The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1867-02-18

Our correspondent X. in his article on 'Rates
OF Interest" published Saturday morning, re.
marked that Massachusetts had refused to
allow any increase of the rate of interest and
proceeded to argue that any change OF the law
in one New England State would be disastrous
unless the same change would be made by the
other States. 1t now appears that on Friday
the interest bill which has been for some time
before the Massachusetts Legislature passed the
House by vote of lOS to 81. The bill was pass
ed precisely as it came from the Senate, and
reads as follows: - .tfa
AN ACT CONCERNING THE RATE OF INTEREST
Be it esaactedby the Senate and House of Repre-
sentdtiUes, IN General Court assembled, and ba
the authority oftte same, as folloscs:-
SEC. When there is no agreement for a diff
ferent rate of interest of money, the same shall
continue to be at the rate of six dollars. upon
one hundred collars for year, and at the same
rate for greater or less sum, and for longer
or shorter time. - Is.t
SEC. 2 1t shall be lawful to contract TO paw
or reserve discount at any rate, and to contract
for payment and receipt of any rate of interest:
provided, hoaoeyer, that no greater rate of inter-
est than six per centum per annum shall be re-
covered IN any action, except when the agree
ment 10 pay such greater rate of interest is in
writing. iitt .lE ft
SEC. B. Sections three, four and five of chan
ter fifty-three of the General Statutes, and all
acts and part of acts inconsistent herewith are
hereby repealed. =
SEC. 4. This act shall not affect any existing
contract or action pending, or existing right Of
action, and shall take effect ON the first day of
July next. =
If KS reasoning is correct it will be desira
BILE for Maine to conform her legislation to
that OF Massa 2husetts as speedily as possible.
The Boston Advertiser refers to the objections
which have been urged against the bill as fol-
lows:
The influences which have sunnorted tb;s
bill have been constantly misrepresented Inv
Jus opponents. SO far from being a bill uroei
by bankers and brokers, we believe it to have
been really urged from the other direction
The strongest influence in its favor bas haan
the general movement among business 49,
who are borrowers and not lenders of n,o,,a,,
and who have occasion every day to test nrac'
tically the working of our present law IN ;ts
effect upon capital and its embarrassment of tbe
necessary operations of commerce. The lend
ing class have with good judgment abstained
from a conspicuous advocacy of the measure.
if indeed it is worth while to talk of a lending
class in community like this, where he who
lends to-day may have to solicit a loan for his
relief next week.
To the real advocates of the measure, the ac-
tive business men of the Commonwealth, it |
has not been a very conclusive reply to be told
as oney nave been, by its opponents, that six |
per cent; is as high rate of interest as can be
pruuehtly paid in this Commonwealth The |
argument Is altogether irrelevant, for it does
no' aPpeoer mat the repeal of the usury laws
woulI enecI any increase in the price of mon |
IT, ~ 1iie example of countries where
h1re 10 Hee market for money Warrant, ~, |
IN peheVing that the rate of Interest," ,n''II 10 10
governed ny the supply of capital the da,.anJ
ana tne course OF exchanges and not H. sh
VIII OF money,enders. So that if our ne og JUG
nf.a
certain rate the usury laws viii, ny, " ;e a
them the opportunity of borrowing insure
rate, nor will the repeal of those j3u,s i tnat
them to pay any more. '"ise
But a reply which admits of no ro;o;x,.- |
was made to all arguments of this sort q woaIr
or two ago in the House, when one of the IeadA
ing members of that body declared that H. |
cheapest money he ever borrowed in his i;fe |
was some for which he paid five per cent. ner
month during the panic in 1867. The correct |
inference which he drew from his own exne-
rience therefore was that no legislature could |
toresee the worth of money to a man in a
Lime OF scarcity nor undertake to say what he |
could or could not pay. In everything of this
s 49, men are themselves the best judges of
,9h, INV Nv aIisIrs and there is as little reason
" Us ~ esIsiative power should ever interpose
10 say what 1t It'll prudent or imnrudant for |
tneni =" w. as 'here is for forbidding them ever
~ pay dNoVo . certain rate for bread or ,naat |
ot tn 49, pJ m True that mechanics cam
not ahofd 10 pay IN the long run We III, 81
twenty cents per pound for hnaes. WIN say |
they not best say for themselves, wh out can
any particular condition of the marIo1 IN |
had betterpaay above twenty cents or thhey
somethng else? 1t is an encourao;no guy
that the legislature of our State should a. TACT
nave determined to abandon the futile attemTt |
10 regulate tnat which is not to be reguJata9 |
and winch If 1T were to be, is nevertheiaSs, |
better regulated by individual common sense
than by any arbitrary statute ''-s'