Southern standard. (McMinnville, Tenn.) 1879-current, 1885-02-28
CONVENTIONAL RATE OF
INTEREST.

SOufN hhuSAGbNhN bhN1 ohOh 10 hON
intended, and would not disturb the
legal rate of six per cent, they would
be better prepared to see the necessity
and appreciate more fully, the advan-
tages of such law to the commercial,
manufacturing, trading, or even the
farming interests of the country.
We will admit that the farmer can
not pay regularly, for long period,
unless he is very successful in his in>
vestments, more than six per cent. 1t
may not be safe, as a general thing, for
majority of the business men to pay over
6 six per cent. for longperiod; but the
demand for money, in almost every
department of business, at times, is
such that will Justify the CONNER
cial man, and sometimes the farmer,
to pay as high as ten per cent. for the
use of money for 80, go, or 80 days.
The strongest, financially and best
business men in almost every city,
town and community, in the State,
frequently want more money than they
have or can afford to keep regularly in
their business. They had rather, and
can better afford to pay ten per cent.
for the use of money for the short time
wanted, than to borrow for II months
at 6 per cent. We know of business
men in this town who keep money out
at 6 per cent. for year, and borrow
from the banks at a higher rate for 80
or go days when they buy their spring
and fall stocks of goods. They can do
this and save money.
Nearly all of the merchants of this
town buy their goods for cash, and but
few of them, if any, that do not have
to borrow part of the money from
the banks when they settle their bills.
In order to get 2, 3, 4, or 5 per cent.
off for cash, the merchant can well af
ford to pay the bank rate for a short
time. Again, our manufacturing in
terests require at times additional
money for short periods. They may
want to hold their products for a short
time, or they may want to take advan
tage of the markets to buy raw mate
rial. In such cases, it may be de
cidedly to the interest of the manufact
urer to borrow money at higher rate
Again, in order to move the surplus
mules, cattle, hogs, and other surplus
products of the farm, requires the us,
of large sums of money, but it is want
ed only for few months in the year
The banks are required to furnish tn,
money to the traders and produc
dealers who circulate it among tn
farmers in exchange for their farm
products, which are sent to marke
and in due time the money is returneC
to the banks. Again, the farmer ma,
prefer to iced his crop to mules, hogs
or some other stock, and may not hav
the money to purchase the stock. H
can generally afford to pay highe
rate for a few months, than even les
than 6 for long period.
, We have been in business for twent
years, and have been a borrower I
some extent, during all the time. W
much prefer to wait until we need tn
money and then go to the bank an
get it for 30, 60, or 80 days, and re
turn it to the bank when no furthe
r use for it. If we, as a business mar
) prefer to pay the banks more than
per cent. in order to get the none
l when, and the length of time wanted
I we can see no good reason why it ma
not be lawful to do so, If we under
stand our business, all parties will /
benefited The farmer gets the none
for his stock or produce, the trade
generally makes something for his tin
; and trouble, and the bank gets its il
: terest, and the whole community
benefited by the transaction.
/ But we are told that banks or ind
. viduals ought not to lend their none
e for more than 6 per cent. While Il
: prime object of the organization
= banks may be to make money for Il
= stockholders, there is another grand
t object. They are to supply the wan
g of the commercial and other financi