The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1869-04-24

accumulation
To show conclusively that the present
rates Of interest are the cause Of the accu-
mutation Of the wealth in our cities, we will
enter at length into a calculation which
each can test and examine for himself No
one will dispute thst in the city Of New York
there are several hundred families whose
collective wealth Is equal TO $3.50, 900 for
each II lily. For our illustration, how ever,
we will take but che hundred families, and
suppose each Of them o be worth equal to
81, 900 in total, s25, 000,0 900. As hve or
six Of our citizens might be pointed cot who
are, ID the aggregate, worth AZ least double
the sum total, THE calculation is 9 moder
ate one. Suppose these o7e hundred fam.
lies to emigrtte 10 some desirable section Of
the country, and settle upon two hundred
acres OF land, 30 that each family owns two
acres. They convert all their property into
money, or into bonds and mortgages bear
Jog six per ceEt. interest, the lowest legal
rate or interest in any State Of the Union.
Each family expends yearly for its support
$4,000, OF the interest at six per cent. on
$4,000. This sum would supply each fam
Ly with the ntcesssries and luxuries Of life
without the performance Of labor BY any Of
it's members. Besides the $50, 900 Of which
they expend the Income, each family has
$500, 00O-in the aggregate, 320. o00, 900
loaned at six rer cent. interest. the annual
income OF which would b. 81 200 900. The
yearly expenditure Of $500, 900 (Ihe interest
on $50 900 for each tam'ly) soon collects
near them merchants, mechanics, laborers,
and others, % supply their wants and
farmers find here q market for their pro-
duce.
These families and their posterity live
without labor, being determined 70 incUr
no hazard Of business. They inteFmarry
for Eve generations, thirty years being the
average duration OF each. Upon marriage,
sacb couple receives 900, the income ID
which, at six per cent, amounting 70 a3,-
600 8 year, Is a. propriAled TO their support
They also receive their average proportion
OF the principal. They are fOrbida1 to sx-
act higher rate Of interest than SIX per
cent. per anuum, payable half yearly, and
are not at liberty 10 call 10 the principal 90
long Is the interest upon it IL regularly
paid. The families consist Of FIVE persons
eacb, exclusive or servants, amounting. is
the aggregate, 60 i've hundred individuals.
Suppose them 70 increase twenty five per
cent every twelve and bali years. Each
family NJ the emigration hsG $500, 900
loaned At SIX per cent. interest, amounting
10 $4,000 per snnum and, in the aggre-
gate, on the 100000 owned BY all, TO
I II 200 600 per annum. This interest, col
leeted and rei0antd half yearly, will double
the principal, $40, 900 600, in about eleven
and three quarter years but, TO leave time
for the collection and reiuvestment OF the
interest, alloE II twelve and half years 10
double. The following calculations exhibit
the sum which would be owned by the fAmi-
lies at the end OF dve generations Of thirty
years each, or az the end o. enc hundred
and fifty years. This calculation Of the
Capitalization Of wealth BY interest is no
idle theory. but a mathe matieal demonstra-
tion IF facts, based upon The lowest rate u
interest established BY Law in any State
mach lower rate, TOO, than the average one
at y hich money is actually loaned.
The fOilca Ing table exhibits the accumu-
lati0u al the rate, AMI under the circum-
stances, rs above:
TABLE.
% FsE NcsEAss At FL FER CHIT, oy rHg EElIrH % A
arADaEb FANtLHs woRTa SIS geo EHcs. pUhiNG a
PrpioD ~ ONE HUNpEsD 4Ep rFrr EEAEs WIZ a
BgBrcrieu % THKIH ASsCAL BxrISsEs.
800 fsslles or.h s25g, eOo each 81, OO5 600
Yearly expenses NJ sch izmiiy, $1,000 or
io,i IT iac fsaiIi i' : $4,000
Deduct & COO 600 hr expenses and there
are tx to sscamo ate 9,OOo,OOO
The interest at sir per cent paid half ear.
~ ana reosnsd sin qasi the principal
Ia ilf years nut ailJw ia YEAR,, and
.hsn add aO.OOo,Ooc
100000
Add . Iss cent Increase to leo families
10 III yesrs-t, d. p iamiiIrs. and de-
ths 45 1890. 900
Len q accumulate $4,000
ADD iai ysar' interest, At per cent. $40. 900
r.So0.oOO
:, ~ 81 families, and deduct 900. OoU kr
s.ca otihs 81 10000
In eaeuuul ass tbrouEht f-r~ssd Is 80 200
ADD ~ years interest a. sir csnt. F6,sbo. 700
Il 200
ADD % per cent to 100 hmuiss-t E., 81
families aud d eduet So, 600 for each Of
the 80 1850, 900
Adi VI yss1s ia'srs., a, IL Ter cent. issSSO.ooo
2ao. 100000
i iss 4 .oa deduct 5000 'O' 'Aeh q so0
L.. % accumulate 2s7 20, coo
Add l2t y,s-s '-sfest q, Elk per cent. 81 $4,000
so. 300. 900
families, and deducl So, o9o for each Or
the Of o,Uoes00
IsA 30 seeuuuiats ssl, 5000
Add ~ year, latereat al ak pr cent sai sc0eOO
Add Is Der cent. 10 oo5 isnlIIcs--s. :. 70
families, sud deduct 80, 900 for each Of
TIE 70 g. 500. 900
ret to seevnulais -aa7s SOoOoO
Aaa Ial years interest a Siz per cent re seOOOe
g.Ss. 10000
a. 1 e. . isP' i. q sG' s- ..sa
thea 4.Do,ooo
Ii. e. accumulate .i.si5, s $1,000 600
Addisi years Interest at Der cent. S.SS.oSOOOO
1.iio,ioioi.. 90
i.@li.s, and dsdses S6esOO Tor each q -.
the lis e,o60o00
L.a 50 .oeens,.,s iie,,iss,e:oiss
54Os. 30. 10
&. Ne and deduct 5000 for each q
Len 70 socuulrla,e s,aOo ia. 900
1ss fsss%'is s.s. = e: sF- ..s. GO
ls ssi.IOo. os
Add IS per cent. 10 T44 fsniiles-fe iS6
families ADc eedu OF 60, 600 for each Of
he 1s6 $4,000
Lar % accumulate ia Tpa 400 600
Add ~ years interest at per esnt .is.Isa 10000
Add rs per eena 70 Oso fsmlliss-S e.. sss
families. and deduct $50 600 for each Of
shs 2ss n,e5o,ooo
Ian 70 acc umuiAts 81 1878 .is0. OaO
Ada ~ years' interest At per cent. -N.t7SisoO0e
is.ils, 900, 900
Add G per cent. - lies famiIes--i e.;
1sl families. and deduct 900 tor each
~ ths s0l "A $50 80
Lsa . assuuuHas. -sss.,i5i. $4,000
Add she tive: hundred and ninesy-one ram
lilies 10 the eleven bppdred and sixty-tftes,
and tbeif sum is thousand four hundred