The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1869-07-17

HUt1AG n. lt1 ~ khttfeSi-
Tt II c7muoriy aid and supposed that
borrowers raw certain rate Of interest fol
~ 90 of morey. BIT they % not use tbt
Z uey ,bev part with It IA some wv Cor
property, and tbe rate NJ interest determine.
vhat rent obey shal pay for the use Of tbe
prOU5-tv A teW illustrations viii show The
y fFeoy of increased rates Of interest upon the
welfare Of producers and distributors whose
property il in their products. Suppose q
PLANTER raiees hundred bags Of cotton, 10
DONG which be becomes indebted for bag
ging. rope, clothing for his workmen, etc
Let bin be compelled to realize the money
f1r his crop az soon az he can get it to mar
kes aud at a time when money is verv
scarce, and the price IF cotton extremely
low. III y obliged either TO sell Tor cash,
or % offer a commission to some one 20 ae-
eept his draft on the pledge 81 the cotton
and IL forced to pay for bis acceptance, say
two ana half Per cent This will take the
proceeds 0f two and a halt bales of cotton.
IL die draft be drawn an three mon hs' time.
and TIE scarcity Of money compel the plant
en- 10 seil the draft az two per ceut. month.
six bales more will be taken from bis one
hundred bales. lie must lose eight and z
half bales for the privilege Of keeping the
remainder three months II store, besides
the storage, and the commission % sales.
The proceeds Of the eight and bali bales
M cotton are gained BY tie capitalist by
means VI be high rate Of inter st, and With
out any adequate labor OF his par. Under
q true monetary system, tire planter would
be able 20 hold his cotton s year withouI
losing even two bales q it for the advance
u money.
Again, a manufacturer makes package
" a hundred pieces Of cloths, and sends
them 60 market. Six m0ntbs pass before
th goods can be sold, and, with interest at
six per cent. per annum, be loses three
pieces As the interest on The ninety seven
which be has left IF, at the end OF sil
moths she commission merehah- sells them
VI q credit 81 eight months, az The above
rate of interest the manufacture must lose
-four pieces more, In All seven pieces Of cloth
But suppose the manufacturer Is greatly II
need If money, and mus. b We the eight
months note ca,ned. Let The commission
merchant, in consequences Of ise Of inter
eat sell the ruts IL market al two per cent
d month discount, and the manufacture
must lose sixteen pieces Of cloth on th'
note, instead u four pieces, the loss at six
Fer cent. Add these to the fret three, an,
il viii make nineteen pieces, paid TO others
ont Of the one hundred pieces, 60 enable Lin
" keep eigbJy-One pieces, or their proceeds
for fourteen months These are total los
" the manufacturer. Besides, he has 70 pa
carriage, storage, commission and transpor
tasio0. The proceeds Of he nineteen pieces
II goods 90 into the hands Of the money
lender.
Now let as see the result in TIE same
transaction. with interest on money d4min-
ished ~ one per cent. and maintained a
that rate. The manufacturer sends iae hun
bred b eces of cloths TO market, and the,
/ lie six months unsold. He loses only h. |
piece Of cloth for the six months intcrasf q
F Bis goods The commission merchant sell
them Oh eight months credit, as before
I aud gets tie note discounted at the rate o
one per cent. per annum. This amounts (
Z two thirds Of 4 piece cf cloth, and added e
tie BALI piece, is loss to the manufacturer
of one piece aud one-sixth OF peace dur
( ing tne fourteen months, instead Of being I
| ioss, az in the former case, Of nineteeI