The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1866-07-07

asEsrent modse ofssxpepdinr aapital, pro-
ducs very aissinct reseIs, 18th = regards
the interests of the in6viduRl aud socis(y.
As eapitalinctsasesin ~ rsB in Fhieh III
products q labor excssd the espsnse ofsub.
sistence, when certain amount of capital
has been produced, it may be settled as a
general truth, the higher She rate Of profit
atiainabls, the greater the means Of further
accumulation. IL three per cent. profit upon
a mans stock will enable him to subsist as
he has been accustomed, and to lay aside
one per cent annually as capital, the rise Of
profit TO SIX per cent woald at once give
him the power Of adding four per cent. in
stead Of one to his capital, SO long as he
should make no change in his style Of liv-
ing; thus the doubling the rate of profit
would add 4 the means Of accumulation in
proportion Of four to one. Allowing, there
fore, for greater profusion Of expenditure,
the proposition that large profits are favor
able to accumulation may be considered GER
tain. Suppose we reverse the case look
upon profits - small as t. prevent those
wishing to save from retaining any surplus
whatever. The result would be the same as
il they had consumed the whole Of their
productions, while their destitution would
not aid accumulation in regard to others, as
expenditure Of surplus might have done
0mitting, however, abstract reasoning, we
might ask whether the experience Of various
countries leads to some conclusion
Mr.. McCulloch in comparing the progress
Of the United States in wealth and popula
lion with England and Holland, ascribes the
rapidity Of advancement of the former with
the latter, to the fact thst the rate Of profit
in the United States vas twice as high as in
other countries. lie shows also, that if
rates of profit become low, the national con
dition, however prosperous in appearance,
is at bottom unsound and bad. Prof Jones
denies this inference takes more encour-
aging view lie declares that fall of rates
Of profit, so liable to happen, so far from in
dicating greater weakness in any depart
ment Of industry, is usually accompanied by
en- increasing productive pc -er in all, and
by an ability 10 accumulate fresh resources
more abundantly and rapidly These opin-
ions so apparently conflicting in reference to
matters Of fact, are not wholly irrecoL ie-
able. All allow that high prices have ad-
yanced individual fortunes IT is but a
truism that when trade is prosperous, ca
pital is made by it, The question is: Is
high rate Of profit best for increasing the
national wealth? Political reasoning as
sumes too readily, universal analogy be-
tween individuals and nations, which is often
deceptive, leading to false conclusions. A
fall in the rate Of profits is the common re-
suit of enormous accumulation of capital.
Capitalists, forced into competition, are con-
tent to receive less gain. But does national
wealth decrease? All fact is to the con-
trary. Yet the fact may be stated, that high
profits increase accumulation. In calcuiat-
ing the aggregate saving Of people, rich
and populous, it must be remembered that
the present inherits the gain of generations !;
a large number saving a small portion may
produce greater aggregate than larger pro-
portionate savings Of less numbers. With
reference to the first point inherited, capital
if not squandered, its interest becomes
ar enormous accumulation rent lands, pro-
Ats in trade, wages of labor supply new
funds. As 10 the second point, as illustra-
ton, suppose 100 men, each saving annu-
ally $l0o-aggregate $4,000 Suppose
1000 men, equal capitalists, but unable on
account Of lower rates Of profit to save more
han $S0-thelr aggregate $50, o00-this
example falls shot, for the number Of small
capitalists is more extraordinary than enorm-
GUS capital possessed by few wealthy men !;
and their annual additions to the national
wealth are of incalculable amount. The re-
suit to which We are brought by these To-
quiries is to slow that high rates of profit
favor accumulation that ia very rich and
populous countries, from abundant accumu-
lation, rates may fall yet. if they enjoy high
rates wealth increases rapidly, and Tat I'M
der ordinary circumstances, from vast re-
sources Of inherited capital aggregate saw
ings Of vast numbers still facilitate accumu-
lation in greater ratio than increase Of popu-
lation, and the bearing Of all in reference to
the laboring classes. There may not be
among them great proportion of large,
what might be called enormous fortunes.
But possessing reasonable wealth, and out
numbering by far all others, who possess
capital, they constitute the bone aud sinew
Of the national accumulation, and exist az
the broad basis on which the capital Of the
truly hourishcs 1t Is with
pride then, that we may turn to this class
and ask them to be content with their toll
II is glory enough for any class Of mankind
to stand as the base and support Of that
which pecuniarily rears the vast temple Of
utilization. We speak not now Of intelli-
yence, Of Distinguishing virtues, Of heroic
Of the nobler distinguishing
.dornments that signalize different ranks Of
society, and Of whose illustration no brighter
Instances can be found than among the Ia