Kenosha tribune & telegraph. [volume] (Kenosha, Wis.) 1856-1859, 1859-01-20

ty, it drags down the market value of every
other species Of property, regardless OF sacri-
fees, and in this respect again 1t differs from
every other kind. The experience Of Wiscon-
sin, like that of any other State which ha: e1-
perimented upon the subject, is an experience |
of fact against the teachings of theory high
rates Of interest have been allowed to lnVlte |
capital hither. Tho capital has been mere ~
has been loaned to our people; lew yos'.'
have elapsed and the result pecuniary OK
baustion The recorded mortgages and lncuh,
brances in our public Offices IN the So Vei@'
counties of the State, starte us with the assui |
auce of coming disaster and rum LVeiy uo''
lar of money loaned to the people at high, IN
considerable rates Of interest, Will prove Whete
n hoe NOT already done so, positive INJURY TO
80 one bnt the money lenders. The welfare
oftbe community requires that rates Of interest
bou no regulated by law. And there IS but
onarule at all times safe, which alone csn guard |
AGAINST ultimate prostration, and that is to tla!i
tIe rate Of interest at point betO'o the accragf
clear profits Of productive industry.
If orr laws limit the rate of interest at seven
ner cent. business will readily adjust Itself to
that rate. In this State, when all restriction.
were removed, and absolute free trade esSab-
lisbed, rates of interest rose to twenty, thirty,
and sometimes fifty per cent. Whatever is the
HIGHEST rate of interest allowed by law, becomes
at once and continues the standard rate of in
terest for money loaned. Experience has taught
the rule, a very small proportion OF cases ex-
cepted The masses of the community adhere
to the law, and in moneyed transactions will be
found to adjust themselves to its provisions
During all the time there has been comparative
ly free trade in money, there has been no time
in which on money loaned, the rates of interest
have averaged as low as twelve par cent. 1t is
no doubt true that under any laws, usury
be charged and taken by the unscrupulo" =
is II sacrifice which needy, embarr" a.
struggling men make to their nee .o'eN a. a.,
the cases are few and excoptic ISSUES ., DU
for whole people should t >@i, anu tis r;'t
reference to such except onS r. 10y
and if need be, pres ribe the nsages Of The neo
PIE IN sllS 1t is not DOUBTED that il
:e"IJ 5T 80 >eates, where immigration is &C
L anI en- K cheap. numerous cases will occu
"nete Hig'l rates may be paid on small sums
IVi Shors foans, with q large margin for profit il
tne rapio rise in the value of property Such
III very numerous instances, has been the cas-
Wisconsin.
But now that our lands are largely taken III
and occupied, such cases more rarely occur
There is no branch of business in this State
except money lending, sufficiently profitable I,
warrant the payment Of twelve per cent Tn,
clear profits of the productive labor of the Stat
cannot be safely estimated for any one year.
In agricultural pursuits not less than five, ant
often ten years are required, to make a correc
estimate. Taking the last two years, owing I,
the depression in prices of products for 1857
ana partial failure of crops and depression o
prices Tor 1906, the actual clear profits of indus
try and capital cannot have exceeded three pe
cent Seven-eighths of the mortgages on rec
ora IN the State, excepting those given for loan
OF school money, call for annual interest 81
twelve per cent. above the clear profits which
the property mortgaged has been able to pro
uuce II IS estimated that at least half the cul
VINO nd Al
village and city property in the State are en-
numbered by mortgages. This evil ia SO wide
spread as to become matter of great publ;,
Importance, for before these MORTGAGES can nj
be paid, it is plain that thousands must ba ma
cuniarily ruined.
interest at seven per cent is paid on over
three millions of dollars, on loans from tbc
School and University Funds, and on amonnts
que Tor lands sold, belonging to those funds
ms sum is secured on real estate, valued at
hlteen millions OF dollars. And vet this praol
sum is estimated as a small amount COMPARED
with the amount of mortgage liens for ,noney
loaned at much higher rates of interest: and
TINS IS entirely independent of the large amount
OF railroad mortgages in the State
Making new loans at the same or additional
rates OF interest, will not pay the debts, but rem
DER ruin the more certain. Loans of mona, a,
W per cent: when the interest is promptIv Maid
and loaned again, double to the lender in lesy
than six years, while agricultural capital, as j
whole, does not double in less than TWENTY
interest IS the rust that Is rapidly consuming
our people 1t not only eats away our surnl,,
profits, but in majority of cases is eating dec
INTO our capital. 1t Is unaffected by poor crop
and worse markets 1t gathers strength a6f
weight and oppressive power continually,
whether we sleep or wake while we rsst n,
well as while we labor. There must come :
bitter end to such a policy. 1t will be obiected
as it has been in regard to another law, tbot
any change limiting the rate of interest to a liv
ing figure will drive away and keen away for.
eign capital. We must learn to look these evils
right in the face. While it will not prevent
foreign capital from coming here to be invested
III property, at reasonable rates, it very likely
may prevent some foreign capital coming here
to be loaned at high rates Of interest Anv law
that will prevent any more foreign capital COM
ing to this State TO be loaned on long time n
high rates of interest will be blessing to Tie
State. We cannot afford to pay it, We never
can payit We must stop paying it or attempt
ing to pay 1t, or foreign brokers and money
lenders will, by and bye, own most of the val
uable property IN the state. Wealth can never
be generally diffused here, as it is in the New
England States, until we learn to do as thew
have done, TO depend upon our own resources.
and live within our means. 1t is with a whole
community as with individuals, substantial.
honest acquired wealth cannot be accumulated
by the use OF borrowed capital alone. No peo-
pie who pay high rates of interest can ever
have money to loan. If the farmers of the New
England States had borrowed from Great Brit
am, for the last half century, large amounts of
money Mt high rates of interest as are paid here
they not only now would have no money 10
loan, but they would no longer have any secu-
rites upon which to borrow. A million of dol
lars brought into this State and loaned Mt 2
per cent, in less than six years takes out of it
two millions. No people who begin bv psvinc
high rates OF interest for money will ever have
money to loan. In older States, where and 7
per cent. are common rates, and where LARGE
amounts seek investment, on long time at such
rates, there is less risk in Borrowing They do
not pay any more, because they have learned
by the experience of three quarters of a ceptu
ry that they cannot afford it.
Inc contracts already made must be fulfllsd
There is no such thing as reputation known TO
our people, and no such thing must be known.
While there may be equitable defences. as 10
mortgages or contracts tainted with fraud, the
Legislature cannot make defences to contracts
already executed and in force. But the Legis.
lature can and ought to interpose by the most
stringent measures, to prevent in future the re-
currenee OF any such Calamities as are now upon
us. We can get all the money we earn. and ths
people must learn to confine the expenses of
nVlng within the sum OF the avails of their la
Dor, or legitimate avocations and emplovrnents
iN"b" az ti'o laBSS anu cues OF the state,
large majority of the people are struggling,
year after year, to pay rents or high rates Of in
terest, or both. They have gone into debt for
money because it seemed easier to borrow than
to narrow expenses or diminish disbursements
This in fact is difficulty that prevails more or
less all through the West and its pernicious 81.
Iects harrass the mercantile interest London. |
liverpool Manchester, and the commercial ci. |
r ses Sl Europe, pay rents to a very large amount
I S NeW York, Boston, Philadelphia, Baltimore,
&C ana these latter cities, through their en-
tensive credit systems paw rents for mercb,n1,
al over the country The extravagances of the
age, EXHIBITED IN great variety Of WAYS, lead
every few years to almost universal bankrnnt-
cy. An abundance of money TO loan rni,s H.