Usury Part 10

In another extreme case the service may be very small, reduced to the minimum, for instance, caring for the gold of another by locking it up in a fire and burglar-proof safe. For this simple service a comparatively small charge is made. But caring for the property of another is always some service that earns a reward great or small.

The nature of the service is not changed and the principle still holds when the deposit is made with a person who gives ample pledges for its full return; the principle still holds when the deposit is made in a farm and secured there by mortgage, making it safer than in the iron vault.

The true ethical principle, equity between man and man, requires that the holder of the property of another shall be compensated by the owner of the property for his services in caring for and preserving it. The amount of compensation depends on the difficult or favorable conditions attending its care. These conditions greatly vary, perhaps in no two cases are exactly alike, and so there can be no fixed price or rate at which one will receive and care for the property of another. The extreme limit of liberality permitted is that he may care for the property of another for nothing. He is not permitted to pay a price for the privilege. The revealed divine law, true ethics and equity and duty of self preservation forbid him. Perfect preservation of any amount, large or small, for any time, long or short, whatever the incidental advantages to the borrower, is the highest compensation a borrower is permitted to give for any loan. The demand for more than this by the owner is to be resisted as unjust and oppressive.

An express company receives a package of money for which it receipts and becomes responsible and agrees to deliver to the owner at some distant point. For this service it receives compensation in accordance with the amount of service. If the conditions are dangerous and the distance great the charge is large. If the conditions are very favorable and safe the charges are small.

If the amount of service is reduced to the minimum, in rare cases, no charge may be made. But that a price should be paid for the privilege of caring for and conveying it, is inconsistent with the management of an honest business. The purpose would be either to rob the owner of his wealth or to rob the employes of their services.

An insurance company undertakes to protect a property for a term of years, to a distant date. A rate is given for protection from a single element, as fire. If all destructive agents are included the rate is higher. The rate is higher for a long than a short period. All the business world recognize the value of this service and nearly every kind of property may now be insured. The premium is cheerfully paid by the owner of the property for the service rendered him. It is a real and valuable service to have his property protected, preserved, or restored, so that it cannot be lost before the distant date. It is conceivable that a property might be so indestructible that the risk would be practically nothing and a policy might be issued without a premium, but that a price should be paid for the privilege of protecting any property is utterly inconsistent with rational insurance.

Now usury presumes to reverse this ethical order and requires that the insurance company shall pay the owner of the property for the privilege of protecting it. Under usury the property given into the care of another, and called a loan, must be perfectly protected and preserved by the borrower, restored if lost, and returned in full to the owner at the agreed distant date, and a price paid for the privilege of performing the service.

The true ethical principle and equity in the relations between the owner of a property and the one who holds, protects and preserves it, require that the owner shall render to the holder a just compensation.

This will vary in different conditions, it may be very small, it may in rare cases be entirely eliminated; but they also utterly forbid that the party rendering the service shall pay for the privilege of serving.

One may submit to an injustice in order to gain an advantage. He can do better for himself by submitting than by resisting. His employer may be hard and oppressive but this is the best job he can get and he holds on, but that does not justify the oppressions of the employer up to the breaking point. It may be to the advantage of a borrower to submit to the exactions of usury, that is, he may gain more wealth by borrowing upon interest than not, but that does not relieve usury of its oppression up to the breaking point when it can no longer be endured. There is no better ethical basis for low interest than high interest. Low rates of interest are oppressions that may be suffered or endured for a possible gain, but high rates are intolerable. The principle is the same whatever the rate of interest, whether it be low or high. They only differ in the degrees of their severity.

CHAPTER XX.

WEALTH IS BARREN.

That wealth can produce wealth is the a.s.sumption of Shylock.

Shylock--"When Jacob grazed his Uncle Laban's sheep-- This Jacob from our holy Abraham was The third possessor; ay, he was the third."

Antonio--"And what of him? Did he take interest?"

Shylock--"No, not take interest; not as you would say, Directly interest. Mark what Jacob did." * * *

Antonio--"This was a venture, sir, that Jacob served for; A thing not in his power to bring to pa.s.s-- But swayed and fashioned by the hand of Heaven.

Was this inserted to make interest good?

Or is your gold and silver, ewes and rams?"

Shylock--"I can not tell; I make them breed as fast."

--_Merchant of Venice._

It is only intelligent energy that can produce wealth. Even the natural resources must be subdued and shaped by intelligent energy to be of service to man. Trees do not betake themselves into the form of houses. Land does not transform itself into farms and gardens. Coal does not come to our fires without hands. Ore is not iron, nor is clay pottery. They must be carefully manipulated by the intelligent laborer.

Nothing man can make has the power of self propagation. All wealth is as barren as silver and gold, though Shylock claimed he could make them breed like ewes and rams. Life alone is productive, and the secrets of life man has not touched.

A tree or animal grows by the life that is in it, but the accretions of wealth are from the efforts of intelligent energy outside of itself. Wealth is an effect, a result. The vital energy of a person, of "a willing intelligent being" produces wealth, but it does not follow that it has the qualities of its cause. It has no intelligence, nor has it self-determining power, nor is it vital, nor has it energy, it has not in itself the force to overcome its inertia, the energy must be applied. It has no power to increase or grow. A fortune is built, as a building is built, brick after brick is added by intelligent hands.

All wealth must have the living hands applied to cause it to increase even the smallest amount. There is no such thing as "productive"

capital. It is so called when it is used to gather and appropriate the earnings of others, but wealth in none of its forms has the quality or power of producing.

Money, the most familiar form, is barren. A bag of dollars stored for ages will not have increased a single coin. No one holds or handles money on the a.s.sumption that it will increase in his hands. Money is a care, and the broker who holds or handles it relies for his compensation, not on the increase of the dollars in his hands, but on the increase from some producer to whom he lends it. If there is no borrower he takes a direct commission from the amount itself, as trustee or administrator or custodian.

Money is readily exchanged for any other property. Money has a number of functions but in exchange it is a medium by which the value of articles is conveyed. It takes the place of the bags which conveyed the wheat, of the crates which contained the potatoes, of the baskets which carried the peaches, and the wrapping which held the cotton or the wool.

Col. Irish, who was chief of the Bureau of Engraving and Printing at Washington, when he died, and under whose administration the present building was erected, at one time sent to the wife of the writer a ten dollar bill, wrapped up so that it looked like a picture, cabinet size; this was accompanied by a note, to be opened first. In this note he said he took pleasure in sending her an excellent likeness of our late lamented president, which he would be pleased to have her accept.

If she should prefer it in some other form, it was a peculiarity of this likeness that it would change instantly at the will of the holder into any form desired; that this was the peculiarity that troubled him, as he had been unable to decide what would please her best, and had finally decided to send it in this form, and let her change it into any other she might like better.

Money is a peculiar medium which will hold and carry the value of anything. You pour in your wheat and take it to the merchant, who empties your wheat and fills it with clothes, he carries it to the dealer in any article needed and the vessel is instantly emptied and refilled.

The values of the products of laborers in the various occupations of life or the products of the various climates are thus readily exchanged by money, but the gain is not in the money. The art in trade is to study and know the products and needs of the laborers of one cla.s.s or country, and the varied products and needs of the producers of another cla.s.s or local community. The skill in trade is in supplying the needs of one from the products of the other.

The profit in trade is the gain from securing for an article a greater portion of the product of those whose needs are supplied, than was given to those who produced it. The harvester cost the manufacturer twenty days' work. The farmer, who needs and purchases it, pays forty days' work for it. The farmer may produce one hundred bushels of wheat with twenty-five days' work, but the mechanics in the city, who need it for bread, may give twice that amount of labor for that quant.i.ty of wheat. There is a wide field for skill and profit in trade, when the products and needs of all cla.s.ses and all lands are considered. But money does not add to wealth in trade. There is nothing produced by it in trade. It is but the tool by which values are conveyed, and no more productive than baskets or crates or sacks. Intelligent energy produces all the profits that are secured by trading.

Modern apologists for usury, knowing that money is unproductive itself, call it a tool for production, and as it can be readily transformed into any tool, they try to avoid the logical conclusion that the taking of interest on money is unjust and oppressive to the producer.

But no tool is productive. All tools are but the reaching out of man for the better control and mastery of material things.

The tool is but dead matter; the productive efficiency is in the vital energy of the intelligent laborer. The most complicated and ingenious tool ever made is useless without the operator. It is as helpless as the wire without the electric current; as helpless as the body without its life, for the body is but man's tool, preserved, and kept efficient, and made productive, by the living energy alone.

Tools are but the reaching out of the vital energy beyond the body.

Tools are but the means, invented and constructed, by which the man can overcome his physical limitations and accomplish wonders, the impossible to a creature wanting in his intelligence.

These gla.s.ses enable dim eyes to see clearly. There is no ability in the gla.s.ses to see; they would be of no use on blind eyes. I see, these spectacles cannot see. Enlarge and so place these lenses that I can see bacteria, or the mountains of the moon, yet this microscope or this telescope has no more life nor sight than this single lens. I, with it, see the minute creation or examine the distant planet. It is but the extension of my eye.

This pen and paper and this book are but the means by which I reach and reason with my fellow-men. They are but my tools to convey my thought. I am reasoning with you, not this paper and ink.

My hand is the natural tool with which I labor. I may work in the garden and plant the seed and destroy the weeds with my hand alone, and there is no dispute but that I do the work. I take a small weeder in my hand and greatly increase my efficiency. I take a hoe and reach out further and greatly add to my efficiency. I am the efficient agent. There is no power in the weeder or the hoe. I take my plow, as my tool, and I tear up the soil and prepare it for my harvest. I take the complicated harvester and gather it into my barn. In every part of that process the tool is but the reaching out of my energy beyond my body. There is no place where that tool becomes vitalized and productive.

I am a porter, I carry packages in my hands. To increase my efficiency I build me a cart, and smooth a roadway, by which I am able to carry more and heavier packages with ease. I construct a roadway across the continent, and with the power which I employ I carry the commerce of the nation. I build ships and direct them from continent to continent and handle the commerce of the world. Now there is no place from this simple carriage in the hand, to the complicated and stupendous system of transportation, where the tool is not wholly dependent on the vital intelligent energy.

When the vital principle leaves this body, then hands, eyes and the whole body is helpless. Withdraw the vital energy from these means by which man extends his power beyond the body, and all the implements of agriculture will not produce a harvest, and the wheels of commerce on land and sea would instantly stop.

There is no place in the most complicated machine where it begins to produce. The machine may show the greatest ingenuity in its invention and the perfection of skill in its construction, and the intelligence necessary to its operation may be reduced to the minimum, yet no where and at no time can it produce of itself.

When a criminal is arraigned in court the responsibility is placed upon the person, the intelligent energy, always. It matters not by what tools the burglary or other criminal act was committed. The man who handled the tools is held accountable for the results. His tools may show the greatest ingenuity and the highest skill in their construction but they do not share his guilt. He is the efficient and responsible cause. If this were not so justice could be so perverted that the preservation of the order and the security of society would be impossible.

Every tool is itself produced, and its maker must be rewarded or paid once, but there the claim for the tool ends. The laborer who constructs the machine cannot demand repayment over and over. The skilled mechanic who produced this pair of lenses must be paid, but he has no claim for second payment. To secure repayment he must make another pair. The maker of this pen and this paper must be paid, but that ends his claim. The maker of the hoe or cart or engine must have the reward he has earned, but can prefer no second claim.

There is no question when the laborer makes and owns his own tool. The labor of constructing the tool must be rewarded as well as the laborer in its operation.

When the tools are complicated and require the skill of many, the makers of the machine are usually different persons from the laborers who operate it. In this case the payment of all must come from the finished product. Those who constructed the machine and those who operate it must be paid by the consumers.

If the shoe plant is built and operated, then from the shoes produced must come the payment for all. The workmen who built the plant and the engines and machinery for the manufacture of the different parts of the shoe, must be paid by the consumer of shoes. The workmen who built the plant must be as fully compensated as those who operate it, but being compensated, they have no claim for recompensation for the same work. To be paid again they must build a new plant. The operators must be compensated for every shoe they make, but they can not reclaim payment over and over again. To receive more pay they must make more shoes.

Both cla.s.ses of laborers have a right to full compensation for all the labor performed. Neither party has a right to demand a second payment for the same labor.

It would be manifestly as unjust for the constructors of the plant to compel the operators to pay them over and over again, as it would be for the operators of the machine, having supplied the community with shoes, to demand payment over and over without making another shoe.