, 1873-12-28

CAPITAL AND 1NTEREsT.

F@N1E@~S "-V"+
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CAPITAL AND INTEREST.
Ono Of tho questions which address themselves !
directly to worltngmon Is, why Ia 1t that intorost
on capital, rglcl, 10 merely tho sayngs Of labor,
should DO perpetual. wlilo tho product Of labor
itao1f ia consumed daily7 III other words, why
is tho $50 which ono workman aayoa out of Ills
onrninga perpetual In its oxiatoneo, and prolic~
tive of an income, whilo tho labor of another
workman onla with tho consumption Of ita pro-
duct Tho portion Of wagos saved oxista for
oyor az productive fund while tho portion not
Bavod pcriahcs III tho daily consumption Of tho
lahoror.
Il may holp tho explanation Of this matter to
remind tho roador TINT cnpital is not a1waye
money. ANY thing which has valuo, such as all
kinds Of matora!s, tools and machinery, food,
furniture houses, is capital. Tho possossor OF
tools and machinery poHscHBos capital equal to
tho vnluo Of tho labor necessary to produce
them. This capital Is mado productive By tho In
creased amount which, with thoir aid, tho wor1s-
man Gun produce. II, howevo1, tho worlman
can accumulate 800. Baved from his earnings,
ho can lend that at interest, your after yoar and
| haSo II yeturnoa to lin Intact, In
addition to an annual sum for tta uao.
This process Ia capable Of being extended
for hundreds Of years, aud still tho original capl~
tai remains, and continues to yield to tho owner
IN income. It Ia urged by BONO that this Is oil
wrong TINT there is no justification for this
porpotuity Of ono form Of tho product Of labor
which doos not oxist in any othor. Wo print In
| this isauo of TIE TRIBUNE the admirable essay.
| Of II. Daatiat on " Capital and Intcroat." which
We especially commend to those who havo any
doubts On this subject. The essay Is w1itten In
plain, honoly Btylc, and tho illustrations and
ptoofa are Of & kind that can DO eastly undor-
stood by any roador, It ia especially applicable
to tho circu3nstanceB Which oxiat iu this country
to-dny.
Deprived OF all yalue aave for Immediate con-
sumption by tle producer, capital would coaso
to bo crcated, bocauso no longor capable of botng
used, Without capital, of what aya1 would
labor be except to produce tho food necosaary
for consumption from day to day7 Each man
would consume nil ho produced. IT interest DO
denied to capital, we should BIO denied tho priyi-
logo OF borrowing as we'll as Of Lend
ipe. There would DO no accumulations
for old ago, and the stimulus for saving
would be taken away. 1t is tho interost, tho
rent, tho hire, or compensation which o tnnn re-
coiyes from tho uao Of tho property ho has &C.
oumuluted that Is tho grcat indueon1ont to labor
at all, Tho mechanic cannot work without
: tools tools aro capital which ho must eltho1
borrow or purchase. II he have to borrow thom
from apothor, it is but right TINT he should pas
something for their use. II ho purchase then
: on credit he should pay something for tho uss
Of tho capital. Tho illustrations givon by Das
tint Of tho sack Of corn, and tho plano, and tht
house, will carry conviction to any reasonable
i mind that capital in any other form than mono,
, Is entitled to compensation for it's use.
, In tho case where capitnl Is represented b!
money it is objected TINT by its nature 1t canno
reproduce itself lilto the corn, nor assist labo
like tho plane; It cannot multiply itself; an
T. | that tho remuneration It demands is aheer OK
q tortion. But when tho money is borrowed
o purchase the corn, tho plano, or tho house, til
= transaction Is not substantially changed; and,
o the borrower is thus enabled to obtain profit
II which ho could not hnye made without 1t, th
T. loan Of the money l1as served the same purpoR
II that would have boen accomplished had til
,r thing purchased boon loaned directly. Interes
10 or rent, or compensation, or hiro, whothor 4
capital in the form Of houses, or tools, or mat
ID riale, or cas, ia but the remuneration Which tt
II borrower makeR for tho service he has receive
ID from tho lender, which service, in his own eat
b. nation, was valuable to him-olse ho would n
10 have boen borrower.