The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1869-10-09

SsVOA N $1VsVVu ana Sne interest upon lt &C
seven per cent would be % 800 q year.
bot fefueed TO one per cent, the interest
would fmount to bot $4O0. The saving Of
interest," on the goods, and Of rents ON the
house nd store, would amount 70 ~A,6OO.
SupPo| the merchant to sell 92S0, 900 worth
OF goods IN year, be mnst caiculate ut least
two ank half per cent. for guarantee Of bad
debts. This per centage would be $3.50.
keduc4 interest TO one per cent, and pro-
badly I would not be worth tenth Of one
per ce4t., TO guarantee the debts. In this
item, fere would Do clear saving Of %, $50
Add pc $500; there would be saved
$lO,9P. The cost Of the transportation of
Produtf % from one part Of the country 70 an
other you'd be greatly reduced; because
the Pef ceutage to be paid for the use Of
capita TO make internal improvements would
be redeced TO one per cent. ALI this differ
ence o. interest would be gained and saved
BY producers and distributors.
Thai low rate OF interest would drive
tpecieE rom the country, 10 q false supposi-
ton. HQO the lower rstes Of interest 10 Fog
land cfain that country Of its specie Does
ak Oet cent. interest ir the New England
StateeI drive their specie into the southern
and Rstern States, IN which the legal inter-
est 10 Right per cent. per annumf Such 10
nos tnk fact Where interest 10 the lowest,
m"neiAand specie = the most ABUNDANT. II
PTOdwks pay Q prOus BY shipment to EGG
land, they 90 forward rapidly 70 meet the
demadd. Not 90 with money. 10 England,
pODe| 10 often lent for months together as
irom 10 TO three per cent per annum, while
the ftew York banks lend at six and seven
per opt, per anOum. For years rsst. The
people OF the United States have paid, nearly
Or CUTE, double the per censage for shs use
az m4ney that has been paid in England.
Why koes not money from EngIand 6OW H.
and s4pply the market, 90 10 20 eqaaiiss the
rates interest Of the tw0 nagOnsf Why
do th4 States which pay The highest rates Of
Intere&t 20 abroad most freqaensly 70 borros
mO0at, and still have not enough 1t 10 be-
Caure be rates are 40 high thss the people
Of thdsse States cannot produce q efficient
surplsk to pay the interest TO capitalists
amoDA themselves, and 20 other States where
the interest, though lower, 10 still oppressive,
to prdc pure the money required to carry on
their business. Money 10 . legal represen-
Ia ivel and serves to fix an income, but not
70 produce wealth. Loan 1t twenty or = irty
tines Fhere the interest 10 high, and cry
time is lent 70 make an income for the
lendeIt for longer or shorter period, which
impOvE rishes the borrowers, because they
must Yell their products to pay the interest.
The Principal borI0Wed must soon be re-
turned 20 the lenders in interest, and the In
terestEs reloaned 20 the people. These high
rates Nof interest serve TO make the people
pAyink them tributary to a few mono len
ders tnong themselves, and in other States
For few years previous to 1851, the State
Of Wisconsin made all rates OF interest legal !;
that the rate of interest was a matter Of
agree'kent between borrower and lender.
The Dsequence was, that the rate Of in
terest karied from II 40 TO 100 per cent. per.
annunk We are creditably informed that
the hi4hest rate was, in many instances, ex-
acted, and good landed security obtained for
its payment. Let us see what effect certain
rates interest on money borrowed abroad
must have upon the circulating medium OF
the Sd tie. If the rate Of interest were at
one r cent, and T., living in New York,
should lend $4,000 in Wisconsin at that
rate, Me borrower, at the close Of the year,
must lend 7. 800. The people Of WIscon-
sin wtuld have $500 Of the money Dor
rowedlremaining among them 40 q circulet-
ing nj dium. But If 7. lend his money at
twelvh per cent, the borrower must send
T. at be close Of the year 81 200, and bat
$500 would be left circulating in WiscOn-
Sin. he lend at fifty per cent, the Dor
roweThm must duly send /. 81, 900 to pay the
intere3t, 80 that one half Of the borrowed
monet is returned to L. in New York, and
only is, 900 are left in Wisconsin. But II
7. lertis the $4,000 at hundred per cent.
per g. bum, the borrower must send T. at the
end oNthe year $20,000, and not one dollar
- - 11ke - AesYl - -
wnuld1oe indebted 70 7. for the principal Of
$40 UP and in another year would owe I.
$1,000 more in interest. 1t would not take
verySlarge amount of money lent at this
and approximate rates by the citizens Of
New York TO those Of Wisconsin. to throw
the bAance OF trade against WisconsiA and
10 faShr Of New York nor, in such case.
woulo3it be strange that money should be
pcar in Wisconsin while It was plenty 10
New York.
In dc United States, il interest were re-
duce@ TO one, or to one and one tenth per
cent useful productions would probably 10
creas4 from twenty five to City per cent
The wealth, instead OF being accumulated 10
a ieW hands, would be distributed am De
producers. A large proportion Of the labor
employed 10 building up cities would be ex
pendeR 10 cultiVating and beautifyIng the
county. Internal improvements would be
made 70 an extent, and in perfection nm
exam led 10 the history Of nations. AgTi-
cultuiR, maDufacIures, and the arts would
Hourih in every part Of the country. Those
NhO ale now non produ Sers would naturally
becone producers. The production would
be Owted by those who performed the labor,
bec4 q Ne the standard Of distribution would
naturally conform TO the natural rights Of
man.