The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1859-06-30
The l"tsrsst Case-Declslon Of the
supreme Court.


The case below was upon . note made by
defendants for one hundred and fifty one dollars
and fifty cents, payable in ninety days from
date &" with interest at the rate OF three per
cent. per month payable" and containing this
further clause. "ADd with interest after masu'
rity upon principal and interest at the rate Of
five per cent per month until paid. The note
Was drawn payable to the order of one OF the
defendants. and indorsed by him; il was paya'
BILE at certain place, and demanded on the
day VI its maturity.
The defendants appeared and objected TO the
assessment OF damage as foilows:
" To the allow Ance and assessment II damages by
aud than seven per cen. p"r snnam b'cAasr
hsre Law or valid cunIaet wArrsn'ins 'he SANE
way Of compound lnsres, AFTER maturity Of the note,
because there Vas no Law I" valid contract ~Arranuns
The same"
The defendants made other objections, which
the conclusion this court has arrived 81 ON those
stated will make II necessary 10 notice, ~ their
force was dependent upon the failure Of the
above.
The court below oysrruled the objections OF
defendants and they reserved their exceptions,
the plaintiffs had judgment for the note. aud the
increased rate OF interest compounded upon the
rate stipulated in the note.
The questions presented here sre-FIRsr, Is
the clause In the note that the rate of interest
shall be increased after maturity one which can
be enforced TO its full extent
SECONDLY, II not, what rate OF damages docs
the note draw after maturity
THIRDLY, Can the clause Tor COMPOUND in'sf
est be snf0rcsdl
The very extensive interests uePenu'nH upVn
the decsion OF THESE quss''on'' nv "u w,
thorough and elaborate examination into their
merits, and have furnished the court with very
learned and able expeditions OF them IRON DON
sides, which have very mAtsriahy a'ueu ~ 'he"
solution
The consideration OF the nrat point ~
whether an increased rate Of intercH can DC
recovered after the maturity oil contIse' whleh
had stpu'sted iaue' esas nA.ufsny W NV
animation OF the law oi interest," whieh shA''
do, but necessarily in more neo"Pee us"
ner than would desire, rom .hs un'ea '"'
sources IN authorities hAve 10 uis" upon.
Prior TO ths reiga OF henry tne Ign" .ne
taking OF interest or compensAt'oh iof 'he use
OF money WAS uniawiui ia hhR'shu' snu eo"
tracts Tor u were deemed usu,'ous SUI so"'1
not be enforced. IL seems.o nave peep nc'a
by the church 10 have been sctuaiiy snlu'
~ ainst the hws Of Iod' ana mmsi'y, nhs ny
the courts 10 nave been unAWiu' ron shS w
liticAl reason that money Vas ohiy meu'u'
OF eAcnAhss' anu ".UsJ 1919 p a.
ductive. Both Of Ahich reasons are equally
fallscisus when put 10 INC proper test. "
never could nave been ms,"m :" w ..No
money, because ho N'sso. -" o"
between an lsrsslite and . stranger, and only
prohibits II between the Jews, ANA Tue prom.
bition 10 by no means conhned 70 money. pu'
usury among the Jewsis pfohoneu On e'sly
article that can he iosnse. DEUTERONOMY 80
Chap. 40 verses,
lhe pohtcA fessoh y, 'ne "s. 1919
ness OF money MAKING u Improper 10 Ieuoe' .
profitable, WAS un'eHsoie anu ~ 'AAneo WIZ
ha = mfr v.
lowed proht TO he MADE on many o'nei u,'ns'
quite as barren as money. Eblackstohe ston'
"a.
The statute OF henry o. Gu " NV "N'" 'ne
interesto Of money IN England NJ ten per cent.
or rather provides mat no more than W"
pounds IN the hnnsred Snail DC taAe" %" " ioa"
The subsequent stst1tes on the snpJec' o'
usury In England, and gensrxhy III the n'ates
OF the Union, have been OF tnls negative Guar
aCter, prohibiting the taxing oi An amount pe
yond the rate allowed, mol deeiAfnH "na'
character o oemands shsh oIAr '"'s'es.' " 10 !,
quiring II to be paid, leaving the question OF
what shall, ana WhAi Shall hot ara" h'e''N '"
the contracting parties, or I'd stnsr "ofus,
making the subject Of interest beihR iec"'efa
bic or not, dependent upon agreement ana NOT
law, the latter only iimtihg ths amount o' INC
recovery.
such has been the character OF the Jaws on
interest, under whch she gfea' msss " We J"'
dlcial decisions involving sueh iaest'ohr nave
been made.
In considering tins question ! aesfe 70 90
tablish IN the hfst place ehactIy "hAt lnteiest
10, and when, and during "hA' period OF the sN'
istenee 81 the contract u attaches 70 IL, ana III
doing 80 ! will refer TO The case OF ths HrnSse
laer Glass Factory vs. hsih' o Cow o''' "he'e
In Senator spencer, IN very ans opihl'h
Classics and arranges the cases on tne s"bJ''i
Of interest under various heads, and stteinpl"
to show that wherever interest showed u -
only by reason u an agreement between We
parties 10 that eject. 30 Tar AZ TINS statement -
concerned there can be no donbt ABOUT i'- "e
curacy, bot ! think 'hat case ot'ti"okr "Se
great and material dslihcuoh' ~hhh' had u
been more accurately observed IN 'he decision
OF the cases colated b. the senator ne "euia
have had less labor To perform ana ba1 ne
recognized aud adhered TO !, himself tue Whole
case would have been more IN harmony WIN
the great principle which he ntst asserts that
the recovery o' interest aepehns On agree
neDt.
The distinction il, that interest," beihg the crsA'
ture Of contract, IL reco'erab'e ntehs a. mi"
est, only during the continuance ~ the contract,
and a. provided by h- terms ~J"s"edf"' sha
not after. When the sgresmsnt 10 once 'iolA
ted. the promise has sbsisihsp wrong i"I