Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1862-01-08
Cases Of Usury, and how Disposed
Of by Courts.
At the late term of Grant Circuit Cou

rem involving usur under the old law,
which provided for q forfeiture Of the inter-
terest where over IL per cent. was paid
AS the dicision may considerably affect
lenders and borrowers in cases where usury
has been pracsised, we Qsfeg some light up
on the several points involved, but omit the
names Of parties.
Some four or five years ago A loaned B
81 600 at Is per cent. interest for one
year, the interest being added in tie note
and mortgage made to secure ( the pay
ment Of $3.50 one year from date. Moth
ing being paid for several years, suit was
commenced on foreclosure Defendant
plead usurv, and the case went to trial.--
The decision was, that plaintiff 8 oud re-
cover his $1,000, less the $3.50, leaving
him but $500 and interest thereon. at u
per cent. from tho date when due till paid,
on the last named amount. The Supreme
Court had already so decided in a similar
case, though this was unknown at the time,
except to our court.
The decision is Of deep importance, in
asmuch as probably half the notes secured
by mortgage now on record, certainly vast
amounts Of money due on mortgagcd Sc
eurity, were drawn and are now held under
the old law; many Of them have condi-
tons and are embarrassed by conditions
entirely similar to the case tried and decid-
ed as above. These mountains Of secnri-
tics may meet a similar fate, should usuly
be pleaded. The mortgages under the old
law have higher rate OF interest than is
permitted under the new. for which reason
lenders have preferred the old mortgages
TO stand, SO long as the interest was paid,
with just as much more interest in The
shape of usury rs could be extorted in ma
ny cases; these latter cases, where u,ury
was taken or by whatever means obtained,
are now knocked fat BY this decision re-
ferred to. True, no written record can be
found, no such usury indossed on notes;
on The contrary, all is made fair and appa-
rently lawful; but here comes in TO inter
terfere the law allowing both parties, de
PENDANTS as well as plaintiffs, TO swear to
facts; and the sums involved, in many ca
SEES amounting to more than the pIinoiI al !,
must oyerbcar the viii or wish on The part
of defendants TO not set Up pleas Of lIsury
pleas at once exhibiting meanness and
bad faith! But" argues defendant, "odds
the difference between the fool and the
knaye-l the fol for submitting to terms
illegal and buthensome, he The knavc for
the usury and for violating the laws" So
the public sympathies will be enlisted for
neither. The parties will be taken as
equals by juries and courts.
Spce the late decision the usurers have
taken to persuading mortgagors to give
new mortgages, conditioned that the old e
cancelled. Lawyers say this will not mend
matters, but rather make matters worse in
several respects. They have also taken 70
Offering such lsury tainted mortgages for
sale. but buyers are already advised of The
Hinged and tainted stock, the selling party
Sill pretending that all is light, the buyers
pretending solemn ignorance, but with f.
ces showing that fun IS abroad at the eA-
pense Of class Of men but seldom caught
mapping.
Under the new law, now three years in
force. The lenders Of money at rates Of in
terest exceeding ten per cent. can but fare
stiIl worse, tie forfeiture being the pInci-
nal as well as the interest, therefore the in
ducemerts being SO much greater for par
ties to cone into Govt and plead usury.-
The cases Of usury are probably as numer-
Gus as updsr the cid law, and still not cal
eulated TO back up the saying Of usurers
that "Ldus aanot be made to stop usary
money pM hold its oeon, let The 'corla
Aocln
That money, when brought TO the coun-
Try for loaniug st psurious rates, the pin
cipal and interest liable at all times TO be
called in and taken to other parts for like
use, IS terriLlg calamity 10 any people ii
NAV vista damage as pcstilenial to the
finances and morals Of any peeif!e as small
pox or cholera to society in 4 physc'
sense, there can lie no question. These
court decisions may drive the principal
usurers Of Wisconsin to Canada, Which
would he great favor to our State but az
evil to our Canada friends well challenging
our sympathies. Better t at the many ters
Of thousands held in the county for usury
and Decentralization had been taken and
sank IN mid-ocean than That 90 many had
been luined morally, as we'll rs in finances,
in charnctsr, in soul and in spirit. The