The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1876-01-14

pended upon loan at such rates, and those
having money to let must ask that price 10
take the risk. The firm got the money.
1t weathered the storm, met its de-
mands, helped others and by its courage
and persistence saved the city from such re-
vulsions as swept over other cities. Suppose
Mr.. Pixies proposed law had been in force
and these men could not see their way clear
to violate the law and offer three times the
limit fixed by the statute, who can tell how
widespread and disastrous would have been
the result?
1t may also he observed that many large
borrowers who opposed the repeal of the
usury law, now pronounce in favor of free
trade in money. One of the best known and
wealthiest men in Maine-one who holds
more than half million of borrowed money
for his own business and the corporations
with which he is connected-said since the
introduction of Mr.. Pixies bill, that the pres
ent law had been beneficial TO borrowers, and
although he had opposed the repeal of the
old law, he should now deplore its restora-
| ton. Such we think would be the testimony
of nine-tenths of the money borrowers.
In conclusion, let US briefly state few of
the results of Mr.. Pixies bill, should it be-
come law:
First: The savings banks, which hold the
savings of thousands of poor people would be
compelled to cease loaning money on real
estate at the rate of eight per cent. by which
the depositors realize six per cert. This
would result either in the withdrawal of large
amounts of deposits from the savings banks
or the investment in securities or in loans in
states where higher rates prevail, and thus
conspire to make money scarcer in Maine.
Building and the improvements of real es-
tate dependent upon savings bank loans
would cease. And it is more than probable
that the savings bank tax would have 10 be
abolished in order that the depositors might
realize five per cent. per annum.
Second: On account of the scarcity of
money which will seek the locality where the
highest interest is paid, the national banks
by their peculiar system of discounts or as
the agents of New York and Boston banks,
will continue to take more than six per cent.
as they always have. A borrower offers his
note for $1,000. The bank officials say to
him that piece of property is worth $3.50 or
5000 to us, and that we will give you. The
probability is that the discount banks will get
higher rate of interest than they would
without Mr.. Pixies bill.
Third: The measure would enure TO the
benefit OF the Shylocks and the mcdlemen
and curb-stone operators who by circuitous
their pay for it and high wages they demand.
The middlemen who go between lender ard
borrower, having the secrets of both, lay
tax upon both which they could avoid if al
lowed to deal in money as in merchandise.
Fourth: The fact that our banks have dis
counted paper at lower rates since the re-.
peal OF the usury law than during the last
years of its existence should prove that the
law can do nothing to help the borrower. So
far as any repression of extreme usury is con-
cerned it will be practically dead letter
upon our statute book-to be broken with
impunity and thereby having an influence to
lower the respect of the people for all law.
1t will simply annoy honest men and impede
honest transactions without checking the
rapacity of the unscrupulous. If, for any
political purpose, the champions of this meas
ure desire to benefit the poor, let them intro
duce bill to restrict the price of flour to So
per barrel, to fix the price of rents of tene-
ments in our large towns and the prices of
other necessarie of life. Such a measure
would be as proper matter for legislative
action as the fixing of the price to be paid
for the use of money.