Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1867-11-15
aliseella ne . |, s.
Money two per cent in London
Chicago ten. and WhyP

Money two per cent in London
Chicago ten, and why?
Assuming that capitalist cannot COM
fortably support his family either in Lon
don or Chicago on less than So ,00pa year.
it follows that in London he must have
$500, 900 bearing the present rate OF in
terest there in order to live on his income,
while in Chicago the same income may be
derived from $6U000. Now. if the Lon
don capitalist prefers London us place
of residence and therefore does not wish to
move to Chicago, why does he not invest
his $500, 900 in the latter place, where at
ten per cent. it will yield him an annual
surplus of $4,000 besides the bare living
he now gctsl In other words: Since the
price of money is regulated by the law OF
supply aud demand. and money like water
seeks its Level, why does it crave invest
ment at two per cent in London. six per
cent. in Boston. seven per cent. i'll New
York and ten per cent IN Chicago! Why
does it not flow Westward till an equilibri
nm is established and uniform rates are
obtained in all these places!
I he answer is: because these points
are not regarded equally secure as places
of investment. 1t is not enough that
Chicago be absolutely as safe place Tor
in, estncut as London, but it must be so
reardrd by capitalists The fact that the
rs te Of intcrcst in Chicago il five times
that ol London shows that it is not so re-
earled. Capital i. proverbially timid.--
Like the frightened hare it is filled with
apprehcnsion at the rustlng of leaf. In
the lower states of civilization it burrows
into the earth for safety. AS civilization
advances, legal guarantees are offered to
coax it from its hiding places and, ether
things being equal, that nation attracts
the II, at capital, and accnmulates wealth
the fastest, that best secures to every man
his surplus earnings, not only by all the
ci,i safeguards that hnman ingenuity can
invent, but also by that sturdy honesty,
based upon moral principle, that makes
pubhc sentiment overwhelming in It's in '
aisnation towards every species of rascall-
ty. 1t is the lack of these condition. that
renders capitalso insecure III the Iornd
Zone in general. and in the countries peo-
plcd by the Latin race in particular. In
italy, Spain, Mexico and the South Ameri-
can States brigandage and thrittlessness
abound In the Christianlzed portions OF
the North Temperate Zone, thanks, partly,
no doubt to Il different race and climate
hut IN re to different religion, are found
the most security for capital, the safest in
yestmcnts and the greatest wealth. In
tie United States, we have IN the main,
the right climate, the right progentors and
the riyhl religion, backed by our enormous
national resources, to enable ns to enter
the money marts of the world and conf
mnnd capital at the lowest rates OF inter-
est. The great question is, why can we
not do ii
1t NAV be said that capital has not had
time 10 accumulate. and we are too Young
to have gained a first class reputatlon,eve
if we had done our best. Confidence Is
of slow growth. Our business integrity
must be proved by years of trial to be
basel ON no quick sand, but on u rock
Let time crvstalizc and soidify us ana we
,hnll be all right There is some truth in
this but it is not truth. Let us not de-
ceiyc ourselves, but look the matter
sauarely in t face. With the laXity IN
eldent to new aud heterogeneous colnmu-
mites we have tolerated too much Loose
ness in the construction put upon promises
to nav. Too many, both in the church
and out of it. give note to pay certain
sum on "a given day, without feeling that
their sacred honor is pledged to do it be-
fore three o clock on the day named, no
matter what sacrifice it may cost them,
bnt rather regard it as an evidence of in
d,htcdncss which they really mean to pay
- = .oon AS it is convenient. When the
farmer thus fails to pay the merchant, ac-
oording to agreement, and the merchant
fails to pay the iobber, and so OH, blow is
struck that shakes business confidence and
national credit. and in consequence we all
have to pay higher rate OF interest
mouey and higher price Tor every thing
We eat, wear, or use.
The laXity ha. been shared by State
coislatures and laws have been too often
oroctc1 that protect the debtor more than
the creditor. This evil should be prompt
" " remcdied. Our National Bankrupt Act
h sa tendency in the right direction so far
as it goes, since 1t compeis the bankrupt to
submit under oath to rigid cross examina
,;on As to wha he did with his means, be-
fore and after failure, and renders the Prac-
tice of going into bankruptcy to make mon
ov more prccarious than profitable. This
i bone(ul sign and will tell favorahly on
our credit abroad, when the provisions Of
this act arc fully understood But after all
the great shadow upon our national credit
is the fear that we may repudiate. The
lusiness morality growing out of tho code
of the bowie knife has done us immense
harm. :,
The world can estimate with tolerable
accuracy the material damage inflicted on
ns by jeff. Davis and his ignoble com
nc ncers in mstigating the late rebcllion; but
+ can never compute the injury done us by
lhese same bad men, when so many years
aro they raised with maniac hands the flag
e ronuJ;atiou in Mississippi. No matter