Spirit of Jefferson. [volume] (Charles Town, Va. [W. Va.]) 1844-1948, 1878-11-05
THE EFFECT OF USURY.

"Money is legal representative, and
serves TO f.r an income, but NOT to produce
wealth. Loan it twenty or thirty times when
interest is high, and every time it is lent it
makes an income Tor the lender for longer
or shorter period, which innpOvertxhes the
borrowers because they must sell their pro-
ducts to pay the interest The principal
borrowed must soon be returned to the lenders
in interest, and the interest is reloaned to the
people, These high rates ofinterest serve to
make the people paying them, tributary to
few money holders among themselves and
in other States. For Few years previous
to 1851, the State of Wisconsin made all
rates of interest legal that is, the rate Of in-
tercst was a matter of agreement between the
borrower and the lender. The consequence
was, that the rate of interest varied from IL
to 100 per cent, per annum. We arc credi-
bly, informed that the highest rate was, in
many instances, cxacted and good landed se>
curity obtained for its payment. Let US see
what effect certain rates of interest on money
borrowed abroad must have on the circula-
ting medium of the State. If the rate of
interest were at one per cent. and T., living
in New York, should lend $40 600 in Wis
consin at that rate, the borrower at the end
of the year, must send T. 500. The people
of Wisconsin would have SO 900 of the money
borrowed remaining among them a circuls-
ting medium But, if T. lend his money OF
twelve per cent. the borrower must send t.,
at the close of the year. ST 200, and but
$500 would be left circulating in Wiscon>
sin. If he lend at fifty per cent. the bor-
rover must duly send T. 5000 to pay the
interest, so that one half of the borrowed
money is returned to T. in New York, and
only So ZOO is left in Wisconsin. But il T.
lend tho $4,000 at hundred per cent,
per annum, tho borrower must send T., at
the end of the year, $4,000, and not one
dollar of it is left in Wisconsin. Still the
borrower would be indebted to T. for the
principal of $4,000. and, in another year,
would owo T. $40, 900 more in interest. It
would not take very large amount of money
lent at this and approximate rates by the
citizens of New York to those of Wisconsin,
to throw the balance of trade against Wis
consn and in favor of New York row, in
such case, would it be strange that money
should be scarce in Wisconsin whilo it was
plentiful in New York?
In the United States, if interest wero re-
duccd to one, or to ono and one>tenth per
cent. useful productions would probably in>
crease from twenty-five to fifty per cent
The wealth, instead of heing accumulated in
a few hands, could be distributed among its
producers large proportion of the labor
employed, i" LnHdi"g up cities, would be
expended in culiOotiny AMI beaufityin2 The
country Internal improvements would be
made to an extent and in perfection un>
exampled in the history of nations. ACri-
culture, manufactures, and the arts would
flourish in every part of tho country. Those
who are now non producers would naturally
become producers. The production tr0ul1
he o,oncd by those who performed the labor,
because the STANDARD 0f distribution (Which
is money! would nearly conform to the natu>
raj rights of man. Kellog page 1873 to lS5.
Will not the producing classes of the peo>
pie of the United States, under such facts
and reasoniDgs ns the above, open their eyes
and see the magnitude Of their 'Sovereign
money power And, that it should never!
no never! be transferred and farmed out to
corporations Mr. ga corner kept" in it for
the fornications and vile fuses" of usurers,
brokers, and shavers! No! this "Sover-
eign money powcr"-the power of all-tho
pewer of the nation should be instituted,
controlled and managed by the nation alone,
and for the equal benefit of all, as was do
signed by our common, National Constitu-
ton under that constitution, Congress
should do what it is injoined to debut
has never donc-to wit: Elk the value" OF
money for the use of all in exchanges. but
for the investments, usury, or merchan>
disc of none JNo. a THOMSON.
Summit Paint Dot 17th 1879