The anti-monopolist. [volume] (Saint Paul, Minn.) 1874-1878, 1875-12-16
RATLS OFLNTEREST.

RATLS OF INTEREST.
We have been much struck with the
views and facts in reference to the in
terest question, contained in late num-
Der of the Indianapolis Sun--by the way,
one Of the best of the reform pagers Of
the United States
The article in question demonstrates
conclusively that the rate of interest
upon money enters into and affects ev-
erythine in the community. For in
stance, it shows that the rate of inter-
est controls the value of real estate:
To illustrate this, take farm which has
been brought to the highe state Of cultiva
ton, and the net income is $500 If money
was loaning at five per cent. this would be the
income on SO, 900 loaned at five per cent. The
value of the farm would be reckoned at sl0,-
900, for the income from it would be equal to
that sum loaned at interest Now let the rates
of interest be raised to ten per cent The in
come from SIC, coo loaned will be 81 900. This
is double What the farm can produce, for it has
already been brought to the highest point of
production; its value as a consequence will go
down to IS 900, and no man would invest to
exceed s., ,UeO in such farm when he could OBJ
tain that sum 10y loaning his money at interest
And in this way it shows the relation
OF interest rates to the value OF crops:
Take for illustration the corn of our western
country. When the producers of corn on the
prairies ot Illinois ami Iowa could only obtain
ten cents per bushel. the consumers in New
Eng land were paying seventy cents per bushel
for the same corn. The money power, the
mammoth gatherer of values, through high
rates OF interest, absorbs the sixty cents. The
producer and consumer are both robbed and
pauperized, while the holders Of the money
bags pocket the fat. The average rate OF in
terest per annum in commercial transactions
in this country has been ten per cent. and
over. This ten per cent reaches into, perme-
ates and gathers value from everything
the pin and peanut. Nothing escapes it; not
even the sacraments Of the church. It takes
toll from the communion table, for it gathers
its ten per cent from the value of the wine and
bread that typify the shed blood ani broken
5ody OF the Kedeemer. Every shred OF cloth
ing that hides the nakedness of the human
body, and every mouthful of food that sus-
tains life, pay tribute to the money power
| through rates OF interest.
1t is thus made plain that the interest
paid by the debtor class affects the busi
ness and prosperity even of those who are
not borrowers. Hence, even in this
view of the case, the welfare of the
whole people depends upon the amount
of money in circulation. for the amount
OF money in circulation controls the rate
of interest, For instance, ii there are
in ST. Paul one million dollars OF loana.
BILE funds, and If, by any means. that
sum is reduced one-hali, the demand re-
manning the same, the rate Of interest
will be doubled. whatever the usury Law
may be; and. as tie Indianapolis Sur
shows, to double the rate OF interest il
to decrease one halt the value of rea
estate and the compensation of produc
tive industry.
/ We begin to see therefore how direct
ly the prosperity OF the people depend:
on the quantity of money in circulation
AS the Indianapolis Sun says:
The inventions Of men TO gather wealtl
through rates of interest and dividends on wa
tered stocks are unlimited in their gratherin,
I power; and the few have made it corstan
work to befog the minds of the great mass q
producers OF wealth, and at the same time in
vent ways and means of robbing them of ever
I dollar OF wealth they produce
The slavery which applied the gyve
to the limbs and the whip to the bac
was seen aud known of all men; but th
Sa"sSty WutSA Ouuuiugty JULIUS y COu
: duit from the muscles Of labor and th
Y brain of enterprise into the pockets {
: idle capital is invisible. although its fruit
are palpable as sunlight II republica
d institutions fail in this country it will b
= because the stupid many are Over
II matched by the. adroit few. II ws
I thought in the aforetime that,-as Nj
!. caulay phrased it,-''ten thousand me
8 who had had no breakfast and were o,
u sure where they would get their Dime
:. would meet at the ballot box to deciC
ot the destiny OF great and wealthy con
Y munity;" that is to say. that the owe
= = throw Of the republic would come fro
= the labor force Of the country. B,
81 events have demonstrated that the lab,
n force Of the country is patient, hone
and submissive; ready 70 suffer an
! fight for the preservation Of society ar
; Tree institutions. But on the other har
= the real dangers which threaten the 4
: public come from organized and aggre
q q sive capital. interfering in public affair
Z controlling legislation. corrupting Il
!, ballot bsx and demoralizing societ
The time is not far distant when ii
% country win witness ! revolution, not
le bloody but certainly IS far reaching,