The Jeffersonian Democrat. [volume] (Chardon, Ohio) 1854-1865, 1859-02-18
Remarks of Mr. Hitchcock, of aeauga


Whose brow is noby crown'd with toll.
Remarks of Mr.. Hitchcock, Of Geauga,
In The Hopse. Janudry 26th, on the Repeal
ofhe Ten Per Ceut Lac.
Mr. SPEAKER Tho subject before tho
House has bcon so fully and ably discussed,
both at tho past, and present sessions OF this
General Assembly, that IL seems prcsump-
ton in mo, to attompt to add anything, to
what has already been said upon it. Feel
ing this to DO so, had. although feeling
somo interest in the measure, determined
to tako no part in tho discussion. Only as
l have boon listening to-day has this deter
mnation been changed; it is not my pur-
pose now.to attempt anything like n general
roviow Of the question, but only very briefly
to direct attention to two or thrco practical
ideas, which as a practical man, have been
suggested to my mind. Tho ability, learn
ing and research which havo been exhibited
in this discussion, have been such as to make
mo distrust my ability to add now light to
that which has bccu already diffused upon
tho subject, or claim tho attention Of tho
| House by any interesting. or forciblo argu-
! mcnt, and will endea vor to delay tho vote
| all arc ready aud anxious to give, but worry
! few moments.
! That the correct principle to govern ncti III
/ in this matter IS either free trade in money.
/ or a uniform rate of interest, at such u rate
| per cent. as il is found upon an average, the
/ ordinary, legitimate business purposes OF
! life, will afford, it wonld scem that all would
admit. In fact, all tho arguments adducod
before this House show this to be true
| Those in favor Of retaining upon our statute
| book tho present "teu per cent. law argue
| in favor of " FREQ trade" whilu those in favor
of tho repeal of this law. are in favor of ~
uniform ratio of interest. Tho only question
is us to tho ruto por cent. Tho gentleman
from Hamilton, and others sustaining tho
same position advocate free trade. and yet
sustain tho present law, which is roally no
nero FREQ trade, than will bo our interest
! law, il tho proposition to repeal tho ton por
cent. law prevails. Parties now may con.
tract at a higher rate of interest, made legal
but may not contract above what the law
allows. The same will no the case when the
law is rvpoalnd: tho oEly difference is, that
in one case a laigCr amount of interest may
! be taken, than in the other. Ono isus much
opposed to FREQ trade as tho other. So far
us my knowledge cxtends,an in theportion
of tho State which in part represent. ten
per cont. is practically the Uniform rate OF
interest True, to this, rs to all other gem
oral rules, there arc exceptions. Gentlemen
talk about an ordinary rate OF six per cent
and in exceptional cases extending by con'
tract to ten. Ton per cont. is now tho rulo,
and six the exception.
All branches of business arc conducted
upon tlis rs q basis. Necessarily computa.
tons arc mado and estimates based upon it.
Tho merchant sells his goods in expectation
Of, contracts for, and does receive his ten
per cent. The manufacturer, tho mechanic
or any ono in whatever branch Of business
no may bo engaged, needing for any purpose
an amount of money, moro than he may
havo ut tho time, if no borrow, is obliged to
pay ten per cont. And tho farmer il h(
would add to his small farm adjacent land
and DO unable TO pay for all ut tho time, finds
the land holder just as willing to sell but h'
must pay from eight to ton por cont, anc
mako ten por CONF. if not paid when due
with his motto secured by tho land. So lonl
us this is a ratio of interest established BY
law, tho constant tendency of things is I;
mako this the standard. The question thor
arises, is it too high ? If not, it should bC
Icgalizcd and established as a uniform rate
If 100 high, it should be reduced. l below
it has not been contended by any one dGrinl
this discussion. that ordinary, legitimate bus
incss will warrant the payment of SO high
ratio of int rest, but ir has boen admitted lha
10 pay it men must engage in some hazard
Gus speculation, in which, If continued, tho,
would more frequently fail, and that six pc
cent. was fully US high as investments in ag
riculturai manufacturing or mechanical EN-
d ployments will warrant. If not admitted, j
has been 80 fully shown by the gentleman
from Cuyahoga. (Mr. Parsous.) the gentlc
man from Lawrence, (Mr. Leete.) and tn
d gentleman from FraEk lin, (Mr. Rankin) a
I to preclude tho necessity OF my attempting
TO add anything to what thoy have said upol
that point, and as it would seem to mo be
yond all cayil. If this be true,men borrow
ing money or running in debt. with the abso
luIo certainty OF berg obliged to pay tol
cent. must become deeper and deeper invol
we'd, or engage in some speculation, in tn
, vain hope of relief. Again, if it be create
interest than business purposes will afford
tho ionger the system is continued, TIL
= harder it will be TO change, and the NOR
J, disastrous the results to all. Tho longC
mon borrow, paying higher rate Of inter
est than tho business in which they are on
gagged will warrant. the more ready ant
. Eager are they to borrow at these high rates
We hear 1t iterated and reiterated, that men
knowing what they can afford, are SO anx
ious TO borrow, oven at high rates, as an ar
, gument that money 10 worth what it will
bring, More frequently is it directly tn,
contrary. 1t is natural. and most mon will
sooner jeopsrdze all than fail, and bo obig
cd to acknowledge their inability to pay
This constitutes a reason why individuals
as the burden bears heavier and heavier
= upon them, become anxious to borrow, anc
rashIy do It, without ability to pay Again
the evil effects of allowing thu loaning ol
money on such interest as may DO contracted
for aud beyond what can be afforded. is