Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1869-09-01
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HNURY LAVA.


before the coming constitutional
convention. We are too modest to
dictate, and besides have not yet
matured our programme, and there
fore will not follow his example.
We trust that the people and their
representatives yet to be elected
will be found equal to the emergen-
cy; if not, We dare say the wisdom
Of the press and amateur statesmen
will be abundantly placed at the
service of the convention. To the
Legislature, however, which will
assemble In October, we venture to
suggest the serious consideration Of
our usury laws. We will not go into
the usual scriptural Judaic and anti
Judaic augmentation upon this
subject. 1t is now fully settled in
theory and practice thatmoney may
legally and rightfully be made to
breed, as Shylock would say, and
that III point OF fact under the skill
ful manipulations of most money
lenders, individual and associated,
it does breed "like a rabbit" and
rapidly makes the fortunes of those
lucky fellows, the creditor class.
Men may lend money when they
Ike, men may borrow it when they
can, the rate of interest is the only
open question. Our law permits the
exaction Of six per cent. per annum
our practice almost without excep-
ton is nine, ten, twelve and up
wards. The law is systematically
and habitually disobeyed in almost
every instance Of borrowing and
lending money. Our banks are
shaving shops. eve hope nobody
will be angry) One per cent. a
month, we understand, is the cur
rent rate, exceptionally nine per
cent. per annum on gilt edged
paper with cash collaterals.
Out of our commercial cir
cles the same practice exists
nobody lends money at six per
cent. There is something radically
| wrong, in the law or people, when
q plain and well known statute is
uniformly and Systematically VIC
lated by every man and body OF
men who lend money upon interest.
If the law be just, judicious, expedi-
ent, adapted to the existing status
of the community, promotive of the
material interests of the State, then
the persons who disregard it are
perverse, Iawless, criminal, and
| should be compelled to obedience
by severe and suitable punishments,
as are other people who violate 9th
er laws. If on tho other hand the
law is unjust, injudicious, inexpedi-
ent, unsuited to our condition, in
furious to our interests, if these
| culprit capitalists and their custo'
mers be compelled to disobey the
law of the land by the stern coercion
of the higher law of commercial ne
cessity, why in that case the law
should be repealed or modified to
suit our condition, and when so al
tered should be enforced.
But what is the practical effect OF
our usury laws2 They prohibit
all legal lending of money they re-
strict very seriously the surrep"
| titious and illegal transactions
which are the only resource of the
unfortunate borrower; they raise the
rate of interest upon him by the
hazard imposed on the lender OF
losing his surplus interest by plea
of usury; they encourage the invest
ment of capital in United States
securities, which effectually sinks all
the money SO invested and for all
purposes of trade and enterprise
absolutely annihilates it; they
vigorously exclude all foreign CAPT
tai from our borders. Six per cent.
is not the value of money in Ten
nessee or elsewhere in the United
States. A higher rate is paid by
the general government, for It's
bonds, practically equivalent to
loan on call, yield at theirpresent
premium and the present value OF
gold an interest of from seven to
eight per cent. per annum. The
United States stands ever ready an
Unsuitable and gigantic competitor
of every borrower, provident or
improvident. The law says to the
borrower "You shall not borrow
money at all ;" to the capitalist it
says, "You shall not lend money at
all, except upon condition that your
capital be rendered wholly una
valuable to the community in which
you live, and that no benefit be de-
rived from 1T by tho industrial
classes around you"
The usury laws then rs they
stand, and in the present condition
Of the country, prohibit absolutely
the lending Of money to individuals.
We submit the question to the Leg
islature; is that the true policy for
the State Of Tennessee? Is it best
that tho capital of one man shall
10 20 M m