Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-02-13
MONEY HIRE.
A View OF Interest Out OF the Ordinary
Line OF Thought.

A View Of Interest Out OT b Ordinary
Line Of Thought.
To the Union and American:
Ihave not looked without concern
upon the discussion in the Legislature
upon the subject Of abolishing conven-
tional interest, and the substitution of
a fixed legal rate. Under the present
constitution the legal rate Of interest is
fixed at 6per cent. per annum, but the
Legislature Is granted power to author
ize the people to contract with one an
other for any higher rate, if expressed
in writing, not to exceed 10 per cent.
per annum. Under this power the
Legislature has enacted a law
authorizing contracts for the
payment of interest on loans of
money to the extent Of ten per cent.
On the question of repeating this law,
and making the rate of interest six per
cent. under all circumstances, l shall
not enter further than to say that as
one of the many in the State /, if a
member of the Legislature, would vote
against it on grounds Of policy. I have
paid In the course Of legitimate bust
ness as high as the rate Of so per cent,
and not been damaged. 1 am at the
present moment paying, in a legitimate
business, 6 per cent. and also 10 per
cent, and think I am benefited, and
do not think the lender IN either case
is injured. Either the exigencies or
conveniencies OF business may Justify
the one or the other rate, or even a rate
higher than 10 per cent. Therefore,
while the law has undertaken to permit
n conventional rate of interest, limited
to 10 per cent, 1 would not disturb it.
But as a subject Of reflection to the
members Of the Legislature and to the
people at large, while the matter is IN
der discussion and exciting public at
tention, / venture to suggest in very
brief terms, that all interest for the use
Of or hire Of money IS UHSound IN priB-
cipLe and ought to be abolished. Its toll
Grafton in every age of the world and
in all nationalities, where money has
eve been known, has built up great
money corporations, to concentrate
capital, to create mOney-kings, and TO
levy tribute upon the tOiling people to
SusIdlA anu 5uppOII Iuchs
The world is old enough now to be-
gin to think, at least, Of taking off its
b~aby.clothes on this subject. Money,
intrinsically, is of no value whatever.
1t is simply, in its natJ re, a measure Of
value. When it becomes a matter of
commerce, by permission of govern
ment, it loses to that extent the charac-
ter Of currency, and is only used as
such for the reason that it is more con-
venient. The absurd mistake is
made, every day, all over the
world, that coined gold has a fixed
value. The impertinence Of specula-
ton and the SSsubserviency of govern
ments have made the mon.y of the
world a branch Of merchandise, and by
issuing paper promises have created
different currencies, thus destroying
the money character of what We call
money. In this state Of currency there
is no sense in talking Of the power of
demand" and supply" Over the
prices Of merchandise. Take the
measure Of Udlue ont Of the realm Of
Trade. Let money be the blind and
unconscious servant of Commerce, and
the world will find its industries stimu-
lated, and the talisman of enterprise
viii take the place of the incubus of
inert but consuming capital. Every
man Will then be a labOrer and a pro-
Queer, and we shall see no exacting
money lender, no tOiling slave to a
money power. FUsCATA.