The workingman's advocate., 1869-05-22

I'll M tlIs
rHE RATES OF INTEREST Tbs GOVERNING POWER
or DisTRIRr ZION 70 LABOR AND CAPITAL.
SECTION lV.-CoNcLUDED.
The per CentaOe Actual Increase Of the Val
az ofths Property Of the States Of Netc
York and Massachusetts, Compared Nth
the per Cent0gs LsgI Increase on The
Property Or these States for the same Pc
TiOds.
An estimate Of the increase Of wealth il
the State Of Massachusetts, for CITY years,
is contained in an article 10 the MAY num-
Der, for lo47, OF that deservedly celebrated
periodical, Hunts Merchants Magazine. A
few extracts are made to show the differ
ence between the amount Of property pro-
duced by the labor of Massachusetts, during
fifty years, and the amount which would
have accumulated upon the capital EN-
ploycd during that period at six per cent.
interest.
''It is the object Of this article to exhibit
the progress Of wealth 10 Massachusetts, dur
ing the fifty years, from 1890 to lS40, as
deduced from the six State valuations, TAX
en- at intervals of ten years each These
valuations have the legislative sanction of
the General Court, and are the bases Of ap-
portionment of all State taxation for the
len years following. TheS are prepared
from the returns furnished by the assessors
Of the several towns and districts, and are
intended TO embrace all the taxable proper
~ Of the Commonwealth. They may be re-
lied upon as sufficiently correct for .he pur-
poses Of comparison, OF of showing the pro-
greSs Of wealth during these fifty years
at least they furnish the nearest approxima-
ton we have TO the true amount Of wealth
in the State.'
The assessors valuation Of the property
in the State Of Massachusetts in 1870, was
$44, ,024 349, aud in lS40, it had increased
to $299 $50 33S. The increase of wealth in
the State during ffty years was $255 ,S55,-
9s9. 10 Massachusetts, the legal rate of in
terest is SIX per cent per annum, and the
value Of property is commonly estimated by
the per centage income for which il can be
rented III house aud lot, or a store and
lot, will rent for 5000 per snnum, besides
the taxes and Insurance, the property is
valued at $4,000, for the income from it i
equal to interest at six per cent. per annum
ON SIC, 900.
In Massachusetts,, the banks are allowed
to discount paper at six per cent. In max
ing loans, they take the interest or discount
from the notes for the time they lave Il
run. Take the value Of the property in IT,
30, say S44 ,024 $40, and suppose it to have
been loaned at six per cent. per annum, on
notes having SIX months to, run. T. ffty
years tue interest on this sum would have
amounted 80 1886 ,524, ,246. Add the prin-
ciPal-i e., $44, ,0z4 349, and we have sum
Of 1929 54S, ,j95. The actual increase of
wealth in the state during the fifty years,
was but $255 ,855 $3.50. Add to this the
principal or property Of the State in l790-
!. G, $44 .O24 ,349, and the entire wealth Of
the State amOants to $299 $50, 338; D. not
one-thifd as much as the accumulation on
the same capital would have been in fiftv
years at six per cent interest per annum.
Ii, 10 1890, the people of Massachusetts, had
rented their property of a foreign nation.
and agreed to pay interest on it half yearly
at the rate of six per cent per annum, they
would have been bound to pay in the 6ftv
years, about three and half times mora
than they earned duIing that period over
and above their living. The results of the
establishment Of this rate Of iaterest in The
State, are manifest ia the accumulation Of
wealth 10 the hands of the few, aud in the
proportionate destitution Of the manr
According to pamphlet cOnteining a list
of the wealthy men of Boston, and an esti-
mate OF the value Of their property. there
are PA individuals who are worth, in the
aggregate, s. ,S55, 900, and upon an aver
age, $32i,1ol each. In this pamphlet no
estimate is made OF any individuals prop.
erty that Is supposed to amount to less than
s 100000. II we take the wealthy men IN
all the other towns and counties in the
State, aud suppose that there are 5000
other individuals who are worth only S3O.-
900 each, their aggregate wealth would
amount to SO, O,o00, 900. Add this sum TO
the s. !, ,s55 00O owned BY the 224 men, and
We have SlGl, ,555, 900, OF considerably more
than hali tue value of all the property Of
tho State. Such estimates are liable 10 be
more or less incorrect but any one who
Will make an estimate of the wealth Of the
toxn or village in which he resides, will
ind that very small proportion Of the in
habltants are worth more than all the rest.
This is still more true of large cities than il
js Of towns and villages.
II the estimate Of the wealth Of the 1924
wealthy men in the State Of Massachusetts
be correct, these men are worth more than
all the other inhabitants of the State AL
lowing the families OF the 1924 men to av-
erage i've persons each, they would consti-
tute population OF l6, l20 individ uals. In
1910, the State contained population of
737,T0O. The Is, l20 individuals would not
be two and one fifth per cent. Of the popu-
alton, and yet they would own 1re than
half the wealth OF the State Ii this esti-
mate even approach the truth, it lows an
immense dlsproporti0n of wealth fo. the la
Dor performed by its owners for il ls i'm
possible that they, or theiT ancestors, what
ever may have been their skill or industry,
can have performed the labor and made the
Improvements which constitute this wealth
The interest on mouey loaned, aud the rent
on property leased, are the only means BY
which they could have accumulated it. $44,-
J24 349 loaned on six months paper ut six
per cent. interest per annum, as interest is
taken by banks, would increase ia 6fty
years to twenty one times its original
amount. This increase would accrue to the
lenders Of the money, BY merely exchang-
ing their money, Or bank-notes for the
notes OF individuals, and collecting the in
Ierest.
II the rate OF interest on money in Mass
achusetts We're at one per cent. per annum,
instead of az Elk per cent, and the $44.-
J24 349 were loaned on six months paper
at one per cent. interest in advance, in ffty
years the money would accumulate &28,:
s79, 1913. Add the prin sipal--i. g., $44,024,-
the sum would bs $72, ,904,322.
instead Of 1926. 54S, ,595, the accumulation
1t SIX per cent.
i'm,