Saint Paul weekly Minnesotian., 1858-07-10
Money Lenders.


Money Lenders.
For the Minnesotan.
In answer to the question, Is it the interest
of money lenders to emigrate to Minnesota?
we answer it is.
There exists, between the rate Of interest
here and the rate at the East, a great differ
ence difference not at all commensurate
with that which exists between the price of
any other thing A money lender, setting
apart specific sum of money for the purpose
Of loaning, bears the same relation to the sum
so set apart, that tie merchant bears to his
stock for which he has expended his money.
The general principle which regulates the cne
regulates the other The difference is in the
instance.
Shipping facilities inter-communication
and the consequent knowledge of the prices
current at different points, are the influences
which direct the current of commerce, and
tends to equalize the price OF the products and
manufactured articles of the earth at all points.
Most of the articles of consumption which
come to Us from the East, can be purchased
here at slight advance on their price there,
and as communication becomes more easy, SO
will this difference in price become more
slight.
How strange, then, must it appear, that
while the above is true, we can record of mon
ey, that while it commands but six per cent
per annum in the gluttcd markets OF the East,
in Minnesota it readily commands thirty per
cent. per annum. The reason is plain-the
great demand and the limited supply.
Should We ask what keeps the supply so
inadequate to meet the demand we would
DO told, Minnesota Is constantly drawing on
the East for manufactured articles, which
drains her Golfers, and is sending nothing
abroad by which she is enable to replenish
them When this is no longer true; when
there is an equilibrium of commerce, when
trade is balanced, then will money be balanced.
But is our country poor? Should this if
all correct, deter capitalist from immigrat-
ing, through fear of losing all by striving to
make great profit.
Every day our country is developing, ex
panding, swelling into greater value, and were
this Eastern drain twice as deep, there is al
ways here an increase in value in material
wealth, which should secure present credit
ard will meet all liability.
What we have said about the supply refers
properly to the flow of money through the
proper channels Of business, and should not
affect the question respecting the mere mon
ey lender. TO him the only considerations
are, security and rate of interest.
The rate of interest is regulated properly
by the convenience to the lender of a sum Of
money; the risk incurred by him of losing
the sum loaned.
The first is no greater he re than it is there:
the latter less. Because, all loans made in
Minnesota can be secured by mortgage on
real property, in every instance, of a value
equal to twice the amount loaned and the
quality of all titles here are more easily as
certaired than are those of the East, because
of the more recent vesting of the former; and
then there is less darger Of money loaned
being secured on an encountered or defective
tile. Money, here, can always be loaned on
the real estate security, a tangible security,
ever before the eye, not some high sounding
business name, Oh the back Of a note, which
to-day is considered good for million dol
lars and whose owner, tomorrow, may not
be able to pay more than ten per cent. on
the dollar to his creditor
VIII not short time so affect and change
the financial face Of Minnesota, that high
interest on money cannot be obtained
As VIC approach commercial balance with
the east, the rate of interest will decrease
but long time must elapse before interest
here will bc as low as it is there In the interim
We must have money to develope tie vast re-
sources of cur country. We have mills to
erect, water powers toimprove, cities to build.
vast praires to break and cultivate, immense
forests to hew down, stock TO purchase, ard
things to do to reach the point to which our
destiny tends, and which we must inevitably
reach, that of being the first agricultural and
manufacturing State of the north west
1t must take sometime to reduce the inter-
est to six per cent per annum, in State
where now men can purchase farms of 1GO
acres, of the Government, for 5000 each,
which pre- -empted, will respectively sell for
S10OO-when one can borrow money at three
per cent. per month, with it purchase real
estate, hold the same for tme and sell for
price which will pay principal and interest,
and afford the borrower profit of fifty per
cent. on the amount borrowed.
The change which will affect tie lender of
money will be gradual, and interest can never
fall below the rate paid in the east.
Should the money lender come to Mime
sofa, it costs nothing to transport his stock.
He can lend here ready-he can have unex-
ceptionable security-his business can be