Wilmington daily commercial., 1875-03-11

son and Joseph g. Grubb, OF Philadelphia, tc
Dover, in behalf of the Centennial commission
the usury laws of the State became a subject OF
conversation in which several of the members OF
the Legislature joined.
In alluding to the laws of Ponnsylvania Mr.
Grubb sad With us, the only penalty now is a
forfeit OF the amount OF interest i'm excess of six
per cent. lie had, he said never heard OF case
in which the exceas was demanded People
were willing to pay for money, moneys worth.
No estimate of the good secured by the change
in the old law could be made Its benefits pene-
trated all parts of the State and ervade every
condition of society. Money was bought and
sold the same AZ lime or seed wheat in the
Peninsula.
He had learned since coming to Dover
that ut six per cent per annum, money
was not to be had in regular supply.
| At that rate it said it lmi-
ted almost entirely to purchase monies, being
liens real estate and to interest on removals
Of loans. In numberless cases. interest could
not be collected at all, and was allowed to ac-
crue, or was added to obligation at maturity, and
it was seldom that anything gained by a
foreclosure as mortgages and notes could not, if
forced to sale, be realized at anything near their
| face valne. Thnge,it was conceded, were grow
ing worse. The small land owners suffered
most. Land was passing out of their hands. 1t
was also stated that the Glars of obligations re-
| ferred to, notes and mortgages made up a large
part OF the aHsets of the State banks and but a
meager part of their capital was aciive,-in
| ready mouey-at command to meet the needs
of the people. 1t was asked, is there remedy
for this and il so, what is It'll
| Mr., Grubb in answer said: am certain the fault
| cannot be with the people. l am very sure there
| Is ample means to pay all debts, contracted with
ordinary good Judgment. The evil lies in the
fact, that the money, current in the State under
it's restrictive usury laws becomes first unpro-
| ductve and then immovable. Thus when n loan
| is called in. it cannot be replaced from floating
| lpaY al utnlr hoat taff Inr
| for more coDgenal climate and outside capital
| is prevented by the same law from crossing the
border; tho reason being assigned, merchants
may, but farmers cannot pay more than six per
| cent and the state should. as 1t does, at this
point, step in and take charge of their private
affairs
Mr. Grnbb remarked a wise legislation would
sec to it by timely enactment that credit be not
| bereft thus of supporting power. Material
wealth is self existent and it il solely to the
notifications representative Of its value, that
We must look for fnlfllment of our proper
destiny. Material wealth does not exist for
itself. Why retain then law that is both local
| and arbitrary, and why deny to the farming in
terest facilities for conducting their business,
| which is the very life of trade You have lands
to SELL you invite immigration and immigrants
may bring with them all they possess, aud all
| their laws ercept one.
Now. the truth is and it has occurred in every
case wherever the vigor of the Usury Laws has
been relaxed there money has fallen in loanable
price, that where entire free trade in money ex-
ists there it may be had at the lowest cost to the
borrower. A certain class of needy persons are
certainly driven from the market, or rather GER
tain questionable securitics-but 1t is class that
can well be spared.
Land improving and improved offers the best
OF all security. 1t is of all the most favored.
Lend not thy money to n merchant, 1t will
learn an estate how to swim were words of
advice of great man to his son. MIR. Grubb
further said l am convinced good would fol
7RttF
to the images OF farmers. Now, with them pay
day amost,--is no day. Everything is slip
shod This is the condition of the prodigal-
the capitalist scents it from afar Off. II farm
ers were held strictly to the bond
from tilat moment things wonld bs better,
they would know themselves better Their
ventures would be Judged of by results Previous
ly Obtained mot By hopes Pay day would take
the place OF good intentions and prove them.
The coming crop would he held as reserve, e,not
sold on mortgaged in advance. 1t resolves itself
into this business will be conducted at any haz-
ard and at all risks, the usury laws in this as in
all other States are dead letter,-practcally
obsolete. You have only to allow the simple
laws of supply and demand to take their place
and--after some delay for proper adjustments
it would be seen that money will seek invest
ments instead of Investments be seeking for
money. There would be a common ground for
lender and borrower to meet upon without re-
sort to either subterfuges or evasions.
Farming as an occupation is said to be regared
here az a hard life and young men shun II, this
must not be if it can be prevented. The day
laborer also should be employed andwell reward
ed aud encouraged to remain in the State ready
money is a sure way to retain him. In answer
| to the question what would you propose in place
of the present law, Mr.. Grubb replied. II you
are not prepared for full freedom OF trade in
money the following might serve as substitute /;
| let it be The legal interest for loan OF money
| is the rate agreed upon by tho parties to the
contract subject to the following conditions, vz
Iat ia nos a 4 n
| six per cent per annum shall be the interest"
| 2id. When the interest is more than six and
not above nine per cent per annum, the excess
| shall be a forfeit"
cent per annum the forfeit shall be the whole
| amount of interest charged. in either case, the
appeal to be taken within sixty days from pay
ment
may be mortgaged for term not longer in one
period than three years at rate of interest not
more than nine per cent per annum, subject to
| the aforesaid conditions, and it shall be lawful
| to negotiate the sum formed upon Judgment
bond, having half yearly coupons attached in
| the usual form.
reason will always exist under the present
| law for special legislation. The State is now
| paying off at par, loans contracted at fifteen
per cent discount. Concessions are constantly
| made to corporation which virtually repeals the
| usury law. Building association laws enacted in
violation of the simpler laws of trade, give al
| ValltaSeb IN u rOuDudDOuU way Wuicu uutctuens
wonld confer atno risk and at far less cost. In
| fact an open market for money as for any other
commodity is the only true MARKET since it is
the scales, in which profit and risk, gain and
loss, cost and security, can be openly balanced
| face to face between the lender and borrower.
| Such discussion would be incomplete with
ont resume of the laws of some of the adjacent
States. In brief
Pennsylvania-Legal rate Per cent any sum
in excess is forfeit if demanded within sixty
| days.
| New Jersey-Legal rate seven per cent the iii-
terest in excess a forfeit if appealed FROM
| New York-Legal rate seven per cent If more
is paid both principal and interest is a forfeit.
Deaware-Legal rate six per cent II more is
| received directly or indirectly, it forfeits sum
equal to the money lent, one half to the person
| suing and half to the State. To this may be ad-
ded the manner Chief Justice Gilpin purposes,
| "to go for lt,"--in recent decision he said {:
wherever there has been usury in the loaning of
money the ingenuity of man cannot bury it 30
| deep that this court will not unearth it.