The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1869-03-27

Interest.
Take another example Of the accumuIa-
tion q property at per cent. interest. AT
y the age Of twenty-one, ID. owns a we'll inn
proved farm Of one hundred acres. He
leases it to E. at an interest or seven Der
cent, payable in land, as the interest on
money j. payable in money. At the close
Of the year, L. pays ID. sever acres of as
good quality As the one hund red rented, and
with Pre- rata proportion Of buildings up
" % them. ID. continues to let the farm Go u.
requiring him to pay the rent 10 land hall
yearly as il crest on money is paid half
yearly in mcnty; and 70 ray rent on the
land 50 paid, AZ tho borrower of money paws
interest ca the interest which be adds half
yearly to the principal. In ten years, g.
mast pay one farm in twenty years, three
farms, IN Ihlr.y years, seven farms; in for
y years, fifteen farms; in fifty wears, thir-
" ty-one farms IN sixty yetrs, sixtg-three
tarmsi ana ID seventy yeas one hundred
and tEenty-seven farms al in as good
state OF cultivation as the one originally
leased. AT the ags Of ninety-one, ID. can
bequeath to his p0sterity one hundred and
twenty seven farms, from the mere rent on
one. These farms =. must earn By The Ia
Dor Of seventy years, and pay to ID. for the
use % one farm. ~ II were possible for him
70 earn the one hun ired and twenty seyen
taI ms 20 pay 70 ID, and the rate u interest
we're reduced 70 one per cent, be need pay
Y y. only about one farm as rent for The
seventy years, and oluid retain one bun.
trad and tTe1ty.six as the surplus OF bic
labor.
Again, suppose Joh ! and Richard To be
poor bows, each ten years 0ld, who expect
90 he bound Out at the proper age Ia learn
the carpenters trade. But a rich uncle Be-
queaths 70 John house vorth ten thopsand
dollars. X il worth 70 much, because il
viii rent for seven has bred dollars a year
over and above taxes, il surance ard repairs
Johns guardian il O lawyer, and will collect
the rent, and loan it OFT for him at seven
Per eenf, per annum. getting biz fees from
those Wuo borrow the money. John likes
Richard, and learns bis AIDE with bin, and
earns bis living by Bis lauor AZ Richard
does. John insTucts his awyer to purchase
another house, whenever tbe rent of the one
Acgumulates ~ enough "a buy a second
equal TO The fret. II tle interest be reeu-
larly collected ana loaned at seven Der
cent, and the interest bs collected half
yearly, 4 will equal tle principal ia ten
years and one month Bhen bis lawyer can
tuy fOr John a second house, 90 that when
ne y twenty years ana ono month Old, be
VIII be tho owner 81 two houses. Tsese
two houses, rented fiji ten years and one
mon.h more, Will buy for John two bouses
more 90 that az the q u of thirty years and
two months, be will own four houses at
forty years and three months, he will own
eight houses; al tfty Years aud four months,
afw sr,H
months, thirty-two houses at seventy years
and Fix months, sixtv-+our houses and *
eighty yeas aud seven months u age he
Will own one hundred ana twenty eight
houses, each Of which is rented at seven
hundred dollars year end Gil 81 them tn
Eather are bringing ID a Clelr yearly income
~ eighty nine tbOusani Xix hundred dol
lars. Now What has John, or bis uncle or
his guardian, done, that The nublc should
be obliged t1 give Joil -ne hundred and
tTenty-seven houses flr seventy years use
0f one housef These one huadred an
twenty houses IRE All legally bis anG
OUT lawB maintain thai John has AZ equita-
Tie right ~ them as II be bad bought the
lots and built tbs houses by bis own labor.
Yet, " We allow labor vs. be worth 3 dollar
q day, ~ would take the entire earnings III
sixty men for over seventy years To pay for
the one hundred ara twenty houses,
which The use 0f the one house las il
seventy years legally acquired for John,
without the performance Of any labor On tbs
part.
! Let az sec how different would be the re-
Eulis I'D this case II the interest % money,
an nseqoenty the rents On property, were
atr y, per cent. per annum, instead al At
seven Der cent. Johns uncle beQueaths 10
BIN die house worth ten thousand dollars
but instead az renting it at seven per cent.
Oh it's value, John can rent il az but one Per
cent. over ana above taxes, Insurance ana
repairs, and regularly collects and loans
out the rent as III Cid former case IL would
be ABOUT seventy years before tia rent and
the accruing interest On the rent would
equal the prime pal, and buy for John a sec
ond house as valuable AZ tie fret. With
interest legally fixed al one ter cent. the
use Of one house for seventy years would
accumulate fol- John, out III the earnings 81
others, one additional house 81 equal value,
whereas, at seven per cent. 1t would accu-
muiate for him one hundred ana twenty
seven houses. Whether the government fix
the rate az interest AZ seven 81 81 one per
cent. the public must provide the same
quantity OF material ana perform precisely
the same amount oI labor TO build the one
hundred aud twenty seven houses but with
.Tne interest NJ seven per cent. John would
lawfully own TEEN All, whereas With inter
r9st liked a. one per cent. be would lawfully
Own but one L0Hse cot Of the one hundred
and twentY-seven houses, ard others would
lawfully own the remaining one hundred 4
end twentv-six houses. To furnish the ma
terials and build these houses, requires not
only ekill in the mechanical arts, but also
the performance Of 40 immense amount Of
manual labor But 20 give the one hundred .
and twentY-seven houses to John, who a
fairly entitled to but one Of them for the 4
use OF the one he rented, is the legitimate 1
operation Of the law fixing the interest at
scGen per cent. What chance have the pro
dueiDg classes By any combination Of labor
to.c0Btsrd successfully against such 40 ac-
Camulating ara oeut-aiizisg power? They
might as well yentGIe into the sea, with
the vino blowing a hurricane, and expect
by their bodily Strength to turn back the
wares. The sea would not te more certain
tolsweep oven them, and pursue its onward
course, than she accumulatlye power oil mon
ey at seven per cent interest yearly to gath
az up the surplus earnings Of labor despite
81 Combinations Of labor against il. II The
k4NA4Scfe OFOA gam tItI 4tELbc3 AZ vial "
hY legally controlling the power Of money,
and net BY any combination Of labor.
If hundred dollars car be lent at eeyen
per cent. interest, the borrower pays seven
parts Of the whole for the use for one year.
The borrower must invest the money (for ii
p Of no use to keep in land OF other prop
erty, end therefore must pay seven parts Of
the value d the property Tor the use If one
hundred parts for a year. Bat il money be
borrowed at one per cent, Of course the
borrower pays but one part for the use OF
one hundred parts either Of money or prop
erty fol- year, hence Ut this rate laborers
would receive six parts Of their net yearly
earnings now THid 70 capital. A man who
labJrs On hB own property gains for him
IL. -. -.