The independent. [volume] (Lincoln, Neb.) 1902-1907, 1904-04-28
ABOLIrIoN or 1NrRREsr

Our friend, Old Guard ]. H. Buck
ley. Of Berkeley, CAL, complains that
he has been advocating the abolition
OF interest for the past Is years ami
has failed to find single man who
cOmprehends or understands" it.
There is, of course, considerable dif-
ference of opinion regarding the sub
ject of interest, but If Mr.. Buckley
could get an honest expression from
some of the big bankers and finan-
ciers, he would find that they under
stand the subject in all it's details.
And there are plenty of men not
bankers who know the power of inter-
est to rob the producer Of wealth.
Some single takers hold that the
existence of private ownership of land
is the foundation of interest or usury.
All forms of wealth are subject to de-
terioration and to loss in value. Land
alone retains its vigor and in the main
constantly rises in value. They con-
tend, therefore, that it is the option. Of
exchanging wealth for land which
gives rise to interest. Deprived of
that option, the possessor OF surplus
wealth would be at the disadvantage
OF caring for it; he would find it de-
teriorating on his hands; hence, in
stead of being in position to charge
interest for the use of this, to the
owner, useless wealth, he might be
glad to even pay something for the
user to care for it and return it final
1y as good as new.
How much merit there is in this
contention, The Independent will not
now discuss, further than to say that
it deserves careful consideration.
The Austrian school of political
economy justifies interest substan-
TALLY as follows: Present goods are
more valuable than future goods-th
difference in value is interest. The
delivery of a hundred bushels of wheat
today, for example, is more valuable
to the receiver than the promise 10
deliver one hundred bushels of wheat
ten years hence, even after all ele-
ments of risk are accounted for.
The Independent is inclined to be-
lieye that the Austrian school is. cor
rect in this matter. The total aboli-
ton of interest is chimera. If A has
horse which he will not be using
for some days there is no good reason
why he should allow B to use it free
of charge. those days; yet payment
for such use would be interest
; There is a form Of interest, how
ever, that can be abolished and which
must be abolished, because there is
no reason Tor its existence. That is
the usury which the banking frater-
nifty draws from all wealth producers
under our system of coinage and is
sue of money. The breeder Of horses,
for example, has produced wealth; he
is a benefit to society. Whether So
ciety chooses to buy his horses out
right, rendering an equivalent there
for or by piecemeal in the way of hir-
ing them, is matter with which gov
eminent need not concern itself. And
although payment for the use Of
wealth of this description Is usually
called interest, in the last analysis 1t
is really form Of purchase and sale.
But the interest which the money
sharks draw from the wealth produc-
ers through our system OF coinage
and issue OF money is wholly diff
ferent matter. They are not produce
ers but absorbers. They render no
equivalent for the usury they draw.
All governments are carried on by
contributions OF services and commod-
titles made directly by small fraction
of the inhabitants. These services
and commodities are the real revenues:
II.