Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-02-25

and thriftless who, with equal or greater
facilities, fail to obtain the standard?
HE advocates Of repeal say that landed
investments viii not pay even 6 per cent,
but they do not investigate the subject to
see where the fault lies. They 10 not know
whether it is due to the tlrifllessness Of the
owners, unprOductiyeness Of the land, or
fictitious value placed upon it in the calcu-
latiOn-a value, by the by, far above that
! given on the tax-bOOks and decidedly
( more than they would be willing to accept
| If the offer was accompanied with the cash.
The fact that the rate Of interest is ten Der
| cent. is no criterion that all capital earns
/ that much, any more than the fact that
Jones, who is an energetic, hard-WOrlling
farmer, makes five per cent on his invest
ment, is an evidence that all farmers are
| getting rich as rapidly The success Of A.
| B, or 9 in merchandising does not prOve
that merchants as body are prosperous;
indeed, l am satisfied thai the capital in
vested in commercial pursuits in this State,
does not net six per cent; nor will money
when merely loaned at ten per cent net six
per cent. after dedUcting taxes and lcsses
from bad debts.
HThe farmer, in estimating the per cent.
realized on his investment, never makes
allowance for the living he gets for himself
and family, a practical illustration Of
which is not out Of place here. Smith
owns farm, stock, etc, valued by him at
$4,000; be has a family Of six children.
all Of whom are comfortably clothed and
fed, and has a surplus Of either money or
increase Of stock each year. am satisfied
Of the fairness Of this suppOsition, for ] do
not know a single exception, where the
parties are competent to MANAGE a farm.
Williams has $4,000, which be loans at 10
per cent. Ii he lives in a city, he has to
pay taxes, all told, Of about 81 Der cent. |
leaving 63 per cent, or an income Of s. 800
not enough by 5000 to supp. him as
comfortably as Smith and his family lives;
and if he engage in commercial pursuits,
the chances are greatly against his being as
successful as Smith with lis farm.
A standard rate Of interest 20 govern,
where there is not an agreed rate, is GER
tainly necessary, but it is utterly impossible
to say what rate people can afford to paw
for money under any and all circumstances.
They are certainly the best judges, and ca
pable OF managing for themselves. Sound
principles teach one thing, hOwever-that
the producers Of wealth should not be con-
stant borrowers, but should have mOney to
loan like the thrifty producers Of wealth in /
the New England States with their eieren
hundred million dollars deposited in the |
savings banks in that section.
If it is the intention by repeal to cOerce
capital into a movement for ''bulling real |
estate it Will not work. Capital Is as
timid as z woman, and full as stubborn,
Influenced by tlattery and COAX
inc, but cannot be driven an inch BY force. |
Il may not leave the State, but il will most |
not be any cheaper OF easier to |
obtain; It viii go into railroad stocks and i
bonds, as it is even already doing, in antic-
ipatiOn Of the repeal Of the Conventional /
Interest law, and the tin boxes in our |
which were emptied by the /
enactment Of the law, viii be filed again
By its repeal.
In conclusion, I desire % call attention
10 the remarkable fact that the large m3jor-
ty Of those who. represent the producers
Df wealth favor a repeal, Ehile the repre-
Of those whose necessities make
hem large borrowers are favorable to let
ing the law remain as It is. If, therefore,
he borrowers are satisfied, why should |
Jthers interfere in their behalf.
BORROWER.