Libtool fails to build working binary when -no-install is used

[Simon Josefsson]

Hi!  I'm tracking down what I believe is a libtool bug, or possibly a
libtool documentation issue.  In libssh2, a shared library, we have a
"hello world" kind of self test that just invokes the library
init/done function.  The self test is linked to libssh2.  The
Makefile.am to build it is:

AM_CPPFLAGS = -I$(top_srcdir)/include
AM_LDFLAGS = -no-install
LDADD = ../src/libssh2.la

ctests = simple
TESTS = $(ctests)       
check_PROGRAMS = $(ctests)

Building this on Mac OS X fails to produce a binary 'simple' that
works.  It fails to run because it cannot find the shared library.
The relevant output is:

make[2]: Nothing to be done for `check-am'.
making check in tests
make  simple
gcc -DHAVE_CONFIG_H -I. -I../src  -I../include   -DLIBSSH2_DARWIN -I/ 
usr/include -I/usr/include -MT simple.o -MD -MP -MF .deps/simple.Tpo - 
c -o simple.o simple.c
mv -f .deps/simple.Tpo .deps/simple.Po
/bin/sh ../libtool --tag=CC   --mode=link gcc  -DLIBSSH2_DARWIN -I/ 
usr/include -I/usr/include -no-install -L/usr/lib -lcrypto -L/usr/lib  
-lz -o simple simple.o ../src/libssh2.la
mkdir .libs
gcc -DLIBSSH2_DARWIN -I/usr/include -I/usr/include -o simple  
simple.o  -L/usr/lib ../src/.libs/libssh2.dylib -lcrypto -lz
make  check-TESTS
dyld: Library not loaded: /usr/local/lib/libssh2.1.dylib
   Referenced from: /Users/daniel/Desktop/libssh2/tests/./simple
   Reason: image not found
FAIL: simple

The documentation for -no-install is:

`-no-install'
     Link an executable OUTPUT-FILE that can't be installed and
     therefore doesn't need a wrapper script.  Useful if the program is
     only used in the build tree, e.g., for testing or generating other
     files.

I believe that -no-install should have added a '-Wl,-rpath
../src/.libs/' to the gcc command when building 'simple'.  Then the
binary would have found its shared library.  Such a binary should not
be installed, with the library paths to the build tree in it, but
that's the point of -no-install.

See the original report in:

http://article.gmane.org/gmane.network.ssh.libssh2.devel/221

The libtool version used is 1.5.22.

Thanks,
Simon