Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1858-01-05
INTEREST.

In series Of articles for the Cincinnati Enquirer,
on Money and Credit, by C. RE,lELN, the writer
describes The effect Of conventional interest in
Ohio. We copy the extract, as propositions for
conventional interest" are made every session in
our own Legislature and we desire cur lawmakers
to observe the effect Of a similar policy elsewhere
Our State Legislature should, at the very earliest
moment repeal the so-calIed Tenper-ceBt. Interest
Law Ohio now has four interest rates: l. six per
cent, in the absence Of special contract; -. ten
per cent. by special contract; 3. seven per cent.
for banks: 4 unlimited for railroads, through the
power 10 eel their bonds at any and all discount.
Such various rates should not exist; there should be
but one legal rate, and that should not be higher
than six per cent
II is urged by some that every interest contract
matter hoE high the rate, should be enforced by a
court Of Justice. Others, again, contend that the
legislature should fix the rate and provide for the
forfeiture of the principal If greater interest is
taken. l would avoid both extremes, and simply
provide that six per cent and no more be collected
bv law, without going behind the records Of the
case as II shall present itself 10 the court
The time will soon come when the justice OF col.
Iectiug any interest al ALL by law, will be put at
issue and when the welfare Of mankind will de-
mard The restoration Of the old Mosaic rule Take
thou no usury o, him, nor Increase The amount
If debt. public and private, now at interest Is
nriDcirles Of political economy and the amount is
still growing and will soon cover, with lcprosy
all honest trade and industry. Labor cannot pro
6rra enough To pay all the incomes growing cut Of
mi. state Of things, and feed and colhe itself
urlaw-makers gave, for Ohio, fearful impetus
20 this Kind Of interest taxation, by passing the
Ten per cent. Interest Law, and allowing railroad
bonds TO De sold below par. Il has corrupted and
tainted monetary dealings, and led to loose prac
usos, from which ruin has come 20 many.
It's ts0aey 20 tempt foreign capital to = State
by high rates Of interest Capital that comes here
merely 10 eat cur bread had better stay away. The
on " truly useful capital ever brought 70 Ohio was
.bal brought Ivy msu IN their pockets, which formed
their stock IN uade in some industrial pursuit.
One dollar allied 10 labor is worth a thousand
coupled 10 an ldcr We want money that is the
handmade Of honest toll, and not capital whose
object IS 10 eat up the substance of the people. The
cumulative cause o. the late money crisis was not
laca Of capital hut It's investment in false channels
through persons and corporations who acted upon the
false heOry that tits benefit TO community TO heap
upon It q large burden Of interest This political
and social error Of our age has produced all the
vices which so shock and startle us. This tendency
must be repressed-at least IL should not be fosered
tv high rates Of interest. It is doubtless correct
thar government should not interfere with private
contracts by fixing price for money or any other
propertv; but it IS equally true that State has
rrbt to determine how far 1t will lend its Judicial
machinery in the enforcement Of these contracts;
and buuby incline tothe opinion that the less inter
est-coections State undertakes the nearer 1t Is 10
the true line Of morality, justice, and true political
economy