Cleveland morning leader. [volume] (Cleveland [Ohio]) 1854-1865, 1859-01-11
Total,

Absent or not voting, IL The bill tailed, |
not having received majority of all tn, mem
bers elect.-SfGte Journal.
Mr.. Watson, of Cuyahoga, voted for the bill 4;
and Mr.. Gardner, of Cuyahoga, misrepresented
at least three-fourths of his constituents by vot-
ing against it. Mr.. Parsons, of CuyahOga, who
is in favor of the repeal of the ten per cent law,
and who made an able speech in favor OF re-
peal last session, was absent, in consequence
we presume of the death of a relative.
twill be seen that Messrs. Allen and Dem
ing of Ashtabula, French of Lake, Bell of Me-
dina, Monroe of Lorain, Fernad of Erie, Hitch
cock of Geauga, Howe and Townsend of Trum-
bull, Laughlin of Portage, and Spcrry of Sum-
NIT, also voted in favor of repeal Messrs
Simmons, Rep. of Huron, and ellison, Dem. of
Mahoning. voted against the bill.
The State Journalin in closing an able article
on the ten per cent law. thus clearly and con-
cisely states its practical working and effect
1t says truly, that the experience of the great
majority of the business men of the State has
established the following facts
l. There are few legitimate business pur-
suits in which capital can be employed SO as to
enable the borrower to pay ten per cent. forthe
use ofmoney, and to leave him sufficient profit
to compensate for his time, skill, labor and the
risk incurred. Capital gets more than Its fair
proportion, while industry and enterprise are
compelled 20 put up with the pittance that may
be left Therefore, for the State to establish and
encourage so high rate of interest, is not only
assuming an unnecessary responsibility, but it
is doing injustice in shaping its legislation
to smooth the way for the easy subJugation of
| labor to capital.
2. When six per cent twas the rule and ten
per cent the exception, under the old law, ten
per cent. is the rule and six the exception under
the present law.
g. The tendency of the ten per cent. law has
been TO encourage the withdrawal of capital
from individual enterprises, for the purpose of
employing it in money-lending. The amount
thus withdrawn from the ordinary and legiti-
mate channels of business, to be loaned to
reckless operators and to initiate unsafe spec
uIations, will more than counterbalance the
amount of foreign capital which the friends OF
the law contend, has been attracted hither from
other States, by the promise of heavy rate of
interest.
4. There are three considerations which
enter, or ought to enter, into every transac-
ton between the borrower and the lender
The first is, safety of investment the second,
promptitude of payment; and the third, the
rate per cent paid. Now the tendency of this
ten per cent law operates injuriously to both
parties, encouraging the borrower to pay more
than he can afford to pay, and tempting the
lender to look more to the consideration Of in
tsnast than to 4tuIa >"tnuteIICT,
the latter cannot rely with the same certainty
upon the ability of a debtor to pay principal,
and the interest thereon at ten per cent. as
upon another, in all respects similarly stu
ated,-who pays only six per cent. Other
things being equal, there would be rum
ming odds Of four per cent. upon the amount
involved in the transaction, in favor of the
solvency and promptness of the latter, over the
former.
1t would be far better, even to abolish all ls
gal rates of interest than for the State to set up
SO high standard as ten per cent. The ideas
Of both borrowers and lenders naturally tend
upward to this figure; and nine-tenths of the
credits on interest," now existing between the
business men are weighed down with a rental
of at least four per cent more than they would
be carrying, had the ten per cent law never been
enacted. So long as government interferes
at all between the borrower and the lender, it is
its imperative duty to fix the rate of interest SO
as fairly to divide the profit arising from capital
| employed in business, between the capitalist
who simply furnishes the money, and the busi-
ness operator, who furnishes his time, and expe-
rience or skill-who assumes the responsibility
| of payment to the former-in the majority of
cases giving security therefor upon other prop
erty, and who takes all the hazards and risks of
the enterprise