The independent. [volume] (Lincoln, Neb.) 1902-1907, 1904-06-09

sue Oh Inc lHuepGHucHl w liz Ivy !" ON@
Buckley says: Il defy any man Nv
ing to name, not a score or Two, pul
ONE economic social i'll which tlc
abolition Of interest would not cure.
/ have not saved The Independent
containing Mr.. Buckley's article, and
therefore cannot criticise 1t as | would
like, still think | can point out at
least one or two social ills that 1t the
abolition of INTEREST," would not cure.
Mr.. Buckley will probably admit
that poverty is social Ill and | viii
undertake to prove that the abolition
of interest will not cure poverty. If
there were rich men willing to lend
their money without interest they
could do so, and II they were able and
willing to supply all the money re-
auired by borrowers who had good
security to offer for the return OF the
principal, interest would be abolished
Would that abolish poverty? Inter-
est is not the only tribute levied on
production, rent would still exist, and
as civilization advanced and popula-
ton increased, the tribute exacted by
the landlord would increase. AS the
usurers could no longer get interest
on their money they would buy land
with 1t, there would be far more laid
speculation than at present, rent
would be higher, wages would be lit
tie II any higher, and poverty would
still exist.
The abolition Of interest would not
give us ~ scientific system OF money,
trade would often be paralyzed for
want of sufficient money to carry on
an increasing commerce, and at other
times we might have imitation. No
one who objects to interest can con-
sistently uphold rent, for no objection
can be made to interest that does not
apply with at least equal force to
rent; while there are objections TO
rent that do not apply to interest.
Some people claim that all things
are good, and that things that appear
to be evil are good things misused.
Whether that theory is true or not !
think 1t is true of rent and interest.
AS long as we allow private parties
to appropriate rent, we will have
wealthy landlords living in idleness
on wealth produced by others; while
the poor will either be working for
small wages. or be idle for want OF
opportunities. The remedy is for gov
eminent to appropriate ground rent
for revenue; 1t is a fund that belongs
rightfully to all the people, and should
be used for the benefit of all the peo-
pie. .
When this is done, rent, instead OF
being a social evil, will become So
cial blessing. The community has a
right to rent, but 1t has no right TO
interest on money earned and owned
by individuals. 1t has a right, how
ever, to interest on money issued by
the government. If the government
would issue money at low rate OF in
terest. the whole people would receive
a large revenue that now goes to
swell the fortunes Of bankers-who
have no right to it; and the persons
who would borrow the money would
get 1t on better terms than they other
wise would.
81 Attempts have been made to reg
Mate interest by laws prohibiting peo-
pie from charging more than GER
tain rate, but such laws have always
failed to accomplish the purpose for
which they were passed. The rate OF
interest depends upon the supply and
demand of money; and the way for
government to regulate the rate OF in
terest, Is TO increase the supply OF
money whenever the demand increases
aud to decrease the supply when the
demand dlminishes. This can be ac-
complshed by fixing a low rate OF In
tsrest and supplying the demand at
that rate 10 all who could give good
security. III that was done II would
be unnecessary TO interfere with lndi-
viduals loanlng money. for no one
would be compelled 10 borrow from
them al exorhltant rates, and they
could never get more from people with
good security than the government
rate; hut Whenever there was slight
excess ~ money In circulation private
parties would offer loans al less than
the government rate. and so prevent
imitation.
III this waa done. interest. instead OF
being Il social evil as Il II al present
would. like rent under the single tar.
a. f5f AZ