At this point it may be noted that many states have what are called usury laws which specify that not more than a given rate of interest is to be charged for any loan or discount. Such laws are always difficult of enforcement, but they are peculiarly difficult of application in the case of the bank loan. If, for example, a banker lends $10,000 at 6 per cent, when the legal rate is 6 per cent, he presumably gets a gross income of $600. If, however, he lends $10,000 at 6 per cent and requires his customer to keep an untouched balance with him of $2,000, he is really making a net loan of $8,000. The customer gets the use of $8,000, and since he pays 6 per cent on $10,000, he is really giving the bank $600 for the use of $8,000, or about 7 1/2 per cent. This way of adjusting rates of interest can hardly be reached by usury laws, while in various cases, where market rates are out of harmony with the legal rate, many bankers bring about an adjustment by other methods. Nevertheless, the legal rate is always a factor of some influence in the establishment of rates on borrowed money, and it may be broadly stated that the general effect of it is unsatisfactory and increases the amount the actual borrower is obliged to pay for what he gets. This statement, of course, would hold true only when the market rate was above the legal rate, since, when the rate is naturally below the legal rate, the latter has little or no effect one way or the other.