New Oregon plaindealer. (New Oregon, Iowa) 1859-1866, 1860-02-03
Interest in Minnesota.

We find the following letter up.
on the highly important question
of interest in Mimi, in the n. Y
Evening Post.
The decision we have never seen
as written out by the Court, and
ca,not therefore say whether OF
not, it embraces all the points
made, but presume it to be correct.
1t is not necessary that we invite
the attention of those interested, to
the case.
T"th Ed;torscfMe Evening Post. .,
Our Supreme C,nrt has just made
an important decision, fled in the Clerk $
'ilice to-day, in the matter of the inter
est. after maturity, upon notes draw
ing special rates before and after due
During our flush specializing times the
usual form Of promissory note given
here was the following:
Sr ANTHONY. NJ M. ....l85.
after date, tor valae rece yed,
-. prom Sc to day to the order Of. ......
49,. ..........: ...... dollars,
tn interest at the rate Of three per cent.
per monh ut du and interest after M.
turi,y at the rate Of five percent per mouth
| until a.d.
Our statute makes legal "any rate o!
interest agreed upon in writing" be-
tween the parties; but where no rate is
thus fixed, seven per centum per annum
is the statutory rate. The FIVE per
cent per annum, after maturity, clause
was usually ad,le'lto promisso'y notes
because where speculation was enough,
if invested in corner lots, to make any
man wealthy, men were apt to let notes
run over the day Of maturity, even
tough able to pay them, unless there
ere s'me penalty. Frequently. how
ever, the payce did not exact the whole
FIVE per cent. if the note were paid
reas,nsbly SON after maturity; three
per cent per m.ntk beingdeemei about
a fair rate for money.
As l,ng as time. were good the va
iiaity Of the five per cent. clause Was
not questioned. The principle was
even carried 50 far that our territorial
Supreme c ,urt .'ecilel, three years
since, that note drawing by its terms
twenty per cent per annum until due,
saying nothing about the rate after M
turity if not then pail. -sh ull bear in
terest under the name Of da,nages) at
the same rate, from maturity until
judgment.
Last winter our state Supreme Court
held. that in the case Of q note drawn
like the firm / have given above, the
aIt2r ma 'urity clause was merely a
penalty; an attempt to liquidate the
damages, always fixed by commercial
law at the legal rate Of interest,) and
was therefore void; that the rate cx-
presse IN the body Of the no Q, as the
rate before due was pro hoe pice, the
illegal" rate; and that in giving judg-
ment on such n"te, the measure Of
damages would be the amount Of the
note to its maturity, with the interest on
the principal from maturity to the date
Of the judgment, at the same rate that
it bore before due; in egect making such
a note bear interest until pail at the
rate agreed upon therein from date un-
til, it's matejH5.
The Chief 16stiSt alisented however,
holding that Ais11ehcAses the meas
ure of damages sttsi nsaprity Of the
note was si.np y tltiiIsf cent. pstail,
nu.n on the pr eb from .hs
turity ofthe eots Until julgm
The community generally felt
Their the after maturity claui =
valid erthe Cnict Justice must be35k Rt
The mid,le ground taken by the ma
j,rity of the court found no favor with
lawyers or others.
At the last December term of the
same court this point was again argued