Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-02-25
Ten Per Cent.
On Mortgage Security.

| HAVING BEEN ENGAGED FOR THE
IL past Il years in investing money at ten per
| cent. interest on farm property in Illinois, we
/ have now opened branch Office at Ottumwa,
| Iowa The amount Of loans placed by US have
| exceeded 81 800 600, without the loss Of single
dollar 90 the investors.
| Iowa has entered upon q career Of wonderful,
/ and, We believe, permanent prosperity. During
/ 1874, Iowa farmers raised more tClsIt, corn and
/ hogs than any other Stat in the Union.
The demand for loans is active, and We are re-
| ceiving large numbers Of choice applications for
| sums ranging from 500 20 $1,000 on from three
| 70 five years time
Refers to - and -, Bankers, New YorE;
=, Bankers Philadelphia, Pa, and -,
Hartford, Conn.
To the Union and American:
The above advertisement, taken from
the leading financial paper Of New York,
strikes me as a practical argument against
the repeal of the Conventional Interest law
in this State, for it answers cOnclusively
the only argument upon which its repeal
is urged-namely, that investments in
lands will not bear a higher rate of interest
than 9 per cent. If such be the case in
this State, It is because the lands are valued
too high in the calculation, or our farmers
are less thrifty than those of other States.
We see above that S4,5O0,O00 have been
loaned in Illinois alone BY one agent at 10
per cent, that the borrowers have been able
TO repay to the last dollar, and that now
they propose to extend their agency into
Iowa. There would be such agencies here, |
and foreign capital in abundance would |
flow into our State, If our collection laws !
we're such as they ought to be, for, to the !
expenses and legal delays incident to get |
ting back money once loaned, more |
than any other is chargeable !
the difficulty Of obtaining loans |
upon farming lands or city property. |
It is that which makes land 50 undesirable |
as an investment or collateral. If, how |
ever, our Legislature and the courts would |
realize that the people not only have the |
capacity to manage their own private af- /
fairs, but absolutely the right to pay such /
rent or hire for property as their judgment |
approves; and if the courts would enforce 4
mOnied contracts in accordance with the 1
terms agreed upon by the parties, the ef-
feet would be to materially enhance the
value of real estate. Even men of mode
rate means would invest, for it would then
be a collateral upon which they could at
any time borrow money to meet any Un-
fOreseen demand that might arise in their
business. With our present surroundings,
it is the certainty Of inability TO utilize
such security in case Of need that deters
capital from seeking real estate as an in
Yestment, and it is this added to the VI /
yersal shriukage in all the States, that is
depressing real estate in Tennessee.
Nor would the legislation suggested work
injustice. 1t would not compel any one to
give such security; it would merely give
those the right who desired to furnish the
most reliable security, that in return
they might get money upon the
easiest terms, and that, too, without any
danger whatever, Of a sacrifice Of their
Mortgages that could be collect
ed promptly at the time agreed upon, and
have the negOLiability Of bonds, would be !
more sought after by capital than any other
class Of securities, and, confidence once es-
the owner Of real estate wOul1
have a collateral as available as stocks or
bonds nOw are, for they would be cOuverti-
bic in the open market at any time upon !
easy terms,
But, to come directly to the question
soon TO come up in the Legislature, is il
not strange that Judge Gardenhire should :
have asserted that s'Our exemption an1 re-
iemptiOn laws, and the laws delay, drives !
money from the State" and then be labor
ing to effect a repeal Of the conventional .
interest law, instead Of working to secure
/
rs ofthOse unjust exemption and redemp-
ion laws" and result in attracting capital j
% the State, and that, too, to such an eX- s
ent as would give an abundant supply, 9
and, in consequence, a lower rate of inter- 4
st from which we would derive substan- L
ial benefits that can never be realized !
through 4 lower rate established merely by Q
legislative enactment2 Just here would y
.rgue that money has the essential
eatures of other pcOpeFty-is entitled to .
he same protection, and should be con-
rolled only by the same general laws; but U
his line has been fought over so often as U
o be familiar to all those in the Legisla- Il
Ure who reflect and study, and those who i
10 not, il is, Of course, quite impossible tc .
each. Besides, if the poor OF our cities .
hOuId fully realize that the right to fix the \
rice of money is no more absolute than n
he right to fix the price Of bread and meat, q
hey might become very Troublesome by
insisting that they are not able 10 pay over il
We cents per pound for beef or s. per Ia
aIrel for -four, and might clamOr for a 4
legislative enactment fixing the price Of
hese articles at that or a lower rate. b
might also argue that the Legislature | q
as no right TO fZ en- arbitrary price upon n
ny property, not even money; and that b,
be assertion of such authority is only n
7orthy Of the dark ages; but it is not Il
ecessary, for the enlightened public Opin- el
On Of the world admits it. Even the ii
majority report" does not claim the right, g
ut says sit would be bad policy 20 allow p,
honey 20 earn a greater income than land Of
d investments. In this connection, would u;
not be equally just and wise to fix upon p.
Ome business pursuit as a Stdnd- pI
rd, and then enact that no other qJ
ursuit shall be allowed a greater fl
.cOme, and that any surplus be devoted to at
siahlishinr asvlnms Tor The ilnnrnVidenL N