Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1877-02-22
REPEAL OF THE CONVENTIONAL RATE
OF INTEREST LAW.

ture passed a bill on its third read
ing yesterday to repeal the act of
February, 1870, establishing a con-
ventional rate Of interest. This is
a substitute for a senate bill and
must go back to the senate. But
there is no doubt that the substance
of the bill will become a law. This
is a foregone conclusion. The day
for argument has long since passed.
A large majority of the people Of
the State, under a mistaken
idea, demand the repeal. A
majority of the members were
required to commit themselves
to this issue before the people
would listen to them with any pa
thence. We cannot censure the
members for carrying out the well
known will Of their constituents,
but we do blame the little dema-
gogues all over the State who
have arrayed the labor Of the
State against what little capital
we have. The measure will not
give the relief expected, and two or
four years from now the agricultu-
raj classes, the bone and sinew OF
the State, will realize this, and
curse the men who misled them.
There is a large and respectable
Woodworking class Of small prop
erty owners, who are compelled to
borrow sometimes or sacrifice their
property. Who will lend them
money now at six per cent. and then
pay a tax on the notes? Those
who have money cannot be forced
to lend it or to invest in poor land
upon which other people have failed
to make ends meet. All this will
be felt more seriously after a while.
Already we know of many deposi-
tors in the banks who are with
drawing their funds to invest in
fye-twenties. The act of yesterday,
which we publish elsewhere, is
unnecessarily severe and harsh iii
its terms. We almost wonder they
did not go back to the middle
ages and dig up a law making
it an effense to charge any
interest at all. Any law too severe
in its penalties is liable to defeat
the very purpose for which it wa'
created. We have many such on
our statute books. For a merchan.
who does business a single daI
without license is liable to arres'
and a fine Of one hundred dollar
per day for each day so offending
the peace and dignity of tn,
State. No grand jury has eve
paid any attention to sucl
a law. 1t is used sometime
to frighten delinquents and to oc
cupy the valuable time Of clerk
and Encouragement at a goo,
fee in each case, but the act ha
never otherwise been enforced
Then another mistake, and W
think a grievous one, was made tn
other day. Mr.. Collier proposed a
an amendment, when the bill wa
passed on its second reading, tina
b. State banks be placed on the sam
footing as national banks. Thi
was rejected by a large majority
Why such a discrimination Shout
be made against home institution
we cannot well understand. Tn
federal law gives national bank
certain exemptions and proteetio
independent of State laws. 1t woul
have been at least fair and reason
able to have given State bank
chartered by the State, the sam
showing. We see but one possib.
good that can grow out of tn
severe piece of legislation. II
effect will be SO different frol
what its advocates expecte
that the people wiki, in a &c
years time demand the repeal {
all usury laws, leaving money I
any other commodity or factC
in matters of business. If passed
however, it will work a positiy
and direct injury to all the con
merciai points Of the State, an
indirectly will be detrimental I
the farming classes. AS we ha,
said before, one solid class cannt
be injured without affecting tn
others more or less. The act is