It is human nature to prefer present economic goods or services to future economic goods or services, the degree of preference varying with the person - with his personal characteristics and the nature of his income. If Brown is less impatient for income than Jones, he will lend to the latter, but if more impatient, he will borrow; borrowing tends to lower the impatience of the borrower and raise it for the lender. Given a market of borrowers and lenders there will result a market rate about which borrowing and lending will crystallize. This rate measures the general notion as to how much, in a certain community at a certain time, present goods are preferred to future goods; it denotes, in other words, that lenders are willing to lend $100 today for $105 repaid one year later; the premium, 5 per cent, is our market rate of interest. Whenever a credit is drawn, this element of time preference enters, and the value of the goods or the money returned at maturity must exceed the value of the goods or money originally paid. A borrower is willing to pay this premium for the use of goods, or for money which represents goods, for various reasons, but in any case the borrower must be satisfied that the goods are worth more to him (at the market rate of interest) than to the lender. One of these reasons would be that he feels himself by the amount of the interest a more efficient producer than the lender.