Western Reserve chronicle. [volume] (Warren, Ohio) 1855-1921, 1867-01-16

the same amount from the acllNe Cdpl-
tai of the State, withdraWs the same
amount from taxation here, and re-
tards growth and prosperity. A bill
has been shown me, which, il is ex-
pected will be introduced in the
Senate by the Hon. Samuel William
son, of Cleveland. which, If passed,
will remedy most of the defeo:5 of our
present laws, so far as fire aud inland
insurance compnnIes are involved. 1t
is hoped that the bill will pass. and
that corresponding changes will be
made in the laws affecting the branches
of insurance.
FOREIGN INSURANCE COMPANIES.
The peculiar relations of our nation
al and State Governments, as well as
sound policy and interstate courtesy,
forbid any attempt on our part to pro.
hibit insurance companies, organized
in our sister States, from doing bust
ness in this State, or embarrassing them
by unnecessary restrictions but it Is
necessary to the protection Of our peo-
pie that such companies should be re-
quried to file in this Office duly authen-
ticated copies of their charters, and all
amendments thereto, with such gener-
al and special laws as materially affect
them where chartered that they shall
not only as now required TO do, file in
this Office sworn statements Of their
capital and the amount paid up. with
detained statement of their assets, poll
cies issued, losses sustained and unpaid,
and all other Indebtedness. but they
shall permit full and free examination
into their conditions to be made to this
department. when deemed necessary
for the public safety or the Teriication
of their returns. That liceuse shall be
annually obtained from this Sodice,
that shall be filed and recorded in the
Recorders Office of each county where
they establish an agency; that they shall
appoint attorneys. upon whom process
can be served in each county where
they establish an agency that their Ii
censes shall be subject 20 forfeiture for
breach of conditions. and to suspension
when the Auditor of State shall deem
it necessary for the safety of the public
against fraud, &C.; that they shall be
required to pay such fees and charges
as indemnify the State for the nccessa-
~ expenses of their proper supervision
(the present scale of charges being too
low, } and that they be required to pay
taxes on all premiums received or
agreed to be paid or secured to them,
for insurance in this State. These pro-
visions require only what it is hoped
will be required of our own companies,
and with them it is hoped a wholesome
competition between home and foreign
companies will be maintained. and
prove highly beneficial to the public.
Perhaps l ought to advise that this
Office should be empowered to with
hold licenses from, or increase the
charges against companies organized in
States, which prohibit or impose ex-
traVsgant charges on our companies
who attempt to do business in such
States. | merely, however, suggest it
for the consideration of the General
Assembly.
TIE RATE OF INTEREST.
The rate of interest now allowed by
law in this state, is six per cent. per
annum. Private individuals may con-
tract for more without penalty or for
feiturc, but can not enforce the collec-
tion, at law, of anything beyond six
per cent. If banks, however, under
take to contract for more than six per
cent, the contract is void and the en-
tire debt lost.
The Auditor applies the usual argu-
ments in favor of higher rate of legal
,,ka-o,k a-1 oloeas nth tba folf0-ri1, .,
strong one:
Again, banks can make more than
six per cent. by dealing in bonds,
stocks, gold, &c. Therefore, as might
well be expected, they invest their
means largely in these forms, and in
proportion as their means are thus in
vested, is their capacity diminished for
the accommodation of the legitimate
business wants of the community. 1t
is believed that seven per cent, or rs
rate of interest, would divert the capi-
tai thus employed to the uses of pro-
ductive industry and trade. The well
fare of society requires that the rate of
interest should be such that the lender
will derive just compensation. for the
use of his money, and the borrower be
enabled to make fair profit by its use
in legitimate business. The expert
ence of the State of New York proves
that a seven per cent rate is a safe and
advantageous one to all classes of sOcie-
ty. And yet persons of great business
capacity aud experience now say 7.3 is
a more convenient rate; and if they
were now to establish'a rate, they would
fix it at $40 rate established in their
stead; first, because it is right; second,
banking is necessary TO the prosperity
of the country, and the laws ought to
be so framed as to encourage men OF
the highest honor and integrity to en-
gage in the business; and third, the
higher rate will induce an increase of
cIbital in the State, stimulate new en-
terprises. and increase the revenues of
the State.