The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1873-09-13
THE UsURY QUESTION.
uen' Ewing VS.. Judge Hoadly

pialn themselves
MIR Ewing I mterrupted the ,sn,l.
man from Hamilton AR. Rowland5 with
no intention q being drawn into this de-
bate at all: but for the sole purpose of call
ing the attention of the committee TO the
tset that he was making the statement of
the lnethciency of the usury laws rather
broad He said that they were wholly in
sHclent- -that they produced no effect
NOW, my observation bears out the state
nent- that OF the vast aggregate of loans
oy the farmers, three-fourths is at a rate of
interest authorized by Law.
Nv. Hosdly. VIII the gentleman from
Fairfield Mr.. Ewing permit me aues-
tion
Mr.. Ewing Certainly.
Mr.. Hoadly. The question is. whether
assuming that the gentleman is not misin-
formed, the result he describes is not ow-
ing 70 the relation between demand and
supply III the region which he describes
" me. ner a larger demand would not pro
uuce the same results that are found in ev-
cry commercial center
Mr.. Ewing. | think not. sir think
~ Is because farmers are generally unwill
ing To resort to devices to eyade the law
As rule, they viii put taeir money III
transactions that are legitimate. and can
not be questioned in any forum
Mr. Rowland. Let me ask the gentle
man question. 1t Is, to make no inyidious
comparisons between farmers and Others.
did you ever know farmer VI ,,isa1 MI,
ryi F'N'' ~
Mr. Ewing To plead us,lry
Mr. Rowland. Yes sir. in bar Of the
payment of debt he owed
W Ewing Well. / don't know that
have. They don't commonly agree u pay
usurlous rates. They commonly borrow
from each other, at the highest rate o. in
terest authorized by law that the lender
can get.
Now, Mr.. Chairman, after making. this
explanation, ] want to say a word as IL the
general line OF argument in support Of this
proposition. / admit that usury lavV are
practically disregaraed In the commercial
centers' vet that does not tend to prove
that they are founded Oh a vicious theory.
or that money Is like every other commo-
dlty, Ike coal or wheat ur cattle, t. be
put INTO market and regulated exclusively
by the uncontrolled schemes Of those who
manipulate IT,
Mr.. Rowland. Does not the general
government, when it puts a tariff upon
property. while it puts none 70 prevent
money from getting i'll Does it not as
sumo another law ID regard to the propo-
sltlon You we're speaking Of inst nov
Mr. Ewing. Ii puts a tariff on silk AMI
don't put tariff on gold There are a
great many products 1t don't put a tariff
on, and a great many products it does and
tall e. see tina, The question as to which
Of those classes Of products gold or silver
may belong 10. affects this discussion but
say that 50 TAR from its being without the
province Of government to regulate the
rate q interest on money, II is one Of the
highest functions. The Constitution Of
the United States imposed upon the Cen
eral Government the duty to coin money.
that Is To make the legal tender for the
people Of the United states But it does
s4AtSetop there. IL SAYS and regulates
the "a ne thereof, make 1t. and 80 regu-
late the guautIty and the method of issue.
AS 10 determine the rate of interest money
shall bear. ! believe thar to be the duty
~ the general government power Incl
dent 70 the power to make and Issue mon
ey, whether Held to - expressly given in
tine power 70 regulate its valna or not
Mr. Rowland. ! should like to ask the
gentleman question. Did heueyer know
the general government "a attempt-to fix
rate Of interest, and whether that does
not refer ~ the value IF their money. a.
compared with their com.
Mr.. Ewing IL probably means pre
~ cisely what II says regulate its value
not tx. not establish; but te,t,,late its
value.
Mr. Rowland Does lot thelav tix the
rate Of interest upon legal tenders
Mr IL Ea.a 81.
banks may lawfully charge. NV. Mr.
Chairman, theyery vice Of our Civilization
IS the enorIncns rapid accumulation Of
wealth IN the hands of the few. and the
equally rapid striunsrr fn tie a. .nv
Then means .s.li,4 aaY'e shbiaeanss.
ae see q fs-& s around us With 4
f&FfiIts TIA i~efearful Whence comes
tie vast fortunes Of our Nanderbilts.
Cookies, Drews and Goulds, the new made
princes OF our monetary system Every
parvenue millionaire represents
thousaHd families sunk to poverty if not
20 pauperism, by the same causes which
heaped high ms fortune The aggregate
annual increase of wealth In this nation is
fxed. You can 60 TO the census and other
official reports and learn what it is. II is
less than four per cent. upon all the prop
erty OF the country. II is, in fact but
about three and third per cent; and
when you take the aggregate wealth of the
United States. say thirty billions, You NAV
ascertain BY the fixed rate Of increase IN
the past. what will be the annual increase
of wealth ia the Republic 1t is but 3 I-3
per cent. Of thirty billions, to wit about a
billion Of dollars
Now, give "a any particular species Of
property rate ~ increase of ten twelve |
fifteen or twenty per cent, and You re-
duce below the average rate % increase |
other property to make up for the excess of |
interest thus taken. Hence. let money and |
those securities calling for a fixed rate Of |
interest ln money bear eight, ten, twelve |
OF fifteen per cent. interest and other |
property is robbed. That robbery is of |
those classes OF property the owners of |
which are least able to protect themselves |
The farm owners, are specially the victims |
OF tins vicious monetary system, which /
gives an usurIous share of increase to |
money and interest bearing securities.
which are owned chiefly in the commercial |
centres, and takes from the more sluggish |
and Unprotected property, its fair measure
of the net increase
Mr. Hoadly. Does not the four per cent.
you speak OF represent the net gain
Mr.. Ewing es, sir.
Mr. Hoadly. Whereas the comparison
you are making is with the gross gain that
the lender makes in particular case. ont
Of which he must support his family and
pay his ordinary expenses, taxes, &c. Does
it follow that the lenders net gain will nee
essarily be more than four per cent
r. Ewing. Money rs property, repre-
senting past labor, Just as any other spe-
cles of property represents it. When the
holder does not combine his labor with it,
but lends it, he should have a rate of in
crease equal To the average net increase