The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1874-02-09

from the exactions OF the govern
ment, but like everything else,i Il Is
based upon the cost Of It's production,
varying slightly for short periods like any.
thing else With the inCidenh and frctua.
tionS Of supply and demand, >SottB viii
The rate 0fiHtereSt II is subject TO the
same general laws Of production, liable 10
be increased or diminished just In proper.
ton as capital Is plenty or scarce, or the
demand for It great or small. Interest
being the net profit derived from the loan
Of money after deductipg all the necessary
expenses attending the same will be
greater or less, according 10 the trade or
calling In which It Is invested.
HOW CAPITAL Is NECESSARY TO PRoDUc-
n. ..t...... TON. i.y gHIEJgs
As an illustration, take the blacksmith {:
he has the health, the skill and the
physical strength, but he has no tools 10
carry or, his trade, Hence what does his
skill or strength avail him-without cap.
ital2 They avail him nothing, and his
labor only brings him the ordinary wages
OF day laborer, say thirty dollars per
month. But let this skilled mechanic have
the use Of say three hundred dollars
with which, 10 buy tools and stock
to make his calling available, then his
skill Is calledipto requlsitiop, withwhich,
together with The man power which he
naturally possesses, he Is enabled To earn
IS per day, or $3.50 per month. He con,
therefore, very, easily afford 10 pay twenty
per cent ratherthan not have The capital
necessary TO make his skill q constituent
part oil bis, labor and capital.
As another Illustration, let us take the
immense forests which skirt those deep
and turbid. mountain streams winding
their way tothe beautiful Ohio. We will
assume that-as yet they aresnOt bearing
their part in the great, busy busting
world around them. The giant oaks are
there in all their majesty and solitude, and
just IS they stood d thousand years ago
The oodsmar isIthere, but there isho one
to lend him Shelpfng hands WithouttheI
aid Of the saw mill or the indispensable
force and capital necessary to convert
them into lumber and ppt them on
the market, this great Source ofI
wealth to the people Of this State
stands untouched and Improbable.
But apply that mighty agent, cIpi-
tai, and at once life and animation
takes the place OF solitude and inactIon.
The sound Of the woodsman's ak echoes
and re.echoes trem valley to hilltop, and
the hum OF the busy saw Is heard in
every mountain dell. II would DO hard
TO estimate the interest which capital,
skill and labor combined would Justify
in paying. in this branch Of industry.
And the same might be said In regard 10
developing the immense mineral re-
sources Of the State, which are only
now awaiting the potent power OF the
capitalist TO bring them IRON darkness
into the broad light Of day. But have
not time now 10 dwell longer upon this
branch Of the question. will only now
endeayor 10 show why 1t is that the inter.
est on money Is subject 10 variations
owing TO the very nature OF the differ
ent transactions IN which capital Is
employed. The capitalist will not
loan his money where the risk is great at
the same rate Of interest as where the risk
ssmall. The merchant who invests and
reinvests his money three or four times
during the year can afford TO pay higher
rate Of interest than the farmer, who only
makes but one turn year. The msnu
facturer and miner, who daily create and
puts into market the productions OF their
industry, often realize q profit that en-
ables them to pay rate Of interest even
greater than the merchant. The farmer
who migrates TO the West where the land
is fresh, rich, and easy Of cultivation, and
where there is q sudden influx Of popula.
ton can afford 10 pay higher rate than
the farmer IN States where the land ia /
impoverished But il is needless TO null
tiply illustrations.
From what have said must necessari.
lycome TO the following general conclu-
sions, in the language OF distinguished
political economist: HThat other thinCs
beng equal, interest will be high when
the risk Is great and low when the risk Is
small; that interest will be high whcn-theI
profit Of capital is great, and low when
the profit Of capltalis small; that both Of
these affect each other within certain lin.
its; that's, when profit is great, II the risk
be also great, interest will be very high:
because the increase Of risk diminis6es
the supply. But when profit Is low and
risk is great, there will be no loaning
whatever; because what is paid Tor risk
will be more than can be gained by use
and hence men could not proftably bor-
row." So that all laws regulating the
rate Of interest are not only unwisc, but
are injurious 10 the prospects Of our
country, because they violate the right
Of property. "a man has the
same right TO the market price Of his
capital In money as he has to the market
price Of his horse, his ship, or any other
Of his possessions. The real price oil
capital cannot be any more fixed by law
than the price Of nails, iron, or any other
commodity. Those who, from honor or
conscience, obey such laws would with
draw from the market and employ their
capital in other States or in some other
way; and no one would loan but those
who were willing to risk the consequences
OF detection. These, having the money
market in their own hands, will Of course
charge for the use and for the risk OF de-
lection; aud hence the price may be in a |
few days doubled or trebled. And at the
same time, although the real. value of
money may be fifteen or twenty per cent,
yet because the kgal price is six per cent,
there Is no inducement for capital to come
in from abroad 10 supply the demand"
All such laws can rarely or never be en-.
forced. Men who want money will have
II some way, and will be willing to pay |
such prices for it rs will enable them 10 |
get It, The only effect, therefore, that
this bill would have would be 10 drive
all the money and money.lenders out OF
the State or soblige them, 10 lend, al
lend they must, through The me
dunn Of interruptions agents, OurI
present law provides and defines what the
rate Of interest Is, when no rate is speci- |
fled, and that rate only (six per cent? can
be collected by law. Therefore, in conclu.
sion, / wohld say let the law remain as it
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