The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1876-02-26


Az ~ per ....... 900 900, 600 |
~ ~" nt ............... s6S0OO,OO 100000 |
AZ per en- ... 33g 300, 900. 900 |
a. a! l s oont ............. l3l ,5OO,0OO,OOO !
=. ~. . ~ ........... 50470,0OO,OOO |
a. a. . t r,r l.,,t ............ B.570,000,0OO
At DER cent '''~-0'0''0
Now. | think it safe to estimate the
present value of all the property III the
nation, real and personal, at so
10000 900. 1t was, as shown by the
Census Report of 1860, SIC, 10000
600. Allowing it to have increased
at the rate of 3 per cent. per annum
for the last fifteen years, it would now
be in round numbersS26, 600, OOO,OO 1t
will be seen that if the national wealth
had increased at the rate of 10 per
cent. it would now be $50 times at .
per cent. IS times at 7 per cent, 33
times at 6 per cent, IL times; at D
per cent, 5 times and even at 4 per
cent. nearly double that amount.
Now, labor and the capital EN-,
ployed in productive industry and
legitimate enterprise other words,
the producing element is paying
rent or interest to the property-rent-
ING and money-lending classes, as rent
or interest on at least One-half the
amount of the national wealth,
or $4,000, 100000; and it is safe to
saw that the rate OF interest which gov
ems the value and rent Of all property
will average fully 8 per cent. This
would give, as the annual cost OF capital
81 .O4O 900, 900, while the increase on the
S26 OOO. COG, 900 or whole amount or the ma
tional wealth at per cent would be but
$3.50, 900, 900; thus leaving those engaged
in legitimate business, who are necessa-
rily the borrowers OF capital, indebted
to the capitalists or money-lenderS in
the sum Of S2Gs, OOO, 900 at the end OF the
year
EFFECTS OF OUR TRANSPORTATION, INDUsTRI-
Al. AND COMMERCIAL INTERESTS.
For the purpose Of showing these eff
f,ot, viii tui' the rates of 4 and 10 per
cent, which are about the relative rates
Of interest on money or loanablc capital
in all legitimate business with us and in
England.
First on our shipping interests Let
us suppose an English company to pro-
pose to an American company to estab-
lish daily line OF steamers between
New York and Liverpool, and that
it would require twenty-four vessels, |
costing on the Clyde 100000 each. As
matters now stand, the American part of
the company would not be likely to en-
gage in the enterprise without first pro- |
curing from our government subsidy |
in some shape If they should happen |
to belong to the free trade school, they |
would ask for and be content with the |
removal Of the duties on the materials |
entering into the construction OF their |
vessels and on ship stores. On the 9th !
or hand, if they should belong to the |
protective school, they would ask for Il .
subsidy to indemnify them against the
higher wages paid to labor here than in |
England in the construction and opera
ton of their vessels. Let us further
suppose that Congress should say to
those gentlemen, whether they belong
to the school Of free trade or protection,
I'VE feel so deeply interested in having
our merchant marine restored to the
high seas, that we will not only comply
with your requests, but we will guaran-
tee that you shall have twelve vessels of
the same capacity and in all respects
equal to those of your English partners
at the same Cost and that your seamen's
wages, supplies, repairs, insurance, and
all expenses shall be the same rs theirs;
but you must employ American capital
at our rates in the enterprise This
would, of course, be perfectly satisfacto-
ry; for with US the question OF the cost
of capital or rate of interest is never
raised in connection with enterprises
of this kind. The political economists
of both Of these schools seem to regard
the cost Of capital rs matter of second
airy importance.
The advocates Of protection have not
in the past complained of or asked to be
indemniiled against the higher rates of
interest paid for the use of capital, but
only to be protected against the higher
wages to labor here than in Europe On
the other hand, the advocates of free
trade assume that our manufacturers can
pay 10 TO IL per cent. for capital and
compete successfully with foreign goods
and wares manufactured with capital at
3 TO per cent, without any reduction in
the wages of our labor. Now, to show
that neither Of these policies offers any
sufficient remedy for the evils complain ;
ed OF we will suppose the proposition OF ,
the Government to be accepted and the ,
enterprise entered upon. and that the
company make net profit Of per cent. ,
per annum over and above seamen's