Nashville patriot. [volume] (Nashville, Tenn.) 1858-1860, 1859-12-21

trr policy Is extensively pursued. ana under
the growing intimacy with such States, super
Induced by railroad facilities, the sums thus
sent from this State are annually increasing
There is no means of forming proximate
idea of the amount of money Withdrawn from
circulation in the modes and from the causes
above suggested. In every county there are,
no doubt, thousands of dollars in the hands
of the owners, or placed on special deposit,
which, under a more liberal legislative policy,
could be made to contribute to the general
of the country.
From the best information the Committee
have been able TO obtain, there has been sent
from the counties of Davidson, Shelby, Tip
ton, Decatur, Maury. Bedford and Montgom-
cry, about three million dollars, while from
other counties, as will be seen from the ac-
companying correspondence, large amounts
have been sent off, which have not been COM
puted. This large amount has been banished
from the State because of our unfortunate
legislation, that has arbitrarily fixed the price
for the use of money at standard below its
actual value. These capitalists, thus driven
from the field of competition. employ agents
in other States to loan their money at from
eight to ten per cent, where it can be legally
done, and would, of course, prefer to have it
under their immediate control, if permitted
so to do, by a legal system of legislation.
Another cause of scarcity of money, and
the oppressed condition of its market In Ten
nessee. mey be here stated:-Under our in
ternal Improvement system. State bonds have
been mostly negotiated in foreign markets,
and much of their proceeds expended in the
State upon its various public works. THIS
source of supply served in some measure to
fill the place of domestic capital. taken from
the State under the operation of our laws.
but in place of this supply, an immense
drGugh is now annually made upon the people
of the Stale TO meet the interest upon The
public debt, and provide sinking fund for
the final extiEguisbment of that portion,
which is mostly due to persons residing out
of the State. Several millions of county
bonds have also been sold within the last few
years, mostly to Tennessee capitalists. These
bonds served for time TO absorb portion
of our surplus capital. which otherwise would
have sought other and more productive mar
kets. The sale of county bonds has in u
measure ceased together with the income
from the sale Of State securities.
With these varied influences bearing upon
the important subject Of our domestic finan-
ces it is imp Esiblc not to forese" Constant
ly increasing pressure upon the welfare and
interest of the people. 1t isl truth, a con-
dition Of affairs that no system of bank
however wholesome can relieve,
and which must he avoided by other and DIS
tinct legislation. 1t is submitted, that the
close connections with other States. and the
intimate relations consequent thereon, be-
tween our citizens and theirs--the diminished
chances of profitable and legal investment
in domestic securities and the immense de-
manGs for the payment of interest upon the
public debt, together with the necessity Of
raising means in short time to extinguish
portion Of that debt, will aud must produce
crisis in the monetary affairs of the people.
which all good men would deplOre, and
which the enlightened Legislators of the State
should earnestly seek to avoid. The reason
of the immense amount of usury wrung from
the debtor portion of the community is to be
found in the injurious workings of a law that
refuses fair compensation for the use of
money, and by heavy penalties seeks a con-
formity to its requirements; that the tenden-
cy of this law has only resulted in banishing
capital from the State, and left the field of
TO men that rivallcd each other
In the amount of their gains, by exacting
double payment from their customers for
every rick that is encountered, or every dol
lar that lis paid into the treasury is not TO he
wondered at That bona fide capital, asking
only fair, but legal remuneration, should
shun a market surrounded by the species of
Legislation that is to be found i'll our statute
books. is by no means surprising. That this
market should be monopolizcd by financial
is but the legitimate result of
legislative Policy. The tendency of our lars
haUe been 10 gtUe one class of the community an al
most erctatstOe control Of the capital sal reta,Redm
he State.
1t is impossible to state accurately the
rates of discount paid by borrowers for mon
ey. In East Tennessee, the rate Of discount
cannot be less than fifteen per cent. per an
mum. In Middle and West Tennessee the
ore rrar to of ie Ett ; l..
than twenty or twenty-five per cent per an
mum on good paper. An intelligent com
mercial gentleman of Memphis, who has
given much attention to the subject. esti-
mates the amount of usury paid by the coun5
ty of Shelby at not less than six hundred
dollars per aanum, and other COM
muniies in these two divisions of the State,
are in but little better condition, according
to the amount of capital used by them. 1t
may be safely stated that, in the two last
named divisions of the State. good notes,
having twelve months to run, can not be sold
On an average, at less than twenty-five per
cent. discount. Another misfortune connected
with the peculiar condition of our monetary
affairs may be stated in this connection
Brokers and shavers are not content with the
ample returns OF their own capital. but being
proverbial for punctuailty. and bound by
their own calling not to pleaG usury, they be-
come in many instances the borrowers of
capital, lying in the hands of the people.
aud by means of such monopoly are enabled
to increase their demands. and multiply their
exactIons upon the meritorious, but oppress-
ed borrower.
The attention of the Legislature is respect
fully asked to the letters ACCOMMODATING this
report, from leading business men received
from several States where conventional in
aGf hD oil In Al.
States Louisiana) the usury laws are virtu-
ally abolished. The facts however. show a
marked contrast between the rates Of interest
in those States as compared with ours The
and effect OF thar laws has been TO
keep capital at home-that of outs to drive
il from the State. Their laws i1rife canital
from distance--ours. on the contrary. rcpels
it from our borders. Their laws project the
borrower. and give him some chance to OBJ
tain money at fair rates-ours on the con-
trary. creates eXorhitant rates of interest and
places the borrower at the mercy of the
money dealer. With the laws of these States,
the people are generally satisfied in ours
there is a general discomfort, and an almost
universal conviction that Woodworking.
energetic and economical people could have
a better fate under a different and wiser sys-
TEN OF legislation.
II is submitted that the policy of Tonnes
see legislation should he TO make the loaning
pf money honorable, and not to stamp il with
iseTedt-to invite capitalists to put il into
use by allowing a liberal compensation, raih-
er than to Cypress it by heavy burthens aud
penalties, which serve no other purpose than
10 increase the difficulty of obtaining tin
fact, 10 impoverish the State, and 10 produce
a rich harvest OF frauds upon the treasury.
la short, it may he safely asserted, and the
experience OF commerce proves it, that just
IN proportion burthens are imposed upon
my article Of necessity, so the price Of OBJ
tanning them viii, be enhanced. The use OF
money forms no exception To this universal
rule in political economy.
The chairman has been instructed by the
of the committee tn report the fol-
lowing bill, entitled: "A Bill 10 amend the
| sury Laws OF the State, and "a establish n
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