The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1875-03-05
Laws Relating to Interest and
USurY,

Formerly" says q late writer, the
taking Of usury was regarded as helm
Gus olEense, and almost all Of the States
had statutes calculated to suppress it,
many Of them penal in their nature, and
others remedial. But for many years
the theory has been gaining ground that
money, like merchandise, should DO regu-
lated by the market; and even now many
Of tho States have no usury laws at all,
aud in those States in which such laws
exist they are quite various, and scarcely
any two Of them are precisely alike"
This Is a serious fault, which should be
remedicd by the enactment Of laws max.
ing legal interest uniform throughout
tho Union, "ThOsO States which are
now understood to have statutes to sup
press usury arc New York, New Jersey,
Delaware, Virginia, North Carolina, AL
ALBANIA, Louisiana, Missouri, Illinois,
Iowa, Kansas and Wisconsin, while in
Pennsylvania, Mississippi, Michigan,
and few others Of the States, the rate Of
interest is prescribed, with provision
that II more ia agreed to be taken, the
excess shall be forfeited, Perhaps the
most stringent enactments to prohibit
usury arc those In force in tho State Of
New York"
Formerly the legal rate Of interest in
Connecticut was 0 per cent. In 1879 n
State law was passed making it lawful to
charge any rate Of interest on a written
contract. This law was found to work
injuriously to the borrower and tho pub
lie at largo by encouraging a high rate Of
interest. In 1873 the above law was re-
pcalGd, and per cent. made the legal
rate on all transactions.
Six per cent. Il the legal rate Of inter
est in tho States Of Maine, New Hamp'
shire, Vermont, Massachusetts, Rhode
Island, Pennsylvania, Delaware, Mary
land, District Of Columbia, virginia.
West Virginia, North Carolina, Tennes'
sees, Kentucky, Mississippi, Arkansas
Missouri, Ohiot, Indiana, illinois,, and
Iowa. (twcnty-ono sIates). In Louisiana
all debts bear interest at the rato Of pei
cent, unless otherwise stipulated; con
tract to pay s pCr cent. is valid Seven
per cent. Is tho rate in Connec'
tiOut, New York, New jersey, South
Carolina, Georgia, Kansas, Michi'
gan' Minnesota and Wisconsin
(nino stutcs) Eight per cent IL
Alabama, Florida and Texas. Ten pei
cent in Nebraska, Nevada, California and
Oregon, This statement, subject to STATE
laws, would not be complete without re
ference 10 the Federal statute in respect t.
the rate Of interest to be taken by the ma
tional banks organized under that act
Tho statute provides that every suCl
banking association may take, receive, re
serve and charge on any loan or diseoun
such interest rs Is allowed by the laws o
the State or Territory where the bank i
located, and no more, except that wher'
by tho laws Of any State a different rat
is limited for banks Of issue organiset
under State laws the rate so limited shal
be allowed for associations organized il
any such State under the said Fedora
act; and when the rate is Fixed by the law
Of the State or Territory the banks ma!
take, receive or charge at u rate not OK
cccding per centum.
"a contract to pay 10 per cent Is valid.
tAc0ntfaet u pay per rent II valid. I.t'
"A contract TO pay 70 per cent Is valid.