Frostburg mining journal. [volume] (Frostburg, Md.) 1871-1913, 1876-07-22
OUR CORRESPONDENCE.
Capital and Labor.

-EQ2tOT Journal NOW that the
celebration of the Centennial is over
Think it would be we'll for us to turn
our attention to something else. will
therefore throw out few thoughts on
Capital and Labor, as this is subject
of general Importance in the present
aspect of the business of this country.
1t is also question very little under
stood by many of those who are con-
stantly prating about capital being
antagonistic to labor 1t is true that
a conflict is waged between large
portion of the capitalists against
the productive industry of the
country; but such is not the case with
all. The capital of the country is
divided into two classes, namely, that
which is non-productive, or worked
in speculation, discounting paper at
high rates of interest and shaving;
which, in its use, creates no wealth and
adds but little to the productive
power of the country, but rather tends
to retard industry and is antagonistic
to it.
The great contest now waging, not
only in this country but in many
other countries, among the producers
and laborers is caused by this antago-
nism in which the non-producing
monied interest is striving to gain the
ascendancy and, particularly, by con-
trolling legislation. The non-produc-
ing interests are in the ascendancy
and more money is now made by trad
ing in money, in speculations, in stock,
high dividends of banks, high rates
of interest from loan associations and
capital in the hands of unnecessary
middle interests, which rob the pro-
ducer and enhance prices to the con-
sumer, thus securing the lions share
of what properly belongs to the pro-
ducer and laborer-crippling and rob-
bing both of their proper reward.
There is scarcely manufacturer or
producer of any kind who can make
as much out of the capital invested in
production as he can with it worked
in speculations, in stocks, in shavings,
or in banks and loan associations with
their rates of dividends; consequently
there is not half the inducement held
out for investment of capital inpro-
duction. This is why our productive
industry is in a comparatively Ian
gushing condition with money rapid
ly accumulating at the commercial
centres Of the country-in the Golfers
of the bankers and shavers. This is
always the precursor of stringent per-
iods. For time interest rules low,
simply because those who ought TO.
use the funds don't want them, and
those who would use money at any
rate of interest are not those that cap
talists care abou. lending to.
There has been time when the
capital invested in banks was an i'm
portant auxiliary to productive indus
try of the country. But such is not
the case now to one-half the extent it
was formerly. Now, brokers and
money -shavers have the preference in
loans made on collateral securities
over the business men; they can OBJ
tain large loans when business men
cannot give the same security fire.
ouently at times when they most need
it. And this money is used by these
brokers and money-shavers to discount
business paper at the rate Of from l to
Q per cent. month and as high as 2i
per cent. month. Or, if business
man obtains discount at many of the
banks it is on the understanding that
he leave from one-third to one-half
living in the bank as basis to extend
their business and make large divi-
dends, which subjects the borrower to
one-third or one-half more interest to
pay for the use of the money he re-
quires to carry on his business. When
there is competition the profits on