The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1889-03-04
CONVENTIONAL INTEREST RATE.
o the Editor Of The Appeal,

boino tnougnt 10 the interest laws Oh our
Estate and their effect upon its welfare, and
greatly hoping that the Legislature may be
able to see the matter as presented by Mr..
w. E. Baskette, in the Chattanooga Times,
and that the limbs of legitimate enterprise
may be unfettered and the State sent
bounding forward in the modern march
of progress, and that our people may Sc
cure the immense benefit OF the vast tide
of investment now rushing to the teeming
Northwest" leaps to the conclusion that q
10 per cent. conventional interest law will
bring about all these blessings and make
the farmer rich and happy. II II is really
true, as Mr.. I. asserts, that the merchant
receives from the banks all the aid his
business requires, and the miner land
owner and manufacturer denied the as
sistance these enterprises justly merit,
what assurance can be given that the mer-
chant will not pre-empt all the money at
10 per cent? The merchant never pays
any interest, but compels mis- customers to
pay 1t by adding to the price OF his goods.
His illusions TO the Northwest and Ar
kansas and Mississippi as borrowers at 10
per cent. is not overwhelmingly convinc-
ing, since it is fact that Mr.. I. will not
deny, that fully one-haf OF the farm lands,
where the rate is 10 per cent, are hope
lessly involved in debt under 10 per cent.
mortgages. An interesting chapter could
be written here, showing the conditions
OF farmers where the rate is 10 per cent,
but space will not allow.
Mr.. Us argument that the present law
ought to be repealed because II Is not re-
spected and is daily violated is rather as
founding when / consider the intelligent
source whence 1t comes. II | did not
NOW that this assumption was beyond my
ken might say II savors OF idiocy. Theft,
arson, murder and the whole catalogue OF
felonious crimes are committed daily by
men who do not respect and violate the
law, ought therefore our criminal laws to
be repealed2 Gods laws are not respected
and are violated daily; ought therefore
Gods laws to be repealed? am inclined
TO think that this proclamation caused
Moses, Confucius and all the old lawgivers
to awaken from their long slumber, prick
up their silent ears and look down on old
earth with intensest concern and bewil-
derment and say
THAT the ways OF some men are dark and lntri
cate,
Puzzled with mazes and pcrplexed with error"
But the deduction that law ought 10
be repealed because il is not respected and
is violated daily is about as learned rs il is
logical, rs subtle rs 1t is profound, rs full
OF denagogism Is il is OF craftsmanship,
and us newborn idea certainly sparKlcs
with Respondent brilliancy.
Ii is matter OF no difference so for as
the farmer is cor cerncd land am discuss.
ing this question from a farmers stand
point VINO owns the banking capital OF
the State, 50 long as the rate OF interest is
too high TO use borrowed money profta-
bly, in his business. In Mr.. Trezeyant's
assumption that money at 10 per cent
will assist the farmer in his business IS de.
MED by the real practical experience OF
the farmer. | defy Mr.. Trczcvant or Mr.
BasSetle or MIR. anybody TO show by get
ting up fair and impartial debit aud
credit account OF all the farmers in the
most favored county In the State, that one
OF twenty realizes a net profit Of 10 pei
cent on his investment That a few To-
Gated on railroads, engaged in horticulture
or ponology, and an occasional stock.
raiser who Is so fortunate as 10 develop a
winner or a strain OF horses OF extraordin.
ary useful qualities may do this. will not
be denic d, but more men are killed bJ
lightning than meet with this success.
Mr.. 7. asserts that one Of the two obsta.
- cles confronting the miner, land owner
and manufacturer, is our restrictive statute
fixing the maximum rate OF interest at
per cent. | presume he means by thii
that the maximum rate Is too low, and
therefore capital will not come to oul
State. Will Mr.. Trezevant assume the pc.
sition that the higher the interest rate lhS
greater will be the influx OF money Int,
the Slater lie SAYS we will have NOR,
money II we have 10 per cent conven
tional rate instead OF a maximum OF pei
cent. II this Is true would we not indeed
aud In truth, have that vast tide OF In
yestmenl" Mr.. Trczevant tells MS abou
crushing 10 the tccrning Northwest turne,
10 tennessee" II we but only make thl
conventional rate 20 per cent? Suppose
Mr.. Trczevant, We make II so per cent
and thereby induce Wall street 10 rush ID
''vast tide OF investments" into Tennessee
II a high rate OF interest will induce CAPT
tai TO come into a state. then all u Stat
has 10 do TO secure all the capital IA 4
make statute law legalizing the highes
rate Of all the States.
But, Mr.. Editor, there arc many othe
facton more potent than high In
iefcst rate which act their part In ethei
attracting or repelling capital, a full dis
cussion OF which would I'LL many column
OF your paper. aud therefore none OF then
will be noted In this article.
Now, Mr.. Trczcyant, all that hallelujal
Of rejoicing about our farms rchabilitate'
and smiliugy giving forth their abundanc
m In days gone by, and the bclching Q
our mines, throwing up their bidder
wealth, spinning factories. and 'yacan
places filed with stately pics Of brick AM
mortar" falls ~ far short Of explaining q
my mind (but am only n dull farmer
how can borrow money ut 10 per cent
and do all this while an only clearing
per cent. ON my investments. that
leaves me praying for some OF that ligh
which may enable me 10 see the matter q
presented by Mr.. II. aud seen by MI
Trrzcyant. W that too may 40 "unici
tered bounding forward In the moderI
= march VI progre ~. "
Mr. TreEevant says the other obstructio
in the way OF capital coming In the Stat
Is the universal opinion existing, both q
home aud abroad, that our laws ARE insu
hcient In the enforcement OF land mort
cages. This is true. | have heard the aboy
reason given often by capitalists ~ th
CAUSE OF capital stunning Tennessee.
am not lawyer and, therefore, not con
petent 90 argue that part Of the subject.
Mr.. Trezeyant viii you please explai
20 me how Il can be fair aud Just to ia
citizen money lender 10 free the morigag
debt OF tho nonresident from taxation
please explain how ID can be true that