The daily intelligencer. [volume] (Seattle, Wash. Territory [i.e. Wash.]) 1876-1881, 1877-09-13
Three Per Cent. q Month,

Three Per Cent. q Month.
10 some the phrase may sound quite
innocent. 1t may convey to the mind
an impression Of commercial "hardupa-
tiveness.' but nothing that need cause
alarm. Others may glance at tho com
binatiOn of words without impression
Of any sort; either they know nothing
whatever any kind of cent per cent. -,
or the true significance of the phrase
is so fearfully deep that they cannot
reach 1t. even in imagination. And yet
three per cent. n month" is a rate of
interest which has often been paid
upon the street for the use OF money.
l have known young merchants, aud
merchants not so young. with paper in
bank that must be taken care Of, SEEM
ing 90 consider themselves happy if the
payment Of three per cent. per month
would save their notes from protest.
But. my young friend. did you ever
stop to consider what must be the IN
evitable result of paying such rates of
interest for any length Of time9 once
saw the subject fully illustrated by an
incident Of real life. and .the telling Of
that simple story will throw more light
on the problem than any amount of
homily or argument.
A young merchant of New York,
who had inherited good business, and
whose commercial and social relations
were Of the very best. found himself in
u hard place partly the result of the
state of the market" and partly his
style of living His name was yet good
upon the street. and while he could Of
fer undoubted collatrals the money
lenders were eager to accommodate
him.
One dav our young merchant, whom
we will call l., waited upon Mr.. James
G.. King. He wanted an accommeda-
tion Of one hundred thousand dollars;
aud he went on clearly to show that, if
he could immediately control that
amount, his profits were sure. lie was
willing to pay any amount of interest,
and could also give good security in
strong paper.
Mr. King knew the course the young
man had lately been pursuing, and he
thought To give him lesson Said he:
Look ye, L., you have have paid as
high as three per cent. a month for the
use OF money ?"
Yes" replied the applicant. little
warmly. land am ready TO do it again.
Ny business wW ,carrdnt It,"
Mr.. King shook his head No busi-
ness in the world. he declared, could
warrant such a thing. But the younger
man was hcadstrong aud positive, He
knew that his business would warrant
the interest mentioned for the accom-
mediation required.
We'll ll.-now look here. l. - | hap
pen To have hundred thousand in
bank which | can spare; but l don't
want 10 take it out for short time. II
you will take it for three years, at three
per cent. month. it is yours. Make
your note for the hundred thousand,
payable in thfA years after date. at
that rate of interest. and will discount
it at once, saying nothing about Sc
curity."
The young merchant was delight
As soon as be could believe that King
was in earnest. he took q blank form
aud made the note.
Nov let US reckon the discount
said the older merchant.
lie figured few moments. and then
looking up with a smile, said
IL, you owe the eight thousand dol
lars"
The young man thought Al first his
friend was joking; but when he came
10 look at the figures. he found it toe
tiue.
$l0O. 900. at three per cent. y month,
would be thirty-sIx per cent. year
! $50, ,0O0-ani for three years. 1850
We'll, L.. what do you think OF .
business conducted upon such scale
Now, look ye."-
And then King went on and told tbs
young man just what he would do. on
condition, however. that he would
honestly and faithfully turn over a neH
leaf in his business. L. was not yet
lost, nor was he devoid of sense. III.
saw the inevitable brink upon which
he had stood. and. with his friend
generous and really paternal assistance
/ he backed away from it. The CONNER
ciAl world gained strong worker. sne
the grasping asursss lost victim.