Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1869-11-27
THE UsURY LAWS
SPEECH OF W. X. sADLEE,

MIR. Speaker: The Dill under cOnsidera-
ton is one of vast and vital Importance to
the State, and one that does not confine
itself to any particular locality, but is of
general interest. II is one that very ma
terially changes the relationship now ex-
listing between the money-lender and the
money-borroWer, and also the debtor and
the creditor. In taking the position shall
take upon this great question, am aware
that am in opposition to gentlemen for
whose ability 1 have the utmost respect
and this, sir, is the only hesitancy l have
in this matter. But, believing as | do
that am acting in accordance with the
win and interest of the constituency
have the honor to represent, and the great
mass of the people of the State, shall go
forward fearlessly in the performance
of what | conceive 10 be my
duty. In meeting these gentlemen feel
as / imagine David felt when he went out
to meet Goliah in mortal combat-not
trusting in my own strength but in the
surety of my weapon.
In the first place shall proceed to an
swer in detail the arguments of the gen
tlemen advocating the bill. Their argu-
ments are based upon false theory. The
acts of all former politicians and states
men show that they have so regarded it.
1t is this: That money is commodity
like all other articles of trade. Money is
not strictly commodity, but simply a
representative of all articles of trade. A
medium by which, according to certain
standard, all merchandise is valued. For
instance, here is piece of paper upon
which there are stamped certain numbers
and figures. This is dOllar-nothing
more or less; and another piece of the
same size and appearance, except the fig
-this-is five dollars, and the same
| as to different denominations of coin,
the coin representing more value, it is
true, which is the real base The bill it.
self discards the theory upon which their
| arguments are founded. If the theory be
true, why have a legal rate of interest at
| all? The bill fixes six per cent. as the
rate when there is no contract. Upon
what other commodity does the law of
the State propose to fix even a minimum
price? Does it upon your horse, or your
land, or the products of the soil But to
| admit this theory to be true, let us try the
strength of the arguments based upon it.
We are told to pass this law, and there
will be great increase in the amount OF
capital in the State; that money will
come pouring in, seeking investments,
and why! Simply because it is to the in
terest of the lender of another Stete to
bring his money here to loan, that he may
realize more on it than he can al
home. Now, sir, who is to be
benefited by this operation 1t is very
evident that the lender is to be the first
beneficiary, or he would not transfer his
money from another State to this. But
| how is this State or its citizens, the Dor
rowers, of course, to be benefited. They
tell us it is to have plenty of money to
trade on. In what kind of trade can he
engage to make twelve per cent. for his
creditor and then make profit for him.
self! VIII he trade in dry goods, grOce-
ries or produce? Go ask the experienced
| grocer, and he will tell you that if he
makes twelve per cent. clear profit he j:
doing we'll Go to the wholesale mer
chant to purchase stock of goods, anC
he will not acknowledge that he is making
that amount Then the profits of the
borrowers labor, the real capital, i:
leaving your State. Therefore the mer
chant must realize a larger profit upon hi:
merchandise, which is finally pait
by the consumer, the labOring class
of your State, which increased
amount finally reaches the Golfer!
of the capitalists of another State
But we are told again that the capital
legitimately belonging to this State i.
leaving here for profitable investment
elsewhere Then | would say in all can
dor, Let it go. If there is more being paiC
for it than can be realized in any kind o
trade, better that it should go, and let thi
enormous interest come to our State. Blu
it is argued, further, that we must legislatt
so that the private citizen can come il
competition with the Government as ;
money borrower. Now, this is simply
pFepOsterOus. There is not an intelligen
gentleman upon this floor that will con
tend for a single moment that any trad
can compete successfully with the genera
/ Government in this enormous scheme o
borrowing money which was inau
grIrated during the rebellion, the onl,
pretext for which was that tn
Government might be sustained for tn
ilne being; or even with the State gov
eminent, which present wild scheme wa
brought about by reckless and extrava
giant legislation, the like of which wa
never known before Our bonds are is
sued bearing six per cent, and then sol
for fifty cents on the dollar.
| Now, to talk about coming in cOmpeti
ton with this rate of borrowing money
The man that undertakes it will come on
just as the State and general gOvernmen
will if they continue it-neVer pay il.
is said, by the advocates of the bill, tha
we must so legislate as to bring the citize
lender in fair competition with the banks
and thereby make the banks more liberia
If we do this, we must change the bank
ing laws, and not the usury laws. ID
not the banks now loan their money upo
the basis of six per cent, and now 1t
said to realize from nine to twelve pc
. cent? According to the same rule, wOul
they not, upon the basis of twelve pc
cent, receive eighteen to twenty-four pc
cent, and thereby be doubly oppressiy
on the borrower,
And now, SIT, We reach some argument
in favor of this bill that do not seem
coincide with that of which we have bee
speaking. 1t is that money is not no.
being loaned at six per cent. in this STATE
but is actually being loaned at from te
to fifteen per cent, and in some localitit
as high as twenty per cent; and this bi
will simply legalize what is now bem
done illegally. And in answer to the ma
ural inquiry, how all this is to benet
the poorer classes, we are told that Tn
great influx of money is eventually
make money cheaper. Now if the'
great advocates of the money cal
by any series of mathematical calcui
tons, reconcile the seeming incOnsistel
cies, it is more than l have been able
do. Increase the per cent on money
induce it to come. Let it come to redut
the rate, that it may come within Ii
reach of those that cannot borrow ;
the present rate Oh, consistency, tho
art a Jewel! Now, sir, for brief Tevie
of the practical working of this bill, shoul
it become a law, and its effect upon Il
masses, the labOring classes, the origin
producer. the tiller of the soil. The on
argument Offered by the gcntlenn adv
eating this bill, TO show that il viii ben
| fit this class, is that we need this excess
currency to move the produce of Il
country. This, sir, is answered by Il
experience of every gentleman upon ii
floor and every produce dealer in Il
country. Now, sir, at what time has the
been bushel of grain or apound Of bact
to sell in this country that there was n
money to buy it at a remunerative price
Sir, grain has been so high that if L
miller of this country touched it he lC
money by it. Now, sir, do we need mo
r money to makeithigher? No, sir; we wa
r more grain to sell, that we may increase t
: real capital, the real and substantial veal
e of the country If you wish to bene
a the country, legislate to encourage mo
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