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

al interest; but 70 establish high rate now as
ten percent, would have the effect Of depressing
those who are in debt. II a man engaged in agri-
cultural pursuits wishes to buy farm, and has to
borrow money to enable him to do So he cannot
afford TO pay than six per cent interest, and
he was opposed to giving the money.lender power
to exact more. He believed such a law wuud be
Unconstitutional aud be would move the indefinite
postponement Of all the bills, if it was in order.
The Speaker informed him the motion before the
House was TO reconsider.
The motion being put, the House refused to re-
consider
Nr, Bulleu then moved the indefinite postpone
meuL of the bill
Mr. Brown, Of Davidson, Nr White in the chair)
said he felt it bis duty to offer some reasons wny this
bill should not be indefinitely postponed but should
pass the House. Experience has shown the COOL
sense Of a conventions interest III other States
where the system is in operation and mas been
thoroughly tested its oper, ton has been highly al
vantlgeous to the enserprising business man Il is
absurd in this age OF progress to endeav0r 10 cons
fine the value OF the Of money to six per cent.
It has been worth more than that here, iutrHsical
ly and justly, IN the last twelve months. wear
ago it vas impossible to get money nj SIX per cent,
because capitalists copld find more rcnluneratiuE
Investment tor il else where
! The proposition now before the House addresses
itself 70 all classes a measure Of great importance
/ IL Is especially so to young men Of limited means
just commencing business. they may be energetic
and enterprishlg, but STILL at times they may find
that tue profits Of their business may be greatly in
creased by the Investment Of more capital than they
can command, and they are compelled to resort to
borrowing, but the law fixes the rate OF interest at
six per cent, and the money holder vino respects
the law cannot supply them because his money is
worth more than the law will allow him to take.
/ The consequence Is their business and credit both
suffer, or they must go to the sharper, who Is al
ways ready to evade the law when he can secure a
heavy per cent, and in the end, they, perhaps lose
all. How important to such that they could at
! times, borrow money az rate nos exceeding ten
per cent? Many young man commences BUSH
ness with no other capital than his good name, and
how are such to get along if they cannot get cred
it, and this they cannot get where money can only
be borrowed, if at all, at ruinously high rates.
Our capitalists Will send off their money to other
States TO be more proftaby invested than IL can be
here, which jmpOverishes ard cripples the rasopr-
ces Of our State Experience demonstrates that
capital will seek the most profitable Investment at
home abroad; and if the money holder does not
wish TO engage IN manufacturing or commercial plr-
suits his money will be sent TO the market where
it will command the best Interest or he boards it
NJ to be of no service to himself OF his fellow men,
Experience is, therefore eloquent in argument, in
favor of establishing conventional interest.
Another operation of the present system is to
Here is the way it operates: needs money, and
he has a note on y, who is perfectly good, for $500
due twelve months hence, and TO raise the money
on this note he must submit to shave OF twenty
FIVE, aud perhaps thirty three per cent His honor
is at stake, or he wishes to make investment
which his ju igmeut assures him is iudic0us, and
he therefore submits to the shave, because there
is no money in market to borrow. This system, if
practced to any considerable extent, will ruin any
man. The operation Of our present law placed
large numbers OF needy men at the mercy Of these
money sharks, who have limits TO their exac
tons, because there is no law TO conine them
within reasonable bounds This bill fixes the high
est rate at which notes may be shaved, and must
exert saiuiary effect
Money can not be borrowed TO-DAY in Nashville
at six per cent, because those having money 10
loan do better wi h IL. Money is worth, at this
time ten per cent here in Nashville while IL was
only worth six two years ago. The Legislature
would not assume the right 20 fix aud regulate the
price OF labor and property; that is left to the laws
Of trade, But it would be equally a. proper for the
Legislature fix price for labor and property and
Of the products of the farm and the workshop, az
to fix the commercial value Of money. According
to our laws, money was worth as much half cen.
fury ago as it is today-ts value is the same at all
times-n war, famine or plenty.
/ A conventional interest holds out inducements to
money holders to loan their money. IL hurts no
one but misers and sharpers, while Il helps the
needy and enterprisiug II should be the object Of
the Legislature 20 make laws for the great body Of
the people, and TO help the enterprisiug without
injuring others. This conventional interest is 10
new idea. Louisiana has had such law ia force
for several years, and it works Admirably Other
States have similar laws and the people OF none Of
them have desired their repeal. Six per cent has
been the rate OF interest during the entire existence
of our State. Il did very well when first Instituted
for then there was no great amount Of capital and
very little borrowing was dome. H. our day Of
wealth, energy and enterprise, the thing Is quite
different. Money, ike oil the other commercial
commodities, has appreciated in value, but our
laws forbid the ey-hoier from asking more tor
its use now than IL commanded tittg wears ago
Parties who evade the law tcquire q pretty wide
margin for the risk they run. Il has been seen
that our statute against usury is a dead letter 40
/ far as the money sharks are concerned hw
which Is evaded as this law is, and waich compels
/ the borrower to pay extra compensation 20 the
lender tor the risk be is supposed to run is iriuri
Gus to good morals and to the integrity OF the bu
sineSs community. Money is often worth ten per
cent, and some times more, and large holders have
expressed desire that the law should be so chang.
ed 10 allow them TO receive whatever thoir money
is worth, restricting it 20 ten per cent price it
would command any whore now
This bill does not propose 10 disturb the legal
rate OF interest. That will remain at six per cent.
IHI- Ui also provide, that hereafter note shavcrs
shall uCt exact more than fifteen per cent and .hat
Is enough. bat rate will afford d handsome profit
% saca as engage ia the business Il l. ri-ht and
proper thit restrictions should be thrown around
he oous cences Cd saen who engage IN the business
oil note shaving Il would prevent those who are
wealthy from taking advantage Of their less iOrtu-
nate Hogh bors. When men get into the hands Of
the mote ,haEers. they are always worstrd by the
operation, If not rrettysby ruined Bank, aud
other corpora lions should be held 70 the same s.iict
accountability that individuals are.
IL Is right aud proper that aur5rs should be pun
lshed. when men become involved they will
make every effort TO save themselves, and in such
eXtrcmities, they are apt 70 seek relief from the
haver. and thus rhe man Of money who does not
hesitate 10 overstgp the barriers q the las when
he profits thereby is benefited Dy the operation Of
our present law, while the poor are oppressed and
perhaps finally ruined lie said he had met with
inhis practice in the winding up Of estates Of
dead men, which would appeal with a ~epuichral
rioqueuCe that would make members tremblc in
Jheir ats, for such measure az this bi.i pro.
posed
Whether the biz passed or not he felt he had
dischargUd his duty against the oppressors The
passage Of the till would hurt no oue-on the con
trary, 10 would be beneficial 10 all classps He
hoped Il would not be indefinitely postponed lie
would vote for the b il is, but had no objection
TO such amendments would perfect the measure
Mr. Meek took the floor, bat gave way 20 a no
ton TO adjourn 10 y o'clock, z. H. which motion
prevailed.
AFrERNuOS SESSION.
hr Meek Vas opposed 70 the BILL He dil not
believe the people desired is passage. No one Of
bis constituents had spoken to him on the subject.
and be could see $50 advantage 70 be- derived tom
the enactment Of such law. While much evil
would grow out OF t. II would encourage specu-
aliou aud borrowing which would end 10 bank
ruptcy and run. Tie borrower suffers most now