Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1859-01-22

reason for the slight relief it was
thought would be afforded by that law.
While it might produce a temporary
inconvenience to mortgage creditors.
it might save thousands of debtors from
oppression and ruin. Whatever may
have been its merits or dement's in
other respects, it has had the least ten
dency to prevent foreign capital from
being loaned here on real estate secu-
rity, and on long time, at high rates of
interest, it has to that extent, been of
great utility. Your serious considera-
ton Of the law is invited, as it's contin-
uance or repeal must depend entirely
upon the result of your deliberations
and convictions.
There are other evils besetting us to
which 1 deem it my duty to call your
attention.
The financial condition of the people
of the State is in some respects beeom
ing serious. We are in the midst of
embarrassments which have been grad
ually and surely growing upon us for
years and some process must soon be
devised for untimely restoring the com
munitv to healthful condition of pros
perity. | am aware of the strong ar
gument used to justify q system Of free
trade in money, and I am also aware
Of the facts which argue strongly
against the free trade theory,
i The experience of every age and of
every nation has demonstrated that
high and usurious rates of interest are
ruinous to the masses Of any people
While it is true that money in a certain
sense is governed by the laws of trade
in the same manner as other property,
it must be apparent that it has some
qualities isolating it from the common
rule. AS a medium Of exchange and
as so-called measure of the value of
what is bought and sold, it stands alone
as the one article regulating, controll-
ing, or measuring the price Of every
other. 1t has another distinctive fea-
ture-it is the creature Of law, and the
law stamps definite value upon it
; In all cases it represents, if it does not
measure the value of every species Of
property. 1t is the one species Of prop
erty which under all circumstances is
required in the adjustment Of balances.
and no other representation Of value
can fill it's place. When scarce in com
munity it drags down the market value
of every other species Of property re-
CARELESS Of sacrifice, and in this res
pect again it differs from every other
kind. The experience Of Wisconsin,
like that Of any other State which has
experimental upon the subject, is an
experience Of fact against the teach
ings of theory. High rates of interest
have beeu allowed to invite capital
hither. The capital has been here; it
has been loaned to our people; few
years have elapsed, and the pecuniarv
exhaustion. The recorded mortgages
and membranes in our public offices,
IN the several counties of the State,
startle us with the assurance Of coming
disaster and ruin. Every dollar Of
money loaned to the people at high I'M
consionable rates Of interest, will prove,
where it has not already done so, posi-
tive injury to every one but the money
lenders. The welfare of the comlnu-
nifty requires that rates Of interest shall
be regulated by law And there is but
one. rule at all times safe, which alone
can guard against ultimate prostration,
and that is, to limit the rate Of interest
at q point beloac the average cIcGr prof.
its Of productive INDUSTRY
If our laws limit the rate of interest
at seven per cent. business will readily
adjust itself to that rate. IF the law
limits it to twelve per cent. business
will adjust itself to that rate. In this
State, when all restrictions were re-
moved, and absolute free trade estab-
lished, rates of interest rose to twenty.
thirty, and sometimes fifty per cent
Whatever is the highest rate of inter-
est allowed by law, becomes at once
and continues the standard rate of in
terest for money loaned. Experience
has taught us that the highest rate al
lowed by law will be the rule, very
small proportion Of cases excepted
The masses Of the community adhere
to the law, and in moneyed transac-
tons will be found to adjust themselves
to its provisions. During all the time
there has been comparatively free trade
in money, there has been no time in
which, on money loaned, the rates of
interest have averaged as low as twelve
per cent. 1t is no doubt true that un-
der any laws, usury will be charged
and taken by the unscrupulous. 1t is
sacrifice which needy, embarrassed
and struggling men make to their ne
cessities. But the cases are few and
exceptional, and the rule for whole
people should not be adopted with ref
erence to such exceptions. 1t should