The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1876-04-01
HOW INTEREST RoBs LABOR.


affect me or my interests r.
Well, let us see. When your employer
gnes to his bank to borrow money, he has
to ay for its use the current rates OF in
terest He has to borrow money in com
petition with the specializing gamblers Of
the Board Of Trade, and if he cannot pay
these rates he cannot let the money
Often indeed he knows that he cannot af
ford to pay such rates, say 10 per cent,
compounded every sixty days; but he
takes it because necessity knows no law
He returns to his shop IT factory, resolved
to "cut down expenses, and as a matter
Il course reduction Of wages inevitably
follows the resolution. II makes no diff
ference what excuse he frames for such nc
ton, the real reason is that he has agreed
to pay the banks more than the profits
Of lis business afford number of EN-
ployers do no; even know why they reduce
wages shortly after borrowing They only
know that they are not making money.
They also know that they cannot fight the
banks, or control the market for their
goods, SO their only recourse is to cut
down wages. What workingman is 50 duh
that he cannot see that his labor pays every
dollar interest on money which his EN-
ployer borrows This interest comes out
Of the mechanics pocket, although he does
not borrow a cent. Workmen belong to
the creditor class, because it is seldom in
deed that they receive their wages as
soon as their work is done. But whoever
heard Of an employer paying interest on
wages due his employees The working
mans interest account is one source Of
profit to employers, and in many instances
1t is the only difference between profit and
loss
1t has been demonstrated beyond all
cavil, that the productive interes; Of the
country does not produce profit toexceed
IL per cent per annum, simple inter
est. In few exceptional instances man
ufacturing business will produce even
more than ten per cent. for short periods
Of time, but taking the entire averaged
production Of the country from tn" census
report, which is by far the most reliable
data in existence, the average profits on
industry fall under rather than over 3 >
per cent. Now it is perfectly plain that
when a manufacturer pays 10 per cent,
| compounded every 60 days, which amounts
to nearly ID per cent. per annum, he Is
either on the high road TO desti uction. or
he must reduce he pay Of his Sorkmen
and compel them to meet the interest ac-
count. The profits Of industry is then
divided in the proportion Of 3 To- 10, or
rather from less than nothing, for owing
to the reduction of wages the workman is
compelled to deny himself many Of the
necessaries of life. The fixing Oh the rate
of interest, therefore, determines the rela-
tive profits Of capital and labor accurately,
for labor alone creates value. As the prof
its Of Industry are about l-2 per cent. If
we limit the rate Of interes; by means of
the 8. Go bonds at that rate, We thea will
divide the profits Of industry and the
profits Of capital nearly equally bet Seen
the laborer and the capitalist. For these
reasons, and many others that might be
given, we have earnestly advocated the
2 ha ,T
ception down to the present. If adopted,
it will do more to settle and regulate the
differences between capital and labor than
all other means combined, in our judg-
ment. The most that can be hoped from
strikes is temporary relief, so long as the
manufacturer Is compelled to pay high
rates Of interest; the most GpArtlAl arbi-
traitor will consider that fact, aud that fact
will outweigh all that the workman can
offer on the other side; hence arbitration
offers no permanent solution Of the prob
Dor cannot hope to achieve any
permanent advantages until the rate Of
interest is brought down to the average
rate of the profits Of industry, when the
profits of labor and the profits Of money
will approximately be the same. Then,
and not until then, will laborers have the
same advantages in the market as capital
lists. The whole question then is involved
in the money question, and It all workmen
nrl al fnr
we can settle this problem within a year.
Give our manufacturers all the money
they want to borrow at or per cent
and with an abundant raw material, our
skilled and intelligent workmen, and natu-
raj advantages, and within three months
time after the passage Of the greenback
and bond bill, every man who is willing
to work can find plenty TO do Et remuner-
alive wages We shall hear no more of
ten men running after every vacant place.
Employers will be compelled to treat their
workmen as if they were men. No longer
will slavish servility be necessary to retain
position. No longer will our streets
swarm with men begging work. but this
cruel dependency will give place to pros
perity, hopeless contentious will be su-
perceded by an enterprising spirit never
before equaled except just after the war.
The fraud Of ''over-production" will be
heard no move, and the very men who are
now cursing the greenbacks will become
the best friends Of the system, when once
adopted. Congress eAn legislate hard
times out Of existence ut once. if its mem
bers were not influenced by selfish scoun-
drels, who are making money by robb,Dg
honest workmen-
Our readers will remember that, in our