the regulated sum; a sum regulated
merely to prevent the effect of competition, which might induce
people to give more than in the end they would find they could afford
to pay.

When capital becomes over abundant, the very reverse takes place; the
lenders become rivals, and offer to lend at an under rate of interest.

The first effect of this is, that people who were but scantily supplied
with capital before borrow, and carry on business more at ease, so that
more capital is employed in business, and new employments are found
out for capital.

The usual employments for a superabundant capital are improving
lands, building houses, erecting machines, digging canals, &c. for the