Nashville daily patriot. [volume] (Nashville, Tenn.) 1855-1857, 1855-12-10

/ it vas put upon its passage.- He felt salts
fed that tue people desired the enactment of law
establishing conventional interest, and he was in
4 favor OF as high rate as ten per cent on money
loaned. lie believed the Legislature had no right
to restrict the price of money. In buying and seh
I ing property, men were governed by the market
value Of the same, and in hiring farm the farmer
l paid sucha price only as he thoIght would make II
profitable to ninL The same principle ought 10
govern the trade IN money If it worth tea
( per cent toa man he ought not to be debarred
10y statute rom giving it; aud L it was worth only
four or five per cent, the law could not MAKE 1t
command six.
Mr.. Brown Of Madison, said the vote passing
the bill now before the House, should nos be recon
sidered. Two bills were introduced, and this bill
was reported by the Judiciary Committee in lieu OF
both the original bills
The first bill lintroduced by the gentleman from
Shelby Mr. lrtlett) fixes the legal rate Of inter.
est 1t six per cent, and authorizes any amount Of
interest to be contracted FOR and received. The pro-
visions OF this bin are Objectionable:
/. Because they are against public policy in per
hitting any amount of interest to be taken in
placing the poor in the power of the rict--n enG-
bling the money lender without check or hindrance,
70 take advantage Of tie uecesstous, or the emoar-
easements Of the citizen, and compel him to pay
more interest than money is worth, or more than
any man can pay without Inevitable ruin and insol.
vency-making usury lawful; and
2. Because the Legislature must 'fix the rate Of
interest," and the rate so established shall be equal
and uniform throughout the State" This bill does
fix the rate of interest-the hgat ilEsrest-but It
also authorizes conventional interest without fir
ing the rate, or requiring equality or uniformity
throughout the State, so that any citizen "may be
able to bring himself within the provisions OF such
a law" There is no maximum fGed-the money
lender may demand and receive any alHoaat-one
hundred per centum, or more, or So There would
Ibe no equality or uniformity under this aw-the
only limit TO the amount demlnded would be the
conscience of the money King, and the amount
paid would be measured only by the necessities OF
the citizen. These provisions therefore, against
the fundamental law of the State, and should not
be adopted.
The second bill introduced by the gentleman
from Weakley, Mr. Cavitt) fixes the legal rate OF
interest at six per cent, and authorizes any amount
of interest by contract not exceeding ten per cen
tum, on aoley actually ioa,,eE and prohibits the
Sharing OF paper at rate Or discount greater than
tce}ue per ctutlHp
This bill also is Objectionable, and should not be-
come a law
/. Because the conventional interest authorized
by this bill can be agreed upon or taken only on
money actually loaned aud excluding all property
contracts renewal of the evidences Of Indebtedness,
or legal liabilities from the operation of the law,
and prohibits all agreements to interest on all
transactions, except money TRANSACTIONS Why this
distinction between the business operations oragree.
meuts among mel? Should not the parties be per.
mttcd to fr the interest upon any debt, contract,
or liability within the prohibition of the Con stitu.
ton and the rules of public policy, whether founded
on the lOanng OF money, purchase OF property, re-
newal Of the evidence OF Indebtedness, or other
transaction? The loaning of money creates the
relation OF debtor and CREDITOR and so does the sale
and purchase OF property, or any Indebtedness, let
the origin cause of Indebtedness be what it may.
And in all cases alike, is tor the forbearance in the
collection Of the debt-Or time-abOut which the
parties should be permitted to contract under the
law And
2 Because this bill recognizes the business of shaw
ing, and yet limits the rate or discount amount
which would be prohibition. He would not now
discuss the prOpriety of shaving-but if the law
permits shaving at ALL and levies Il tax on it, as a
privilege, it should permit the privilege to be eXer-
cised in a way that would make it at least remuue-
ratye, and what it purpOrts to be-a privilege.
This bill would not. Shaving is done on second
class paper-on paper that must be collected by
process of law-and after the license for sharing,
and the collection fees are paid, the shaver would
not, under this bill receive for his time and money,
the legal rate of interest on his investments
The bill in lieu, now before the House. was in
tended to be, and it is believed is free, from all
these ohjectons-and If the Legislature establishes
a conventional interest at all should be passed.
The Constitution requires the rate Of interest to
be fixed by law and this rule must be general and
applicable TO all cases where interest should be paid
Policy requires that a minimum and a maximum
interest should be established by lawthe legal rate
OF interest, (sX per cent? to be the minimum, and
a conventional interest, not exceeding per cen
tum, to be the maximum Money is the creature
OF the law, whether it consists Of gold, silver, or
paper-the precious metals have an intrinsic value,
not as money but as Het1is aud it is the law that
transforms the metals or paper into money, and es
tlbishes their extrin,c value as money-and if the
law determines what shall be money and its value,
the law should also ascertain and fix the value of
its use, or regulate the rae Of interest
Money Is not OF equal value to all men at all
times-much depends upon the peculiar situation
Of the markets, OF traders, aud the citjzens-and
money rises and falls in value according 20 these
indications in the commercial world. 1t is worth
the current value to ALL and this value is above
the legal rate fixed by law. Some persons how
ever, in desperate effort to sustain their credit or
sinking fortunes will give any amount whatever,
and thus hasten their ruin, and entail upon them
selves hopeless bankruptcy. Others in business
can well afford to- and very safely give ten per cen.
tum for money for legitimate Investment OF use.
The law then should be adjusted that il will re-
strain the reckless and desperate and enlarge aud
sustain blJ Atdltlllul buSlutSo OpcIdliOIS OF the
country
The capitalists either retain and refuse to loan
their money-inyest it in ProyoIty, OF send it out
OF the State Tor investment These results arp con.
sequent uron the prC-i-i0ns Of the present Iavs
regulating intPrrs, in this State They wli not loan
their money here because xix per ccr.um viii not
remuuerute them; money lo,nod must be collected
by law. This the lenders must calculate on when
they part with their money after paving collection
D. ~. !. IL II. ..
OF their money, aud they therefore retain IL or
they invest their money 10 property for speculation
or rcut-buyiug out persons 10 are induced upon
such sales 10 emigrlte-tbus reducing our p0pull-
Misunderstanding the proportion OF property hold
la the State and consolidating our laudc! estates
in the hands OF few, thus rnaring the agreeable
picture OF an immense anicd proprietor, neccssl-
ry engaged IN he ylrtuOus and inyig0rating occu-
patton Of agriculture; enjoying a happy sense Of
Independence, bound by interest 10 the institutions,
and forming the true eth of the State. Or
again, they send their money of the State, where
greater inducements are offered for the Investment
and where higher, conventional interest is Is
tablshed by laU.
These things are operating very injugiousy upon
the prosperity OF the State. The property retained
in the State becomes dead capital and does not
tribute TO the increase OF wealth. The mercantile,
manufacturing aud mechanical interests are ia
state OF great depression, from the general moniod
poverty and exhaustion induced by the restrictive
policy, adopted by the laws of this State Self.
preservation is an instinct 81 government as well
Of individuals, and the population should be retain
ed-the property IN the State diiEused amongst as
many Of the citizens as possible and the money CAPT
ta be kept in the State and its activity aud use los
tered as much as may be possible by law.
Money IS worth ten per centum in The several
states, and IS intrinsicauy and commercially worth
as much here as elsewhere, ten per centum is too
higI as regular fixed amount, and six per ceRtum
is too low when adhered 70 without exception.
conventional interest t.en, is the only means by
which trade may be sustained capital secured, and
business rendered prosperous and produy tive AUD