Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1871-11-23
UNION AND AMERICAN.
rHE -coNVrNTi0NAL INTEREST
-asar-r .r4- LAW. t .7a
To the Editors OF the Union and American:

H.a..rH LA W. Il
To the Editors Of the Union and American:
A bill to repeal the conventional interest
law having been introduced in the Legisla4
ture, is exciting considerable interest among
all classes. aud the fact that the present law
has been in operation for so short time,
conYinces all thinking men that any action
looking to its repeal, at this time, would be
detrimental to the best interests OF the
State. There are many reasons why we
should leave the law unchanged, and prom
inent is the fact That United States bond
is a safe investment, and bears rate OF in
terest equal to our legal rate, and that late
paid in gold. The gold is at premium,
which by communication into currency, at its
present rate, will amount to seven per cent.
Our sister and neighbor, the State OF KEN
lucky, has wisely adopted the conventional
rate of ten per cent, and can we IN view OF
these facts-our finances deranged as they
are-afOrd to drive capital from our State
The idea of some financial doctors IS, that
by reducing the rate Of interest you
benefit the & borrowers, but all ex-
perience teaches that when money is
scarce, and the rate fixed by law less than
it will sell for in the market, the borrower
Gf be can borrow at alb becomes the VIC
tim of the insurer. The owner OF money,
like the owner of any other commodity,
will sell in the best and highest market, and
if we do not have that market in our own
State, he will invest orsell his money those
who bid higher for it-place it in United
States bond, or loan it in our sister State of
Kentucky. There is no truth better estab-
lished than that constant financial tinker
ing will drive away capital instead of bring
q - h 1nr, Of am
present law is demonstrated, by the large
amount from abroad that has been invested
in our State. Is six per cent, or should it
he the highest value to which money rises
in the course Of business, any more than
that should be the limit of profit made by
exchange in any other commodity ?
The great want of our State is capital,
and there are a thousand avenues in which
to invest it, and if money will not bring to
its owners an interest equal TO the profits of
any legitimate business, capitalists will not
bring their money here. Reduce our rate
of interest to six per cent. and you offer a
premium to usurers; the law to be treated
by some as a nullity, and by others evaded
under the terms OF. premiums, exchange and
commissions; and thereby foster and beget
a contempt for law. How legislators, in
view of the fact that a contiguous State
offers to the capitalists our conventional
rate of interest, can still claim that the re-
peal of that law would be beneficial to the
masses Of the people, is beyond any pro,
cess of reasoning laid down in logic
The value of money, like that Of every
other article regulates itself If the rate
of interest upon it as fixed by law is the
same as the rates in other states, no general
deran2ment Of finances will happen from
that cause, and when money would be
plenty it would be cheap, for the law Of
supply and demand would regulate that as
It does every commodity.
We must not forget our changed status
since the ten years past; that from owners
and lenders, a great many of us are in the
opposite class; and that We need assistance
to develop our material resources. VIZ
should believe and act upon that belief
that we are living in the most favored por
ton Of the United States, in regard to al
physical surroundings, and that we need the
aid Of capital and skill, tlat our rich acre
may be occupied and TILED; that our superio
water power may be utilized; that our hid
den ores may be brought TO light; that man
ufactories of various kinds may be organ
lied and carried into operation, and thi
will be encouraged under our present liberia
conventional interest law, if it is allowed Il
remain as il is. TRoUSDALE.