Clarksville chronicle. (Clarksville, Tenn.) 186?-1872, 1869-11-13
THE UsURY LAWS.
SPEECH OF \. n. CHEATHAM.
Thsr .dsy' Nev.1, 1850, on the mi
TO Change the Usury Laws.

TO Change the Usury Laws.
Mr.. SPEAKER-The bill under CON
sideration Is one of the most import
ant that will come before this body
1t Is a measure to change the usury
laws of the State. 1t proposes to 10.
galize a conventional rate of interest
between contracting parties, stipula.
ting that the rate be expressed In
writing and be made a part OF the
obligation. 1t provides that In all
other cases, except these described In
the first section, the rate Of interest
shall remain unchanged. The third
section protects all contracts made
previous to such an act as Is now pro-
posed, and describes the status they
shall occupy. 1t Is a brief bill, but,
In my Judgment, to the point; and
what shall say will be In advocacy
of the general principle involved, and
of the bill as It stands.
AS one identified with the CONNER
cial interest of the people-one know
ing something of the operations OF
banks as they are now conducted
one familiar with the hardships
which the mass of the active, work.
feels h,msejf ohliyated 70 assist In
deyising measured for the general
good--one who i'm a former General
| Assembly In which he had the honor
to sit. had occasion to Investigate
this question. / feel II a duty to state
briefly the reasons which fmpel me
| TO urge the passere of this act. Sir.
/ am deeply impressed with the con.
yiction that this Is a most salutary
act
Mr.. Sneaker. Money ia a commod-
lity. II In worth it, Value in trade. -
No rule. except such ms YOU cannot
control nv legislation. can effect Its
value. Won Cannot raise or depress
lit. Governments. federal or State,
may make whatever currency regu-
lations they will. They say that
gold and silver is the only constitu-
tional currency: or that National
Banl, CURRENCY or treasury notes. are
a legal tender They NAV make any
thing thew see AT. a medium of ex.
change Of values. and establish It as
a currency. but when SO accepted.
| it becomes a commodity. Men use
1t, and deal in IL. It will come to
have a price that will fIuctuate ac-
cordinp TO the needs of the commu-
nity. and this value will be deter
mined by the contingencies of the
commerce which goes on between in.
dlviduals Composing the community.
This Is a law higher than any legis-
llators NAV enact, Political econo-
mIsts for the last twenty-five years
have been satisfied of this fact, and
daily experience confirms the theory.
Money is worth In the market what.
ever It will bring. Laws saving Il
shall only he worth six per cent. do
not FIX its price: and no licensing or
penal regulations can govern the
price. or Restrain the sale at whatever
price Il NAV bring, No gentleman
on this floor at all copnizant of busi-
ness transactions among the people
he represents. can he Ignorant OF this
great fact. Every Community In the
State of Tennessee. however limited
its business. affords evidence that
money. like water. seeks its level
Itfs the standard of values. hut n
passes from hand To hand. and II will
be dear or cheap. lust as any product
or species Of property for which it Is
a representative of value may become
under the laws of plenty or scarcity
This il the great principle. and II
should be kent in view by us as leg
islators.
1t is evident that our laws prohib-
iting money to be loaned. and con.
tracts to be- made at any higher rate
of interests than six ner cent has for
wears. and is still. not only prevent
ling foreign cnnital from Coming into
Tennessee. but has driven out. and If
continually driving millions of on,
capital info other States with more
liberal laws. and forcing II into in.
vestments which are non-producing
Money TODAY in our midst. and In
every State s,,rroundin0 mn. ia worth
from 8 to 10 ner cant ner annum. And
Is SO recognized bv ali classes. THE
farmer. the trader the manufacture,
cannot get II at g per cent. the price
fixed by law. They have ceased 10
expect II. They do not AJAX it. Be
ling unable TO borrow IL from private
individuals or from estates of any
kind on any kind of security, on ac-
count of the ursury laws as their OK.
list. thew are forced to 90 into bank on
paper inconyenientIy short. or to pC
TO shavors who are compelled, on ac-
count of these same laws. TO exact
exorbitant rates. The risk. with
Threatened usury suits at the hands
of the latter, makes money hipher
than II should be' II gives Il an ar.
tificiaI value. which is Injurious Ia
The general interest
Bank loans as evervbodv knows
are really under the hest coilatterals
mt from nine to 10 ner cent. The re-.
suit of the six ner cent law is. tina,
tine canital 10 he Loaned seeks othe,
Investments than loans to individu.
ais. under the law IN IL either sem
TO other States where a greater inter
est can be had. or is invested in stocks
and I'm bonds. State or Federal, or IN
real estate. In anv case. the vitaliz
ling and energiziny infiuence of cani.
tai Is diverted from individual enter.