The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1869-10-16
(CoNTINUED.)


(coNTNUED.)
In answer to the principle advanced, that
The establishment Of low rate CT interest will
secure a better compensation to labor, it
will be said that money is plenty in, all old
countries, at q low rate Of interest, and that
labor is very poorly laid whereas in new
countries, in which interest is always high,
high Iricts are paid for labor. ia England,
France, and Germany, money is loaned at
two, three, four and FIVE per cent. per an
nun, and in ell these counties the prices Of
labor are very low while in the United Sta
tts Of America, in which the lowest rate of
interest is six per cent, and the average rate
double that of European nations, the prices
Of labor are also double In former ages,
lie rates Of interest in these old countries
were very high, and by this means the pro-
Ierty was early accumated in the possession
If few. These few owning the property,
and letting it to those who we're destitute of
the means Of paying the rent or interest ex
cept bY the products Of their labor on the
property, the lenders could no longer collect
he high rates and reduction Of interet
necessarily followed, because the laws could
enforce the collection of the higher rates
where the ability TO Pny them did not
exist.
As a general thing, emigrants to new
countries are industrious and interpIising
persons, who have little property, and seek
a new home because they have not the
means of purchasing farms, etc., in old set
Elements. If these pioneers hire labOrers to
assiSt them in clearing and preparing their
lands Tor use, they must pay higher wages
thun are usual in cider countries, for the la
torers have many hardships to encounter.
j he fist settlers import their provisions un-
ui they can raise a crop. The new soil pro-
duces largely. All fresh omigTsnts being
compelled to buy provisions until they can
raise their own, constant market is afford
ca for the surplus products Of early settlers,
ana they are, consequently, able to pay good
rlices for labor. EmigTants to new cOun-
lries raise the principle part of their provi-
siuns, but depend, in a great measure, on
older countries for clothing, implements of
husbar Diary, etc. Their products are con
tuned amorg themselves and they have
few, if any, to send to cities or manufactur
ing towns, to exchange for necessary article.
they must seno money to buy them or, 4
they rurChase on credit, the money must be
lad at lie moturity Of the debts. This drains
of their money. Although they made great
improvements, iadd immensely to the value
If ID, if land, and the wealth OF the country
raIidly increases, ct money Is very scarce,
ana the people are compelled to contract
debts for clothing, imple ments Of hUsbandry,
etc. Any one who has money to lend can
obtain exorbant interest, and those who are
10 debt viii Cfer high rates to their friends
w older countries, to induce them to lend
their money in the settlement. The scarcity
of money il 70 great, that capitalists require
the beet security that ~ean be offered, to
uuadrurle the amount of their loans. Inter-
Get is maintained a ten twenty, or q higher
rate per cent per annum, AID this rapidly
draws property into the possession of CAPT.
taasts. Every oney-lender thinks himself
justified il demanding ss high rate of inter-
est as his neighbor. When mortgages be-
come due, property, in many cases, Is sold
for less than half the cost of the labor to
make the improvements upou il. The hol-
der Of money can buy property at one-fourth
# its actuol value, and another who has not
the money to pay, will perhaps repurchase
10 at a large advance, payinS a small portion
down, and agreeing to give higher rate Of
interest on the remainder. lie makes what
is termed a GOOD bargain in the purchase.
IN this way interest Is maintained at enOr-
nous rates and lands and improvements
PASS rapidly into the hands Of capitalists.
II new and thinly settled countries, where
fertile LANDS are at low prices, toe people do
not starve, even when they are charged ten,
twenty, OF even thirty per cent. per annum
en- BORROWED money and property but these
Iates Of interest concentrate the property ra-
picIy into the hands Of a few, amp break up
and keep hundreds of thousands of IabOrers
poor. They can, however, generally find
employment By which they may obtain food.
But as countries grow older, the population
more dense, lands higher in plice, and COZ
CentGated in fewer hands, the mechanical
arts begin to flourish, and manufactures are
established, IN " hich hundreds Of woIkmen
labor for their daily support. The manu-
factories are carried on by individuals, by
firms, or BY incorp GRATED companies. If
money become scarce, and interest increase
10 double, treble, or quadruple the ordinary
tate, he price Of goods inevitably fail, the
wages Of the wOrkmen are reduced, and great
numbers are thrown out Of employment
The demand for good rapidly decreases, for
producers generally have become impover-
shed, and are unable to purchase their usual
supplies, and muDy Of them must subsist on
charity. IF the scarcity Of money and the
high rates Of interest continue, the manufac-
tur,4s too must break for to pay the same
amount Of debt, they must sell twenty-fv or
Fifty Per cent more of their goods than when
interest was at the lower rate.
Although theTates of interest in oil coun-
tres arc much lower than in newer countries,
ycy they are sufficiently high continually to
ctutralize the wealth, and to increase more
aud uore the Number Of the poor. 10 all
The old countries the establishen rates Of In
'eIett are high enough 10 concentrate the
wealth IN lew hands, even in a new coun-
uy not, however, SO rapidly as the higher
rates OF interest which are usually paid in
newer countries. In consequence cf our
higher rates Of interest the property If the
United States is accommodating in The hands
Of few men much more rapidly than in the
older countries. This accumulation Wi
continuy until the rates Of interest are -.
duced below the rates obtained in the older
countries.
TO BE CVNTINUED.
waiter" said a fastidlous gentleman.t