The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1871-08-26


debt in the past FIVE years-especialy in the
the past two years, for though the greatest
reduction Of the currency was before 1868
yet the consequent reduction Of prices and
cramp of business have been slowly felt, and
the sevcrest effects are probably yet TO come
Still, thus far, as a result Of contraction,
nearly everything has fallen very greatly
10 value but money and securities calling
for rent, interest or principal in money
all debts have been largely increased-and
all business, whether of production or ex-
change, has suffered because done on fallen
market.
AGGREGATE OF LOSSES TO INDUSTRIAL
CLASSES BY 1T.
The aggregate Of losses thus need
lessiy occasiOned already is enormous.
l can give you an approximate estimate
OF IT. The average amount Of individ-
uSl debts constantly outstanding since
1855 has been, at least, three billions
not counting sums payable on demand.
The average depreciation Of labor, pro
ducts, and property generally, by reason
of contraction, is at least one quarter.
Therefore, it takes one-Lhtrd more Of
property, products, or labor, to pay that
three billions of aggregate debt, than
If the currency had not been contract
ed. Hence the loss to the debtor class
by increase Of the principal of their
debts, through currency contraction, is
one billion of dollars.
But this is not all the hardships the
debtor class has suffered by contraction.
The interest on the debts has also been
increased in equal ratio. Thus the av-
erage Of interest now paid is probably
nine per cent which is equal on the
three billions Of debt to $27O, ,OOO, 900.
annually. In 1855 it was about the
same. But nine per cent. is as twelve
per cent would have been before our
rency reduction, because everything
with which interest can be paid has fall
en- on an average one-quarter. Hence,
the industry of the country now bears
an increased annual burden of one-third
OF t27O,0O0,0OO, equal to 500, ,OOO, 900,
by reason of currency contraction, in
addition to the increase of the principal
Of their debts, one billion Of dollars
These are the weights that have
pulled industry down since 1s66-com-
bining with excravsgsnce of public ex-
pendItures, and subsidies to banks,
bondholders and manufacturers speci-
ally favored by the tariff, to arrest en-
terprise, depress the energies Of pro-
ducers, and throw out Of work, or on
half work, hundreds Of thousands Of
tOilers who rely on each weeks labor
for that weeks living.
HOW II RoBs PRODUCERS OF THEIR EARN
INGs.
Let me still further illustrate the Unjust
ice Of this immense rate Of interest to labor
and to other property. All the property
in the nation, including gold and silver, in
1869, az stated by Commissioner Wells,
in his report for that year (psge 10y at less
than twenty-four billions. Add evidences
Of Indebtedness bearing interest, including
all kinds Of notes and bonds, public and
private, individual Or corporate, say seven
billions. Total, thirty-one billions. Now
all the net increase of wealth comes from
labor operating with some part Of this thirty
one billions Of capital and credit; and
whatever the laborers of the country get to
better their condition is out Of this net in
crease. Commissioner Wells states the
aggregate net increase Of wealth for 1869
at about one billion of dollars, which ia ad-
mitted to be large estimate. This is less
than 81 per cent. Of the thirty.one billions
of combined property and credits. Deduct
from this eight per cent. on seven billions Of
credits equal TO five hundred and sixty
millions, and the balance, four hundred and
forty millions, is all that is left of the net
increase for the remaining twenty-four bill
lions Of property to divide With all the 10
Dor of the country. This is not two per
cent. increase for the property alone. The
fact that labor gets little or nothing Of this
increase il shown by the evidences adduced
by Commissioner Wells, the New York
EUening Post, and other reliable Republi-
can authorities, that lsborers generally
dress and fare more poorly now than before
the war. Therefore, it is hardly to be
presumed that they lay BY surplus. ]
am well aware that much Of the twenty-four
billions Of property yields larger interest
than two per cent but that is counterbal-
anced BY other large properties yielding
nothing, or being consumed by interest. To
sum up, it is not far wrong to say that the
interest yielding investments, held gener-
ally by non producers, gets, under our
present money system, eight per cent. in
terest annually, out of the aggregate net
increase other property about two per
cent and labor. which creates all the in-
crease, nothing.
| IT CAUSES RAPID CONCENTRATIONS OF
WEALTH.
We see, fellow citizens, in these finance
measures the chief cause, not only of the
depression Of industry generally. but also
Of the wonderfully rapid aggregation Of
wealth in the hands of few aud the gen
eral reduction of comfort Of the many. For
\ every fortune Of an hundred thousand ten
years years ago, there are ten Of million
now. Grard and Astor were pigmies to
I Vanderbilt and Drew. The old National
Bank and Nick Biddle were but a child
with bis "miser-box," compared with Tom
Scott and the Pennsylvania Central.
\ The enormous increase of fortunes is due
to the fact that interest paying and other
subsidized investments increase beyond the
average per cent. of increase wealth and
thus rob the mass Of both property and
labor Of their due shares OF the wealth they
create. Every large fortune is snow ball,
which gathers faster and lays bare a larger
breadth With every turn. Because Of every
million added to the wealth OF Stewart, an
hundred families fall from comfort to want.
The undue gsins Of the rich at last come
chiefly from the poor The burdens are
shifted from class t. class, until they finally
rest on the masses who can escape them
onIv nv sinking into Dauperism