Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1895-07-31

gitimately get from every other
man. l deem it futile to argue
with the money lender that he
should not take all the interest
that the law permits, because the
laws limit is his standard of right.
I admit that lending at s per cent
is a fine business for the lender
and that all who have money to
loan will contend that that rate is
not high SO long as the law says
so. They thought 10per per cent
the proper thing before the rate
was reduced to s per cent. They
contended earnestly and long that
the state had not even q moral
right to reduce it, but patriotism
prevailed. Sowill they contend
against my method guaranteeing
simple interest only becouse they
love the present compromising
method. Yet I know most all men
in their best moods will and must
admit it to be q duty to restrain
one another III our inordinate de-
sire for money, and OH this faith
I ask all to lend an attentive ear.
In essaying to proclaim a new
principle [ expect the sneers from
many at my paradoxal method
reall v paying both principal and
simple interest on note by pay
ments just equalling what's now
considered yearly interest. Yes,
were I money lender and the law
should say simple and not COM
pound interest az at present, l
would he satisfied TO loan a
friend one thousand dollars at 8
per cent and then give him his
note in full settlement at the end
of 224 years provided he had paid
me eighty dollars at end of each
year from date of note. Thus
$500 cancels the note, which is
surely sufficient return for keep
ing and using money not needed
for my own use. While this is all
the borrower need pay to cancel
his debt, let's see what the lender
may get for these payments. Let
the $50 payments made at end Of
each year be loaned ats per cent
TO other parties to be made paya-
Bile principal and interest at the
time my friend takes up his
$1,000 notr, no payments to be
made on these till final settlement.
Then / will have from the other
parties with the last payment of
$40 on first note the SUM of about
1880 which is more than 81
times as much as I first loaned to
my friend 224 years before. Then
if the return from my friend is not
enough surely the result from 9TH
er parties should satisfy. 1t may
be observed to obtain 81 times the
first loan at 8 per cent within %!
years there must be compounding
of the interest. Not so to the bor-
rover. 1t is only the result by
simple interest on the % reloans
&c. The first payment runs Il!
years and amounts to $217.6O, the
second 204 years amounts TO
S211.2O. and so until the 22nd
which in six months amounts
$S3.2O. But your interest on these
payments is compounding. No,
only simple interest to the hor-
rover. Herein is some merit, the
borrower enjoying simple interest
and the lender compound at the
same time, which is paradoxical
to the justifers of the present
law.
You will observe my friend pays
his note with one thousand less
than would be required by the
present partial payment rule, and
yet my money may increase over
three fold in %! years. But my
rule applies to all payments alike
whether the payment is less, just
: equal to or greater than would be
the present annual interest, guar
aLteeing absolutely simple utter
: est and operating so as to extin-
guish the debt.
2 Now Mr.. Editor, if ! do not give
} a demonstration of the method it.
self, l hope I have given a salts
factory elucidation of how my
method operates to the advantage
of the debtor or borrower and not
seriously to the hurt of lender
and if you give space in your
columns to this at present | pro.
pose 10 show how this rule of mine
can be utilized in setting proper
ly and proftably the public in
T debtedness of our country.
l.. P. ELAN.
Leverett, Ga, July 20, 1895.
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