Southern standard. (McMinnville, Tenn.) 1879-current, 1885-03-14
Legal Rate of Interest.
To the Standard .

stand the difference between the legal
and conventional rate. The consti-
tuition makes the legal rate six per
cent, and the Legislature has no
power to change it. The constitution
also provides that the Legislature
may make a conventional rate not to
exceed ten per cent. This provision
was made to meet the legitimate de-
mands of the trade. For this pur-
pose, and this alone, has the Legisla-
ture been asked to enact conven-
tional law to meet the demands of a
large majority of the trading and
business men of the country. 1t is
well known that almost every one en-
gagged in commercial pursuits is COM
PEELED, at times, in the course of his
business, to borrow money. If he
can't get it at six or less he will pay
more. He must, and can generally
afford, to pay the market value for
money. 1t is all nonsense to talk
about making the commercial value
of money fixed rate. When bust
ness men want money they want it,
and they expect to pay the market
value, whether it is three, six, eight
or ten per cent. Their business justi-
fieS them to pay a contract rate, or at
least they think so, and they are 60
ing to contract for money on best
terms in the same way business men
contract for anything else they may
want or need. You can no more re-
strict business men to a fixed rate for
money than any other article of COM
merce. Supply and demand govern
the market in everything, and money
is no exception. You can no more
fix the price of money than you can
that of bacon, flour or meal. BUSH
ness men are presumed to know their
business, at least most of them think
themselves competent to contract as
well for money as anything else.
But we are told men are obliged to
have money, and that no man or
business can afford to pay more than
six per cent for its use. We might
as well say men are obliged to have
bacon, and that they cannot afford to
pay over six cents per pound for it.
The truth is, men are obliged to have
bread, and they are obliged to pay its
value in order to get it. So it is with
money. Business men are obliged to
have money to do business with, and
they know very well they must pay
for it what it is worth in the market.
Men who make money-lending a
business are generally well posted.
1t is but natural for them to place
money where it will yield the best
profit. If the home demand will not
take it at what can be obtained for ii
elsewhere, it, like everything else,
will go from home for investment.
We don't care how badly bacon and
corn may be needed at home, if these
articles will command better prices
in some other locality, the surplus
will be sent away. So with money
We are told that fully $l50,000 Of
cash capital owned within the cOrpo'
rate limits of McMinnville, have
been sent away to localities where il
pays a better profit than six per cent
1t could all have been loaned at home
readily at six per cent.
The object Of law is to protect al
; citizens alike in the regular pursuit
of their legitimate business. AL
good citizens are entitled to the same
privileges and protection, or should
be, especially if they pay taxes
to maintain and support the govern
ment. This being admitted, vii
some opponent of the conventional
rate tell us why the law makes
the difference? For illustration
A and B have each $4,000. Boil
are required to pay taxes. A in
vests his in merchandise, perhaps
!, groceries and provisions, such as tn,
| mechanic and laboring man, or poor
starving women and children ar,
compelled to have. Under the laws
and with the sanction Of the commu
nifty, he is allowed to sell his mer
chandise to these poor people at
profit from ten to thirty per cent, ant
even more if he can get it, and it i
all right. Not only so, he sells gen
, orally for cash and turns his capita
l several times a year. But B, instAC
of investing in merchandise, prefer
to lend his money to A or some on
else in business, he is not allowed t
( charge over six per cent per annum
q If he does he is liable to forfeit or re