Nashville patriot. [volume] (Nashville, Tenn.) 1858-1860, 1859-12-21
Repor, orthe DIN, Select COMMITTEE.

Report OF the Oint Select Committee
Upon the Interest Laws, with accompanying Docu-
ments, TO both Houses of the General Assembly OF
Tennessee.
The Committee appointed under a resolu-
ton of the Legislature. - to investigate the
present effect Of the Usury Laws of Tennes-
see; to ascertain the amount of money
used in shaving; the amount of domestic
capital taken from the State TO be used else
where, and the average per cent. paid by Dor
rowcrs for the use of money in this State,
and TO report such other facts as might be
pertinent TO the subject matter of said reso-
luton" have had the same under considcra-
ton and have instructed the undersgned as
Chairman. to presen: report upon all the
facts which they have been enabled 10 elicit
and which he herewith submits TO the con-
sderation of your honorable body,
In the early part of the session the Com
mittee addressed letters of inquiry to leading
business men in the different counties of Ten
nessee as well as te such persons residing in
States of Missouri, Mississippi and Louisian-
ma. with the view of ascerlaiuing, in the first
instance, as far as possible, the practical OPP
GRAFTON OF our own laws upon the subject of
interest, and also, of the States named.
where a different standard of value for the
use of money has been established. In many
cases these inquiries have not been answered;
so fully stated as was dcs.r d, but many of
the answers furnish important facts for the
consideration Of the Legislature and por-
ton of the letters containing them are APP
pended as part of this report. furnishing,
as they do, the basis upon which mainly
rests it, statements and conclusions. 1t will
be seen 10y reference thereto. that compare
lively but little money is loaned ont in Ten
nrssee, at legal rates In some portions of
East aud Middle Tennessee, and occasionally
by a conscientious guaI dian or private indi-
vidual in other parts of the State, loans may
be ,ffccted at the legal rate. but in these in
stances it is generally done more for accom-
modal ion to friends, of known pnrctuality,
than tor the sake of gain. and in such
amounts as cannot affect the truth Of the pro-
position. that the rates of interest in Tennes-
sec is largely over that which is established
bv law, and that the law fixing that rate for
borrowed money. is no longer operative in
keeping down the price of money, as d.
manded aud regulated by the laws of trade,
and the wants Of the community. whilst the
same law is all efficient in aggravating the
mischieis which it was honestly intended to
guard against.
IL is impossible 10 ascertain the exact
amount of money used in Tennessee in hav-
ing transactions. The law imposes heavy
tax for the exercise Of this privilege, and re-
quircs license To be obtained by persons
engaged in IL; but like most other enactmenis
guarded by heavy penalties. aud unjust dis
examinations, il has defeated it's own Object;
the note shaver fails to comply with its re
quirements, and makes his customers pay for
tn risk he encounters, in deprving the
Treasury of what are its legitimate dues.
This law upon the subject of shavers' license.
Ike that establishing legal rate OF interest,
is hut little regarded; it affords but a lrifiing
income 10 the STATE. whilst it, penalties and
taxes are made to tell with crushing effect
upon the fortunes Of the debtor.
The tax levi, d upon shavcrs, il really paid.
j. only an additional burth n upon Josroir,rs.
for no money dealer will pay this tax with
out double eXpction upoa BIS customers,
and when be fsIils 10 pay it. the dangers Incl
dent % a violation of law, are To be COM
pen-atcd also by heavy drlught upon the
pockets OF the debtor. lt may be stated,
that in ten counties. shown by the ac-
campaigning correspondence, io-wit: Weak
Icy, Upton, Benton, Haywood. Bedford,
Montgomery, Rutherford, Davisdon. Warren
add Shelby, there are nearly six million
dollars used by note shavers oT prtscns act
iaA, in that capacity. The statement 81 the
Comptroller, herewith appended, shows that
in all the counties of the State, the eutire
unIoant ol capital accounted Tor during the
YEAR nding ) ptembcr, $50. is about $751;
Ts5. yielding the pitifdl revenue OF ss.sI9 95
to the Treasury; the aggregate sum The
counted for, is less than In used in either one
OF the counties of Davidson or Shelby.
There are ako ihirty-thTee counties which
pay nothing for shtvers' lieensel To show
the complete flilure ui this portion of the
Revenue Law, aud he irand engeHdrred by
H. we Issd only cite the coanty OF Wilson.
which PAYS more tax for shavers' license
than the counties OF Shelby. Davidson, haniii-
Ioa AID Knox .eou,hlaed; and tue county OF
Warren pays yearly ~ much as Shelby and
uavilsoa. Many OF lhe wealthy counties
have not paid dollar into the Treasury ior
the past year. while their mute shayvrs are
carrying on profitable operations in alno-t
every civil di.iriet-cett asaly ia every iu-
e0Fporated village and town.
The und arsigned would further report, thai
tbrre j. a large portloa Of Tennessee capital
ia the hands vi lAw-abiding msa, Who believe
IL duty not TO violate tue laws Of the land
men who are neither willing 10 buFthen
thsif condolences with such an act, noT 10 H.
car The peLally OF legal eaaciments- The
legal rates of ialerest. with the tax imposed
upon moaey lenders, aud tae risk aud ex-
peuse Incident To the loan ~ money, presenla
10 Inducements 10 these mea Ia Inaks iaNsst-
me d " Mas VI loaa; heace, they very
rea anbly prefer % place their uivssey un
spt IA deposits AaITa Il up. OF kqaa IL IA
ot--F stases, whose LAWS psEn.s somsshins