The Hancock Jeffersonian. [volume] (Findlay, Ohio) 1857-1870, 1868-01-17

ei 1t is believed that the revised acts
J presented by the Commission refer
red to, will accomplish this object
!: as nearly as can be done by the
| State enactments. 1t will take two
} years, however, to reach this result
, fully; yet very large measure OF
t benefit will be derived Immediately,
Srom the adoption of the acts propos-
t led. l can not doubt that their adop-
Fl tion will add fifty millions to tax
!, able values by the commencement of
the second year Of their adoption /;
and if adopted fnow, 1871, and for
: ten years thereafter, the State taxes
may be reduced to two mills on the
T dollar valuation, and after that, as
the funded debt disappears, the rate
of levy may be still further reduced.
A system of finance may be adopted,
which, within the rates of levy above
indicated, will, by the year 1900,
practically free the State from all
taxation whatever. AS the COM
mencement of such system, would
il not be wise to sell all our pblic
works, and with the proceeds of their
sale, and, say one-tenth of our pres
ent annual levy for school purposes,
create sinking fund to be invested
in Government bonds, to pay the in
Iterest on our irreducible debt?
INSURANCE COMPANIES.
/ AS 1 am required to make sep
arate report to the General Assem-
bly,, during the succeeding winter,
on the subject of insurance, do not
deem it proper to incumber this re-
port with any remarks upon the sub
ject, farther than to say that the op-
Grafton of the law of last winter has
been highly favorable.
THE RATE OF INTEREST.
In my former reports l have sug-
gested that revenue Of the State
would be augmented, and the inter
ests of all classes Of our citizens pro-
noted, by small increase of the
rate of interest. Although the State
has rapidly advanced in wealth, and
its momentary resources are large,
yet the amount of moneyed capital
In the State is greatly inadequate to
the legitimate demand for capital in
the developement of our internal
resources, and the maintenance of
our mercantile, manufacturing and
agricultural enterprises. Some of
the Eastern States, and all Of che
Western States Of our country, au
thorize a larger rate of interest than
6 pericent. and in the older States,
where six per cent. is established as
the rate, they do not levy taxes on
moneys and credits, as distinct spe-
cies of property, but make their lev.
les generally on the aggregate value
of the citizens property. Capitalists
can, therefore, lend money both
East and West of us at better rates
than in Ohio, and obtain equal secu-
rity for its payment. The result is
that the surplus capital OF the coun-
try avoids Ohio, and seeks invest
ment elsewhere. If the net compen-
sation for the use of money in Ohio
we're really six per cent, as would
be inferred from the reading of our
Interest laws, the rate would be rea-
sonable but it must be recollected
that the average taxes In Ohio
amount to nearly two per cent. on
credits. The lender of money, there
fore. realizes but about four per
cent. for the use of his money. 1t
can not be claimed that four per
cent. is an adequate compensa-
ton for the use of money In this
country. Too low rate drives
money out of the country; too high
rate brings into the arena of bust
ness q set of reckless. adventures, who
drive prudent men into retirement,
and, ere long, involve themselves in
bankruptcy, and the community in
great loss and embarrassment. A
rate that will be compensatory to the
Ilender, and enable the borrower, by
the application Of reasonable skill
and industry, to make a fair profit
from the use of the money, is essen
tial to the prosperity of a people. l
think the experience of the people
of the State of New York has de-
monstrated that seven per cent. is
as near the desirable rate as can be
J attained by law in this country, and
will probably remain so for fifty
| years to come. Seven per cent. is
Undoubtedly adequate on CONNER
cial loans, such as are usually made
tlby banks and bankers at sixty and
ninety days time, in which the same
! capital as discounted over and over
five or six times in year, and that
: consisting largely Of current depos-
'lits, upon which they pay no interest
But in the cities Of this young and
} growing State of ours, there are
!, many large owners of real estate, and
.tmany building associations, who
t need long loans with which to i'm
Z prove their real estate and construct
: residences and business houses for
rent, and this class of loans are not
: obtainable from banks and bankers.
There are, too, large numbers OF
farmers without sufficient capital to
8 improve and stock their farms, and
many who would engage in mechani-
cal and manufacturing enterprises,
Iif money were obtainable for consid-
E erable periods of time. Banks and
r Bankers do not supply the demands
81 of these classes. There are large
f and retired capitalists who desire to
Y make long loans, and would do so il
e they could insure six per cent. net
for the use Of their money. The
classes referred to as desiring long
loans would be glad to avail them
o selves of the use of the money .ol
e these large capitalists, at rates tina,
: would net the lenders six per cent.
ITO accommodate all classes, there
lfore, 1t seems to me that Che rate o.
interest ought to lie fixed at sever
q per cent. on contracts having a yea
n or more to run to maturity This
g will, as near as may be, equalize The
q compensation to the various classe.
d of lenders and the profits of the va
s rious classes of borrowers. There
l are certain classes of speculator.
d and adventures about large com
n mercial cities who desire Y higheI
1t rates than are here proposed. Bn
s legislation should be directed to th'
y promotion of the interests of thu
% masses, such as will give steady en-
!, couragemeut to honest industry, AMI
u stability to all great interests. An.
HIGHER rates than those above pro