finds
a friend obliging enough to lend him. On receiving it, he requests the
loan of other L.10; and being asked for what purpose, he answers, that
with that L.10 he will pay up the original L.100. This is a rather
startling proposal; but when he is asked how he is to manage this
practical paradox, he says: 'Oh, I shall put out the L.10 to interest,
and in the course of time it will increase until it pays off the
L.100.' The lender is perhaps a little staggered at first by the
audacious plausibility of the proposal, but it requires but a few
seconds to enable him to say: 'Why, yes, you may lend out the L.10 at
interest; but in the meantime, as you have borrowed it, interest runs
against you upon it; so what better are you?' The lender, so far from
concurring with the sanguine hopes about the fructification of the
L.10, will only regret his having intrusted the larger sum to a person
whose notions of money are so loose and preposterous.

Yet the proposal would only have carried into private pecuniary
matters the principle of the sinking-fund, so long deemed a blessing,
and a source of future prosperity to the country. A sinking-fund is an
expression generally applied to any sum of money reserved out of
expenditure to pay debt, or meet any contingency. Now, observe that
our remarks are not directed against it in this simple form. A surplus
of revenue obtained by moderate taxation, saved through frugal
expenditure, and applied to the reduction of the national debt, is
always a good thing. But the sinking-fund to which we chiefly refer
was a system of borrowing money to pay debt. It might be said that the
identical money which was borrowed was not the same which was used for
paying the debt; but it came to the same thing if the sinking-fund was
kept up while the nation was borrowing. Thus, taking the case of the
private borrower as we have already put it, if he took L.10 of his own
money and put it out at interest, that it might increase and pay off
his loan, and if, by so doing, he fo

William Babington Maxwell (18661938) was a British novelist. He was a son of novelist Mary Elizabeth Braddon. Though nearly 50 years old at the outbreak of the First World War, he was accepted as a lieutenant in the Royal Fusiliers and served in France until 1917.

Cyrus Townsend Brady (December 20, 1861 January 24, 1920) was a journalist, historian and adventure writer. His most well-known work is Indian Fights and Fighters. He was born in Allegheny, Pennsylvania, and graduated from the U.S. Naval Academy in 1883. He was also a deacon in the Episcopal church. His first wife was Clarissa Guthrie, who died in 1890. His second wife was Mary Barrett.

Rebecca Sophia Clarke (1833-1906), also known as Sophie May, was an American author of childrens fiction. Using her nieces and nephews as inspiration, she wrote realistic stories about children. She wrote 45 books between 1860 and 1903. The most popular being the Little Prudy books. She lived most of her life in her native town of Norridgewock, Maine, where she lived out her life with her sister, who was also a successful author.