The Black Hills union. [volume] (Rapid City, Pennington County, Dakota [S.D.]) 1889-1904, 1890-10-23
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HV1uu Itdoy ~ d U8LIOUs Is b p0Opl0s
as'a government, to loan the peoples
money at the rate Of interest declared
to be national legal rate. This system
OF finance would establish a monetary
yardsttck or measure OF values, which,
like eur t1easufp OF length, while
pessgssihg no intrinsic value Id itself,
would nevertheless hate ali estab
lished; hhvaryihg legal value:
Nova few ideas up6h the stib3ect
III interest, pure add simple:
The basic Inquiries Into The mAttet
and theory OF interest are ~ to whom
Is the interest payablea and ~ what
Is Che rate Of interest? II the interest
Is payable to individuals and is above
a certain rate, then 1t becomes only a
question OF time, under certain con-
diti0ns, al to when such individuals
will absorb all OF the material wealth
OF the nation. But If the interest is
payable to the people or government,
then such interest simply takes the
place of:other forms. OF taxation for
and in osslss,Sppfessss TIE iR1idaai:
II, however, the interest, is payable to
individuals, then the whole argument
recurs to the rate OF such interest. II
such rate of interest, paddy any given
community, be 1t township, county or
state, to individuals; is greater than
the average per cent. increase of wealth
in such community, then the interest
gradually absorbs the principal. or Sc
curityr. e., the material wealth-and
1t Is only q question Of time when the
whole Of such security, or wealth, will
belong to the individual to whom such
interest is paid. II, however, the rate
of interest Is less than the average per
cent: ihGfeasg Df material wealth in
that the individual receiving such in
terest grows richer, yetthe community
also grows richer, to the extent that.
the increase in material wealth is
greater than the rate of interest paid.
Now let us again emphasize the
original proposition, viz, that rent,
interest and profit are but different
names for the same factor. What is
the average rate per cent. of increase
in national or communal wealth?
Three per cent. Very well. Then il
money bears a rats Ofinterest, payable
to individuals, greater than 8 per
cent, 1T is only a question Of how long
time must elapse before the individu-
ais to whom such interest is paid will
own all the material wealth, land in
Guided. Herein lies the weakness of
the single tax, Several prominent
single takers lave paraded formidable
arrays OF figures to prove. that the
single tax would yield or provide suf-
fcient revenue. These figures were all
based upon a twenty years. purchase
valuation. In other words. they were
based upon a prospective current ma.
tional rate of interest Of 5 per cent,
and it would appear that at any less
rate of interest the single tax would
not provide sufficient revenue. Now
| positively assert that if money,
loaned out OF invested in buildings,
merchandise and the 'means of pro-
d%uction." is to draw 5 per cent. inter
est, then inevitably those VINO now
own the money will within a certain
length Of time own all the material
wealth of the nation, in spite of the
single tax. Interest at S per cent.
absorbs the 8 per cent. increase in
material. wealth and 2 per cent. each
| year Of the wealth existing the veal
| before:
Butsuppose the people or nation loan
to the individual moneys at cost of issue
and handling the business, say at /
| per cent, and no Individual can OBJ
tain more than l per cent. for money
secured by such security as the govern
ment or people would be willing to ac-
cept. What then? Simply this: Rent
and profit must at once drop to l per
cent. also. All values of properties
and businesses are estimated to be
the value or amount of money upon
which they will pay the average legal
rate of interest. If the ruling rate of
interest upon money is l per cent, then
rent that will pay | per cent. upon the
cost of land and building would BIZ
accounted a good rent and the property
a fair investment at it's cost. With
rent, interest and profit at l per cent,
and the ownership of the means OF
production only returning an income
on the cost of ownership OIL per cent,
labor would be fieeced by those -four
factors of but l per cent. of its products
or earnings. Then with the hours OF
labor shortened 81 as to give all EN-.
ployment, and all natural monopolies,
such as railroads, telegraphs, water:
works, electric-light plants, ETC., ETC.,
owned by the people and operated at
cost how far removed would we be
from a perfect system of political
ecOnomy?: And the first step is not
the single tax, but a bill providing
for government loans to the people at
! per cent. GEO. C. WARD.
Kansas City, Mo,