The midland journal. (Rising Sun, Md.) 1885-1947, 1898-08-05
rIoney Lending.


I.oaning for interest is now reaching
enormous proportions-in fact, it is now
where it was two thousand years since
just preceding the horrible cataclysnl, in
which all existing institutions were torn
asunder.
| The philosophy or logic of this divine
inhibition of taking interest on money
may be boiled down to two propositions.
One Of them is this: The profit from
money lending,-on the capital invested,
dollar for dollar, is about double the
average profits of all other business; and
that being the case it is only question of
time when the business that absorbs
profits over all other business, has taken
to itself the wealth of the world. 1t may
require only one century, or two or three
centuries may be necessary, but rolling
like gathering SNOWFALL, it gets there.
Starting i'll the sixteenth century, under
legal rate" and spreading to all the
world by the close of the eighteenth
century, we find at the end of the nine
teenth century-less than three hundred
years after the first breach was made in
Gods covenant-that it has reached
crisis that again threatens the peace of
the world
The reasons why its profits are so great
as compared with other pursuits, is, that
the risk is small. The money lender on
private property usually loans only to
about 40 per cent of the value of the
security, and takes first lien. He also
requires insurance of the property, if per-
ishable. The borrower takes all risks
The farmer and merchant and all those
who make their living 'by the sweat of
their brow" are subject to loss by storms,
fire, drouths and other vicissitudes, but
none of these affect the money lender.
1t is said by statistical writer's that outside
of the money-lending profession, only
about S per cent of all men engaged in
business get through life without failing.
Of those who have exclusively devoted
themselves to money lending, the failures
are comparatively lew.
The other reason why the loaning of
money for interest may be claimed to be
poisonous and deadly to civilization, is
this: Money flows in and out of banks
like water may flow i'll and out of res
ervoir, and each time it comes and goes,
under money lending, tribute may be
imposed on those who get it, till the
amount drawing interest is far in excess
of the total amount of money in existence. |
You may hire horse to some one, or rent
farm to tenant, but the transaction in
each case stops with that. You cannot
hire out more horses than there are in
existence, nor can you rent more farms
after all the farms have been rented. |
Not SO, however, with money. The re-
port of the National Treasurer at Wash
iugton on banks, national and private, !
compiled from the reports Of these banks, |
shows that they have loaned out and are
drawing interest OH over IS, DOC, 900, 900,
whereas there are only 81, soc, 900, 900 of
money all told i'll the United States. Nor
do the banks by any means constitute
more than a part of the money lending
people; the life insurance and trust COM
panies come next, with foreigners the
largest class of any.
1t will thus be seen that the hiring of
money for interest is not, in effect, like
hiring farm for rent and that it can 60
on growing till not only every dollar in
existence is bringing tribute ofsay per
cent to the money lenders, but by being
loaned over and over again, it is loaded
with tribute amounting to many times S
per cent. Industry must pay this tribute
Those who live by fixed incomes" in
terest, do not produce a single blade of
grass, but live off Of those who labor or
who are engaged in the varied industries
OF the country. There is all exception to
this In the mad whirl for money lend
ing, now reaching its climax, many peo-
pie who labor are loaning their money to
savings banks; and thus, innocently, ell.
couraging the withdrawal of money from
"''iHSSSj SASCpt lndl II De uSeu by DOR
it remains boarded
and is withdrawn from business diverted
from the veins and arteries of trade,
bringing panics and loss of employment
to those same laborers who assisted in
the money-lending business.
In the history of money lending there
comes time when the great volume of
Indebtedness begins to decrease-but it
decreases by liquidation. When climax
is reached, no money for industries and
millions to loan, prices of all property
decline and the owners of fixed incomes
become the owners of all property. The
idle have destroyed the industrious and
come into the possession of their property.
With the situation thus critical, the ques-
ton may be asked of the people, "What
are you going to do about it?" and
Where are our statesmen ?"-Patrioks'
Bulletin.