St. Charles City Republican intelligencer. [volume] (St. Charles City [Charles City], Iowa) 1857-1861, 1860-07-19
THREE PER CENT. PER MONTH.

l nave sad that James u. King was
a great friend of Daniel Webster. SO
he was of Nicholas Biddle. At one
time such was the influence of Mr..
King that he held Wall street in his
hand, and some profane person named
him " the Almighty of Wall street"
He was fond Of little fun occasional
ly, and liked good joke or good
story. lie held a share in the celc-
brated "Tontine Stock" (By the
way, | mean to give you list of all
the original members Of the Tontine,
and of such as are now living. think
all the Oracle family and King family
had stock in the Tontine.)
Mr.. King had horror of the three
and four per cent. a month operations.
On one occasion q merchant was do
ing very extensive business, and for
whom Mr.. King felt a very sincere
friendship, came to him and said
Mr.. King, keep four large bank
accounts and have offered heavily
the best paper for discount. 1t is
flung out rs fast as | offer it, shall
have to go on the street, and do as
others do-get heavily shaved. Mon
cy is worth now three per cent. a
month. l have got to pay it. | do
not see why l should not pay that to
your house as well as on the street.
| know you object to such transac-
tions, but | cannot help myself.
will bring down my portfolio 1t
contains in Bills Receivable over
100000 of 4 No. business paper.
You can take your selection. must
have 100000 in cash before another
week.
No business can stand such pre-
MUM for money any length of time
1t will use up million of capital very
speedily" said Mr.. King.
oh, not at all. My business will
justify my paying any rate of inter
est, however eXOrbitant."
why discount for short time =?
Why not make it for two or three
years? Twill not discount your good
business paper. Pay your debts with
it. will discount your note for $780,
600, if you will make it three years"
"Thank you, Mr. King. l will
draw it at once. 1t is very kind in
you, but don't you want collateral ?"
"No, sir. Mr.. Miller, (turning to
his accountant,) take off the discount
at three per cent a month on 100000
for three years, and draw check for
the balance for Mr.. d. Wait mo-
mcnt, D., OF give me your note for
800, 900. The conversation became
general, both were seated, when Mr.
Miller, the accountant, handed the fol-
lowing memorandum to Mr. King:
Note by Mr. ID. for. 500, 900
Payable three years after date.
Discount at three per cent II month
is thirty-six per cent. per year, and
for three years los per cent. or. los, 900
Balance due to Prime, Ward s. King ss, 900
"D. have you a blank check with
you?" pleasantly asked Mr.. King.
\ check. What for?'
"Why Miller has handed me state.
ment, and | find that if we discount
or shave your note for three years for
100000 at three per cent 4 month
you will have to pay us $4,000.
"Why, this is absurd. | gave you
my note for 100000 and get no cash
in return, but have to give you $1,000
cash. Bah !"
"Be cool, D., and listen. have
done this purposely to give you les
son, to show you where your mercan.
tile career will end, if you submit to
such cxtortion. Now if you will
pledge me your word and honor that
you will curtail your business and
never pay more than seven per cent
interest for money to carry on your
trade, l will tell you what | will do.
You want 100000. Draw your note
for that sum at ninety days, leave with
me 100000 of your best notes re-
ceivable, and will give you the mon
ey less the ordinary discount Of sever
per cent"
Mr.. d. was grateful He apprecia
ted the lesson taught by Mr.. King
and he is at the present moment on,
Of the wealthiest men of New York
N. Y. Leader.