Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1859-12-21

utu llt De pertinent 10 inc SuDtCtt
of said resolution have had the same under con
sideration and have instructed the undersigned as
Oh irnan, To present report upon All lle lacts.
which they have been enabled to elicit, and winch
he herewith submits to the consideration OF your
honorable body.
Ia, the early art of the session the Committee ad-
dressed letters OF inquiry to leading business men
different counties of tennessee, as well as 10 such
persons residing in the States of Missouri MIsslsip
nj and Louisiana. wsh the view OF ascertalnlngs III
tba first Instance Jar as possible, the plaeueal
o9el alton of oar own laws upoat re suhJeclo- III
tcrost and also. Of the laws OF tn states htnleu
WHERE different standard of valH Tor the use vi
Nancy has h,.n established. In many clses these |
nv, mot been a Is were j: III .tTIers, the facts
s, int finn have not been iuiiA state rs was ue-
sired bat nIlay tie answers furnish hhporIIh'
f,tts for the dcratn'i OF the legislature anu
norton ot the letters containing them are aPpehucd
ls q part OF tins report. furnishing. Is they 10 IlI
b... uoop which mlIniy rests ITS statements anu
CONCLUSIONS. IL viii be seen by reference thereto,
that comparatively bot littic money Is now loaned
ont in Tcsn,Ss e. at legal rates. Insome portions OF
East and Middle Tennessee ana ucclsloiiil! py
conscientious guardian private n!lNldual III
other parts OF the state, loans may De eiect-
ed at the legal rae, but IN these Instances II 10
generally done more for accummOd Zion to friends
of known punctua!ity, than for the sake Oh gan"
aud in s,l amounts Is cam effect the truth OF me
propn.itiun that the rate Oi interest IN tennessee
,rriy over that which is cstdDlishc by law, ana
tl3i an. law .ins that rate Tor borrowed Nloi'y
| d. longer CtsillNt III NNNl'iilE N'Nh Ni'o
money a. d.manIei and regulated by the laws
| of trade and the wants of the community Whilst
the same law Is all efficient in aggraYatinS the ms,
! chiefs which il honestly intended 10 guaFd
| against. .,,,+ Of
money used in Tennessee in shaving TRANSACTIONS.
! Tn, law imposes heavy tax for the exercise "i
this privilege and requires iicence TO be ootalcu
| bv persons engaged in Il but Ike most other q"
| ,.fucpts Guarded BY heavy penalties ana UNJUST
il has defeated its own object; the
note shaver fails to comply with It's requirements
| and makes his customers pay Tor the FISK ht On
counters in dcpriying the Treasury Of what are us
I,tu,gtn dues. This law upon the subject OF STA
,s lirps, like that establishing legal rate Of IN
t,lcst IS but little regarded ii affords but tflninS
income 10 the State whilst its penalties and taxes
| are made to tell with crushing "icct upon the lot
| tunes Of the debtor.
an additional burtheu upon borrowers for no money
| dealer will nav this without double tNdc ION
,non his customers and when he fails to pay 1t, the
dangers incident To Il violation OF law. arc ~ pe
compensated also by heavy draft upon the pocAetS
of the debtor It may be stated that IN ten cOuh-
ties rs shown by the accompanying correspondents
20 wit: Weakley Upton, Benton layWooG, Deu
ford, Montgomery, Rutherford. DAVIDSON warren
and Shelby, thcre are nearly SIX million u"naIs
usel by note shavc-s persons acting IN 'hat ca
pacity The statement OF the Comptroller mere
with appended shows that IN III! the couhles oi te
State. the entire amount oi capital accOutIeu IoI
| during tnt year tNllll8 sSpttth'SA' A''''
SSS7. 795 Welding the piutui revenue OF $500 20
| to the Treasury. The aggregate sum mus account
e., for Is less than is used IN either one OF inc coun
ties of Davidson or Shelby. There are also thirty
| three counties which pay nothing lor SnAIcrs n
/ censa1 10 show the complete failure OF inns por,
] ton o the Rcyvnuc Law. and the fraud enSendered
| by it. we need only cite the county oil wilson
| which pays more tax for shayels license llan tle
| counties + Shelby, DAVIDSON Hamilton ana hhoN
, | combined and the county OF Warren pays nearly
, ! As much a, Shelby and Davidson. Many OF inc
! wealthy counties have not p1lI dollar lhIC INC
Treasury for the past year, Whlic their note sll'
eI-s are cdrryi on prottlbc operations IN Almost
every civil di~rIct-ccrtaniy IN every lhcorPor"UeO
village and town.
Phe ua irrsigGed would further report. that there
is a large portion OF Tennessee capital IN the bah
OF llw-lbiding men, who believe 1t duty not u
violate the laws OF the land men who are neither
I willing 10 burthen their cOnsclences with such al
act nor to inclr the penalty Of legal enactments
The legal rates Uf interest with the tax imposed up
on money lenders and the FISK and expense incldeh
. to the loan of money, presents no inducements L
these men to make investments by way OF loan
hence they very reasonably prefer to place then
money on special depOsit-tO hOird 1t up, OF tCat
in other states, whose laws permit something IKE
fair remuneration for capital. The latter policy Il
| extensively pursued. and under the growing mt
macy with such States superinduced by railroad
facilities the sums thus sent from TINS state are an
nuallv increasing. There Is no m ans OF forming
| prOximatg idea OF the amount OF money Withdrawn
| above suggested. IN every county there are h
doubt thousands of dollars in the hands Of the own
| ers or placed on special deposit which, under
| more liberal Legislative policy. coald be made Il
! contribute the general prosperity OF the country
3 From the best information the Committee hay
L been able to obtain there has been sent from III
| counties ui Davidson. shelby. Upton Decatur Ma
, ! ~ Bedford and Montgomery. about three mlIiio
dollars. while from other counties. as VIII be see
, from the accompanying correspondence, larg
| amounts have been sent of, which have not bee
computed. This large amount has been banishe
from the State because of our unfortunate leglsla
ton: that has arbitrarily fixed the price for the US
OF money at a standard below It's actual value Ihes
capitalists. thus driven from the hcld OF compeu
| ton employ agents in other states To loan thel
money at from eight To per cent where 1t can b
legally done and would OF course prefer to have
Wiar their immediate control. II permitted 5
, | To do hv a liberal system of legislation
Another cause of scarcity of money. and the OF
. | pressed condition of its market IN tennessee ma
: ! be here stated Under our internal improvement
:. system State bonds have been mostly negotiated 1
u ! f,rrigr. markets. and much OF their projects cA
" ! pended IN the State upon its various pu0hc work.
This source of supply served m some measure
till the place of domestic capital. taken from III
state under the operation OF our laws. but IN plac
ID, of this suunlv. an immense dfdgEd Is now annual
made lrnn Inc people of the state to meet the IL
tafyst upon the public debt. and provide sIhklh
fund for the final cNliuguishmcnt OF that portion
:, which Is mostly due persons residing out OF I'll
IL STATE Several millions of county bonds have ais
been sold within the last few years. mostly 10 lei
b nes-va capitalists These bonds served for TIM
is to absorb "a portion OF our surplus capital whlc
D. otherwise would have sought other ami more pr
iurtIvn markets Ting sale OF county bonds has
{ a measure ceased. together with the income tro
\. the sale OF state securities.
J. With these varied influences bearing upon Il
inop,t,ut subject of oar domestic finances, 1t il III
S. p0Ss ibic not forc~oC constantly increasing pre-
j. sure upon the welfare and interest of the peopl
T. Il is. IN truth condition Of affairs that no syste
;. | * bank legislation. however wholesome, can I
r. lrvr and which must be avoided by other and III
r. Huct LEGISLATION. 10 is submitted. that the close CO.
b. ncctinns with other States. and the intimate relation
e. consequent thereon between our citizens and then
s. the diminished chances of profitable and legal i
H. | vestmcnt in domestic securities. and the lmmen'
e demands for the payment OF interest upon the pu
/, | lie debit t,r.thcr with the necessity OF ralSlT
n, means in short time 10 cNtIngulsh 4 portion
.. that debt viii and must produces CRISIS IN the mo
r rtgrv affairs Of the people. which all good m'
would drpIorc and which the enlightened leglslato
= OF the state should earnestly seek to avoid. III
n | reason of thr immense amount OF usury WruT
" from the debtor portion of the community Is 10
.r found i'm the injurious Workings Of law that +
IS fuses a fair compensation Tor the use of money, AZ
e by ncavy penalties seeks conformity to ITS requr
mcntS that the tendency of this law has only I
- suited IN uauishnT capital from the state ana le
y the field of competition 10 Men that rlvallcd ea'
=. ! other ia the amount of their gains, by cNact
VI dnub.e payment from their customers for eYei
RISK that Is encountered or every dollar that
s. paid into the treasury IS not TO De wondered
he That bona file capital askna only fair, out legal
as muueration should shun market surrounded !
the species 90 legislation that Is To be iOunI IN OF
m statute. books L. by means surprising. That til
es market should be monopolLci by financial lshma
m ltns is but the legitimate result Of legislative pole
Hr II eai2cV Of orr f~S has been ID gre one class
he community a3 almost exclusive control q the capt.
ec sill retained IN the Ggcs.
: L Is impossible to state accurately the rates
= discouu, paid by borrowers for money. In Ia