The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1876-03-09
Ghe9ntellf9ttteer.


The Hon. John Brannon, Of Weston, in
this State, who was, in ante.bellum days
Chairman Of the Finance Committee oil Tue
Virginia Senate, has written a leIter on
the present business depression existing
,broupbout the country lie lays the
blame largely on the a'cendancy which
capital has acquired throughout the conn'
trr over labor, by which industry has
bser robbed ofits Legitimate reward. He
refers particularly to the tremendous ex.
actions OF capital in the way OF interest,
or usury, which he contends, is gradually,
eating up the substance Of the people.
Capital is only entitled to its fair share OF
the combined earnings Of capital and la.
Dor, and yet, as things are now going, it
not only skins all the cream but takes,
along with it, pretty near all the skinned
milk. Men who borrow money in order
to employ it in efforts to produce some
thing, find, after they have paid their in
,erest at the end OF the year, they have
nothing left. The cheese has gone with
the parings. Capital has absorbed to
itself the fair and rightful earnings Of
labor, and refuses 10 divide what ought
to be their joint gains.
What is the remedy2 Judge Brannon
believes that it exists, in whole or part,
in uniform interest law throughout the
country. Separate state laws will not
do. Why? Because the "banks created
by authority OF the Federal Government
can charge whatever they can get, with.
out danger OF forfeiture by State law"
The Judge is in error on this point.
National banks are limited to the rate Of
interest prevailing in the States where
they are located) The true remedy, he
thinks, is an act Of Congress regulating
the rate Of interest in every State OF the
Union, and prescribing lower rate than
is now, legally or illegally, charged in
many Of the States. II Congress has
power to issue money, power to make 1t
legal tender, power to tax State issues
out OF existence, il certainly has power to
regulate the rate to be charged for it.
Not that he believes in such powers,
for he does not even believe in
the p over OF the, Government to issue
paper money!. but inasmuch as the deci.
sions of Congress and Of the Supreme
Court Of the United States have over
ruled all such ideas as he entertains on
this subject, he submits that it is just as
competent for.sthe same authorities to
prescribe rate Of interest a. TO regulate
the value OF money by making it Il legal
tender for our debts.
The Judge is not in favor Of initiation.
lie does not want any more paper money.
lie does not sec that imitation is rem.
edy for hard times. On the contrary, he
iayors a policy that will tend towards
specie payment. lie favOrs Kelly'S in'
tcrconvcrtible scheme. That is, the issue
Of bond paying low rate Of interest,
into which, when money is plenty, green
backs shall be fundable, and out OF
which, when money is scarce, they'shall
be rCdeemable. This is known MS the
elastic scheme. By its adoption, the
Judge contends, we would in time raise
our currency to specie. Its elasticity
would suit the varying demands OF the
business OF the country.
The foregoing ia an abridged presenta
ton Of the Judges two remedies for the
ills that are now upon the country. We
are doubtful whether there is much in
them. Not that we dissent from the gen.
eral premises laid down, as to the fact
that capital is TOO expensive for business
purposes in very many parts OF the coun-
try. We agree with the Judge that such
is the case. We wish il were otherwise.
But why is it thus expensive? Because
men will borrow ii to such large extent
for unnecessary and illegitimate purposes
Out in Judge Brannons country men Dor.
row money at one per cent per month to
speculate in cattle. A man who has
farm will mortgage it for this
purpose. He will holdc cattle for months
expecting to make on them three or four
times the interest he pays. 1t all de-
pends on the Baltimore market, when his
cattle are ready for sale, whether he makes
or loses money. Another class ofborrow.
ers are the land speculators. Still another,
those who 60 in debt for extensive I'M
provements, such as fine houses, fine
stock, and variety Of such illigitimate
expenditures; illigitimate because the
parties go in debt for them. As sarule, no
man in regular business, regularly pur.
sued, suffers from usury. Those who
are spread out immensely, whether in
town or country, do suffer. This is the
great trouble with the country. 1t
is the trouble that led to the panic. The
business of the country was being done
on a spread out credit basis. People
spent their own capital in business and
went in debt for more. As long as the
spreading ont process could go on-which
wa, only as long as the grand confidence
necessary 10 swollen credit business ex-
isted-everything was lovely, and every
body could pay their interest. But when,
all at once, confidence snapped asunder,
andevery body wanted what other people
owed them, there came crash Of values.
Then it was that people wanted money
instead Of railroads, or wild lands, or
blast furnaces, steamboats,, factories, or
the numberlCss investments into which
borrowed money had gone.
How is the country to work out Of this
unfortunate condition. By the same
processes as in 1887 and 1857. That is,