Knowledge of economic principles allows one to say that the natural rate of interest will be one that is sufficiently high to attract the amount of savings required to furnish the funds that producers desire to acquire at a cost no higher than that they have projected to be the maximum coincident with their project showing the targeted profit.

Nothing need be imaginary in order to conceive how this rate will come about and what are the main things determining what it will be: the demand for funds will be tempered by the return on capital (including the probable increase in purchasing power of sound money whenever this stage of civilization is encountered again).

A certain source of capital will be expected to obtain in the cash balances of producers themselves, lessening their demand for the use of funds savers may have been eager to lend at higher rates, not including an adjustment for this capital creating power of sound money. Furthermore in the real market men are expected to be left free to manage their financial affairs as they see fit.

Thus, the debasing effect of bills of credit hypothocated by intermediaries hoping to earn future commissions, fees, and interest should be greatly contained by the ever present demand for cash in exchange for such bills. The imminent prospect for failure of the firm can be expected to function as the final restraint on debasement.

Where hostile social and military forces intervene in the personal private financial affairs of a person, family or business firm, the result at least will be to obstruct the outcomes of what would otherwise have been mutually beneficial voluntary exchanges. In addition, some intervention could have the effect of transferring wealth from the many who produced it, to a special privileged few who did not.

A real market will protect against such practices, which, if carried out by an enemy, would be considered acts of war.