The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1869-05-01
A New Monetary System,
By EDWARD KELLOGG.
CHAPTER III.
THE RATES OF INTEREST TIKI GovERNiHG POWER
or Distribution TO LABOR AND CAPITAL.

this time more than $50 600 600, and prob
ably more than $l00, 200, 900 lent in vari-
Gus ways to the country at six or seven per
cent. interest. Some part Of it is invested
10 State bonds, bank and railroad stocks,
stocks of nufacturing companies, etc.
and some lent on bond and mortgage, the
dividend or interest on all Of which must
be paid in New York. Estimate this sum
a. only $25 900, 900, and allow i: to draw
a-~ per cent. interest. Suppose the citi-
20 support themselves indepen ientlv Of
4 income from this loan, and allow il. by
collecting and lending the interest half
yearly, to accumulate for 4 century :.
matters not in what way the capital may be
lent, producers are compelled to add all the
interest from the proceeds Of their products.
In ten years and one month the $25 900 ,000,
will increase to $4,000, COO; in twenty
years and two months, to 800, 900 900 10
thirty years and three months, to $500, O00,-
900 in forty years and four months, to
$500, 1000, 600; in fifty years and five m Dnths,
d $500, 100000; 10 sixty years and six
months, to 81 GOO, 000, 900; 10 seventy years
and seven months, TO $4,000, 100000; in
eighty weave and eight months, to So, 400
00C, a FEARS and nine n,onths,
to ST., 1900, 600; and, 10 one hundred
years and ten months, to SIS 800 900 900.
This Is as ce rtain as any other mathematic-
al calculation, and nothing can prevent the
accumulation OF enormous sums in the
hands of few capitalists 10 this city, IN.
less il be the inability Of the inhabitants Of
the country to pay the interest on their
loans. This rate Of interest compels farm
ers to give the value Of one farm every ten
years for the use Of another; the tenant Of
each manufactory to give the value of
another mandatory, once in the same Pc
riOd for The use of the one occupied and
the PASSENGERS and transporters upon each
railroad and canal, to pay a sufheie..: fare
or freight to construct, at the expiration
of that period, another railroad or canal. Il
is manifest that the producing classes are
unable to fulfil such requirements. Each
additional railroad and canal must be ad-
ded to the original one by the producing
classes, and is given TO the capitalists with
out labor or production On lis t5.Ft. He
gains them By the legal power OF money TO
accumulate, which is equally great, whether
the money be lent on interest or invested
in property. If farmers, manufacturers,
mechanics and merchants, we're compelled
TO pay only just rate Of interest, they
could devote the labo. now expended in the
payment Of high rates to non producers, to
the supply of their own wants aud of gen
eTal comforts and oODgenieDees.
Large cities accumulate the wealth Of
nations without earning il. According to
the state register, in l845, the city Of New
York contained a population Of 37I ,233,
and tho state Of New 7 ork contained pop
uIstion of 1904, 495. The population of
the city was less than One-seventh part
that of the state. And yet the assessed val
uati0n Of the real and personal property of
the city at that period was $3.50 995, 5I7,
while all the other property ia the state
was valued at only $50, $50 ,5I4. This es-
innate does not include BroOklyn and Will
liamsburgb; which are 10 fact parts of the
city of New York, as they have grown up
and are sustained BY it's business. Taking
the city Of New York alone, il appears that
il owns more than two-hfths Of the assessed
property in the state, while it contains less
than One-seyenth of the state population
But it is doubtless true that it's citizens are
worth more than all the other inhabitants
Of ne state. They own large tracts of land
IN different parts of the state, and these
lands are taxed 10 the counties in which
they are located. If these taxes were esti- I
mated as being paid in the city, where the
property is owned, and were taken from
the taxes of the country, the transfer of /
taxos on the amount Of $62, 1927 $50, would I
make the valuation Of the property Of the
city equal one-half the property of the \
whole state. The citizens Of the city OF I
Few York own large tracts OF land in other 4
states, which are taxed in those states.
They have also large amount Of money \
m tha nd
and large amounts invested ia UAIted |
Stases, state, and bank stocks. and in stocks \
of manufacturing and railroad companies,
etc, in various states, all of which property,
If taxed, is estimated ana taxed as belong I
ing TO the country There are doubtless
many loans Of money and much personal \
which, although lent and used in
me city, escape any taxation. The people
OF other parts of the state own considera-
bic amount of property, stocks, etc., in the
city bat the amount owned by them in the
city is very small compared with the amount
owned bv the citizens of the city in the coun-
try-pro 1ablv not one-tW ntieth. IL il rea-
sonable Is conclude that tLe inhabitants of 4
the city aud county of New York own rs
much, or even more property, than all the \
people in all the other fifty eight counties
IN the state. Does any one suppose that
the citizens Of this city earn more by their /
labor than all the other inhabitants Of the
state Do they DO more toward supplying 4
the people of the state with food, clothing, 4
building materials, etc., than the people of
the state do toward supplying them with 4
these thingss II they do not, why should
they possess and continue TO accumulate 80
great proportion OF the wealth?
The means Of arriving at the truth In re- \
lation to this, would be to take for series /
Of years an exact account Of all the pro-
ducts which are sent out Of the city, and !
see itthe products that leave the city are
ADORE, or diminished below the |
products that are sent from the country into |
tbe city. u the money be take- into ac-
count, .Ls interest and dividends on both /
sides should be excluded. Allowance should I
be made for the labor performed in exehang-
ing goods, in shipments, ETC., in the city, /
equal to the allowance for the same amount /
OF labor on farm, 50 that the population /
OF the city should be fairly compensated 4
for their labor. II it be found that the (
III ,2S5 citizens of the city have not per-
formed one-half che labor fer the 2, 604 ,495 1
inhabitants of the state, and yet have OBJ \
tanned more than one half the whole prop u
erty, 1t il evident the distribution has been
unjust. Oar producers are continually en-
teaysring to over come their poverty By
their industry, bot while our present rates
VI interest prevail, capital will continue TO
axe their sarplus eafnings, and leaFs them
poof. 80 fg-iLJ 1hE8hfJ
fro BIZ CONTINUED.