Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1876-02-16
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BIT the Bank has its board Of twenty-four Direct
ors who act weekly, not only for London. OUT lor
the world besides. Their slightest actions are
narrowly watched, and when they change the rate
of interest on Threadneede street the news is sent
everywhere by telegraph, and has its influence in
eveiy money market. London rules and practices
are for the benefit of London, and we may as we'll
introduce into Maine the Lord Mayors carriage
Of state as to duplicate any of their money prae-
tees.
But if the Bank Act of Great Britain may be
considered the highest expression of financial wis
dom there, l see no reason why our own National
Bank Act may not be assigned the same position
here. 1t was introduced by Chief-Justice Chase,
who took great care to inform himself by 'fnan-
cial inquiry" which, if not elaborate that OF
Sir Robert Peel. was effective, and it has been
amended since its first enactment, at the sugges-
ton of the best financial minds of the country
That act provides that taking greater rate of in
terest than seven per cent 'shall be deemed for
fixture of the entire interest" And il further pro-
vides, SIN case greater rate of interest has been
paid the person by whom it has been paid, or his
legalrepresentatives may recover back IN an ac-
ton, in the nature Of an action of debt twice Inc
amount Of the interest thus paid from the associa-
ton taking the same, provided such action is COM
menced within two years from the time the usuri-
ous transaction occurred.
This is the law governing the twenty one hun
dred National banks of the country, WIN thelr tx
hundred millions of money; and such being the
case how can it be said that the prevailing idea OF
this country is for free trade in money:
The great body of the States regulate IN some
way or other. few have gone oil on theory,
such as Mr. Dana Celebrates. Massachusetts was
one that did So But Massachusetts, in her pres
ent financial distress is looking round Tor RENE
dies She is in bad condition. Boston is suffering
worse than at any time since 1910. And among
other things they are discussing their free trade
interest law, and vote of the House The other
day disclosed the fact that that body was nearly
equally divided upon the question. Further dis
cussion and Investigation will undoubtedly lead
them to retrace their steps and go back, as Mime
sofa has already done, TO law regulating the
rates of interest. which we all know to be the
great moth of trade, and If trade itself should be
under control certainly its incidents should not
escape.
Such in brief are the theories and authorities.
claim them both in favor Of my proposition, and
! claim ither that the man who says there Is no
more reason for regulating interest on money than
for establishing the price of flour, flies in the face
Of both reason and authority say to him that
when the law makes -four legal tender for debt,
we will regulate the price of it very quickly.
There are but two questions remaining IN TINS
discussion. One is, can the money lenders of the
State siford TO take less interest for their money
than they are now receiying9 The second is, can
the borrowers afford to pay the present rates
As to money lenders. l have stated the position
of the savings banks and need not repeat it.
speak deliberately, and after examination, when
say that return to sound principles Is necessity
of their existence. They have host of worthy
depositors that should be protected. The specu-
lstive depositors who have large amounts to their
credit will look out for themselves. If bank is
in danger, or. if they get higher rate for
their money, they will draw out their deposits at
once. But the widow and orphan don't learn of
these bank troubles until too late. and they have
to take small dividends of broken banks. If they
have one hundred or five hundred dollars it is Of
small consequence whether they get five or six
per cent. interest but it is of immense Importance
that they should receive the whole Of their money
when they need it, and not be obliged to wait up
on Receivers" who after years of delay will give
them twenty-five or fifty per cent Of the amount
they entrusted to the bank. Here is where the
suffering comes in, and it is this disastrous
tingency that should be provided against. 1t is
10 the highest conservatism act when press my
measure as one for the preservation Of these
Savings Banks.
The National Banks Of the State have 50 1885,
600 capital. The last Comptroller's Report have
been able to find gives six months earnings at
1888 496, which is at the Of fourteen per cent.
annually. The Portland banks who make them
selves conspicuous in this discussion by their agent,
who is now listening TO what | say, stand as fol-
lows, according to statement in one of the Port
land papers sent to me-
On the 18th of December they had according to
the returns one million five hundred and thirty
eight thousand dollars Of surplus earnings, distri-
bu,ed as follows, viz: