Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-02-23
THE GRANGER VIEW o. CONVEN-
TIONAL IETER5 ST.

Of TIE State Grange, at Knoxville,
printed elsewhere, it viii be seen that
on the last day of the session a petition
praying the Legislature to repeal the
present conventional interest law, was
tabled by vote Of two to one. This
viii surprise many who have been led
by lobbyists and politicians into be-
lief that the farming interests are most
clamorous for a return to six per cent
as the maximum, while the cities
are supposed to favor ten per
cent. The facts of the situa-
ton are about the reverse, and
for very plain reasons. Farmers want
money, but know they cannot get it
at six per cent. under our collection
laws, so long as United States bonds
offer six per cent. gold, with no doubt
or trouble, whatever, about collection.
On the other hand, we find in the cities
a large class Of money shavers, who are
keen and watchful Of their interests.
This class generally manage to get
from one and a half TO two per cent. a
month, NJ matter what the law may
! be. But the conventional interest law,
legalizing as high a rate as ten per
cent, nterferes with them, by bring
ing into the market a large
class Of competitors who are con-
tent with the conventional rate. In
the city of Nashville alone, several
millions Of dollars lave been tempted
out Of the form of United States bonds
by ten per cent, and loaned to mer-
chants Of sterling integrity. This en-.
ables the merchants to help the plant
ero. The capital thus released spreads
o yer the country. Abolish the present
law, 60 back to six per cent, and these
millions Will be withdrawn from trade
to be reinvested IN bonds as being safer
and affording the same income in the
way Of interest, while escaping the
taxation that attaches to them in their
present form Of notes or mortgages on
the merchants. These who imagine
that Tennessee has not been benefited
By the law the repeal Of which is now
agitated, deceive themselves. unless
they merely intend to deceive
others. The only feasible mode TO
draw capital out Of untaxed United
State bonds, even if our collection laws
were perfection itself, would be to ont.
bid Uncle Sam IL the way Of interest.
It is awkward TO have such a compel
itor in the way, but practical men viii
deal with the situation as they find it,
when It is beyond State action TO
change it.
The notion that the.country demands
a repeal Of the conventional interest
law, Is much ike the impression SINH
larly prevalent that the masses Of the
people are the prime movers for low
taxes. 1t is the city shaver who is for
repeal, because the scarcer money be-
comes, the higher Will be his il-eott L
profits. So It Is the rich man with his
broad acres and blocks Of city buildings
who wants, low taxes. Theinterest Of the
State is that he should divide up his
lands by way Of rentals, if not sales,
and so give the whole population a
chance u work for themselves. If
compelling these large holders to pay
their share Of taxes viii wean them
from the old plantation system, the
whole State viii be benefited as well
as themselves and their children. There
is no trouble with the smaller tax. pay
ers who constitute the majority, and
are always prompt. These two falIa-
cious notions about interest and taxes
seem to originate with a class who are
rich enough to lobby, andind ustriously
propagate the views with which they
would fam impress the Legislature.
1t IS not to the advantage Of the
farmer that the legal rate Of interest |
be cut down, which would necessarily
drive out Of circulation among US a
large portion Of both foreign and home
capital. Lands are low and money is !
high, because we have d surplus Of the
one and a scarcity Of the other. The |
disproportion between the two is a. |
ready too great. Why increase it and
depress our lands, by driving large !
portion Of our money into other States |
OF into United States bonds:
No doubt the action Of the State |
Grange at Knoxville was largely deter
mined by these obstinate facts. Other
principles Of sound finance may have
had their influence. 1t is idle to talk
Of Tennessee competing with the great
and growing West. unless We olfer the
same inducements TO enterprise and
capital Whatever its moving motive,
the action Of this representative body
must arrest attention and evoke
Thoughtful consideration.
JUST before theArmy Appropriation
bill passed the House, last Friday, |
Horace Maynard, who represents our
State at large, offered an amendment
to provide two years appropriation for
the support Of the army. The malig-
naut had his labor for his pains, how
ever. aud met with ignobIe defeat. Mr.
Wheeler Republican from New York,
who had the bill in charge, raised the
point Of order that unexpended appro-
prations. 10y the act Of July, 1872,
would be covered into the Treasury at
the end OF the fiscal year. So the
amendment was not entertained, and
thus ended this part Of the great SUBJ
jugation scheme.
CONCERNING an extra session Of