The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1872-10-19

| Se'eh Hohses II seventy years, all these
are built from the accumulated rents uf
one house. These houses are worth 81. go. 4
OOO, which ssala has been pair for seventy
years ot one house worth S1O.UO II,
instead of Deing invested w the house and
lot, the $lO,O0O were loaned nn interest AZ
seven per cent, and the interest collected
and reloaned quarterly, the money would
accumulate precisely the same amount Az
the property IA 't
Take another inustration Of the power
Of interest. Two mechanics iust come of
age sre good workmen aud deslrou. u -
coming rich. Each 10 able to earn A dollar n
day over and above his expenses. Every
'six months they invest the money thus
earned at seven per cent. interest the NV
terest payable half-yearly. These men
earn an average of a dollar day besides
their expenses, 3OU uays in each year
during forty years and four months
Their Age is thus sixty years and four
months. Each earns BY labor $500 Der
year for forty years, or, for the whole
period, &l2, IOO-together, S24. 200. But
the interest on their returns loaned half
yearly Tor period Of forty years and Sour
months, doubling at seven Der cent papI
and reinvessed half yearly, in ten wears
and four months amounts 70 Sion. 5JO 40
which, added TO the amount Of S24 2Oo
earned by their labor, makes the aggregate
$lZc, i0O.IO. The interest on the sum
SZ4,1OO earned by their labor is SlO4. 800.
fO-more than four and a quarter times
greater than the amount they have earned
by their laber. Suppose the two men to
i've twenty years and two months longer.
that ls to the age Of sighty-one years and
SIX months, and continue To loan their
money. During this period it would
double twice, making the total acculnula-
ton IN SIXTY years and six months $5I5.-
OU2. 80. The two men do not labor during
the last twenty years and two months, and
exPend Of their income for living during
that period Sl5, OO2. 80 leaving t. their
heirs S5OO,OOO. In forty years and four
months, they earn by their labor s24 20O
and 1--we twenty years and two months on
their money without labor. Subtract the
money earned by labor, 81. 200. and the
remainder accumulated by interest is
800, 800. Now, not ane dollar Of this
SE5,SOO is earned by the labor of these
men 1t rs the legal interest upon S24, DO
These men live lsboriously, and work for
very moderate compensation. They
take only the legal rate Of interest Meth
er do they enter into any speculations.
The amount to which these nations.
municipalities, and corporations, as well
as individuals, are indebted. is a subject
OF general complaint We see here the
cause. IL ia an accumulation of interest
IL ~ an accumulation of interest from
which no adequate equivalent is obtained.
or else it is lost by unwise management.
There Ia due 10 the estate az these two
men from the small savings Of dollar
day, sum of SJOO,OO0 Ii would take
the labor Of a single man for more than
1000 years to pay his principle /; and ii
would require, at one dollar per day, the
constant toll OF more than ll6 men % pay
the yearly interest Of $35, coo From
generation 10 generations these men might
continue TO pay the interest, and still the
burden be undiminlshed, and vet in the
short space Of sixty years and six months.
TWO men, from the small savings VI d an
lar day, aided by the power II interest.
have accumulated this amount.
Take one more example on a national
scale
interest OF money at six per cent Der
annum. payable haH-yearly. will double
the principle in eleven years eight months.
and twenty days but for convenience We
VIII call it twelve years One Thousand
dollars loaned at six per cent. in twelve
years will accumulate to g. 900 in twru-
ty-four years to a. 900: in thirty Nv
wears to 5000 in forty-eight years a.
Soz,OOu; la seventy-two years 10 Ssj4 900:
III elghty-tour years TO Sl28,0OO Ia
nmety-six years to $3.50, 900 IN IOs wears
TO &l2,0O; in l2O years to Fl 024. NO
Multiply this sum by -l024 and il will uivt.
the accumulation for 12O years more or
=, ,O4S, $40, 600. Multiply this product ~
1924, and we shall have the accunulatinn
during the next l20 years, or period of
36O years 81 ,073, IA, ,S24, OOO-one tril-
hon, seventy-three billions, seven hundred
aiAd forty-one millions, eight hundred ana
twenty-four Thousand dollars.
This is rathuf An incomprehensible
amount for even uation To manage but
perhaps We can iuske use of one years
interest on the sun. which amounts W
e64, 424. 5O4. 40, or over $50 minute for
every minute in the age Of the world. all
lowing il to be 1000 years Old Or "
this calculation is too complicated WI wv.
readily apprehended. we can take the n-
terest ot It for four months and pay oH
our whole national debt, - much for The
power Of legal interest Montreal T,uas-
eriPt.