Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-02-16

A Defense of Judge Gardenhire's
Majority Report.
Why Capital is Driven from the
State.
To the Union and American:

/ questions discussed would perhaps render
some reply proper. He thinks it both ex-
traordinary and amusing, and cannot af-
ford, to permit the report to sink into I'M
merited obscurity for want of a friendly
Notice. Erastratus thought an infamous
notoriety preferable to oblivion, and the
gorgeous temple of Diana at Ephesus was
laid in ashes. "B" intends to give the
chairman a similar celebrity BY his notice.
The report is not to sink into oblivion.
BE says it is really extraordinary and
amusing. By this he intended to be witty,
and he shall have credit for it at all
hazards.
He assumes that low rate Of interest
will drive capital out Of the State. This is
a bold assumption. Our exemption and
redemption laws, and the laws delay, drive
money from the State. Money is timid
aud viii net seek investment where cOllec-
tiOns are next to impossible. Exemptions
are enormous. When a mortgage or deed
Of trust is toreclosed, the debtor has two
years to redeem. Upon a failure to re-
deem the purchaser must sometimes resort
to eiectment 10 get possession of the land
purchased. In the meantime he pays large
lawyers fees and costs, and the end is not
yet, Such is the practical laws delay that
whole generations may be born into the
suit, innumeTable persons may have mar
ried into it, or died out of it, whole fami-
lies may have deleteriously been made par
| ties to il, without knowing how or why,
lsbut still, ike Jarndice and JaTndice, the
case drags its slow length before the court
perennially hopeless, and the creditors
money is not collected. We make no war
on exemption laws but state the facts.
Is a man wise who would bring money to
/ Tennessee to loan at any per cent. under
| these circumstances? 1t is really a marvel
that this St. Louis friend who brought
$4,000 here to loan is on the outside of a
| lunatie asylum. If OBJ can only stop
! laughing at the chairman's sabsurdities"
| long enough, he himself ought TO look TO
him. Il IS Difficult to see how prices of
| land can be raised without the elevation Of !
the prices Of It's products, as well as all
| other property. We had thought this an
| obvious principle Of political philosophy.
| When the price Of money Is high, land and
its products are low. The high price Of
money simply means that large quantity
/ Of products OF other property must be given
| to obtain it. Smith, Hume and Say taught
us this. But "B" don't so understand il. |
| His risibles are so easily aroused thatiheis, !
| perhaps, no exception to the adage, "laugh |
and grow fat" Cesar thought fat, slick |
| headed men were harmless, because they |
thought little and slept O nights. For this |
reason, he has not appreciated the philOsO- |
| ply of these eminent men.
/ But "B" says 81 am taxed now, Rt the |
rate Of $50 per acre on my land. Suppose |
by protective legislation, you artifcially |
| initiate its value to $50 per acre. In the |
| first place you have doubled my taxes. |
| Then (and here comes the joke % } you |
/ have doubled the amount Of my invest !
ment in land, but not increased the net re- !
/ turns. from it." 1t really seems that this /
modern DemOcritUs ought to know better. /
/ But full of high glee, with such absurdities |
/ as that of the chairman, he thinks because |
| lands are made worth twice as much, that
/ the taxes must necessarily be twice as
| large. This is only true if one tract Of
| land ia the State should be doubled in 4
value. But suppose all the land in the 1
State is doubled in value, and we have two
millions Of revenue TO raise, it surely does
not matter whether it is raised on four hun
dred millions Of property or eight hundred
millions. "Ba thinks differently, and with
| this logic, and without the fear Of criticism
before his eyes, be talks of absurdilies in
the chairman. Had not "B" better get
/ the beam out Of his own eve? 1t might
improve his. optics. It is doubtful policy
" uL5ElLlE Tic HUE III LlAE ClC VI LLt
chairman Of the judiciary Committee, un-
til he controls the beam in his own.
But 3D." is really in doubt whether the
next paragraph means anything. After
this exhibition, no one need marvel at
"B.'s" doubling even his own existence.
He thinks if every man could bank,
rUinOus imitation would curse the country,
followed by a collapse. This antiquated
absurLity is hardly worthy even Of the
I laughing philosopher. "Auy one who pro-
posed that the State should oversee the
transactions Of every trader, SO as to insure
his ability TO cash all demands as they fall
due, might with consistency argue that
bankers should be under like control. But
while no one has the folly to contend for
the one, nearly all (and the hilarious phi
lOSOpher, toO,) contend for the other. One
would think that the banker acquired, in
virtue of his occupation, some abnormal
| desire to ruin himself that while traders
in other things are restrained by a whole
! some dread Of bankruptcy, traders in
capital have a longing to appear
CaS bankrupts) in the Gazette. which
law alone can prevent them from crafty
ing. Surely the moral checks which act
on other men will act on bankers. And if
these moral checks do not suffice to pro-
dUce perfect security, we have complete
proof that no cunning legislative checks
viii supply Cheir place. The current no
ton that bankers can and will, il allowed,
issue notes to any extent, is one Of the alb
suTdest illusions. A banker ''seeing that
his prOmisSOry notes in circulation are
greatly in exess of bis available means Of
paying them, he runs an imminent risk Of
having TO stop payments, a result Of which
be has no less horror than other men,"
We contend, then, that neither to restrain
the eliluX OF gold, nor TO guard against the
Over-issue Of bank notes, is legislative in
reference warranted. II government will
promptly execute the Law against all de-
faulteEs, the selfinteTest Of bankers and
traders win do the rest.
The deprecated paper Of France was
State currency. The unYalued currency Of
Russia. Austria and England, in 1902, were
State cu-rencies, having the most stringent
provisions Of law to protect the nOte-hOld-
Ell. The worthless currency Of Tennessee,
in 1859, was a State currency, issued un-
der a cunning law, designed 10 protect thN
/ nOte-hOlder. Witness the Bank Of East
Tennessee aud others not necessary to
mention. The statute required a deposit
Of bonds TO secure the uOJe-h0lder. But,
like Patrict's birds, the bonds were in the
statute. but not in the COmptTOller'S safe,
and the nOte-holders bled to the tune Of
hundreds Of thousands. o where is BIS
dreadful collapse?
The n0te-hOlders took these on the faith
Of the security provided by law, and were
deceived and sWindled most egregiously.
But for the law, they would have depend
ed on their own vigilance in ascertaining
the bankers means and integrity. But
"B" is in such an amiable, laughing humOr
that he sees no danger in his. law-msde
agencies.
But the most luminous idea that dis
tinguishes "B's" unique production is to
give farmers six per cent. and land notes.
and the usurer and the money changers ten I
per cent, and we suppose each to be equally 4
benefited. Won't the Jews join him in
an emphatic chuckle over this happy T.
thought The Jews and Geutiles will both F.
thank him-the circumcised especially.
We have done with "B." The chairman
Of the judiciary Committee viii have /
higher duties to perform than exposing The /
absurdities evolved by the fluctuations Of 4
this laughing political philosopher, who de-
fes the logic of Bacon and Whateley, and f.
brings into contempt the political economy /