The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1897-04-06

Correspondence of The Progressive Farmer.
Much as I deplore the ravages Of the
liquor traffic, and the evils attending
the food of pauper labor that has come
here from Europe. and other public
sins, I believe that the evil of high in
terest which has characterized business
in the last 20 years rises paramount to
all Of them. It may be that in the
practice of usury, the morals of the
nation have not been poisoned to quite
the extent that some other deviatiOns
from natural law might have occa-
stoned; but the extent of suffering and
pauperizing has found it's favorite
method through usury. 1t only re-
quires a little mathematical calculation
to make the discovery that high inter
est is a magnet which draws all wealth
to one center; a mean of adding to
him who already has and taking away
from him who has not, sven that
he which has.
AS long as there is a corresponding
growth in the value Of real estate or
some product Of industry to equal the
rate of interest charged for the use Of
money, there is no particular hardship
worked against the victim Of usury;
but when shrinkage or business depres-
sion becomes a characteristic of bust
ness investments, the borrower of
raNno- honnV0no a candidate R0~ honH
ruptcy. This, to my way of thinking,
is the present condition of the Ameri
can people. They are overwhelmed
with deb, and are rapidly confiscating
their wealth because of high exactions
brought upon them through interest.
In one sense of the word, their con
dition is self inflicted and correspond
ingly not deserving Of excuse or pre-
text; but in a stronger and more just,
though less philosophical sense, a great
lesson may be learned and a practical
remedy applied.
What we need now is to place the
barrier of restriction upon the elements
who are growing fat over the adverse
dition of the balance of their fellow
countrymen. The first step in this
direction is to lower the current rate of
interest. This a be done in two ways;
to wit: by making a legal restriction,
and by the establishment of a postal
savings system. The first method has
proved unsuccessful because the re.
striction was not brought low enough
and because men found loop holes
through which to evRde the law. The
savings system should make it possible
for money to be borrowed at 2 and not
to exceed 8 per cent. and would there
fore force down the rate of interest in
this country to its proper sphere.
! While such a movement is directed in
the interest of the borrower, it will
be readily apprehended that he is the
most needy element of the two, and
should therefore be favored by the law,
except in seasons of boom, discovery
and speculation, money cannot nor
mally be worth to exceed 2f per cent,
and all elsa charged above that rate
becomes q form of exactiOn.
Another step essential to mitigate
the evil of high interest is to add to
the circulating medium. This will les.
sen the demand for money and cores
pondingly enhance the value of such
products as are interchanged for
money. The contraction of the circu-
lating medium is the pet method of
usuers fore-closers and bankers to get
their victims by the throat. We
should not however make a mistake in
allowing the remedy to stop with the
minting of more money; but should
Immediately take measures to establish
the savings system; and incorporate
the Government with the right to Dor
row and use money from and for the
people at a low rate of interest.
Opposition to this issue will ofcourse
wax hot, just as it has done toward free
silver; and the cry will be raised of
Government infringement upon legiti
mate business and the old method of
appealing to the courts to carry on a
nefarious tram3 against the best inter
ests Of the people will be resorted to;
but we must seek to impress upon the
constituency the vital truth that a
Government whose prerogative is to
elevate the people and offer equal
!! rights to all and special privileges to