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BED SPOT Saves the Surface Our Paper Is the Best RED SPOT PAINT & GLASS CO. RED SPOT Saves the Surface Our Paper Is the Best RED SPOT PAINT & GLASS CO. TJnion City Commercial, established 1890 -.... . c .. i ioot West Tennessee Courier, established 1897 i Consolidated September 1. 1897 UNION CITY, TENN., FRIDAY, JUNE 16, 1922. VOL. 32, NO. 12 f CONTRACT RATE OF INTEREST LAW " Recommendation Adopted by the Tennessee Bankers Association. Two years ago, at our Memphis meeting, we recommended passage of a contract rete in excess of the legal v rate of 6 per cent. The sound rea t sons for such legislation were ap . parent at that time, and subsequent eVents have abundantly shown the wisdom of that recommendation. .'The General Assembly of 1921 passed an act legalizing a contract rate of interest not to excebd 8 per cent per annum. On the day that this act became a law, and prior thereto, the Federal Reserve Banks, s the final and controling 'source of money and credit and interest rates, under our banking system, were charging their member banks the foU owing rates: . 7 per cent on loans secured by Lib erty Bond collateral, where the ap plicant was the original purchaser of such bonds; 74 per cent on loans secured by the same collateral, where the appli cant was At the original owner of such bonds; 7 per cent on loans secured by commercial paper as collateral. It Is evident to any intelligent citi zen that no bank can afford to borrow money at 7 per cent and lend it at 6. The simple statement of this prop osition is sufficient to establish its truth and no argument is necessary to support it. If any banker should . ever be so rash as to adopt the policy of borrowing money at a certain rate of interest and then lending it at a .lower rate, his own depositors would convince him of the error in this ex periment as soon as they became aware of his system. At the time of the passage of this law and prior thereto, there was a money famine in Tennessee, and it . was largely pro duced by the fact that borrowers in other States, , and in foreign coun tries, were actually draining this State of its loanable funds. The banks of this State were com pelled to break the law or to break their borrowers. It is no blot on their records to admit that, the ma jority of them who were confronted with this alternative resolved it in the interest of humanity. . , But this condition was removed by the enactment of this lay, and the beneficial effects of its passage were immediate. The situation of the bor rower began to improve, and that im provement has been steady and con tinued. .,' Money and credit are more plentiful in this State than they were prior to, the enactment of this law, and rates have decreased, and it may be confidently predicted that they will further decline before this act can possibly be repealed. The fact that there may be isolated ex ceptions to this rule, in some com munities, does not impair the truth of its assertion as a rule of general application and of almost universal effect throughout theState. The law has of itself worked to refute every argument that has been suggested as a reason for its repeal. Millions of dollars of outside capital have been loaned in this State during the past twelve months at rates va rying between 6 and 7 per cent, with the rate showing material decline during that period and a manifest tendency to decline still further. The law of supply and demand, having been unshackled by the removal of an unreasonable arbitrary restriction, has worked its natural tendency to relieve the excessive demand, and this slackening in demand is produc ing its inevitable, competition, be tween lenders of money, and a conse quent lowering of interest rates. Turning now to some future con tingencies that we may be called up on to face, let us consider briefly the matter of the War Finance. Corpora i tion, which is now offering funds for agricultural credits at 5 per cent with the privilege of renewal for three years, but with the reserved option to increase their rate to 6 per cent. Assuming that the rate will remain at5 per cent during the three year period, what will be the condition that will confront us if our own rate is reduced by law to a maximum of 6 per cent? v It will surely come to pass that the banks availing themselves of this source of credit will encounter some losses because of bad pfjr- Can they afford, to take this risk on a margin o'f only one half of one per cent pos sible profit? There is not a banker or intelligent business man who does not know that from an economic standpoint this risk could not be assumed with any de gree of safety The margin of profit between 5 and 6 per cent, on a loan of ten thousand dollars, is exactly fifty dollars a year. How many banks are there among us whose' average annual losses from bad loans does not exceed one-half of one per cent of its total loans? There may be some of us who have been so fortunate, but their number is too negligible for their example to become a precedent for the vast ma jority of us who are unable to estab lish an infallible system for the col lection of notes. The banker who never acquired a bad or a doubtful note is either engaged in some special form of banking or using his funds for the exclusive benefit of that for tunate class who are least in need of accommodations. BUILDING ACTIVITY GOES FORWARD IN UNION CITY New Banking House, Parsonage and Other Improvements. ' There are a number of building im provements in Union City now in progress and some in the course of completion, but by far the most im portant yet are some very pretentious undertakings. One is the prepara tion of plans for a new home for the Old National Bank and another is a parsonage for the M. E. Church South, in Union City. Both of these are good size Jobs, especially the bank building. W. E. Walters is erecting a grocery store over on Morgan street. This is to be a stucco business house and Mr. Walters is to stock it with groceries. The Cumberland Presbyterian manse is about completed and it is an attractive home for the minister and his little family. . Uncle Billy Gibbs is about ready to move into his new liome ever on the old site north of the Training School. It is a nice one. Billy Massengill has the job. Beulah Church in the vicinity north west of Union City is about com pleted. Dr. Rhoads' home on Court Square and Third has been extensive ly improved with an additional front age and porch remodeling. There will also be built, beginning in July, the proposed new union de pot building in Union City. We have not seen .the plans, but it will be a much more substantial, comfort able and commodious building than the old one. The old depot was sold to Mr. Jas. Sinkler to be moved away before the first of July. There are indications of better times in Union City for the mechan ic, and maybe soon there will be some activities on the streets when the city opens its bids for street work. STUDEBAKER AGAIN FIRST INTO YOSEMITE After three days of bucking the snow arms ana lanen trees mat blocked the roads, Hart L. Weaver, with three passengers in a Stude- baker Big-Six, led the way into the Yosemite Valley, thereby winning the Yosemite National Park Co.'s cup for the first car in 1922 to make its way over any of the three roads that lead into the valley from the Pa cific Coast. ' The feat of the Big-Six is all the more striking trom tne tact mat last year another Studebaker was the first to penetrate the valley; and also because the second car, this year, was also a Studebaker a Light-Six, driven by William J. Silva, of Modes- ta, Cal. . , The Yosemite National Park Co. awards this trophy to the first car of the season that breaks its way into the valley under touring conditions. Every car must come in absolutely under its own power without the use of block or tackle or any towing as sistance. ' This is a Studebaker year. Sold in Union City by Union City Garage, C. V, Andrews, Manager. ROARING LIONS TAKE THE TRAIL With Streamers and Banners and Puffing Motors. They leave on schedule time Tues day morning, bound for Rives, Troy, Obion, Glass, Elbridge, Hornbeak and Samburg. According to the program the speakers were: C. L. Andrews, Chas. Dietzel, Rev. Mathis, H. M. Ol iver, S. R. Bratton, Dr. McRee, W. G. Reynolds, J. Walker Kerr, Rev. Mar lin, Rev. Cunningham, Rev. Pickens. The subjects were: Co-operation, Pig Clubs, Livestock, General Conditions, Good Fellowship, Roads, Community Pride, Chautauqua, Tuberculosis, Rats. ' The Lion Master Dr. W. M. Turner, and his army of boosters are enumer ated in the following roster. Andrews, Claude U. C. Garage Adkerson, Dr. J. B. Physician. Averitt, J. V. Averitt Electirc Co. Andrews, C. L. Andrews Jewelry Co. Brody, L. Brody Bros. Burdick, J. C, Jr. J. C. Burdick, Fish and Game. . Buchanan, J. W. County Road Commissioner. Boyd, Lyle H. Jimmie's Play house. Baggett, V. H. A. McElroy Co. Bushart, J. A. Bushart Bakery. Bryan, W. L. Live Stock Dealer. Bratton, S. R. Farmer. t ' Clement, H. L. Motor Sales & Service Co. Cunningham, Rev. W. B. Pastor C. P. Church. Clagett, W. G. W. G. Clagett Co. Council, E. B. American Express Co. Caldwell, D. P. Caldwell Book Store. Cox, J. E. Union City Public School. . Dietzel, Chas. Dietzel's (Jewel ry). Denton, S. T. S. T. Denton & Son. Dahnke, Fred. Citizens Ice & Coal Co. ' Elam, Hunter. Third Bank., Farris, W. C. Farmer. Glenn, D .W. Shatz & National Byer. Howard, B. F. John T. Walker & Co. Hamilton, R. C. Gem Cafe. Harpole, Whitesell. Harpole-Wal- ker Furniture Co. Howard, J. A. Deputy County Trustee. Houser, A.C. Peoples Service Sta tion. Kirkland. A. E. Clothing and Shoes. Kerr. J .Walker. Old National Bank. ' Kirby, I. S. Kirby's (dry goods). Kaufman, M. A. Kaufman's fdry goods). Liddell, R. Hardware Co. Long, Dr. E. M. Marlin, Rev. D. Baptist Church. The watchword is as follows: "It ain't the individual, Nor the army as a whole; But the everlasting Teamwork Of every bloomin' soul." Kipling with John Spates, a negro who it lsi said had operated the still with him. Every officer in town made pursuit with bloodhounds but no arrest has been made as yet. Murchison saw Jimerson as the latter raised to fire and attempted to shoot, but his hammer was down and hung. The entire county is deeply aroused over the shooting and every attempt will be made to apprehend Jimerson. Citizens to-day offered a reward of $300 and Gov. Morrow wired an of fer of like amount. Mr. Murchison had been Jailer for" the past eight years. He is well-known over the entire county and had made the race last fall for sheriff. Sheriff West and posse of officers from Fulton County finally captured Jimerson at Brace's Switch Tuesday night. Jimerson refused to give up and he was shot in the hip and leg He was carrying a wound when the .officer, shot Officers carried Jimerson to Hickmai. and then to Paducah. SAVE FOR A PURPOSE. F. Nailling-Keiser -Dentist. F. Pastor First DEPUTY FATALLY SHOT IN RAID ON STILL AGOGA What Is It? A Sunday school class at the Bap tist Church. A Sunday school class with an aim: "Training." - One with a motto: "Get another man." One with a resolution: "Go get 'em." - One with a purpose: "Service." These AGOGAS will try to get YOU eventually (if they can) but prefer to, sign you now if you're a man's man. ' , Alleged Moonshiners Escape After Fight Near Hickman. Hickman, Ky., June 12. Deputy Sheriff Charles A. Murchison was shot to-day by Ruby Jimerson after capturing a moonshine still four miles above Hickman and is to-night at death's door with recovery very doubtful. . Murchison and deputy Pat Henry had captured the still and were in hiding waiting for Jimerson to pass to arrest him. Jimerson with a shot gun started across a cotton field and fired when within a few feet of Mur chison, the shotgun load tearing 'out the left arm socket at the shoulder and ranging down into the lung, car rying shattered bone and gun wad ding into the lung. Henry, who was a few feet away watching from another angle ran to Murchison and fired the latter's shot gun twice at Jimerson, but both shots went wild. Jimerson is an ex service man, leaving the navy last December a,nd had sent word he would kill the officers if they raided him. Jimerson made his escape together Make the Post Office Your Bank. "It does not need argument," said Postmaster G. W. Phebus, Jr., of this city, "to convince any sensible person that saving is a good thing for the in dividual, for the community, and for the nation. Saving does not mean that you shall forego the comforts of life, or even the luxuries. But do not make the mistake of thinking the trifling things you do not really need or want are either comforts or lux uries. Do not spend your money for little inconseauential things. Save it for something worth while. You cannot save money by carrying it around in your pocket. Hoarded money is inexcusable. Idle capital is the thief of income. Money slips away unless it is placed in a se place. The best place is a secure in vestment, an interest bearing invest ment, where your money works for you. When the time comes you can get something worth while, the home, the automobile, the vacation trip, or anything else that will bring joy into rim livps of voorself and family. If you have only a small sum to save, invest in postal savings. You can open a Daniung aucouiu wim juui p-nvprnment with ten cents. That will buy a ten-cent savings stamp and ten stamps can be exchanged for a $1 interest-bearing postal savings certificate. Postal savings have proved very popular with the people, mnnv lmvinsr the limit which is $2,500. "The government is also offering a very attractive investment in the form of Treasury savings certificates. For $20 you can buy one of the low est denomination, and in five years the government will redeem it for $25, your $20 earning $5. If you have $80 to invest it will earn $20, and for your $800 investment you will get $200 in interest. All the time this money which is working for you will be safe and secure. You can get your principle at any time in case of an emergency, with inter est at 3 V2 per cent while it has been in the keeping of the Government. What is more, these Certificates are registered in the Treasury Depart ment and you are safe from loss or theft. They are exempt from the normal Federal income tax, and from estate and local taxation (except es tate and inheritance taxes). They pay 4 per cent interest compound ed semi-annually, if held until ma turity; that means 25 per cent on your investment in five years. Get that idea of making the post office your savings bank for your sav ings and small investments. It is just the same as making your government your bank, for the post office is part of the government. Become a mem ber of this Great United States Gov ernment Savings System, the safest savings system in the world. " Rural Carrier Examination. The United States Civil Service Commission has announced an exami nation to be held at Union City, Tenn., on July 8, 1922, to fill the position of rural carrier at Troy and vacancies that may later occur on ru ral routes from that post office. The salary of a rural carrier on a stand ard daily wagon route of 24 miles is $1,800 per annum. Form 1977 arid application blanks may be obtained from the offices mentioned above or from the United States Civil Service Commission at Washingtop, D. C. Applications should be forwarded to the Commission at Washington, D. C., at the earliest practicable date. D nil G&JjlRDTHER ANNOUNCE A Business Coupe At a Lower Price Conservative changes in the body design of all other types Citizens Auto Company RICHARD A. SEMONES. Manager Phone 166 Union City, Tenn. r THE .UNI VERSAtTcAR Sixteen, ov7 Sixty 1W 'Jt, Coupe $595 ,f . O. B. Detroit With Startmr and Dtmoantablm Rim THE Ford car is so simple in construction, so dependable in its action, so easy to operate and handle that almost anybody and everybody can safely drive it. The Ford Coupe, permanently enclosed with sliding glass windows, is cozy, and roomy modest and refined a car that you, your wife or daughter will be proud to own and drive. And of course it has all the Ford econ omies of operation and maintenance. Call and look over the Ford Coupe. Reasonably prompt delivery can be made if you order at once. R. H. RUST Authorized Ford Dealer Phone 400 Union City, Tenn. Harpole-Walker Furniture Company FUNERAL DIRECTORS , WHITESELL HARHQLE , J. L. RANSON, JR. 354 ANDI216-3 RINGS 432 AND 32 OFFICE PHONE99 UpON CITY, TENN.