The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1869-04-03


Interest.
We will now see what woul0 Be the result
70 Y. and bis tenants from the simple
change Of the rate OF interest from seven 20
one per cent Suppose ". as before, to in
herit five farms, each worth ten thousand
dollars, one Of which be cultivatss himself.
n lie should sell the remaining four for ten
thousand dollars each, he could lend ths
money at one per cent, that is FIR four hon
dred dollars bat he rents tbe farms 10 A..
B., c., and D., at one per cent. on their
value, and thns receives the same income.
II N ehould loan this yearly rent % Que
hu-dred uoissrs on each farm, yearlv col
leotIng and fe'osDing the irszrest, nasrly
seventy yeErs would elsPee before the rent
paid him BY A., b., 9. and d., ana its aC-
crui z interest, would buy four more farms
of equal value With those rented whereas,
in Rbou. the same period, at seven per ceut.
the rent and its accTuing interest would buy
ive hundred and eight farms Whether tie
interest we're II one OF at seven per cent,
v. would equally receive the products Of
hls labor % the farm that ha kent for bic
own use but At seven rsr cent, be would
gain by the labor Of bis tenants Eve mil
lions and eighty thousand dollars worth Of
land while AZ one per cent be would gain
BY thei- labor but forty thousand dollars
worth. The agreements between V. add
bis tenants appear on the surface as fair
where they pay the larger ss where they
pay the lower rent because, in each case,
they conform TO the groundwork or FONDA
ton established BY law but, in the latser
INSTANCES, WIS tenants would as much pay
TO him the fun yearly market rent of bis
farms by paying one hundred dollars apiece,
a. IN the former by paying seven hundred
dollars apiece. II one acre 0f land would
produce twenty-five bushels Of wheat worth
one ior per busbei, each Of VS. tenants
must yearly SOW, gather and sall twenty
eigbt acres Of wheat 70 pay seven hundred
dollars rent. Suppose wheat to continue
worth ne dollar Per busbel. and the rent
70 pc o. ninlsb4d 10 one Der cent. with Il
same II -1stry and economy, each tenant
could pay the one hundred dollars rent, ADD
retain for himself si1 hundred basbels Of
wheat s. the surplus Of bis lavor. If VS.
tenants; 10 about seventy years, could earn
aud pay 10 him five hundred and eight
farms, IN the same period, with the interest
az ooe per cent, they could earn for them
selves five hundred and four, for The other
Tour farms wound pay All their rent TO u.
having the entire produce Of one farm for
nis own support, tie log rent Of ths ather
f"lr could do him neither injustice nor IN
jury while compelling A., p, O. and ID.
tf pay the largeE cent would deprive them
and Others o. the just reward u their labor;
and VI. would not De really benefited by the
hardshlps imposed upon them.
The interest on money at seven per cent.
is As oppressive as the same rate per cent
rent Oh land. suppose IT., instead VI rent
iuE his four farms, should sell them for
$4,000 each, and lean the money st the
legal rate Of seven per cent, collecting aud
rsi1anug the interest yearly. In ten years
and three months, the principal and inter
est together would amount 70 16O, 900
10 tv enty yesrs and six months, 20 $3.50,
ono in thirty years end nine months, rO
s 300 0-0i in forJy-One years, to $500
70 hf1 one years ard three months, 10 81,
-6UNl1 ln sixty one wears aud six months,
t0 ~ COY JU0i and IN seventy one years
snl nine N uths, 90 IS, 600. Multiply
$1,000 by i've hundred and twelve, the
member Of far NJ, and 1t will give the came
srm. lf NJ. SID I'D seii the four farms for
$40 900, and leu0 the money % bond and
mortgage 10 seven DeF cent, requiring, as
u usual, double the galue 10 lane seeufi-
ty, be would have Mortgages covering 3d.
100000 worth gl laule estate and the
people occupying TINS ltnd would be hard
a. work 20 pay bin the interest, thus rapid
ly concentrating wealth IN BIZ hands, ill.,
stead on diH1sing ID 70 supply their owl
wants.
But wish interest at one Ter CENT, S40,- \
ono loaned fct seventy years, would aCcumu-
fH.. krtF p ~rn
per cent. it would accumulate s 5 ,OS0, 600. d
Ibis difference in interest IF So $40 600 .
would be atded % V's wealth from TIE
earnings Of @ hers, while vs. accumulation
OF money OF increase Of lands would Dot
ada either dollar to tbe quantity Of mon
eY, w Cd acre w tbs quantity Of iAzd. III
would only have monopolized il fur vs.
benefit. Ii wnt ID have caused the people
q owe n S5.0Sl 900, and make them S5,-
04U goo poorer thau IL interest had been Al
one per cent. The contracts between Y.
and bis tenants leing made in eLni0rmitp
Wilh me standard ~ seven per cent, theg
must Pay him the S. .04U 600, 0r defraud
him Of what IS lega,y bis due; and if DE
voluntarily take less "a an this from 60 N. II
II an acc Of charity Seven per cent Is not
me siAndarl for v. oily; It Is a public
standard Rat faEors othe- capitalists equal
" 10 the various branches Of business, and
imposes urOn The producing classes general
'y obligations similar 70 lhose il imposes
upon We tenants.
10 give some idea to what extent the
power of interest operates, il can only be (
necessary to sy, that oil tbe money lent
% bonds and mortgages BY individuals, BY
ana srust companies; all Ii mon
~ ltnt for United States, State County.
City Railroad, Canal and other bonds
made 20 raiso money for public improve
neuJs, whether these improvements % made {
~ cos porGions, m The states or by indiyid. q
ials, also aJ TIRE money lent BY banks 4
brokers' and individuals on promissorv t
la .es--all I1eee loans are operating With y
ke centralized PaEer against the proL-c.rs e
mo ~ favor of mOney-lenders. This pow '
n also cs.sbiisbes like rate per cent. rent :
2 be pald for the use OF all property, real q
md personal. TIE IoTt Of houses and loss Z
n tue cities, and Of farm and houses ia the !
country, mnst conform TO this standard $
All the goods, wares and merchandise on Z
land Pr the nation, ana shat are Ia process !
81 being pi0dnced and manaf aosured. ar a
governed in their value BY moaev, and arc '
lr der tribute u "a eenErelzlng power IL I
3 a. unavoidable power, because II L iDsti- !
-1ted, upheld au1 aaforted BY the national I
aws, and Is tie basis upon which all mar Q
ret values are founded. q
The following statement shows TIE eject
upon producers Of rate 81 interest an can !
TAI q SIX per cent per apuum. The yearly c
income q our most wealthy citizen from {
dividends on state, bank, and other socks. 9
money lent on bonds and mortgages, aud !
'euts Of property, is said to an ant TO So
100000. Take the farmers Of SIX New Eng Q
and States, include th0se o. New York and (
New Jersey, and il is very doubtful wheta e
n, after paying necessary exrsDses, each Q
makes q yearly gain Of more than one hun I
ired dollars According 20 this calculation
: would require the use Of tweEsy thoEsaadl