The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1888-11-18
MEMPHIS DAILY APPEAL: SUNDAY, NOVEMBER IS,
CONVENTIONAL INTEREST.
MR.. M. B. IRRELEVANT RESTATEs
HIS PROPOSITION.
The Need of New Interest Law Set
Forth-A Word to the Farmers-The
Era OF Prosperity That May Bean
Interesting Paper.

| To the Editor OF The Appeal
Sir-The elections having passed, our
people have now leisure to give attention
TO questions OF domestic concern. ] am
aware OF none in which the general wei
fare is more intimately involved than the
proposition to amend our interest law and
restore the conventional 10 per cent. rate.
Certainly so far as this State is concerned,
legislation has never fixed the value OF
money. 1t has simply obstructed the
supply.
Massachusetts, the largest Of our mann-
featuring States, and one OF the principal
ey-lenders, having no usury law what
ever, is the cheapest money market in the
United States.
A contract for 30 per cent. or greater In:
terest would be enforced by her courts II
required, but the prevailing price OF money
il 8 per cent. for commercial paper and
per cent for long time loans.
On the other hand, in New York, where
the usury law il most severe, the rate
never reaches the maximum allowed by
law. These extreme illustrations demon
strate with the force OF logic that legisla-
ton has no effect in fixing the actual rate
OF usance.
We see daily examples Of this fact in
commercial loans at home, where the law
fixes the rate OF interest Mt per cent, but
men charge and receive the current rate oil
per cent: Can anything better illustrate
the folly OF attemptngto control the value
Of money by law?
In a communication upon this subject
in July last undertook 10 show that the
agricultural class WIS intimately interested
in such legislation M would mako their
lands available IN a basis OF credit and
thus relieve them from their present abb
soutc dependence upon the commission
merchant. II WIS then attempted TO point
out that II his lands, and not his crops,
could be utilized ms borrowing factor the
farmer might entirely free himself from his
consuming dependence, and that this rem.
edy lay in the introduction Of new capital
into the State.
To secure this II was urged that our
people must be permitted 10 make valid
contracts, at such rates OF interest rs would
attrnct money 10 the State, and II was also
asserted that under the present system OF
advances upon crop mortgages, the cost OF
the money, which the farmer obtained for
the purpose OF making his crop, amounted
through such trimmings as interest prof.
It's and commissions-to a sum largely In
excess OF the 10 per cent proposed.
Let any OF the farmers OF Shelby County
advertise for loan Of 5000 for five years
upon the security Of his well kept aud
fertile lands, stating the purpose OF the
loan 10 be 10 build barns, run new fences,
repair houses, sink wells, erect wind-mils
aud fine machinery-how many OF them
would be accommodated in this effort
10 add 10 the wealth OF the State
Less than the fingers OF one hand would
count tho number. The reason Is mani
fest--the money Is not here, nor will II
como at the present rate. because II IL
safely employed In the prosperous North
west at better rates than We are permitted
10 offer.
Since the communication referred TO,
have received many gratifying assurances
Of approval from agriculturis,s, whareal-
iEc The direct benefit TO that class from
such legislation M would induce such in
ycsimonls in Tennessee. The Information
also comes that Farmers Alliances and
| Wheel Societies are taking up the subject
and urging It's adoption.
| IL IL not matter Of speculation as 20
whether the money needed can be had,
for since the communication referred 10
have had abundant assurances from gen
tlemcn representing unlimited means that
they are prepared TO take all desirable
loans In Tennessee, and that they are only
waiting upon the Legislature 10 invite
them 10 enter. Let our people urge this
body TO prompt reply. Let the farmers
continue the agitation, and let the trade
organizations, especially those engaged in
handling lands, give active cooperation.
The Legislature will assemble In six
weeks In the interval the members
should he seen and the measure proposed
urged for adoption. The movement 10 he
eilcctual should DO organized and moi
sporadic.
by such means We shall find an era In
, Tennessee that We have never seen be-
fore. IL will he an era OF abundant
, money, when our lands can DO ~ rcadil,
, converted into cash as the cotton which !
! grows; when the 1000 dormant 70
|. sources Of the State will magically sprinI
= into active life, aud the tide Of population
: aud wealth, for which We have waited y
long, will set this way.
NJ. II. IRRELEVANT.
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