They cannot negotiate; the transaction favorable to both cannot take place, and then what happens?
It happens that James first exchanges his plane for money; he lends the money to William, and William exchanges the money for a saw.

The transaction is no longer a simple one; it is decomposed into two parts, as I explained above in speaking of exchange.

But, for all that, it has not changed its nature; it still contains all the elements of a direct loan.

James has still got rid of a tool which was useful to him; William has still received an instrument which perfects his work and increases his profits; there is still a service rendered by the lender, which entitles him to receive an equivalent service from the borrower; this just balance is not the less established by free mutual bargaining.

The very natural obligation to restore at the end of the term the entire _value_, still constitutes the principle of the duration of interest.
At the end of a year, says M.Thore, will you find an additional crown in a bag of a hundred pounds?
No, certainly, if the borrower puts the bag of one hundred pounds on the shelf.