The Middlebury register. [volume] (Middlebury, Vt.) 1850-1882, 1869-05-04
The &e9ister,
TUESDAY,, MAY a, 1869.
Rates of Interest on Loans.

hhtts VI interest on Loans.
Mr.. EDITOR THE discussion, which
has been carried on in your paper, in re,
gard to the morality of taking more than
SIX per cent in Vermont for the use Of
money, Is ore Of great practical impor-
lance For it is fact that the vast ma
,ority Of money-lenders, whetherindvidual
or corporations, are in the habit of taking
more than legal interest If this is au'ong
themagnitude and extentto which tits prac-
ticed, calls for earnest protest from every
Christian and honest man. But if it is
right, the community should be convinced
oft, and these hundreds of business men
saved from the unjust imputation of being
extortioners. The people should think
over and discuss this subject until they
arrive at more positive and enlightened
views. Let me, therefore, contribute my
share in the discussion.
All, surely, will be disposed to condemn
what may be properly called extortion.
Any man who will take advantage of the
distresses or ignorance Of another, and
exact more than just compensation
for the use Of money should be disgraced
in the eyes Of the community. A mer-
chant who should charge widow for a
barrel Of flower dollar more than the
regular price, because he can do it with
out her knowledge, is guilty of meanness
and dishonesty. Equally mean and dis
honest is it for money slender TO take
for the use of money more than it is worth,
because the borrowers lack of skill in
business, or the pressure of circumstances
prevents him from going elsewhere and
doing better. Dealers in money, as well
as in other commodities, may cheat and
Cypress, and there can be no question as
to the character of such acts.
An important distinction shoold be made
between money lending as matter Of
business, and as matter Of charity or
friendship. A generous merchant will Of
ten sell goods at cost to relative or to
one suffering from poverty. 1t may some
times be an indication Of meanness for him
to do otherwise. So monied man may
in certain cases show want of iriendli
ness and charity by requiring even a just
compensation for small loan. But in
such matters he is to be his own Judge.
We have no right TO expect, AS very many
do, that an oblieing disposition should lead
man of means to accommodate the
scores, even Of worthy applicants for loans
He as well as men in other kinds of bus
mess, is to decide for b. mself, according IL
the dictates Of his own generosty,to what
extent he shall go in this matter of kind.
ness and charity,
In former times luans were requested
almost always in this way las matter OF
friendship or in cases Of actual distress
Then it was looked upon as dishonorable
and exacting to ask any reward for such
an act ofklndness, Bu, nowadays money
is usually borrowed purely rs matter of
business. The enterprises, which men
engage in now, often require every cent
of capital they can raise and cases G'e
constantly occurring where extra capital
must be obtained for short time, to carry
out their schemes. Hence the business OF
banking or brokerage is necessary and
legitimate one in every enterprsing com
munity, The question now proposed IL,
what profit shonld these men be allowed
to make IN this business of lending
money.
The value Of money or capital depends
upce it's scarcity as compared with the
demands upon 1t for purpose of business.
When the industrial prosperity of tho coun
try is such, that a shrewd skillrul business
man can make capital earn fifteen OIL
twenty per cent year, interest on loans
should be greater than when that capita
will earn but ten or twelve per cent
Now il is wellsknown fact that our in
dustrial resources have been rapidly in
creasing for the past fifty years. Capita
invested now will earn much larger PEI
cent than it did fifty, twenty-five, or ever
ten years ago. Accordingly men wh'
borrow capital can afford to. and should
pay higher per cent for its usc
Accordingly this state of things la
had an affect upon the actual state of tn
money-market. No business man will b
willing to lend money at six per cen
when be can make it earn double that b
investing it in a marble quarry or b!ocl
Of stores. Consequently the one VIII
borrows money must pay what it is wort
over six per cent, unless be can happe
L.