New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1871-08-26
REnunING INTEREST.

The Bank of America is, deservedly,
among the first of our financial institu-
tons, and has gained this rank by the ju-
dicious management of its officers, whose
wisdom and foresight have their due reward
in the high figure at which the stock is
rated. There is a growing dissatisfaction
with the legal rate Of interest at present
in vogue. Eight per cent is too much to
pay for accommodations, and the large
family of corresponding interests must be
affected to the prejudice OF the borrower
or consumer.
A gradual feeling has taken possession
of the numerous divisions of our mercan-
tile interests that the slow price system"
is the best, whether the price is paid for
the use Of money or for availing ourselves
of the advantages of any other thing sub
ject to employment by man. As usual in
any of our great financial changes the
Bank of America is the first of our finan-
cial institutions to recognize this senti
ment, which is gradually extending to all
classes in the community, and according
" has ''resolyed that from and after date
the rate of interest will be six per cent
per annum on all notes having not. over
sixty days to run" This step has already
been appreciated by an increase in the
demands for accommodations by our
mercantile men who are large borrowers.
The vaults of the bank are filled with
gold, its cash is plentiful, yet, with an
enterprise and spirit to be epulated but
seldom seen in like institutions, with
good name and large. business, the cor
poration has taken the only co~se to
double its present enormous earnings
and at the same time afford every facility
to the operations and transactions of
trade.
Where the Bank of America has led,
the remaining banks will be soon obliged
to follow, and with less rate of interest
there will be less restrictions to the move
ments of commercial men. In many of
the Northern States this is the only rate
of interest, and the scale of operations,
under the reduced interest, is common
surate with the low figure. To make a
general change in the rate On the part of
the State may be only question of time;
but, in this instance, the improvement
shows itself to be far-seeing and philo-
sophical. Nothing niggardly can succeed
in building up an immense business-no-
thing scrimped will grow. The fewer
hindrances to money making, the more
to be made There are many inconve-
niences to which our business men are
subject, many annoyances, the direct
growth of a high rate of interest which
seats up the principal, according to the
sentiments of the borrowers. Whenever
there is a diminution of loans, a CORE
spending decrease in that general inter-
change of advantages which constitutes
the true genius of trade follows.
BY giving encouragement to those who
seek accommodations, the bank has in so
far added strength to mercantile opera
tons, afforded facilities to borrowers and
shown the true comprehensive spirit.
We have, as people, too much caution
in business operations. We are too fond of
keeping money locked up, if need be, for
years, unless it can draw certain rate of
interest, and that high one. The fact
that idle money rusts, or like the stomach
when it has nothing to operate upon,
acts on itself, to its own detriment, is lost
sight of. Better two per cent than nothing.
Surely if money can not draw eight, but
can accrue six per cent, it is wiser to let
it out than keep it inactive. In the cor
rect application of these principles and
in the true liberal spirit the Bank of
America will certainly meet with the
prosperity it deserves, though how it can
rank higher than at present, or hayea
firmer hold on the credit of the mercantile
community, can only be realized by the
future development of this new plan.