, 1874-04-20
THE ABOLITION OF INTEREST.


n,ent to issuo groonbaoks until tho rato Of In
tereht ia reduced to i por cont or 3 per cent wo
wonder TINT no one Of tho school Of political
economy Of Which Magic and Morton aro tho
leaders, and Lognn, 0gleRby Darroro, and Can
non tho humble disciples, proposes TINT Rhin-
plastors shall bo issued I'LL money can be bor-
rowod at no por cont. It would bo we'll to oon-
tinuc tho manufacture OF money till 1t can DO
loaned for nothing. II 10 per oent DO tho proa-
ont rate. md Government Ans the powor to
roduoe TINT rato per cont Tor ono
half), why in tho namo OF goodness should It
not reduce 1t another half aud lot us havo it for
nothing7 This would DO glorious achieves
ment,-Ht1ch proof Of tho bononcence Of ropub-
loan institutions TINT evory tllronc In tho world
would Immediately tremblo. Now, wo do not
belong to Magie's, Morton's, ind Logan'a
school Of finance. But, 1t We did bolong to 1t,
NO should bo truo to Its principles; NO should
curry tfem out to thoir legitimate conclusions.
Wc should argue that II legislation, by incrcas~
ing tho currency, could diminish tho rato Of
interest per cent. 1t could diminish 1t a. 8, 4, +,
or 10 per cent It might lot us all borrow
money "froo, gratis, for nothing" and we
should Insist on hnying tho ratio Of intorcat 70.
ducod to per cent. II this emu be dono by
Congress-, wo insist that it sha1l bo dono.
Unfortunately for our pockets, VIC cannot be-
1ievo in evon financial Utopia. Wo have
learned to connect tho rate Of interest with tho
demand and supply Of loanab1o property. Not
when tho currency increases in volume, but
when more onpttal Is offored in tho way Of loanB
than is demanded, docs the ratio of interest fall.
Not whom tho currency Is contracted, but when
more loanable property is demanded than is Of
fored, doos tho rato Of interest riHo. And tho
loans which are offered and demanded are loans Of
roal wealth. measured and expressed in money.
Commodities are tho real things transferred in
loans. Money. only estlmatoH aud measures
them
The ratio Of interest boarH no rotation to tho
volume OF currency circulating In d country.
The volume Of the currency aGeots prices. not
interest. An increase Of tho volume Of currency
dirniniahes tho purchasing power Of tho dollar.
II ton dollars now purohaso tho uHo OF ono
hundred dollars for yoar, whom the volume Of
the currency is doubled it will take twonty dol
lars to purchase tho uao Of two hundred
dollars for yoar. Doubling tho volume Of
tho currency dimtnishos the purchasing power Of
the dollar one-ha1f. Tho ton dollars previous to
tho depreciation arc equal to twenty aftor 1t,
aud the hundred to two hundred, in purchasing
power. The numbers arc changed, tho purchas-
ing-power remains the same. As it Is capital,
not money, that Is loaned, IN iucroaso in tho
money, while tho amount Of capital remains tho
aamo can laye no effocs on tho relation be-
tween the supply and demand Of 1oans, which
determines tho rato OF interest.
These are the grounda why we do not favor
the reduction OF the rato OF interest by ]egls-
lative action, 1t wo supposed TINT Congress-
could diminish it at all, we should insist on its
reducing it to zero. Lot Magic, Morton, Logan,
etc., bs consistent, logical, and philanthropio /;
and. while they are about regulating tho Sum to
be paid Tor tho uao Of money, let thom mako it
tho smallest sum possible. And, after. they
have done this, let shom pass low fixing tho
price Of hats at cents, OF shoes ut conta, and
Of horse at 80 cents. When this ta done, wo
shall be all able to take a rido--in tho direction
that q mounted beggar provorbial1y steora.