The Evansville daily journal. [volume] (Evansville, Ia. [i.e. Ind.]) 1848-1862, 1857-04-16
INTEREST ON MONEY.

INTEREST ON MONEY.
The subject ofinterest on money is exciting
the attention of commercial men throughout
she country; and the Eastern papers are dis
cussing the subject very deliberately, and the
chief reason they urge for some immediate leg
islative measures on the subject is, the alarm
ing effect which the increase Of the rates Of
legal interest, in many of the Western States,
is having in draining capital from the older
States. It is said all the surplus money in the
East is going West for investment. The laws
of trade are inevitable, and money, like every
other commodity, goes where it can get the
best prices; and it is useless to attempt to re-
train it by legal snactments. The Providence
Journal says.
AT this time Providence capital is helping
to build up Chicago and st. Paul and Keokuk,
and to make the great West more and more
attractive to the industry and enterprise of the
East. The drain has been long and heavy,
and there is no prospect that it will subside.
On the contrary, it will probably increase with
the increasing opportunities for the profitable
use of capital in the West, and the only way
to keep it here is, to authorize those who own
it to sell it at the rates current in the great
markets.
The Baltimore and Virginia papers are re-
peating the same complaints. The New York
papers are rsiterating the same arguments, and
illustrating them with similar facts. The
Evening Post says:
"Our present laws do not keep down the
price OF money; but, on the contrary. enhance
II, for they drive money out Of the Stats for
investment, and thus diminish the competition
for il. We heard, only within day or two,
OF an application made to capitalist in this
city, by farmer in Orange county, for s., 600
on farm, which he had recently bought and
paid $1,000 in cash for. The application was
declined, the capitalist giving as his reason,
and only reason, that he was investing now
altogether in Cincinnati, where he could get
ten per cent. for his money, with the best Of
security"
At the last session of the Legislature of H.
inois, law was passed, providing that "in all
contracts hereafter to be made, whether writ
ten or verbal, it shall be lawful for tho parties
to stipulate or agree that ten per cent. per an
nun, or any less sum of interest, shall be IA
ken and paid upon every one hundred dollars
owing from any person or corporation in this
State"
1t is folly in US to expect to retain even on,
own money at home, at six per cent, while
we are surrounded by communities who car
pay ten per cent. Will any man living in thu
Wabash valley, having $1,000 to loan
mortgage, let neighbor on this side have j
at six per cent, when by crossing the Wabash
he can get equally good security and ten Pc
cent. interest? Our resources remain unde
veloped improvements and business lag be
hind those of other States for the want Of cap
tai; UT we persist in the maintenance Of law
that prevent money from abroad coming int
the State; and which are driving what surplu
funds we may create from US as fast as the
are realized. These effects are so obvious tina
to state them, is sufficient to convince tn
dullest mind. While the East is complainin
that the young and growing West is drawin
to ITSELF by judicious and liberal policy, tn
boarded wealth Of Eastern capitalists, and {,
king from the older States their only advar
tags, the State of Indiana, welded to her oil
fogy principles-with wretchedly incompt
tent Legislature-persists in policy to el
clude capital from the State, for fear her cit
zsns may be injured by paying too much f
its use. 1t implies that we are incapable
using capital to so great an advantage as OF
nsighbors, and that it is better fer us to
without any increase Of money, than to pa
what our neighbors can give for it.
1t is an obvious principle, that where oth'
things are equal, every cent Of money thu
is taken from community enhances the Walt
Of that which remains; and every doll;
brought into community reduces the rent
that which it already possessed; any Ia
therefore which, in effect, discourages the il
PRODUCTION Of more capital, or drives out tn
we have already got, is a law practically
raise the rates of interest; and instead Of bel
eftting the borrower, enables the lender
dictate his own terms. 1t is in truth, q Ia
to favor the rich and tax the poor; and such
the effect of the action Of our last Legislatu
in refusing to change the law Of interest. "
hone at the extra session--if we have the 70
tune to get one-this subject will be reviewe
"MURDER WILL OUr."-An old man, age
sixty, named Dillon. living near the Feed'
Dam, in Clay county in this State, was a
rested on the Cd instant, committed to jail Q
the charge of numbering his own son. III
Worthington Times says, that about ten yea
ago, Dillon gave his son, then lad Of fftee