A cityless and countryless world : $b An outline of practical cooperative individualismOlerich, Henry
Science
A cityless and countryless world : $b An outline of practical cooperative individualism
Olerich, Henry
Cooperation; Social problems -- Miscellanea
injustice of the varying purchasing power of your dollar.
“Since I came to live on earth, I got acquainted with a very
industrious and frugal person, who, in 1869, purchased, on credit, in
the state of Wisconsin, a _$6,000_ farm. It is now over twenty years
since he began to pay for it, and he has succeeded in paying about
$4,000 of the principal and over _$6,000 interest_. He, therefore, owes
still $2,000 of the principal.
“Now let us not forget right here that wheat in 1869, or thereabout,
was worth about $2.50 per bushel, and, as a whole, all other things
in proportion. This man, then, bought the farm on the basis of $2.50
wheat. At this price, it would have required only 2,400 bushels of it
to pay for the farm. But soon after he bought the farm, wheat began
to decline in price, until, in 1890, it was worth only about 60 cents
or 70 cents. Now, as I have said, in 1890 this man owed still $2,000
on his farm. To pay $2,000 with 70 cent wheat requires about 2,700
bushels, 300 bushels more than it did to pay for the whole farm in
1869. So you see this man raised wheat for over twenty years. During
this twenty years he raised and sold over 6,000 bushels of wheat, the
proceeds of which he paid on his farm. Now if the contract for the farm
had read 2,400 bushels of wheat, instead of reading $6,000, he would
have the farm paid for _two_ or _three_ times over. But as it is, it is
more difficult to pay for now than it was when he began paying in 1869.
It required more bushels of wheat, more bushels of oats and potatoes,
more pounds of cotton or pork, more kegs of nails, more tons of galena,
to pay the balance of $2,000 in 1890 than it would have taken to pay
the whole $6,000 in 1869. But that is not all the loss he sustained.
His land, under your system of farming, is probably not as productive
now as it was twenty years ago. His orchard and buildings have decayed
also.
Public-domain text, read in full here on John Shaqi.
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