The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1866-06-09
CHICAGO, JUNE 9, 1866.

| oI the interest," o9El0g lnreoteuneSS OF the
nation, leaving thuee billions, eight hundred
4 millions, three hundred and eighty-two
\ thousand, six hnndred and ninety-ohe dol
lars of money, wbich will always be wanted
as circulating medium, and require to be
Increased in lin ratio with the population,
wealth and business of the nation, which,
for the first year After the liquidation Of the
interest bearigG aebt, win amount to one
hundred and tQsety six millions, six humid
red and seventt-nine thousand, four hundred
and twenty-thrte dollars. Third, result with
interest computpd at three per cent Inter
est on one thouasnd five hundred and sixty
nine millions a. dollars at three per cent,
will amount to, forty-six millions, eight
hundred thousana dollars. Total interest
and principal at the end o the first year,
ione thousand SIX hundred and six millions
jeighk hundred tho6kand dollars increase in
the currency or money for first year, forty
eight millions of dollars /; this deducted from
the total interest bearing debt will leave one
billion, FIVE hundred and fifty-eight millions,
eight hundred thousand dollars. Interest
on this for second year, forty six millions,
seven hundred and sixty -iouI Thousand dol
lars; total interest and principal, one billion,
six hundred and five millions, five hundred
and sixty -four thousand dollars. Increase
in the currency for second year, forty nine
millions, Elk hundred thousand dollars, leav-
ing as the interest bearing Indebtedness at
the end of second year, one billion, five hun
dred aud fifty-6ve millions, nine hundred
and sixty-four thousand dollars. Interest
third year, forty-six millions, six hundred
and sixty-seven thOusand, eight hundred
I1ll 4
principal for third year, one billion, six hun
dred and two millions, two hundred and
sixty four thousand, two hundred and ninety
two dollars. Increase in currency for third
year, fifty-one millions, two hundred and
fifty three thousand, three hundred and
thirty-three dollars. This, deducted from
the total interest bearing debt, will leave as
the debt bearing interest at the end of the
third year, one billion, five hundred and
fifty-One millions, ten thousand, eight hun
dred and hfty-nine dollars. This process
will in little over thirty-two years liquidate
the whole interest-bearing Indebtedness OF
the nation, leaving fraction over four thou
sand one hundred millions Of dollars of cir
culation, which will bear the same proper
ton to the wealth and business Of the ma
ton, that one thousand, four hundred and
forty millions does at this time, and will ne
cesssrily be wanted for a medium Of ex-
change, and to be increased thereafter with
the increase in the national wealth, which
for the first year win amount to over one
hundred and thirty ST. millions of dollars,
sum sufficient to def-ay the ordinary cur
rent expenditures of the government.
however think it will be found that three
per cent. is higher rate Of interest than the
government securities should or can bear
without rapidly centralizing the wealth Of
the nation In the hands of the few non-pro-
ducers This is quite ss high a rate as
should be paid in business transactions, and
small and short loans will Always command
higher rate than thatP paid On government
bonds | think two and half per cent.
about fair rate on the government securi-
ties this would make the rate in business
transactions about three per cent
If the legal tender, or non-interest
bearing debt be Withdrawn from crcula
ton, and our whole debt funded in a
thirty year five per cent. loan, as contem-
plated Ly the scheme OF the Secretary Of the
Treasury, now before Congress, the result
will be as follcss The National, State and
Municipal taxes taken together, will average
at least three per cent on all the property
IN the nation. To this must be ADDED the
cost Of collection, which, with speculations,
defalcations, etc, will, | think, equal one per
cent. making the cost chargeable to the
wealth-producing classes, equal to nine per
cent per annum on the whole debt Money
loaned at this rate, with the interest com
pounded annually (Which is the natural law
governing in .rease by interest or per centage)
will double in eight years and fifteen DAYS
Three billions dollars, with interest at nine
per cent. compounded annually for thirty
years, will amount TO thirty-nine billions,
eight hundred and thirty four millions, nine
hundred and seventy four thousand, one
hundred and ninety three dollars; add to
this titty-oi lions, six hundred and ten
thousand, lundred and sixty-two dol
lars, which would be in the national treasury
at the end of thirty years, after liquidating
the whole debt by the adoption Of the true
American monetary system with the interest
on the debt at two and half per cent /;
total, thirty-nine billions, eight hundred
and eighty Ave hundred and
eighty-four thousand, three hundred and
fifty-ive dollars, or three millions, six hun
dred and thirty five thousand, two hundred
and forty-one dollars each and every day,
for the thirty years, every dollar Of which
is unnecessarily and unjustIy taken from
the th-producing classes. BY the adpp-
ton Of the system proposed, the rate Of in
terest in all legitimate transactions would
not exceed three per cent. while if the pre-
sent policy is pursued, it will average as
much as nine per cent. per annum.
If we take into account all the money
loaned on State, County, City bonds and
railroad and other corporate companies, as
well as that loaned by insurance and trust
companies, banks and individuals, on bond
and mortgages, with the rents of property, it
viii be found that the weaIth-producing
classes are paying interest to the non-pro-
ducing capital on at least seven billions of
of dollars, besides that on the national debt
proper. The system proposed would make
difference of six per cent in the rate of
interest on this amount, which for the thirty
years would amount to thirty three billions
three hundred and thirty four millions, eight
hundred and seventy six thousand one hun
dred dollars, or an average daily saving Of
three millions forty-two thousand and fiftT-
eight dollars. to this be added the saving
to the industrial classes on the payment Of
the national debt, the total amount at the
end Of thirty years will be seyenty-two bill
lions, one hundred and sixty-nine millions
eight hundred and fifty thousand, two hnn-
dred and ninety three dollars, or six millions,
six hundred and seventy seven thousand,
two hundred and n;nety-nine dollars.
Eatiratinu The rnp,,fatsnv, -