The weekly Union times. [volume] (Union C.H., South Carolina) 1871-1894, 1877-05-25
Can We Reduce the Interest on Money!

Well, where is it? The people have not got H.
that's certain. If there is plenty Of money IN
the State, what good is it doing the State? We
don't see the benefit of having money in the
State if it does no good-if it is not in circua-
tion among the people. Oh but the people can |
get it. All they've got to do is to pay from 10
to Is per cent. for it and give the best kind OF
collaterals. Well, the price of the money IS
more than it is worth to any man in business,
because it is more than he can make out OF 1t,
consequently it is kept locked up. That's just
what's the matter.
But capitalists are too smart to let their mo-
ney lie idle, and there are plenty of men and
ways to put it at work, injure who it may
They. therefore, go at it in very seductive way,
keeping their eye steadily upon the Planters
cotton. They work their little game up through
the lien law and in that way not only make The
planter pay the high price for money, but con-
troll his cotton crop, too. They offer to the city
Factor the use of their money at, say 8 or lo
per cent. The Factor greedily accepts it and
turns it over to the merchant, at l2 per cent,
with the understanding that the merchant will
refund it in cotton when that crop comes ill.,
raise the interest on money. The merchant do
ing an ordinary business could not pay IL per
cent. upon his capital, and give eight or nine
month";. eresa, sell gouus NJ any ,htng like
cash prices, but the lien law enables him to
cure tho payment of all advances under it, and
demand cotton in payment. In his calculation,
he takes in, first the interest he pays to the Fac
tor for the money he uses, and to secure himself
against losses, he adds large profits on the goods
he sells on liens The farmer pays it all, and
the price of money is created and established
under the lien law
Repeal the lien law and the merchant would
not pay the Factor II per cent, the Factor
would not pay the capitalist 10 per cent for
neither could dare to risk such prices for money
without the lien law, and that backed by no re-
srcIion on interest OH money.
The fact Of the business is the money has got
into the wrong channel, and it got there through
the entccment of large profits under the lien
law. Those who at last pay for the high price
| of money, seldom soc dollar of it. If il is
ever taken ont Of that channel and made an cf-
fcctive means of general prosperity it must be
mala more accessible to the people at large, it
and these benefits can be secured in a great
| measure by repeal Of the Lien Law which is
the foundation Of high prices of all kinds in
this State.
Repeal the lien law AMI the undcrpinning OF
Usury will be Knocked cut; the channcl in
| which the money is now running will be changed
to another nearer TO the people, and the ne
cessity for passing Usury Law obviated. Cap
ilalisis would loan their money directly to tho
Farmers. upon Mortgages, who would SO tc
ma, kct with the cash in their hands, which
would create competition among the merchants
for their trade, and prices Of merchandise would
fall.
We are told that the repeal of Tie lien law
would sell out many farmers and cause distress
wen, It would only bring on such II result nr
tie earlier, for il must come, sooner or later, IN
der the lien law. There arc many now, if sol,
out would have something left, but in n few
years all they nov have will he swallowed up by
liens Break up this monopoly of money and
it will be 'if'uscd among the people. Farmers
would hot only be free to diversity their produc
tions but compelled to do so to raise provisions
and the money for their cotton would 60 direct
| ly into the farmers pockets. They could pay
| 10 or even II per cent. for money, because the
cash in hand would reduce the prices of what
they buy from to per cent. below even what
cash prices now.
| 1t would bc far better for farmers 20 mortgage
their lands for cash at - per cent. than to give
liens on their crops for goods at from % to ~
| per cent.
| We arc told that n lien and a mortgage
! amount to about the same thing. That is Il
! great mistake. They are very different in their
action and results. not only to the farmer but to
the country at large. The one places money in
| the farmers hands ard leaves him free to buy
where he can buy cheapest and puts money in
circulation to support schools, mechanics, &C..
the other places the farmer directly in the hands
of single merchant, without Il dollar in his
pocket, puts no money in circulation and even
takes from the farmer the power to farm as he
| llinks most prof able FOR himself. We think
if any farmer Will sci down and count the diff.
ference between the cash and lien prices for
corn and bacon, he will find that upon those two
articles alone the interest on $500 would be
saved by cash outlay Of $40.
We shall continue to place fhis matter before
our readers, in the hope that We may be able to
show to the farmers of this County that the
present lien law is mainly the cause of the high
price of money and provisions. and is doing
more injury to themselves and all other classes
than any other law on the Statute books. -
gsi3" Hon. Henry Mclycr, lawyer of prom.
incnce and ability at Darlington was last Friday