IN GEOMETRIC TERMS

the same sort of map, that is, with the parts of the 0 andW curves which are flatter than 45° located northwestand southeast respectively; and if we should draw every-body else’s PQ at the same slope as above, we would haveonly borrowers and no lenders at interest rates picturedby such slopes. Everyone would be glad to borrow atnegative rates of interest. But a rate of interest at whichthere is no lending would necesarily rise. It could notclear the market. It could remain negative only if asufficient number of people had maps on which the Wlines were flatter than 45° even in the northwest and 0lines flatter than 45° even in the southeast. Otherwisethe center of gravity of the P’s and Q’s could not coincide.But there is nothing inconceivable in having such a lay-out overlapping the flatter-than-45° regions. In otherwords, if enough persons in the market were sufficientlymiserly, or their income opportunities were sufficientlyunpromising, or both, then the rate of interest could bezero or below.

To meet these conditions would require either a changein average human nature as to impatience under givenincome situations, or a change in the future prospectsof production and investment opportunity, due, say, toimpending exhaustion of natural resources or retrogres-sion generally, instead of progress, in the industrial arts.

Finally, the Opportunity line can never get very muchflatter than the 45° inclination, if as flat as that, solong as among our opportunities there are even the pres-ent possibilities of preserving food and other goods, thatis postponing their uses. We can scarcely expect a timeto come when we cannot do at least as well for the futureas the shipwrecked sailors with their hard-tack. That is,as long as such an alternative exists as being able to

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