In my county (and I believe many others) if you check a book out of the library they give you a set time to renew the book (e.g. 3 weeks).
However this time does not change if the book is 30 pages or if the book is 1,230 pages. The time due for a book should be somewhat tied to the number of pages in the book because it takes longer to read a long book.
So for example, books under 250 pages would be due in 2 weeks, 250 - 500 pages 3 weeks, etc.
Even though renewal is available, the same principle applies. The reader should be allowed more time to read a longer book.
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The reason they have the time limit is because people waiting to checkout and read the book. They will allow you to recheck it out if no one has requested the book.
Too complicated.
I say rather than tinkle with that system, find ways to digitize the whole thing (like google is doing), spread digital ebook readers that make reading ebooks as comfortable as reading paperbooks and let business find a way to monetize that system.