The anti-monopolist. [volume] (Saint Paul, Minn.) 1874-1878, 1877-08-16

per cent. and that this rate Will De
maintained so long as the bankers ana
Insurers retain control of the currency.
On the other hand, it is susceptible OF
demonstration that the average rate
of increase in the national wealth mas
not in the past exceeded three per
cent. per annnm, and it is certain tlat
it cannot exceed this rate in the fu-
ture, indeed, there are many reasons
why it should fall below 1t. The VI
tai issue involved in the present imam
cial controversy is not then SO much a
question of the quantity or quality
of the currency, as of the establish
ment of a more equitable standard OF
distribution on capital and labor.
Currency is only means to an END.
II our circulating medium were all
gold, and the volume as large as ltnoW
is, it could afford no relief to the bus
mess interests SO long as the present
rates Of interests are maintained on
lOanable capital. The industrial and
financial evils we are now experien-
cling are the legitimate fruits OF the
excessive cost of capital, and they
must and will continue and grow still
more oppressive until we are success
full in deviSing and adopting system
that will greatly lower and keep more
uniform the rate of interest Oh money
or loanable capital. This, it is claimed,
the adoption of the system Of a legal
tender currency, interconvertlble
with government bonds at the option
of the holder, will effect.
/ think it safe to estimate the
amount of capital upon which the in
dustrial classes are paying interest
| Outside of the national debit at 49,
900, 100000. Eight per cent. on this
sum would give as the annual cost OF
capital $640, 100000. Add to this
1876, 543 900, being the amunt paid to
the bankers by way of interest on the
the bonds deposited to secure the re-
demption of their currency. and you
have as the cost of their system $780,,
543,6 900. By the adoption of the
greenbaek system and the substitution
of legal-tenders for the banks curren-
cy, 100000, 900 of the bonds could be
paid ut par and the interest paid to the
banks saved. Then if the rate Of in
terest payable on the bonds with
which the legal-tender currency would
be interchangeable were fixed at three
per cent, which is fully up to the
average rate Of increase in the nation
al Wealth-and. therefore, above rath-
er than below the rate they ought to
bear-the rate in ordinary business
transactions, when the security was
undoubted would probably settle at
65 per cent. per annum, or | per
cent. per day on 500 provided money
is allowed to work on Sunday.) This
rate on S., 900, 100000 would amount to
800. 000, 900 yearly. Deduct this sum
from 1915 ,543 Goethe cost by the
bankers system, and you have as the
amount unnecessarily and unjustly
flched from the industrial classes
yearly by eXtortionate rates OF inter
each and every day in the year. This
will bring the industrial classes to the
hardest Of hard pan, and keep them
there just as long as they permit such
a system of legaliZed robbery to re-
main in force.
RELATIVE RESULTS OF THE SYSTEMS
IN THE PAYMENT OF THE DEBT.
! For this purpose | will estimate the
debt at $1,000, 100000, and assume
that it is all in bonds bearing PEG
cent. payable quarter-yearly and run
ming thirty years. Ii the bankers
system be adopted, the whole amount
of the debt will draw intere4t, which,
with the interest added to the princi
pal, according to the tenor of the bond
(allowing one fifth of one per cent.
for cost of collections, etc.. for thirty
years will amount 81 ,0O2. 900, 900. De-
duct the $4,000, 100000 of principal.
and it will have. as the accumulations
by interest, $4,000. 100000, which is
equal to two and one-half times the
principal of the debt. After having
paid this enormous sum. the whole OF
the principal will still remain unpaid.
Now. if the greenback system, or
peoples financial policy, he adopted,
| the old silver dollar restored and APP
piled to the payment Of debt. and
| 5000. zoo. 900 of legal-tenders issued III
| lieu of bank currency. we can pay at
par an equal amount of the bonds.
| This will leave to bear interest ST.
| loo. 900. 900, which, with the interest
computed as above for thirty years,
will amount to 1851 100000. De-
duet 81 100, 100000 Of principal and
YOU have as the accumulations of in
| terest in the case S2,751 200. 900.
Difference in favor of this over the
bankers system in the ofinterest
for the thirty years, S2,251 900, 900, or
$3.50, 200, 000-more than the principal
of the debt.
Again. if we should continue to col
lect the S8O,O0O,OOO yearly-the
amount required to pay the interest
in case the bankers system should be
adopted apply it to the payment of
the interest and principal of the ST.
100, 900. 900 that would be left to draw
interest in case the greenback or peo-
pies system should be adopted. the
interest and principal of this portion
of the debt would be Iquidated in
twenty years without any increase of
taxes in the meantime.
But should it be thought advisable
to retire the legal tenders after twen-
ty wears. it would be necessary to con-
Time the collection of the $50. 900. 900