Delaware state journal. [volume] (Wilmington, Del.) 1870-1883, 1872-08-03
The Power CT interest


The gradually increasing rate Of interest
should make people wary OF borrowing
money for speculative purposes, and
especially uf hiring II for the purchase Of
unprOductivc property, or in The rNpccta.
ton Of obtaining perIr ancntly high rents.
It h the high rate Of Interest which every
few years causes a general breaking up ct
business, when property and products fail
IN prices This also IL h. which causes
wealth gradually hut steadily Ia conceu-
tratc into the hands Of comparatively
few persons in the community Take
any series Of ten, twenty, or thirty years,
or mOrc,and the longer the series the more
positive and conclusive becomes the evil
dencc Of the fact, and II will he seen that
the most profitable business in the world
is the lending Of money. The high rate Of
money, high rents and high taxes must, in
tho cournc of a iow years, tvud to such a
cnncrni ration Of wealth. rs Van not fail tn
he injuriou, To society, and will ultimately
80 straitcu the debtor classes as tOuccussi
tate n a very great extent the profess of
wping out Old accounts and beginning
anew. 4 few examples will he sufficient
10 illustrate the great power Of interest
4 man buys a house for which hc pays
SlU,uOO. lie lvusr> it and charges the
tNNANA FhhAlA III ANNAs hI'fll IT. NN0Af 'lfWl
Of insurance, taxes, and repairs. The
rent is payable quarterly A rate Of in
tcrurt Of seven pe ceut. per annum, paid
quarterly, Will accumulate a sum equal
10 the principal loaned or invested In
property In ten years. In the first period
of ten years, therefore, his rents build
him another AS costly a house as the first
IN twenty years his rents build three such
houses IN thirty years seven houses, in
forty wears fifteen houses in fifty years
thirtY-One houses Ia sixty years sixty
! three HOUSES, and in seventy year. one
hundred aud twenty seven houses In
seventy years all these are built FROM the
accumulated rents al one house. These
houses are worth I 21O,OOO, which i,um
I has been paid for seventy years TcHts of
one house worth $4,000 II. instead of
being invested in the house aud lot, the
| SlO,UOO we're loaned IN interest ut seven
| per cent. and the Interest collected aud re-
lOancd puH'lerly, the money would Hc-
| cumulate precisely the same amount OI
| property
Take another illu tratiou of the power
Of interest. Two mechanics Just come ol
age, are good Workmcn aud DESTROYS ol
Incoming rich Each is able to cam d
lollara day over and above his expenses.
| Every six months they invest the money
thus earned at seven per cent interes. thi
interest payable half yearly These ~ =
earn am average If a dollar day beside,
their expenses 800 days In each year, du
ring forty year, aud HHd four months
rheirHgr is then 81 ycars,and -four mon b,
Each earns hy labor 5000 Ief year for fort,
Years, or, for the whole period, az, 10
together, i2i.2OO, But the interest ~
! Ia a al
riul OF 80 years and 1 months, duubln,
az seven pr cent, paid and reinvestci
halt yearly, in 10 years and four month";
amoUut- 10 SlOi.5i ~, which added I,
the amount Of 81 200 earned by their Ia
Dor, MAX the aggregate, sl2S, 100 ~
The interest on the sum S,!i. 200 earned b
their labor IS I lOl $50 70 -mure than tOu
Hnd a quarter times greater than IN
amount they have earned 10y their labor.
Suppose the two men ia live twent
years aud two months longer, that is 4
he age of eighty.one years and ii
months, AMI continue 10 loan their money
During this period it would double tWic,
making III" total accumulation in siXl
years and six months Shl5,O02.N0. I'll
two nrn do not labor during the Ia.
twenty year, and two months, and eXpcu
of their income for living during tina
",.oa = ''"". w, ''aNlns y" tInlI h.l'
thcv Darn hv thcir Lhor Soi mn ,nd liz
ty.ntv v,,y- and To-, months an ,h,I
mon,,y Vithunt L,h,r SnI,tr,ci ,h,. ,non,
r,,nrJ by lnl,or 90 "nO and tho y,
maind.r .rru,,,i,,,.d h,, i,t,rns,
SlI5Sn Now, not one dollar Of tn
S41i,S0O is earned 10y the labor of ther
men. Ii Is the legal interest upon S24 ,20l
These men live lahoriously aud work ft
IA very moderate compensation. They TAX
haS, ,at i,'i. ,'.cni,;ns
wy ivy
A Young man, NOW yachting ronn
the Islc Of Wight, says he gets his muttu