The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1869-03-20

GcL0fGLty t0 ne httC gf
introduction, labor was said to ~
iroducer or wealth, and I'd pref
napter has been devoted I'D the
tioB Of the nature and powers ~
The present chapter viii exhibit
W laws which govern tie distribution Of
the wealth, and viii show the practical ef
fscts of certain rates Of interest urOn pro
ducers.
The Constitution 81 tile Uniaed States,
Art. II, See. Wiz. 5i Aaras, "Ihe Con
grcss stall have power to coin money, req
ulats tls vaiag thereof, and of foreign coin,
ana fE the standard 0i weights ana meas
uress" Money j. tile legal standard III value,
bY Whicb tbe value Of aL articles for sale
must I'VE determined. Tht rate 0f interest
hxes the value az money. It's value ~ no
more fixed by the quar,ity 0r the quality Dt
its material, than tha size of the 5usbel in
fixed BY the quantity aui quality of its
wood. Ile rate 0t interest maintained up-
% loans of money, determines what proper
tion of the earnings of labor shall be paid
Tor the use of capital, ali what proportion
shall he paid Va the lab0rers for their pro-
auctions. LIZ interest % money be main
tanned az high rate, rents ~ property Wll
slsl ba biEh.
There are but two purposes ~ which the
yearly products 0f labor can Ie applied.
Cu5 V ihe payment az tha yearly rent or
interest ou tAa Capi.al employed, and the
other i5 t1e payment VI labor. II lab0rers
pay t0 capital, az use or interest for Ihe
wear, their whole surplus products, the la-
borers, as body, work for a mere subsist-
8nce, ana The capital takes their whole SUR
Nsta l.N. e i
years. toll, food, clothing and shelter OILY,
AMI these perhaps ~ tie poorest kind !;
while the capitalist lives III llxury, iucrsa-
80 the number Of Liz bonds and mortgages.
or with LIE income BUYS land or builds
houses to let, which win, i'll succeeding
ycars- taEg y sul greater som from eae la-
burJr. Ihg Jaw of interest, 0r Der centags
on money, as much governs the rent IN use
e3 is.l0, aE sana conseQucntly the reward
Df labor. as tho law Of gr4Yitatilu governs
the decent Of water III thu interest gu
money re too high, few owners of capital
wili inevitably Accumulate the wealth Or
products Of the many Win tie present
sccumulasiye power 0f interest. there il no
more chance of th1 laboring classes gain
iug their rights Fly combining their labor
To increase production, than there would De
hope Of success shat by combining their la-
Dor they could reverse the course Of Lhe
rivers, and make them ron tO the tops Of tile
mountains, and Pile up the waters On their
SUBMITS. Iba laW Cf gravitati0n, ID TIE
latter case. would 0lt bo more sure " over
powsF am their labor, lnd h Jstrate All their
plans, than tIe present governing power 0f
tbs interest un money ls cure 90 gath er up
the increased production ana add i to thg
wealth ~ capitalists. lido fault j. il tile
law which governs tLe distribution " prop
trtv; ard combinations ~ increase produe-
tim would no more effect any general
change in THE distribution, than cOmbina-
tops against the law IF gravitation would
effect change in its general governing pow
eFs. Tue evi. l. legislative, and The remedy
must ~ legislative.
Money loaned on interest Or invested IN
property, 5 doubled w certain length VI
time, determined by tle rate of interest.
When this race ID to0 high, IL requires the 4
principal TO De doubled Il s0 short time. I
that thl borrower is g.H yelled to give ali 4
biz surplus products as iu.a-ast M rent:
~ cas- justice requires tHqtf should pay
only a moderate UCr cEuhre i0r the wv III
capital, anu himself reIa tL1 Chief SURPLUS
Of bis labor.
TIL following lustr ions, calculating
property ID acl uuase 3r double al certain
rates " yearly pCr -antage, il the same
manner AZ money, win clearly exaibit tbe
various results tJ laborers from variop-
rates IF interest. A.. B. and III arc voup-
men, who have just come az aae. C il heir
ID $4,000, while A. ana 3. ale mechanics.
without capital. U. u'racts with Al. spd
ID. 10 build d house which shall cost d 600
Oh a lot for which w paid $4,000. The "A
house and l0t together are worth $1,000
Y. Leases tlis property 10 A. ana B., anu
charges them seven Rev cent, upon its cost
clesF 5t Insurance, taxes and repairs. Tbt
inta rest * payable once quarter. a ratt
Of interest u se-an per cent. Der annum.
paid quarterly, will accumulate sum equA
10 the principal loaned Or invested III prom
srty III ten yeara "a, this rate, II ten wears
"A. and B. arc compelled to buy another lot.
build upon il another az good house, end
par rho lot and house 70 U. for TIL use W
she house they occupy. "a twenty years. n
a. and B. retain the Use II the house And
ia ACQUIRING rents, they must Dry y. three
n0uses, in Thirty years they must paw him
seven houses; ~ forty years fifteen houses
III nifty years, tbirty-Dne houses Ia sixty .
years sixty-three houses ana III seventy I
years, one-hundred ana twentv-sgFen ,
houses. Ia seventy years Ill these must w ,
built by a. and ~, and paid t0 @. as tie 1
accumulation On the one that He leased N !
them. The one hundred and twenty-eeyen :
lots which "A. and b. earn the money 70 buv. ( I
cost $685. ""' and the buildings cost All I
equal amount, making together, 81 80 600: 4
vi ich sum is paid to G. for seventy years. d
rent of one house and lot worth $40 900 :
At The expiration Of the lease, the original !
house must be returned TO its owner, az well +
as the rent. 81, Instead of being invested I
in the house and lot, he $40, 900 werol
loaned on interest at seven per cent. ana
the interest were collected aud reloapad
quarterly, the money would accumulate IN 4 ?
given perio, precisely the same amount a. E
lie property.
now, suppose interest to be at three ner g
cent. per annum, and A. an B. to build the 2
1ouse, and pay z. three per cent. annually =
1n its cost Of $4,000. This i $500 in
Itead Of $500 year and, at this rate. the
interest en- money, collected and reloaned &
quarterly, requires nearly twenty-four years l
q accumulate SUN equal to the principal. q
sretore, in tRent.four years 4. and b. a.
give Q. another house and, ia sew
0 j ears, seven houses, instead Of y
ed and twenty seven, which they \
sed 20 a. at seven per cenE-in {, {,
fAling ths asezs = 8