Asheville daily citizen. [volume] (Asheville, N.C.) 1890-1900, 1891-01-24
THE RATE OF INTEREST.
COMMENTs ON A BILL NOW
IN THE LEGISLATURE.

what Some of Asheviile's Busi-
ness Men Think of it-."It would
Ruin western North Carolina"
One says.
A bill is now before the state legisla-
ture to repeal the present law allowing
the collection of more than 6 per cent
interest.
This bill has caused great'deal oftalk
in Asheville among business men gen.
orally, and in many instances it has been
severely criticised. THE CITIZEN to-day
gives the views of some of those most
prominent.
Mr.. w. B. Gwyn. of the real estate
firm of Gwyn & West, said: ut is un-
doubtedly step backwards. The enact
ment of the law will not only keep money
out of the state, but will drive out much
money that is now loaned in this state.
Undoubtedly some money wili'be loaned
at six per cent, but the great bulk OF
what is left will, by easy evasions in the
way of commissions, bonuses, and pri'
vate agreements, be loaned at higher
rates than now prevail.
This result is inevitable, since interest
rates are as they ought to be, regulated
by the laws of supply and demand. Re
duce the supply, and you raise the rate
Immediately. Laws cannot compel CAPT
tai to come into the state, nor restrain il
from leaving the state. Capital alway:
goes to the highest responsible bidder
Northern and foreign capital is now
eagerly seeking investment in the great
south, and North Carolina has got &
pretty fair start in the great race of pro
gress. Let her, however, build Chimes,
wall against foreign capital, and haras'
and hamper what she has within hei
borders with inimcal statute laws, ant
she will soon drop back hopelessly to th'
rear.
THE most progressive states remove
all restrictions as ointerest rates, and al
a result, capital flows in. Even Massa
chusetts. with capital enough to buy ou
several great states, places no interest
and yet money is loaned there as low a
3 per cent. -.
1.-THE gist of the whole thing is this
there must be two parties to every con
tract. There is no law against sellin,
potatoes at 500 per bushel, but the far
mer cannot find purchaser at such fig
ures. There is no law against buyini
them at cents per bushel, but the cor
sumer cannot find any for sale at tha
price"
Mr.. w. T. Reynolds said: 81 thin
that the intention of the bill is wrong
The interest rate should be left as it i:
and believe the best interests of tn
country would be subserved if it is no
disturbed. There is an immense amoun
of northern capital in this country and
believe that the passage of the bill WI
result in the removal of the money t
some other state where larger rate ca
be obtained. That would damage tt
country greatly. i'll want to borro'
money am willing to pay the preval
ing rate"
Another gentleman prominent in bus
ness circles spoke in emphatic tern
against the measure. Said he "Tl
passage of that bill would ruin Wester
North Carolina. Every money-lend'
outside of North Carolina will call h
money in, and l believe it would result
the withdrawal OF 81 100000 from tt
} state. If a lender can get 6 per cent.
Philadelphia and the larger cities, I
course he will not send it here to loan tt
6 per cent. Money must bring its wort
and if it cannot bring that here it will
where it can"
= At the meeting OF the Buncombe count
}, farmers alliance yesterday afternoon,
resolution was adopted declaring that
was the sense of the county alliance thi
the interest law should remain as it
The representatives of Buncombe at RI
eigh were telegraphed last night, inforr
ing them of the action of the meeting.