The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1870-08-27

issues, at the rate of from three to five
dollars In specie, the business y the
country has been convulsed by genera
crash every ten years, beginning in 1917,
up 10 the present time, except in 1857
when there was a general suspension o.
specie payments. If the specie of the
country was sufficiently abundant for the
requirements of its business, perhaps many
others, as well as myself, would prefer it
But i is fact sufficiently clear for ann
ordinary vision, that it is not and hence
arises the periodical financial panics which
spread ruin and devastation over the land,
sweeping away in few days from our mer
chants, mechanics, tradesmen, and from all
who happen to be in debt, the property
which they have spent years of patient toll
in accumulating.
The truth Of what you say respecting the
inequalities existing in the condition Of
society is fully confirmed by common Oh.
servation and it cannot be denied that the
causes heretofore assigned have failed to
satisfactorily account for these evils, or
point to any sufficient remedy for. their re-
moval. Ii, tLen, the workingmen have
ascertained the cause, and discovered the
means for the removal Of these wrongs, they
will have earned the gratitude of all good
men, will render to this nation, and to man
kind, services and blessings, the value of
which are beyond computation, and will
prove once more to the world that g Peace
hath her victories no less renowned than
war"
This brings me to the examination Of the
cause assigned by you, and l enter upon
the consideration of this part of the subject
with due sense of its importance, as well
as of my inability to treat it as fully and
clearly as could wish.
After the most careful examination and
thoughtful consideration Of what you say
respecting the sources of wealth, the pur-
poses to which they are applied, and the
means by which they are distributed, am
convinced Of the general correctness of the
proposition contained in your letter on these
subjects. 1t is manifest that the interest
paid by railroad, mining, manufacturing
and other corporate companies, as well as
by individuals engaged in the development
and distribution of property and products,
becomes as much part of the cost of the
productions oftbe goods and wares manufac-
tured, and the service rendered to the pub
lie, as the wages paid to labor for construct
ing and operating these enterprises and
this is equally true of the dividends of banks,
insurance companies and other corporations
It is then clear that all interest paid for the
use of money for any purpose whatever,
must in the end fall on the wealth produc-
ing element of the nation and when the
rate exceeds the aggregate rate of increase
in the national wealth, the effect is to give
capital too large proportion of the joint
productions of capital and labor. While l
am not sufficiently informed to Judge with
entire accuracy Of the correctness of your
statement respecting the rate of increase in
the national wealth. | am satisfied it approx
-Inates thA trina --A~- nearly enough for all
practical purposes. l am convinced you
have not Overstated the average rate of in
terest on money 10 the past, and | fear the
funding scheme and other financial measures
recently adopted by Congress, may not in
the future reduce the rate in business tran
sactions, where the investments are subject
to taxation.
While am not ready to grant that the
reduction of interest to a rate that would
affect the equitable distribution of the pro-
ducts of industry and enterprise between
capital and labor would do all you claim, /
am prepared to admit that the present exor-
bitant rates are among the main causes now
retarding our material progress. tits, as
you say, absurd to assume that manufac-
turers in the United States can pay nine to
twelve per cent. on the capital employed in
their business, and compete successfully
with foreign productions, manufactured with
capital at three to three and half per cent.
1t is not, however, entirely clear to my
mind that even with the reduction of inter-
est to an equitable rate, labor would be
prosperous in all branches of useful indus
try without some protection against the
cheap labor Of Europe. But, in my judg-
ment, this would be SO greatly below what
is now required, that no serious or well
founded objections could be raised against
it by any party or interest, and we should
at once enter upon career of general and
permanent prosperity which no amount or
degree of protection could secure, while
money retains its present accumulative
power.
The reduction Of the rate of interest is
the great desideratum. 10 is cheap money
rather than cheap labor that is needed to
enable us to develop our resources, and COM
pete successfully with foreign production in
the manufacture Of all articles Of prime ne
cessity and at the same time preserve,
maintain and perpetuate our Democratic
Republican institutions. This, in my judy
ment, cannot be provided while we adhere
to the antiquated idea that gold and silver
are the only substances Of which money can
be made, or that its value and usefulness as
medium Of exchange, are dependent in
any degree upon the quantity or quality Of
its material, beyond that Of convenience
Money was invented to facilitate the ex-
change of property and products, and in
order to be fitted for the performance of
this function, it should be limited in volume
only by the exigencies Of trade.
To control the usurpations Of money, to
reduce the usurious and ruinous rates OF
interest to a parallel with the rates Of the
productions of labor and real estate, is a
most Herculean task. But the work has
been begun, and the most superficial obser-
yer can easily perceive that there will be no
peace in this nation until this be accomplish
ed, the great battle Of labor be won, and
the intelligent Workingmen of America are
righteously compensated for their services.
The battle is not between the Workingmen
and servile labor; it is between them and
their own representatives in the National
Councils. Labor will insist upon its own
protection and rights, and it has no more
RIGHT tn exDact succass without nronortion