The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1869-11-13
WALL STREET PANIC.THE CAUSE
AND REMEDY.

and increasing depression IN business mat
ters has been the subject Of many comments.
The causes assigned aud the remedies pro-
posed have been almost as numerous 6nd va
riOus as the commentators, hardly any two
being agreed as to the cause or the remedy.
We feel quite confident that this, like all
the preceding monetary crises and commer-
cial commissions by which industry has
been psralizsd enterprise CT ecked, commerce
deranged and the industrial and commercial
classes bankrupted, will be found to be the
legitimate result Of false monetary system,
by which by far too great q proportion Of
the products of industry have been awarded
to capital. This proposition has been dis
cussed in the columns Of the ADVOCATE
from time to time for years past, and IS We
think, so clearly demonstrated, that il would
seem needless to refer to it again. But
mankind are on the one hand so welded to
old theories and systems whether true Or
false; SO influenced by Preconceived Opin-
ons and prejudice, and on the other so
blinded by aVarice that they are well nigh
imperviOus to truth and deaf to the voice OF
reason and justice. It therefore becomes
necessary 10 order to inc:te them to action,
and inspire them with a true sense Of jus.
tice, TO repeat the arguments and keep the
truth continually before their minds. Then
for the purpose Of simplifying ami elucida-
ling the subject and giving force to our ar
Euments, we present the following PLAIN pro.
POSITIONS, which we think will meet with the
approval Of every candid, disinterested
mind that has given to the question that
consideration its importance demands.
lst. That all wealth is the product Of
physical and intellectual labor employed in
production and in the distribution Of the
products OF labor, as well as 10 the useful
cailings and professions.
81. That there are but two purposes 10
which the products Of labor can be applied
one being the payment Of the rent or in
terest on the capital employed, and the
other the payment of labor.
81. That money is the medium Of dis
tribution to capital and labor, the rate Of in
tcrest determining what proportion Of the
prodscts Of industry shall be awarde to
capital for its use, and what to the laborers
for their productions.
4th. That all interest paid ON money,
whether on National, State, County, City OF
railroad bonds, bonds and mortgages, pro-
mssory notes, or for any purpose whatever,
must in the end be paid by labor, and is as
much a charge on it as the money paid for
the support Of the government.
9Th. That when the rate Of interest on
money exceeds the rate Of increase IN the
national wealth, the inevitable result is to
centralize the wealth and property in the
possession Of the non-producing class, and
impoverish the producing and commercial
classes.
9Th. That the present rates Of interest
will average at least 10 per cent, while the
rate Of increase in the national wealth does
not exceed three and one-thlrd per cent,
and the consequent unfair distribution of
and labor is the immediate cause of these
monetary crises and commercial revusions,
if mot Of most Of the evils in society. They
are but the protest Of labor against demands
it cannot meet and burdens it cannot bear
Right here then the remedy must be fp-
piled, for no remedy that docs not reach and
remove the cause, can afford any permanent
relief. None of the measures proposed by
our utopian fnanciers can give relief and
restore prosperity while the sccumuIative
power Of money exceeds the rate Of increase
Of the national wealth by productive indus
try. Specie resumption will aggravate rs-
Their than mitigate the evil. The effect OF
this measure will be to decrease the value
Of labor and its productions, while it will
not lower the rate Of interest on moueY.
This must necessarily impose greater bur-
dens op the producers and distributors Of
the wealth or property, who are always the
debtor class. This specie basis theory is at
best but a speciOus falacy which has always!
resulted disastrously to the en.erprising in
dustrial classes, and the means BY which,
the drOnes Of society have been enabled toI
monOpOlize the circulating medium, regu !
late the rate Of interest independent Of thief
government and people, and to rob the pro-
du3ing classes at pleasure. Let those who's
are clamoring for the adoption Of this policyt
explain why it is that in California, where !.
they have always bad this gold base syst
TEN, and where they dig this auriferous
idol out Of their soil, business is even more;
dsranged and depressed than with Us wherst
the greenbaek has been the current money n
This they cannot do, and will not attempt
i. If they really desire to appreciate the'll
value Of the greenback to par with coin, lett
them give 70 it the same legal powers ass
money that are given to coin, and the differ,
ence between \ en- will soon disappear. Il
nor can either free trade or prOtectionI
give relief and restore permanent prosperitva
under the present monetary system M
would oe utterly absurd to assume that our
manufacturers cln pay ten per cent FORE
money and compete with foreign urodnc..
tons manufactured with capital at three n.r}
cent. and it would be equally foolish IL
conclude that prOhibitory tariff could per3t
benefit the industrial classes whnJ
the present unfair standard of Distribution:
between capital and labor is maintained. /
The only way to solve this difficulty is ID
establish a standard that will affect tbs
equitable distribution Of the products of iDt
dustry between capital and labor. Untt J