The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1873-08-09
THE UsURY QUESTION.
Speech of NJ. A. FOran. Delivered In the
Ohio Constitutional COnvon-
ton, June 18th, 1878.


The gentleman from Hamilton (Mr.
Frelbsrgl claims that IN the event of the
adoption 81 his amendment. eastern or
outside capital viii dow into the state in 4
steady stream. 20 our great and lasting
beneut. and that its presence in large
amounts wall have a tendency to establish
lower rates OF interests This argument
means simply this the usurious rates now
charged Tor money, are % be increased.
Outside ur eastern capital viii not come to
ms noT, because We do not pay rate II
interest THAT Will Justify II III doing 50.
Bur II We abolish all usury laws ard pre-
vent the Legislature from ever again pass
lng any such laws, the rates Of interest sil
shoot up, and eastern capital Will conde-
scend to come and see ms, and, it might
be justly al led. to eat us also. But to
allay our fears on the score of extortionate
interest. IL j. next said that the presence
Of tins eastern capital Will in turn reduce
the rates III interest that induced 1t to
come here. With al due respect 10 the
gentleman from Hamilton, | must saw that
this j. undoubtedly the shallowest and
weakest argument | ever heard advanced
by learned man. I know the gentleman
from Hamilton is capable Of better things.
ana | believe the Advancement OF this
argument merely shows the straits to which
men are sometimes put. when advocating a
fa.lacIuus doctrine or erroneous principle.
II eastern capital viii not seek us now, be
cause he rates ot interest are low, and &C
curdlng 70 the claims here made. 1t will
seek rs when the rates are advanced, is il
not fair q presume that it would leave us
again as soon as the rates became low
am willing TO admit that one Of the amend
ments would he to induce the Shylocks 81
the east To seek their pound of flesh in our
state but ! cannot be made III believe that
their coming would permanently reduce
the rate vi interest Why do they not
come now The rates are too low, YOU
say. Very well, then, if that be the case,
would they not desert us again a. soon as
the rates became low If the introduction
~ eastern capital reduces interest, eastern
apital leaves as 10 seek better field and,
IF course we are not benefited if it re-
mains With us, it viii be because the rates
of interest are not reduced. and, of course
We are not benefited, but rather injured
The father Of this argument may take
which ut these conclusions best suits him.
But even admitting this tiimsy argument
to be- really true, | still have serious mis-
givings as to the result. The ancient Brit
ons invited the Saxons to aid them in their
wars against the fierce Picts and barba-
rams Of the North, who swarmed down
across the Roman wall into the heart of
the country. The Saxons came, but the
Britons lost their liberties. The Saxons
proved to them a two edged sword. Might
not eastern capital Prove a two edged
sword TO US hardly think our children
would thank their ancestors if they mort
gagged the state to any class of usurious
bIUod-suckers
| have already stated that excessive
interest produces wealth and poverty at
the same time that is that it enriches the
few al the expense of the many. To give
an adequate conception Of the accumula-
tive power Of money or its power to accu-
mulate value by interest, / will suppose
that if those who first landed at James
town, Virginia, two-hundred and sixty six
years ago. had purchased the entire terri
tory Of the United States for one single
dollar, and gave therefore an obligation
payable ia two hundred and SIX y six years,
bearing interest at ten per cent, COM
pounded annually the amount now due
would bee nearly, if not quite four times
the assessed value Of all the real and per
sOnal property III the entire territory Of
the United States.
Mr. Rowland What does that prove
Mr. Foran I viii tell you Just what it
proves, and it proves it 50 concluhIvely
that the most obtuse mind cannot fail to
comprehend it. " proves it 80 clearly that
IL can not but convince the most strenuous
advocates Of high rates of interest. It
proves Just his that no people, no state
OF nation can pay ten per cent. interest
without robbing labor, robbing the farmer,
robbing the mechanic, and concentrating
and consolidating wealth in the hands of
few men. That's what it proves. Why,
Mr.. Chairman, such a rate of interest IL
legallzed robbery, nothing more, nothing
less, and It IS the duty Of statesmen to pro-
vide that the financial sharks of the state
shall not charge such a rate. Certainly
farseeing and wise statesmen would never
allow such a thing to be done. | argue
not IN this manner, from a narrow and
contracted view Of the question / claim
70 be a reforner, in a small way it may be,
but still a reformer III the broadcast and
most cosmopolitan sense of that term. / |
aim to benefit the whole state, and not any
particular class. | aim to benefit the rich |
as well as the poor, because should the |
present order Of things continue much |
longer, the whole fabric of government |
and social order will come toppling about |
our ears, burying in the ruins rich and |
poor alike The wisest and most advanced |
political economists Of Europe have shown |
most conclusively in their writings. that a
large number Of small farmers and land
lords are far better for a state than large
landed proprietors and few Of them and |
it Is equally true that a great number Of |
persons OF moderate wealth are infinitely |
better and safer for state than few per-
sons Of uncountable wealth. Poverty il |
the great question with which we, a. states |
men, should deal and grapple at this time. |
Poverty Is the source Of all our social and |
political evils. IL cOrrupts Judges. eur |
legislatures and Statesmen il shortens life. |
degrades manhood, chokes education and |
generally. It il poverty |
that fills the slums of our large cities. |
whose actions and whose votes are verv |
often an embodied menace, flashing atkwart |
the face a the political heaven, threaten.
ing the very existence Of our liberties. |
Bold bad dangerous men could not buy |
votes and foist themselves into power. If |
wealth was more evenly distributed. II 10
not true to say that the poor are always
poor. by daim is that excessive rates Of
interest are the main cause of poverty that
sxsrywhere EXISTS around as, and shall We
encourage this evil Would that be the
part e. wise statesmen And yet this IL
what the learned constitution maker pro-
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