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20 In the loan contract this obligation does not exist, and the borrower may use the loaned amount with total freedom. transfer of ownership? in the two contracts, we allude to two very dissimilar concepts. transfer? 21 The differences covered in this section are outlined in Table 1-1. 4 THE DISCOVERY BY ROMAN LEGAL EXPERTS OF THE GENERAL LEGAL PRINCIPLES GOVERNING THE MONETARY IRREGULAR-DEPOSIT CONTRACT THE EMERGENCE OF TRADITIONAL LEGAL PRINCIPLES ACCORDING TO MENGER, HAYEK, AND LEONI The traditional, universal legal principles we dealt with in the last section in relation to the irregular deposit contract have not emerged in a vacuum, nor are they the result of a priori knowledge.
Menger discovered that institutions appear through a social process composed of a multiplicity of human actions, which is always led by a relatively small group of individuals who, in their particular historical and geographical circumstances, are the first ones to discover that certain patterns of behavior help them attain their goals more efficiently. This discovery initiates a decentralized trial and error process encompassing several generations, in which the most effective behavior patterns gradually become more widespread as they successfully counter social maladjustments.
Does this mean the central bank is an inevitable evolutionary outcome of a free-market economy? Or rather, that the way private bankers have characteristically done business, which at a certain point became corrupt from a legal point of view, has brought about financial practices unsustainable without backing from a lender of last resort? These and other issues are of utmost theoretical interest and should be the object of the most careful analysis. In short, my main objective is to develop a research plan to determine which financial and banking system is appropriate for a free society.