The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1859-01-29


the absence of several Senators, was laid
over for few days. We may hear of its
fate before going to press.
Illinois Usury Laws---lmportant De-
clsions.
Our attention has been called to a COM
municaton in the Republican several weeks
age, giving the particulars Of two judicial de
c;sions lately made under our usury laws
As few persons appear 10 have seen the ar
ticlc referred to, and as it relates to a mat
ter Of considerable Importance and little un
dsrstood, we propose to give the substance
Of the decisions in question.
The first decision referred to was made y
Judge Sheldon, of the Galena Circuit. In
this case money had beef borrowed in Feb,
1855. at 90 per cent. interest, and truS
deed given as security. Default having
been made in the payment when due, the
property was advertised for sale. The de.
fendent asked for an injunction against the
sale, and it was granted by Judge Caton.-
On hearing the case in the circuit court,
Judge Sheldon held that the plaintiff could
only recover the amount of money actually
loaned, with interest at the legal rate OF SIX
per cent. BY our usury laws in force at the
ime the contract was made, the defendant
would have been entitled to recover as 4
penalty three times the amount OF the usu-
rious interest he had agreed to pay, but the
penalty for taking usury having been sub
sequently repealed, Judge S. Eeld that such
repeal became part Of the contract, and no
penalty could be recovered; yet the law re-
pealing the penalty, and allowing parties to
contract for ten per cent. interest, Gid not
legalize the taking of greater interest than
10 per cent; nor could the party contract
ing for over ten per cent. interest receive
even that amount, as the contract would
thus be usurious and vicious, and he would
be thrown back on the legal rate Of six per
cent.
A similar decision was made about the
same time By Judge HOLSTER in the La
Sale county court. The case was like shis-
A borrows of B $3.50, and gives his note for
y
trust deed on so acres Of land worth $1,000.
Before the year expires 4. dies and as his
estate is to be administered upon, when
the note becomes due, neither the widow
nor administrator have had time to make
the money to meet the payment. They Of
fer 3 ten per cent. interest in advance to let
the note run another year. is memorable,
and advertises the land for sale. The ad-
ministrator enjoins the sale. The case
comes into the circuit court, and Judge Hol-
lister holds by exactly the same reasoning
employed by Judge Sheldon, that can on
ly recover the actual cunt Of money loan
ed, with legal interest from the date of the
contract.
These decisions, we apprehend, will have
tendency to check the practice that has
grown up among us of loaning money at ex-
orbitant rates ofinterest, under the impress
sion that the laws Of Illinois sanction the "a
king of any rate OF interest whatever. As
a general rule it is doubtless true that mon
ey will always command just what it Is
WOItu, anu uO uSuEy Iau Pi S'She AN a.
from paying for money whatever it is worth
to them to have it. Nor do we think that Z
man who has borrowed money agreeing to
pay 20 per cent, with the idea that it is
worth that TO him, can honorably pay less. 1t
has ever been regarded as a meanness, and
it is mcan in all ordinary cases where man
has borrowed money at high rate of inter
est with his eyes open, to dodge the pay
ment by pleading usury. Yet it is well te
have usury laws to meet occasional hard
cases, ike that, for instance, in which Judge
HOLSTER made the decision above alluded
to. Men receiving % or 80 per cent inter
est, and being abundanty secured, ought to
to be little accommodating towards their
victim in his efforts to get out Of a tight
place; andi in ,very such case where sharp
er proposes to steal farm worth triple the
amount of his claim, the public will not on
ly justify but applaud the man who viii
take every advantage the law gives him Il
save himself from ruin.
Douglas and Fitch.