Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1871-12-07
THE CONVENTIONAL INTEREST
has Law.
Remarks of Mr.. CheafhanA, Of Robert
SON, Delivered i'm the House of Rep
rcsenfatives, Nov. -, on the Bill IN
frotEuced by HIMSELF

Remarks of Mr.. CheafhanA, of Robert
son, Delivered in the House of Rep
rcsenfatiyes, Nov. -, on the Bill I'm.
trOtiuced by Himself.
Mr.. Speaker: l seek the floor with
view OF offering to the House the reasons
which have influenced me TO introduce this
bill to repeal the law, passed at the last
session Of the General Assembly, legalizing
temper cent. upon money loaned, when ex
pressed in the contract. i have not sought
the floor, Mr.. Speaker, with the expectation
or hope that any arguments or reasons
which may adduce viii influence the judg-
ments or control the votes Of members,
most of whom are matured by age and ex
perience; but knowing that this question is
one of deep interest to the constituency l
have the honor to represent, have felt it
my duty to present to you such views as
entertain, and such arguments as | can
command, why the bill under consideration
should pass. And do this conscious Of my
inability to portray the evils of the bill
sought to be repealed, or depict the good
which will result from the passage of the
one which have had the honor to intro
duce.
1t has been sought of late years to manu-
facture public sentiment against all usury
laws, holding that the use of money, like
any other commodity, should be open to
the contract of the parties, leaving them to
agree upon the rate to be paid for its use.
This reasoning, however, is, l think, more
specious than real, and all countries, as well
commercial as military, have found it neces-
sary to guard the weak against the strong,
the unfortunate from the more fortunate, by
fixing legal rate for the use of money.
Mr.. Calhoun, the great Southern states
man, in his treatise on the necessity of gov
eminent, fixes the beginning point in the
selfishness of our natures, very truthfully
saying, that ''if we were so constituted as
to prefer anothers good to our own, our
lives would be spent in comforting benefits
upon others; if we had as soon benefit others
as ourselves, we would stand equipoised,
and our lives would be spent in listless in
dolence-but preferring our own good to
all others, governments have been instituted
to prevent one man from infringing the
rights of another" thus showing that the
necessity of government springs from The
selfishness with which mankind deal with
each other.
Taking this, Mr.. Speaker, as our initial
point, and as undeniably true, let us briefly
examine the law in question, and see
whether it has or is likely to inure to the
common good of the State.
1t will not be denied by those advocating
the policy of fixing the rate of interest at
ten per cent, that whatever may be the rate
of interest allowed by law, the lender will
exact, and the borrower will pay, whether
it be ten or twenty per cent. This, sir, is
a stream which always stands at high water
mark.
The necessities of the borrower forcing
him to pay any price demanded by the
lender. Letlus take a common and fsmi-
liar example. The borrowers property is
seized and levied on, and forced sale about
to be made under execution; he in his dis
tress viii agree and contract topay any rate
of interest allowed by law, which will sure
ly be exacted by the lender. Should one
class of the community be by law thus
placed at the mercy of another, and that
numerically in the ascendant? ! think not;
but we should give to the capitalist rea-
sOnable compensation for the use of his
money, and restrain him within that limit.
4 mans pecuniary distresses are equal to
his physical misfOrtunes, and it would be as
reasonable to authorize by law one man to
charge another anexOrbitant price for help
ing him to his home with broken limb as
to say to him you may exact an unreasona-
bic rate for the use of money in order to re-
lieve his pecuniary distresses.
And l appeal to the experience of every
gentleman upon this floor, whose necessities
have forced him to seek loan, whether
tempOry or permanent, whether it has ever
been offered 10 him lower than the legal
rate of interest at the time. | know, Mr..
Speaker, that there are many clever men
who live by lending their money at interest,
but it is human nature to ask the highest
price for its use, which is not usurious and
indictable. 1t is the Legislatures of our
country who commit the wrong by legalizing
a higher rate of interest than the business
of the country can pay. l know, Mr..
Speaker, that it is very fashionable to speak
and consider the money lender as a great
benefactor-a good Samaritan-one who
adds materially to the convenience and
profit of his locality, but when properly con-
sidered this is not so. He may be the means
of relieving pressing wants and pecuniary
necessities of those around him, which ends.
almost invariably in their desolation, ruin
and poverty. We have, Mr.. Speaker, often
observed tall oak standing in the midst of
a fertile field, its roots strike deep into
the earth, whilst its top shoots aloft towards
the heavens, its branches spread far and
wide, its foliage green and luxuriant, but all
around it is dwarfed into sterility and pow
erty. Such, Mr.. Speaker, is the money
lender. He fourishes and fattens upon the
misfOrtunes of others, when all around him
within the radius of his influence are sap
ped of their abundance, and poverty, want
and wretchedness crOuched by the hearth
stones of the poor and unfortunate.
1t will not be denied thai the wealth of
all countries, and more especially of our
own, depends upon the prosperity of their
agricultural interests. 1t is true there are
other great interests which should not be
overlooked-such as the commercial, me
chanical and manufacturing; but all these
in a well ordered and prosperous State play
a subordinate part to agriculture. The man
who plants one seed and causes thirty to
grow therefrom has created something which
did not before exist, and added wealth to
the nation. The mechanic merely embel-
fishes and utilities what before existed.
Commerce simply transports what has been
made from one section ef the country or
State to the another. The manufacturer
places the fabric already formed in a more
-NOuC VI bhCoO SlNth1O
thing; they simply add additional value to
what exists.
The agriculturalist creates additional
wealth by producing that which did not ex-
ist, and all other branches of industry lean
upon it, and it should be the first great aim
of the statesman and patriot to see that no
law is passed which in its tendencies and
effects may PROSTATE and paralyze this great
national interest. The professional man
the lawyer, the doctor, though necessary to
every community, make nothing-they get
money by a change from their clients or
patients hands to theirs, but in the whole
circle of their professional business they
create nothing; they add nothing to the
wealth of the community, they become
rich hut unOn other mems labor: they con-