Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-02-28
Is 10 1s.
Another Lively Tussle Over the Con-
TentiOnaI Interest Question.
The Senate Bill Beaten this Time.

Senate took up Senate bill to repeal tae act
allowing conventional rate of interest,
aud the fight on that issue was continued
from Friday.
Mr.. Ragland said he was opposed % The
bill because he held it to be a Yell-lStab-
lished principle Of both Law and equity
that money, which was, in one tense,
sought to be limited and restricted by this
bill as to its value was property, and as
such was medium of exchange, enabling
all classes alike to trade and Interchange
by its fundamentally all other kinds Of
property whether products of the soil, min
erals, or manufactured goods, the val re of
which without restriction by law 10 all
aces, and IN all countries was allowed to
regulate itself alone bysupply and demand.
He was Of the opinion that money also
should be entirely governed by the same
law. All attempts to fix maximum rate
of interest for its use, attended as many of
those attempts had been by stringent laws
imposing heavy penalties, had uniformly
ended in advancing the rate OF interest
really charged, and had caused not relief,
but burdens upon the people.
Mr.. Hodges remarked that he occupied
in reference to the subject under consider
alton an anomalous POSITION. He had
grown up disciple OF Wayland an6, other
political economists Of that school, believ-
ing that the laws Of supply and demand
ought to govern the price to be paid for
money as well as the price to be paid for
other commodities. He had become con-
WINGED, however, in later years, that there
ought 10 be legislative enactment as to the
rate Of interest. The laws Of supply and
demand could not properly regulate the
price to be paid for money in Tennessee
for the following reasons:
By the laws Of the United States and
their effect on financial affairs, gold cannot
in the very nature Of things become a cir
culating medium. The currency That is,
and must remain our currency for years TO
come, is Of a peculiar character, and there
is no supply Of il in any country except the
United States. If the amount supplied By
the Government were sufficient to meet all
the requirements Of commerce, then the
law Of supply and demand would cause il
to flow frem sections where there is 4 sur
plus, to sections where there is a demand.
But there is no surplus money anywhere.
In our great money marts there is not half
enough to meet demands, and GER
titled checks take its place to the
amount Of almost hundreds Of mill ions, so
that let the demand be what Il may in
Tennessee there is 10 source Of supply.
And like other commodities under like
circumstances, the demand cannot be sup
piled except at exOrbitant prices This has
proven practically true. Fsryears We have
tried ten per cent. within forty eight hours
Of the great money centres Of the country,
and to-day our people have less money than
they ever had before. They cannot borrow
at all, except on short time and at ruinOus
rates. The law Of supply and demand can
not bring money 20 Tennessee, at any rate
Of interest. The conventional interest law
has doubtless been of benefit to bankers
and IN commercial centres, but il is ruin
inE the masses No business, except that
Of banking, can live, and pay en- Per cent.
interest. Our people, from a failure Of
crops, and from other causes, are more
deeply and generally indebted than ever
before. An hundred thousand men are to-
day paying ten per cent. This rate is eat
ing out ther substance, drinking their very
life blood, and without any hope Of relief.
With the debtsr class who pay this rate, il
is only a question of time when their sub
stance will be absorbed By the fortunate
| few and they sent 10 the world as beggars.
Mr.. Alden favored the bill. Every
! branch Of industry was now paralized in
| the State on account Of the eXOrbIant
| rate Of interest allowed to be charged by
| law. But few Of the thirty-Ssven States
/ Of the Union permit a greater rate Of in
| terest than 6 per cent. Even New York,
| the financial center of America, only al
| lows I, and the charging Of usUry there
| not only invalidates the debt, 5ut subjects
! the usUreT, upon conviction, to six months
/ Imprisonment. The Bank Of England
| only charges 81 per cent. He held that in
| hating the country with money was in
itself injurious to the people, created spec
ula.iOn, impaired the value of money, and
| induced extrayagancies. He yentured the
/ opinion that hundreds Of half grown chill
| dren in Nashville had never seen a silver
| half dollar. That, so far as the protection
| the present law gave bankers, he was Of the
/ opinion that they were already too well
| protected by national legislation for the
/ welfare Of the people.
Mr.. Buchanan thought it wrong to tax
| money. He favored Just such a rate of in
! terest as the demand for money in any
particular locality warranted.
AN EFFOET TO POSTPONE ACTION.
Mr.. Hodges moved that the Senate adj
| jOurn until 10 o'clock Monday. The yeas
| and NAYS were ordered, and the Senate re-
| fused to adiOurn-yeas 10, nays IL.
Mr.. Wade said: True, the Senator from
| Henry is correct in regard to the rate Of in
| terest charged at this time BIZ the Bank Of
| England; but there was no restriction
Wherever as to the rate it was allowed to
/ charge, and since its first establishment the
rate Of interest has been fixed by the sup
ply Of money, and the demand for it; but
he is not correct in the statement as to the
number of States and Territories wherein
conventional interest is allowed. If | mis-
take not, 81 out of the IS, by statutory en-
actments, permit it to be done. The law
was passed to induce capital to come into
the State, AMI it had done so and added
81 100000 to the currency Of Nashville,
and a much larger amount to Memphis. II
has aided the commercial men everywhere
in our State-has enabled them ID help the
farmers. He opposed its repeal because it
benefited all classes, was Just, and was up
held as sound public policy by the most
eminent political economists Of the day.
Mr.. Mosley said he had no doubt as to
the correctness Of the views of Mr.. Wade
so far as Nashville and Memphis were con
cerned. They were doubtless even bene-
flied by the present law, but it was at the
expense Of the agricultural interests Of The
State. Its operations were ruinous to the
farmers everywhere, and as it imposed
heavy burdens upon them, lie favored its
repeal.
LOST By 4 TIE VOTE
The clerk proceeded TO cali the vote
when Mr.. Logan said he had intended to
submit some remarks to the Senate, where
upon, by unanimous consent, the calling Of
the vote was suspended for thai purpose.
Mr.. Logan said-"This is, in my estima-
nation, one Of the most important bills be-
fore the General Assembly"
At this juncture Mr.. Butler asked Mr..
Logan to yield to him, saying he was very
unWell aud would like to be present when
the vote was taken on the bill. He therefore
hoped further action Oh it would be post
pOned until Monday.
Mr.. Logan too had no objection, and
Mr.. Burton then moved an adjournment
until Monday at 10 o'clock, but Mr.. Over
ton made the point of order, which the
Speaker sustained, that Mr.. Logan could
not yield the floor, the roll call being sus-
pended for the sole purpose Of permitting