The Kimball graphic. (Kimball, Brule County, Dakota [S.D.]) 1883-1905, 1886-05-21
What Low Interest Means.

IL Is an exceedingly short-sighted
view of the situation which attributes
the low rate of interest at which Ohio
has just been able to borrow MONEY to
any Improvement in the credit of that
state or anything in the political COM
plcNion of its government. The credit
OF a great state like Ohio is on 100
stable a foundation TO be varied by any
oscillation Of majorities to one side or
the other. The security which such Il
state oilers is absolute; and the rate of
interest it is called upon to pay demands
wholly upon the relation borne by the
amount of money seeking investment
to the opportunities for safe and re-
munerative investment.
The real cause of the low rates of
interest Oh Ohio bonds and other secu-
rites of un~questionable ~soundncss and
value is the lack of opportunity for safe
investment in enterprises which pro-
duce a better return. The unsettlcment
OF the industries of the country has
made capital exceedingly cautious. No
one cares to put money into an enter
prise. no matter how promising on
paper. with the chance that Il strike
will block the wheels before they have
well begun to turn, OF that an advance
III wages will make contracts, profit
able when taken. only performablc at
a loss. And this is the condition very
largely of industry all overt the country.
The factories which are running dare
not look ahead in the matter of taking
orders; and the money which in a time
of business stability and certainty would
build other factories, lies unemployed
in the banks or comes eagerly forth to
snap up any security at whatever low
rate of interest which involves the
minimum of risk and uncertainty.
1t is this general uncertainty as to
Industrial investment which accounts
for the use of so much capital in real
estate and building. To the surface
observer it looks like evidence of ex-
ceeding prosperity when men of wealth
are investing eargerly in land and
erecting buildings for which it is per-
tectly clear there is no present demand.
But the thoughtful observer knows
that tins does not mean prosperity.
be knows that such an investment has
only n thing to recommend it its
absolute safety; and knowing this he
knows that it means the very reverse
of prosperity. If productive industry
were offering any certain promise of
profit the money which is being sunk in
buildings which will pay little more
than the taxes and insurance for the
next five years-and possibly not as
much rs that-would be invested in
such industry.
These considerations lend force and
strength to the views which the more
conservative leaders of the labor organ
izations, and especially of the Knights
of Labor. are taking in respect to
strikes and labor disturbances. They
see c~learly--the Powderlys and men Of
like stamp-that labor is lust us much
interested in business stability as CAPT
tai possibly a be; that capital can do
as much injury to labor by sluggishness
and inactivity AS in any othcn fashion,;
and that any settlement of the labor
question which does not promise rea-
sonable security for investment in in
dustrial enterprise must be disastrous to
labor. Capital can be crippled; there
is nothing easier. But to cripple CAPT
tai is to cripple labor; and they are the
tru friends of labor who are urging
upon ii 4 wise. conservative use OF lis
powers in the place of Il wasteful exhib:-
ton of those powers.-DctroW Free
Press.