The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1858-12-02

region was undoubtedly the chief induoement
for the Legislature not 10 clog IL with any stat
utory restriction. The same consideration
prompted the law which legaliFes interest at
the rate OF twelve per ccntam per annum upon
Judgments, twenty five per cent ON unpaid
taxes, and thirty per cent On street certificates
Ia view of all these things-o the terms of the
Instrument itself, IL viii hardly do TO assume
that this " interest clause " IL a penalty or was
80 intended. 1t does not appear that the de.
PENDANT was IN sIaitened circumstances. or
compelled to make u loan, whatever the terms,
and that the plaintiff took advantage Of his ne
cessit,cs 10 drive hard bargain. No hint OF
all these matters which used 10 crowd a bill IN
equity IN u case of this Kind.
Nothing Ike an appeal 10 the equity side OF
The eourt,-but simply naked claim that the
rate Of interest after maturity sci forth IN the
note Is IN nom ne poense, aud was 50 Intended
by the parties Ia contract. Ii seems TO me that
such claim has no foundation 10 reason. Justice
or anything which surrounds and covers the
transaction. Hut grant that II is penalty does
IL follow that seven per cent per snnum ~ the
legal measure Of damages The Statutes reads,
when no rate Of interes, IN agreed upon, %
spscVtsd IN note or other contract, seven per
orntuin per snnum shall be the legal rate,
but, conversely, when u rate IL specified, that,
and no other. is the legal rate.
In my view the "speeiied rate, In the only
legal rate wheih'r rcckonej AS interest or
damages, and that there is no general sta,utury
rate OF interest in this STATE, IA the same sense,
as there Is in those States where q usury Inv
exists and where not contract but the Statute
likes the role ffoin which there can be no do.
parture. IN those States II Is considered that
The value of the use OF money Is the same at all
lines and under all CIRCUMSTANCES and that
the courts viii not consequently permit parties
10 stipulate for any greater damages than the
law ullnWa uulnsa mr. Rb at IA
Is impossible to discern any odor Of usury or
raisc any doubt M to any of the elements OF
tho contract itself Our leg station proceeds
upon al entirely diliercet theory, and prin
cples, aud authorities which are considered
binding elsewhere, can have no overriding In
hnence here. Our policy II to allow re par
ties to contract 10 determine for themselves
what Incidents shall characterize il, whether
money or some other commodity constitute
the subject matter. The use Of money ~ re-.
gsrdcd "A proper subject Of ttaiic. and like
everything else IN the mercantile world, de.
pendent on the great law of supply and de-
mand. or course legislation on this subject,
resting on new principles should receive u iu
dicial Interpretation oonsonant herewith an
Interpretation that will carry out, not defeat
ihe manifest rpirt and intent Of tho law.
The splfit and intent ~ the law relative
! 10 interest clearly show, in my opinion, that
whenever rate Ia specified IN n note, II be
comes the legal aud fixed rate for that note 10
/ the same extent aud ior the same purposes as
would the statutory rate, II none were express
ed that such rate ~, 40 10 speak, the statute
| ~ rate so far IA regards the note or Other con
/ tract, TO which IL relates, aud In to be applied
! 10 II asa measure Of damages The defend
| ant position seems TO 20 the length Of claim
/ ing that the right Of relief IN q case Ike the
! present IL as absolute IA the equity Of rodemp
| ton IN u mortgage, and cannot by any Ian
! int nj s,f sl.a In MA at.l