Yes.
Also in a free market, there is no one allowing or disallowing things.
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Swap boats for currencies, what has changed?
I'm not saying lending is bad. I'm saying usury is. The difference is the property-ness of the lending. The economy can't ignore the time value of money, and I'm not proposing that. Lending at interest and lending ex-nihilo are both different from simply lending a thing and retaining ownership.
How do you have property rights in a free market!
Better question is, how do you have a free market without property rights?