Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1858-02-09

point, the pfineiples-of the BIN ma thsNlssf are
Identical and both must stand or fall together-the
only differences between then, being that the one
limits the rate Of conventional interest 10 ten per
cent and the other 80 six, So that 90 far as the
Legislature being required to tx The rateof interest
is concerned, there is to my mind not the slightest
difficulty WhsteFsF. But it may be objected further
that the bill is in opposition to thar clause of The
constitution, which provides that the rate 80 estab
! lished shall be equal and uniform throughout the
State. This difficulty toe, sir, apprahend arises
from miscOnoeptiOn Of the meaning Of that clause
Of the constitution do not understand the cousti-
tuition to mean that every in the State who re-
eeiVes interest at ALL shall be compelled 10 receive
| il at precisely the rate, for as have already
stated in the former part Of my argument. that
would compel men to receive six per cent for money
although they might agree and centraetto receive
only four per cent which is sbsurdity in itself Il
simply forbds the Legislature TO make distinctions
among the people, and say that, for instance. in
section Of the State, the money lender shall re-
oeye six per cent, aud in another ten per cent and
so on; in other words it provides that the same
law shall be in force in every part Of the State and
that shall operate alike in every portion Of the State
an every individual in the State. To saw sir that
this Legislature has not the constitutional power to
establish conventional rate Of interest up TO spe
cihed amount, because 1t would not be eoualand uni
form thT oOut the state would in effect be to declare
that only this bill is unconstitutional but that
all laws heretofore enacted this subject have been
and are unoOnstituti0nal-lOr think have already
shown that the present law only establishes eonsep
lonal rate Of interest up to six per cent and hence
no law can be constitutional which does not bind eve
ry citizen who lends money to charge certain rate
per cent, Wheiherh be is willing receive less or not
construction Of the constitution utterly ridiculous
and tending to bring that instrument framed BY the
Esest and best men Of State, into contempt. With
these remarks on the JOustltutiOnafy Of this bill
submit 10 the House, if il does net both in letter
and SPIRIT comply with the section Of the constitu-
ton TO which have referred, and if it becomes a
law will it not fix limit the rate of interest? and
will 1t not act equally aud uniformly throughout the
State
But, Mr. Speaker, the real difficulty, as l appre-
hend, IN the minds Of gentlemen with regard to this
bill, Will not be so much regards its constitution
atty as It's expediency.
Now, sir, l am not going to contend that law
such as this bill cOntemplates is exclusively adapted
10 the present condition Of the country or to any
particular financial crisis believe that it would
De good law al any time, and ut all times; but l
do think that the present condition Of the finances
Of the State especially calls for some such measure
as this. Sir, at q time like this when the banks
nave suspended and money is scarce and times are
hard when the farmer is unable to get his crop to
market; when the business of the mechanic, the
grocer, the merehant-an classes of community, is
brought almost to dead halt because Of the none.
tary pressure; any measure which will bring into
circulation money before unemployed whatever the
amount may be, is TO that extent measure of relief
What are the facts Of the case? ] appeal to the
Information Of every gentleman upon this floor, and
have no doubt but that shall be borne out ia the
assertion, that there hundreds and thousands of
dollars new boarded up in every county in this
STATE and Ia many instances gold and silver which
far as any good to the community or the business
of the country is concerned, might as well be lying
" buried in the bottom of the Atlantic ocean "
This money IS held for the most part, by men Of
small means who live by the sweat Of the brow
who have made it a rule through life to live within
their income and every year tOlay up part Of their
hard earnings for old age a rainy day. By ex-
perienoe, or other cause they have become distrus
fuI OF the uncertainty Of all human affairs, and
they are unwilling 10 entrust their money into the
hands Of others for khe small consideration of six
per cent, and CONSEQUENTLY it lies buried in nap
kin. Pass this bill and it will have the effect Of
bringing a large portion of this dead capital into
active circulation, and will be small relief to
those who are so much in need Of money to pay
their debts, and purchase the necessary articles Of
living for themselves and their families.
But sir, It may be argued that the amount Of !
money thus brought into circulation will be small
too small to materially affect the business Of the
country. Well admit for the sake of argument |
but which do not believe that the relief will De
small from this source 1 contend that the people
have right to demand even a small relief at our 4
hands, and relief in every possible way it can be |!
afforded
But there is another reason why am in favor of 4
this bill The Law, as it now stands, makes it q /
misdemeanor for any person in this State to loan /
money for more than six per cent. per snnum under
a fine Of not less than ten dollars and the whole /
amount Of usury charged. What is the law in other
States? In Alabama the legal rate Of interest has
FOR many years been eight per cent, and noticed
n the last message OF the governor Of that State 70
he Legislature, recommendation TO legalize il still
adrrhn Tka - k H. g.
ina. In Louisiana they have conventional rate
IF interest Of ten per cent The rate Of interest in
most Of the States around us is higher than ours
he consequence is hundreds of thousands Of dollars
IRE carried beyond the limits of Tennessee and inyes
ed 10 other States. Il has supplied them with
circulation which has been Withdrawn from our
ur midst, leaving vacuum behind, which, as it |
vas created in the first instance by the operation Of
ur laws IS a matter of course for the same reason
onnOt be supplied.
Now, sir, it is unnecessary for me 70 say that,
ther circumstances being equal, man will always
end his money IN his own State in preference TO
ending 1t abroad; sndH We will offer 10 our own
itizens the same inducements which are extended
0 them abroad, they will bring home their capital
nd we shall have the bensft Of its circulation IN
ur own midst, and thus We may relieve, in very
reat measure, the pressing wants Of business men
D all the departments of life. :
Sir, it is impossible to estimate the vast amount
good which the bringing into circulation of even /
few hundred dollars in every county and neigh I
orhOod throughout the State will produce. This is /
he time when the people are settling their business
IT the past year-closing up accounts, settling on
ID Scores buying their groceries, &c, and prepar
lg for the new year; and for the purpose Of illus
ating my idea let US take case, one Of hun '
red, which will undoubtedly occur under the Ope-
ition Of this bill should 1t become q law. In
lrticular neighborhOod there lives a man. such Sc
have already described, who by hard work and the
rictest economy has laid up a hundred dollars. [,
is unwilling to loan it for six per cent, and the ii
" says that if he loans it for more, he shall lose
70 whole interest if the defendant shall make
davit that the plaintiff is endeavOring 70 collect N
Jury from him; and, moreover, he shall be fined
T it not less than ten dollars. He is unwilling to
come violator of the law for the small sum Of
< dollars, especially when he is becoming liable
r double the amount, and he refuses to lend it at
!, and locks it up in his drawer Now, pass this
Il, sir, and give him the right to receive seven,
yht, or ten per cent, and what is the result
by some man who needs money, and who is una.
to collect 1t, thinking 1t TO be to his interest to
and borrow the money rather than to be sued for
debt goes and procures the use of this hundred CT
liars which has been laying up doing the country tn
good for perhaps year. By this means, he is az
sbled to pay his blacksmith, who was compelled re
have the money, and who now is enabled in turn 70
pay the shoemaker and physician; they can now
and pay the grocer He was just on the eve Of b
Out 70 DOIEOh LlaJ exact amount 10 pay the 81
mer for lot Of pork, who now is enabled to of
lie up with the first man who started this round so
paying, and he now having further use for the CT
ney which he borrowed in the first instance, he Re
her returns it, puts it into the hands of some do
Ter man who, like he had BEEN is in need Of money 10
ich may pay his debt, and thus 60 through Sn
other circuit similar to the one described. Wi
such, conceive, will be the effect in part Of the w
sage of this bill But there's Other reasons equal
rs strong, if not stronger, why am in favor Of Ne
5 bill. Our present laws on the subject Of inter
are very unequal and unjust to a large portion
the people; for while individuals are not allowed
end money at greater rate than six per cent SCI
annum, corporations by their peculiar privileges t
manner Of business, may take upon their own jur
les eight per cent per annum. But this is not est
A bank may have in capital stock paid in, say
No. 900 in gold and silver and may do legitimate Wis
iness by issuing three for one, and thus make on
discounts from twenty to thirty per cent; and all fec
Ter the sanction Of law But all the while, indi No
lsls not allowed to make six per cent, clear the
fit, for the Law requires that even this small pit ma
ce shall be taxed in the way other taxa to
property, while he who invests q dollars amt Wit
peculatiOns, goes Tree. The little knowledge Of
experience have IN the subject Of corpora ty
IS AID chartered companies, have caused me to ]
a deep seated and ever Watchful Jealousy Of the
lie system. And though l have no desire to be
,dical on this any other subject regarding on