Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1829-07-30


.,,,ec.at,os the -, a,er cheapness Of work
man hin with them. Our advantage would Dc
yet greater 10 fhis respect over the northern
Sta,,x AZ provisio,s end labor are lower IN this
s,a,e. e. the materials moi higher. But the price
nfthst 70 ri ~ ri the liked capital which con.
s;s,, a ..s.er nu.er and Of lHsd for fuel, and
build, 70 sites, d-pcnds 30 much on aceioen"
and Localities, thai ANY comparative estimate
ofib. vale of ilir real estate required Tor man.
uf.c,orist must be- manly uonjecturai. we
are. however, lar within ihr limits oi pfohaoii'-
~, when We say the ,qnisite land and water
mower msy be purchased with Us Tor hsii me
,rice they bear in the more nop'sous states, and
70: one. fourth OF that which they would oos' ~
England. 10 this case the Aggregate COS, oi
land. water power, aud buildings, will not often
exceed 6ft, per cent Of the sum paid for them
nv opr eoonpe,itors either on this or The other
side of tho Atlantic.
In the price of machinery. the advantage IS
alIoc .,her in favor Of England. This specie,
ormanafac,uring capital Gusts, IN any part oil
ne Lasted States, from 6o 70 loo per GEM.
more than II does Great m Britain. such paH OF
y asis fabricated ~ this country. will no doubt
COS, from Is 10 20 per cent. more IN Virginia
tlan IN the northern states.
1be monied, or circulating. capital for The
ru-ehnse Of materials and the pay Of the work
men can errany be obtained on better terms
III Any nfihe places We have named than ~ this
state. The value Of money, or the natural rate
Of interest, IN different countries, can be best
computed, nv comparing the price Of the public
finds ot other domestic ook in zach. with he
snuusi intcrtsi ar dividends. II Is true thai
Individuals cannoi Always borrow on us good
terms "a these prices of the public stocks ind
,-r,c IN, they serve very we'll 10 she"-the pro.
u,r,i,,ost difference. Nor eau small sums he
narrowed stas low an interest rs large ones.
When thns compared, IL will he found that the
interest Of money - somewhat lower ~ Eng.
land, perhaps from one To rso per cent. than II
is in the northern states. and lower in this
than IL is ~ Virginia by a somewhat smaller dill.
ference.
But II money commands higher interest in
virginia THAI in Eng land or Massn chusett,, il
must nlsn be remembered that we should have
occasion fpr less OF IL IN oar manufacturing
establishments, since the price Of labonr and of
one OF the raw materials, cotton. Is cheaper
With Us Than they are in either OF these places
THIS difference ough, 10 be iuli equivalent 10
the difference OF interest.
Let US nov see what proportions these three
kinds of capital commonly bear In each otber.
II is OF importance 10 determine this, because
they vary, as We have seen, in pine, so greatly
~ different countries real capital, Tor example
being cheaper here than IN Europe, Inenld
Capital d.srer, aud machinery dearsr.
From the want Of precision on this subject
in the Witnesses examined before the commit.
tee On manufactures IN Congress, we are not
shle 10 speak on this occasion with % much
nccurary aS We ought most Of the witnesses
~ that examination. not distinguishing in the
estimates made Of ih'ir manufacturing capitals;
zeal es'ale from machinery some blending
-. a "a 49,.
having n part Of their fixed capital on lease
or OF their circulating capital on loan, wi,bou,
specifying the amount
According TO he only three witnesses who
stated tie precise sum vested in each spee,rs
real tate constitutes abon - per cen, OF ihr
shoe capital machinery about ~ per ceni
and the active, ar circulating, about 81 per
ccni. Thus, according TO
REaL ESTATE.
sir. Young. Of Delaware, 80 per cent
Nr Dickinson. of Ohio. 1888
Mr.. Fierce OF New.liHmpshirc, IL
3)i34.33
Average. S4i77
MACHINERY.
Ar Young. p per cent.
Mr. DICK nson, 30 80
Mi Pierce, Is
1872 81
Average, sail
clRcrt hTIaG CAPITAL
Mr. Young, 20 per cent.
Dir Dickinson, 1898
MIR Pierce, 10
1898 33
Average, S3llI
tfthis he considered as afrording fair aver.
ape of the proportions IN which these three .le
soen,s Of capital suppose in inis country, then
,upposinL, according to our previous estimate
thai real estate 10 81 per CT. cheaper IN Virgi.
mia than in the northern states, and machinery
Il per Ct dearer. the amount of capital rrouir
ed 10y them and by ns, respectively, may he iht
compsred
HEAL Estate, "a ~ per cent
Machinery, 27ll A."
Mon-d Capital, 3l.il
loo
Real Estate, 22.3o per cent
Machinery, 1904 "
Monied Capital, 81 II
Sold
The amount, then, foapiial required FOR
manufacturing establi .hm-nt in the northern
states, compared with the amount required IN
Virginia would he about ms 100 to So or IA per
A
tity OF real estate would commonly be less
than is here supposed. Steam .engines there In
King the place OF water power here con-
sequen'y the quantity OF machinery would lac
greater but as real estate is there much high
-r than wu" MS, and machinery much lower,
the aggregate a'aonut required IN that country
for every ,pecies oi capital. may not vary ma
,erially from that required in Virginia. five
suppose the quantity Of real estate, requisite in