The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1856-1888, 1874-09-05
Interest.

We find in the columns of the La Sale Gazette the
subjoined extracts from q speech delivered before the
Anti-Monopoly Association of Marshall County on
the 9th ult., Illinois, on the subject of interest
With the census reports as his data, the speaker
showed that the value of all property. real and per-
sonal, in the nation, was at the present time, in round
numbers, twenty-four billion dollars, and that with
agriculture as the basis, the net annual increase was
not over 3 per cent. He estimated that one-half or
twelve billion dollars of the national wealth was
owned by capitalists who rented their property or
loaned their money to the producing classes, and that
the rate of interest averaged as much as 10 per cent.
per annum. Twelve billion dollars at 10 per cent.
would be one thousand two hundred million dollars,
while twenty-four billion dollars at three per cent.
would amount to but seven hundred and twenty
million dollars, leaving the producing element of the
nation in the sum Of FIVE hundred million dollars at
the end Of the year.
The speaker then proceeded to show, by what to
US seems to be clear and conclusive argument, that
the national banking system, or existing money
oligarchy, was the soul and center of all monopoly
that protective tariffs, ship subsidies, railroad and
other like monopolies, we're but part Of the means
used by this wrongly-constructed money power to
rob the producing and distributing classes, and that
while it was continued in force, or while the present
extortionate rates of interest on money or loanable
capital are maintained, We can have no general
permanent prosperity, even should we abolish pro-
tective tariffs, stop granting ship and other subsidies,
and restrain within proper bounds railroad and all
similar monopolies.
To give a clear idea of the power of money to ac-
cumulate by interest, aud of the effect Of the differ
ent rates in the distribution of property between
capital and labor, he said The first permanent
Anglo-Saxon settlement on this Continent was made
at Jamestown in 1907, or 267 years ago. Now. if
at that time, Capt. Newport, who headed that colony,
had purchased of the mother country all the territory
embraced within the present limits Of the United
States for the sum Of one dollar, and giving the
obligation Of himself and successors and assigns,
payable 267 years after date. with interest COM
pounded au~nually-which is the natural law govern
ing increase by per centage-it would fall due this
year, and, doubtless, would be considered to have
been q good arrangement for his successors by those
who are ~clamoring for Z" hard money" But this
would depend entirely upon the rate Of interest
named in the bond. At 10 per cent. the amount
would now be one hundred and sixteen billion dollars,
or over four times the value Of all the property, real
and personal, in the nation, while at 8 per cent. the
amount would be but two thousand six hundred and
eighty dollars, or the value of an ordinary eighty-acre
prairie farm.
But to bring the subject nearer home, let US take
our own State, which, for commercial advantages,
salubrity of climate, agricultural aud mineral wealth,
is unsurpassed by any tract Of contiguous territory
Of equal extent on this Continent, and which has
been developed more rapidly than any other portion
of our country. The State was admitted into the
Union in 1878, or 90 years ago. If the settlers then
residing in the territory had purchased Of the
National Government all the lands within the limits
of the State at Sl.20 per acre, and given the obiga-
tons of themselves and their successors payable So
years after date, with interest compounded annually,
it would fall due this year, and have no doubt but
the advocates Of " hard money are ready to say
that it would have been a good arrangement for
those now residing in the State, even with the rate
of interest at 10 per cent, for they claim that money
is cheap at that rate. But let US look at the result.
The State contains IS. 200, 900 acres, which at Sl.26
per acre would amount to S44, 900, 900, which, with
interest at 10 per cent. compounded annually for &c
years, would amount to nine billions two hundred and
twenty-four millions dollars, or two hundred and sixty
two dollars per acre for all the lands in the State
being four times the actual value of all the property,
real and personal in the State. While with the rate