Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1893-03-15
NO. 43
THE CURSE OF usuRY.

no scarcity OF money be induced, vet
legal rate of interest of per cent per
annum will inevitably concentrate the
wealth in few hands
To show that interest at per cent.
will accumulate property far more rap
idly than it can be earned by abor, sup
pose nation of one thousand individ-
uals We will use this miniature ma
tion in illustration, because the opera
tion of the laws will be more readily
seen upon SO small a community, but
the effects would be similar upon a
great nation. The thousand persons
settle in a new country and engage
In various occupations, agricultural.
manufacturing, mercantile, etc. At
the settlement of the colony, we will
suppose the colonists to be worth an
equal amount of property, so that one
shall possess no superiority over auoth-
er. Each pursues some lawful and
useful business, without entering into
any speculation whereby fortune may
be gained without labor No one has
any means of support besides actual
production, except the legal interest of
per cent on money loaned, or rent
at the same rate on money invested in
property. All are diligent in their sew
eral occupations, and thus each con-
tributes to the general we'll being
Two mechanics, just come of age, are
desirous of ofaccumulating large fortunes.
They are good workmen, and each is
able to earn a dollar day over and
above his expenses Every six months
they loan the money thus earned at
per cent interest, the interest
payable half yearly. They set their
affections upon becoming rich. and
therefore, do not burden themselves
with house and family. These men
earn an average of dollar day, be-
sides their expenses, three hundred
days in each year, during forty years
and four months Their age is then
sixty-one years and four months Each
earns by labor $500 per year for forty
years, or, for the whole period, $12, 100
together, S24, 200. The interest on their
earnings, loaned half yearly, for period
of forty years and four months, accumu-
lates an amount which will be seen by
| reference to the following table. In
terest at per cent per annum,
paid and reloan ed half yearly, accumu-
lates sum equal to the principal in ten
years and one month.
Here follows an elaborate table,
| showing the accumulation of wealth,
resulting from the investment of $3.50
every six months at per cent, COM
| pounded semi-annually, amounts to
the enormous sum of $12S, 750.TO, of
which sum S24, 200 is earned by labor
and S104, $50. 20 the result of interest
Suppose the two men live twenty
| Wan, 4 L., =
to the age of eighty-one years and six
months-and continue to loan their
money? During this period it would
| double twice.
Thus .s12s, $50. 20
| 10 years and months interest. 49,. 128 $50 20
257,5ol 40
I'd 10 years and months Interest,". 257,5oL 40
Total accumulation in 50 years and
months. OBSERVATION-DISCLOSURES. Bib 002. 80
| The two men do not labor during the
last 20 years and months, and ex-
| pend for their living during that
period ............................ 150o2 80
500, 600 %
| In 40 years and months they earn by
labor s24, 900. and live 20 years and 2
months on their money without la
Dor.
Subtract money earned by labor...... "a 10000
| Remainder accumulated by interest
on S2i,20l ............... Sf75 800 90
Every dollar of the S475, 500 is earned
by the labor of others and given to the
| two men, as the legal interest upon
$24, ,000 These men live laboriously,
| and work for a very moderate compen-
| sation. They take only the legal rate
of interest, and do not demand the
principal of the money as long as the
interest is paid. Neither do they enter
into any speculations- 1t is, therefore,
said, that labor earns their large fort
unes. Cases similar to this are often
| brought to prove that an industrious
man may, by his labor, accumulate a
large property That this conclusion
is erroneous, is manifest from the fore
going table, by which it appears, that
more than nineteen out of twenty parts
of the large fortunes of these men are
earned by others, and paid to them to
satisfy the legal interest on their loans
of money.
Now let us suppose the interest on
money to be one per cent, and, with
this difference only, these two men to
be placed in the same circumstances in
which they have been already de-
scribed They earn over and above
| their expenses a dollar day, three
hundred days in each year, during a
period of forty years and four months.
They loan their earnings at the legal
rate of interest lone per cent?, and
collect and reloan the interest half
yearly.
Here follows table showing that
at the age of 81 years and months,
with interest at one per cent, the two
men would have but S21, ,343, or 81, S57
less than they earned by labor in the
/ first forty years and four months, all
of their accumulated interest and 81, s57
of their earnings being required for
their support during the last twenty
years of their lives A difference in
favor OF one per cent interest of S47S,-
Csc.
Let us now suppose another case, of
two men who become of age at the same
time as the former two. and who are
equally good workmen. They likewise
earn dollar per day above their own
support, but they marry and have the
expense of supporting their families.
Each rents house at 800 per annum,
and thus one-third of their surplus
earnings is paid for tenements Their
earnings must also supply their fami-
lies with food, clothing, fuel, etc Al
though these two men work as dill
gently and earn as much as the former
two yet, instead of being able to lend
money upon interest, they are obliged
to pay interest on the houses they oc-
cupy. Strict economy is requisite to
make one dollar day, over and above
their personal expenses. school their
children, pay rent and furnish
necessary supplies These two
men labor as much as the
former two, and contribute at least an
equal share to the public good. All
their earnings are devoted to the pay
ment of artisans, teachers and others,
whose services they require. The
former two, without pertorlaing more