Delaware tribune. [volume] (Wilmington, Del.) 1867-1877, 1870-01-13
SEVEN PER CENT FOR LEGAL
INI,ERE

1t has doubtless been remarked by ou
readers that in all the opinions upon our 10
cal finances, recently published by the Com
MRRcIAL, the view is expressed that the sure
MEASURE of relief for our present strineency
is an increase in the legal rate Of interest
We have reached the same conclusion, and
we desire to earnestly press it upon the peo
Pile OF the State. We do so because the pres
ent embarrassment is painful, serious, and
dangerous, and yet it need not e1ist; there
is no real necessity for it; and by pru-
dent and intelligent policy, it can bc cbvia
ted.
To increase the rate from six to seven per
cent, is to add one per cent. to the burden
of the borrowing class and we should. GER
tainly decline to recommend an increase of
their load, If it were not, at the same time,
measure which would greatly strengthen their
ability to carryit At present, not only do we
fail to receive the surplus earnings of other
communities, which in times past came flow
ing into the State, especially to Wilmington
but our own earnings, which are large every
year, for our community is industrious and
economical to an exceptional degree, How
away as rapidly as they accumulate. This
process is perfectly well understood by our
bank officers, and others, who have the op-
portunity of observing it. Money is sent
away from Wilmington, steadily. every month
in the year, to go into investments in other
States, at higher rate of interest than our
law permits 1t goes into Pacific and other
Western Railroad Bonds, and it goes into
mortgages in New Jersey and New York,
instead of mortgages in Delaware, the reas
on simply being that New Jersey and New
York make seven per cent, the legal rate,
and Delaware, by the most violent and ex-
traordinary penalties will permit no more
than six per cent.
Now, it is inst as useless to expect water
to lie at rest, when there is lower level ad-
joining it, as it is to expect it to run up hill.
Unless we can pay to our own surplus abou
as good interest for its use here, as other 10
calities offer, it will flow away, and nothing
can PREVENT it. The process is just as natu
raj as that of the water. Our capital, in
stead of being placed in our own midst, t.
stimulate legitimate enterprises, establish
manufactures, start new business houses, ant
aid the development of improved agriculture
will be drained away into other States, leav
ing us bare, parched, and suffering.
If, then, we agree to pay about the rat
that other localities do, we believe that sevel
per cent, as the legal interest, will serve ou
purpose. This is as much as New Yorl
pays, and as much as any locality in NeN
Jersey it is the usual interest on Railroad
canal, and other corporation securities
and it is about as much as ordinary investor
can safely realize, in any Of the objects
investment now open. 1t is as nigh as IL
honest borrower can afford to pay, especia
ly for use in agriculture, and it is equal to Il
average of those States on the Eastern SCI
board, whose settled condition, and esta
lished credit are equal to our own. AT tn
rate, we believe that all our capitalists, e.
cept very small class of brokers and di
counters, would be quite ready TO consid
the safety Of home Investments, whic
at present, they refuse to look at. And
we should make the change sooner th'
Penn sylvania, as we possibly may,
should reap valuable advantage, in y
capital which would promptly and liberal
be sent us from the adjoining counties
that State. Formerly, Chester county Sc
great portion OF her annual surplus, u
whole of which is estimated at one MILL
of dollars to Wilmington. At presents
sends none. II we pay seven per cent,
shall again get it.
We propose to increase the burdens
debtors one per cent and by making mon
plenty, instead of scarce by bringing ca
tai here, instead of sending every surp
" dollar away to let the honest and safe b
rover get his loan effected promptly ,instt
of devoting the most Of his time In abort
attempts thereto. One per cent. is the
tance from distress and starvation TO &C
fo-t and fulness. Is there any one who h
\ tates to take that step a=t