Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1875-12-15

/ back with handsome bonus beside. Thus
far the development Of business, and what
is called " the growth Of the country has
permitted the borrower to offer high inter
cst for the use Of money, but these enormous
weights on industry, production aud ex.
change. especially with the enormous public
and private debts Of the country are now
the cause Of the financial depression which
SO universally prevails. Capital has been
tax ing blood out Of industry q little faster
than it could make it, Industry is, consc-
quenty, q little weak and sickly, coming TO
lose courage and pluck, and thinks more Of
danger aud trouble ahead, than is wise or
best Capital is too eager 1t enjoys accu-
mutation. Itruns mp prices Of the commodi-
ties it controls and rates Of interest, till
production staggers under il. Therefore it
has immense amounts Of money unused in
its vaults. The borrowing class is reducing
expenses, paying up its debts, contracting
its business. not using so much capital, and
the lending class has got millions in the
bank that are not drawing a cent Of interest.
The country at large is like a man who has
had prosperous business and has extended
it far aud wide, aud contracted large oblga-
lions at high rates Of interest to carry it on,
and comes to find ont that his interest &C.
count exceed, the profits of his business.
lie cannot directly reduce the interest, but
he reduce. other expenses, cuts down wages,
consumes less food employs fewer men, Dor
rows at les, rate to pay off his debts
which demand a large rate Of interest lie
shrinks his capital, his production, his ex-
pcnditures, fns the community with men
that cannot get work. and sends back to the
capitalist money that he cannot easily loan.
When capital drives industry too hard, it
goes into bankruptcy or into economy. The
result is business depression, suspended Ia
Dor, half paid work and capital lying idle
Aud nothing can remove the depression,
and set the wheels Of industry in motion
but such rates of interest As the borrowing
class can pay without destruction to theii
business. In some places the savings banks
have been reducing the rates paid to depos
tors But il is essential to follow that with
a reduction of the rates they charge to Dor
rower,. \ large part of the circulation o.
the country is receiving an enormous inter
est, and the borrowers Of this circulation
have been paying it, II has been too mucl
for them. 1t has eaten up and consume,
their industries. They have put flesh an,
blood 10 racing with tireless unrelentinI
machinery, and have lost the race. If tn
| borrowing class, who use capital TO deyclo
the various industries and exchanges an
| growths Of the country, cannot have capita
at less rates, the gulf into which the countr
will plunge is not very far off. But ther
are great laws of supply and demand whic
will regulate this almost as surely As gray
tation Their tendency may be hindere
and arrested for time, or here and thcr,
yet, in the end. they viii prevail. Capt.,
win ultimately go to the borrower at rate
that he can afford topay. lfany false fnai
cial system taxes the industry and produ,
ton of the country higher rate than the
can afford, it will ultimately have to Civ
way. For hundred years aud more our collt
Try may be able to carry on its various work
only on borrowed capital but, every day, d
yeopmcnt will compel the lender to NEE
the borrower on more equal terms. Labc
will fall. prices will fall, interest will fal