The new Northwest. [volume] (Portland, Or.) 1871-1887, 1873-01-17
BY HORACE H. DAY.


is cheap money, low rate of interest to
those obliged to borrow for all the de-
veloping industries of the land. You
know England pays on her consols three
per cent. interest, and has thirty-seven
hundred millions in these eonsols, held
almost exclusively by her citizens at
home, affording circulating medium,
being readily convertible into money
and also into consols, thus affording al
most an unlimited circulation, supply
ing every want of the people for money
at very low rates; while this nation has
only snch quantity of circulating me-
dium left to it as will keep the rate of
interest, which the present very limited
developing interests OF the country must
pay, at from twelve TO one hundred per
cent, whereas to enable us to produce
fabrics to compete with other nations
and find a foreign market, we require
such an abundance of money, accessible
to the people, as will bring the rate of
interest for all that class Of the commu-
nifty engaged in production, nearly rs
cheap as Great Britain supplies to her
artisans. We contend that the Govern
ment has no right to deny her industrial
citizens the use of money at as cheap
rates as do the governments of those
Ioullll4tS MnO cpullJGle Will Us Ill lue
markets of the world.
To-day no civilized nation bases its
circulation upon gold alone, and the old
Benton Bullion age is past beyond re-
turn. Hence, here is England, that has
its consols all the while floating at
home, Government not paying over
three per cent. These are in reality cir
culating currency under another name),
and everywhere seeking to earn bet
ter, higher interest in operations with
and through the people than they could
in indleness,
DRAWING ONLY THREE PER CENT.
from the nations treasury. We should
have, to make us equal TO Great Britain
in financial advantage, at least 4,0O0,-
100000 of United States bonds drawing
only three per cent, these with the abil-
ity TO convert them at will into smaller
non-interest bearing greenbaeks-not
bank notes. Under this system we
might easily open our ports 10 free trade
with all the world, and this cheap and
abundant money would stimulate pro-
duction and then find i'm foreign mar
kets an outlet for our surplus produc-
tions, as do England, Germany, France
and all our intelligent competing na-
tions. Nations are competitors as well
as individuals, and if one nation has a
system of production twenty per cent.
cheaper than another, then she can sup
ply the world. Our tariff laws can
reach no further than the territory Of
our own nation. Here then is just our
difficulty.
The rate Of interest which the legal
currency Of q nation bears determines the
UdiUe ia that nation Of ereTything meas
ifred Jy that HlOney-bonds are i'm fact a
currency. To illustrates: Before our late
war n house and lot was salable at say,
S6,5OO, which to-day sells for $4,000,
and could be originally mortgaged for
twO-thirds its value. To-day the same
house will not be accepted by a money
| lender as security for much over $4,000.
/ Here is n great change. What is the
cause Of this change?
THE MONEY LENDER
before the war, was glad to take per
cent and even then had to pay u State
| tax on his bond and mortgage and the
idle money thus secured and invested to
/ him netted only ~ per cent. To-day
under the operation of our existing sys-
| tenn his money investedin United States
bonds at per cent. and free from taxa
/ tion, gives in effect 8 per cent. or double
/ that which he could receive under our
old system, besides bonds are i'm effect
ready money convertible in an hour,
while n mortgage might take six
months TO foreclose, hence the advan-
\ tage is not alone in the double rate.
/ The average annual increase of the
nations wealth has ncrCr reached 81 per
! cent. No nation on earth ever increased
its wealth as much as per cent. The
case of one illustrates the whole. The
rate Ofinterest determines the value, and
Government determines the rate of in
terest. Let us take for further illustra-
ton
SHIP BUILDING,
and it would seem that there was no
subject i'm which there was such an al
most unanimous determination to mis-
lead or refuse TO find the true remedy,
for its loss in our country. Ships on the
ocean cannot be affected by our tariff
laws, and no nation will allow us to in
terfere with its prosperity.
You see on the Clyde in England,
ships are built and fitted out, with this
indispensable tool, money to work with,
at three per cent. and sometimes p pei
cent, while in this country, as j have
said before, everything measured by
money is as much higher in value as the
difference in the legal rates established
by the two Governments in the consOl:
of theone, and bonds of the other. And il
a ship-builder to-day, i'll Maine-mOst ol
them are in moderate circumstances
Say he is farm owner worth thirty
thousand dollars wishes to build five
hundred ton vessel, he must begin by
paying fiIst, at least fifteen per cent. an
nual interest on the mortgage of his
[ "a rr, 10 crat flea raadV cash with which
to commence his ship, and as he is not 9
merchant, keeps no bank balance, anC
hence cannot borrow at banks-as hC
proceeds will pay
TWENTY PER CENT. PER ANNUH
for the balance of the funds before the
ship is paid for, II know this exact case
to be the fact in Maine,) and this is no
all, for by reason of the general system
of high prices for everything in this
country, (due wholly to the high rate
upon money! the material and wages
are found to-day, so much higher in the
L. S, than in England, that the bust
ness is a losing one, and hence we ear
no longer build ships while all the RENE
dies now being proposed in Congress anC
elsewhere would only fail in producing
healthy result, and ultimately create
greater than existing evils. 1t is thi
iatai financial system born of war, es
; 119ollshed since and maintained by th'
republican party, which deprives thl
people to-day OF their necessary too
, lmoney) to work with, and the who'll
country, of its rightful inheritance o
prosperity.
IL Is claimed that three TO four hun
1red millions of the national debt ha
Deeh paid since the war, under Grant