The Kinsley graphic. [volume] (Kinsley, Kan.) 1890-1940, 1891-10-09

An Increase in ths Volume OF Currency
WIN Not Destroy UaurT. which De- the
Power Of Money 60 upprcaa-
The issue befors the people Of this
country is, ''the power of money 60 op-
prsss;" the question TO be decided Is,
which shall rdle, man or the almighty
dollaF-labor or usury2" The object
to be accomplished by this peaceful
revolution Of the people is: The reduc-
tiou of the legal current rate of inter
est on capital to such a point as viii
give labor @ fair aud Just portion of the
wealth which is their joint prodUctoui
This Is the fight ala else Is but rubbish
and side issues The rate Of interest
upon money Is the basis OF all calculH-
tions, and usuFy is at the bottom Of all
schemes OF oppression and spoliltiou.
I will formulate a few proposition
which all aLiancemen should commit
to memory;
1. The average net annual increase
in wealth IS about four per cent in the
United States
.. such net annual increase I'm wealth
represents both the earnings of capital
and the savings of labor.
If the prevailing current rate of in
tersst Is four per cent capital gets ali
while labor gets none If the rate of
interest is in excess OF four per cent
such excess must be paid by labor out
OF the wealth IL possessed at the begin
ming OF the year.
4 Whatever the interest is, less than
four per cent, such less amount is left
in the hands of labor as its share of the
net annual increase OF wealth
5. Hence we conclude that If interest
should be two per cent, or half the net
annual increase in wealth, labor and
capital would divide such increase
equally between them. If interest is
one per cent labor would get three
fourths of such incroase and capital
one-tOurth
No amount OF manipulation as to the
volume of money in circulation, such as
a heavy imitation, or the provision of a
supplemental or flexible volume of cur
rency, can, by any means, effect the
needed reform The volume of currency
has nothing whatever to do with the
rates of interest except, indeed, that an
| imitation, up 70 a certain limit. would
/ have tendency to raise rather than
/ lower the rates of interest
Capital is stored labor, or tho surplus
savings of labor. Consisting of many
several small sums, in the aggregate it
I represents the net surplus savings of
/ wealth producers and distributors.
/ These savings are now deposited in
I private banks aud loaned by such banks
/ at rates of interest ranging from eight
/ 20 twenty-four per cent, of which the
/ depositor, labor, gets three or four per
/ cent The residue goes to enrich the
/ bankers But if it is true. as IL Ger
/ tainly must be, that labor produces all
I wealth, then it is clear that labor pays
/ not only the interest, which stands for
/ the bankers profits, but also the inter
/ est received by itself. which is sup
| posedly paid by some one else. Labor
/ pays all interest.
Almost all business and productive en-
] terprises are carried on with borrowed
/ capital, such capital being tho savings of
( labor Whatever interest is paid by pro-
moters and eNpioiter5 is in reality paid
/ by labor in the end. SO thatit is virtually
! in the best interest of labor that the
/ rate of interest on money is as low as
| possible. The people, as q government
| must assume the banking functions, and
/ the banking systems of the United
/ States must be uationulized in the
] interest of the whole people. Labor
[ must be assured of an absolute secure
! place Of deposit for its surplus earnings
and a low rate of interest thereon.
/ borrowers must be enabled to secure
capital at the actual cost of the bank
I ing system, added TO the interest paid
] depositors- Not one class but all
/ classes must be the benedciuries of the
/ peoples banking system.
GEORGE C. WARD.