The Athens post. [volume] (Athens, Tenn.) 1848-1917, 1859-11-11
Conventional Interest.

As this subject is likely TO attract "A
good deal of attention during the present
session of the Legislature. We give the
following extract from tho franklin Rc-
view, as representative Of what may be
be said on one side, rcserving our own
views upon the other for some future oc-
casion:
If the Legislature may fix the price of
money, why may it not just ny reasonably
fix the price of any other commodity
and if Of this one thing why not of every
thing that is bought and sold2 Thus we
might have q fixed price for flour. sugar,
coffee, meal, bacon, and everything that
man buys or sells. The argument, that
the ratio of interest is fixed to prevent
the rich from depressing the poor, applies
with tenfold force to the latter articles,
for every poor man must buy more or
less of these. but very few poor men
ever borrow money. Look at the practi-
cal working of the present law. wishes
to buy the wood, flour and meat for his
family, which would cost 500, but he has
not the money. and he goes TO Is and
tells him his wants. and asks him to lend
him the 800. b, knowing the law only
allows six per cent, refuses him the
money, but lays out the 500 in. such
articles rs A wants, and sells them to him
for 800, and the law says it is right-it
| is only u legitimate trade transaction on
the part OF Is.
| 1t appears that our usury laws are based
upon the presumption that money always
retains the same value. This may be
| true of its intrinsic worth. but money has
but little value except what it has rela-
| lively. This every commercial man
knows full well, and this relative value
is constantly changing Just as is the value
of other property. man can afford to
pay more for money when he can use it
to great advantage than when he makes
little profit by it. just as it is with the
price of a horse or negro-if the latter
can be made to earn $500 per year he is
worth more than if he only made 5000
SO if man can invest money so that il
make fifty per cent. he can afford to pay
higher for it than if this investment only
paid twenty. This question of profit al
ways regulates the price of other proper
ty, and also determines, other things be
ing equal, the question of demand ano
supply.
The question has moral aspect Also
As the law now stands it is daily disre
} garded by hundreds and thousands o
men. The disregard of one law leads t.
disrespect for other laws that operat
unlavorably and soon all laws are set a
defiance. The progress of lawlessness il
the country at large is proof of thi
tendency. But it does even worse thai
this, for it openly encourages deceit AM
; fraud. 1t says to the borrower after yo,
have obtained the use of money b.
, promises to pay an increased interest yor
may avoid your contract by refusing t
pay more than six per cent. and the Ia,
will uphold you in the violation of you
plighted word.
, 1t appears reasonable that money, lil>
5 other property, should be left to regulat
itself, and after man has agreed to pa
a certain sum for its use, 1t i'll comport
with the dignity of the State to annu
, the contract. An agreement about this
as about any other trade, should be rigid
/. ly enforced, and it is only when no pric
is fixed that the law can reasonably ste
! in and fix the rate Of interest.