The Portland daily press., 1876-02-02
FIFTY-FIFTH LEGISLATURE.
SENATE.

Incorporate tne De6r Isle ana SeUgWlCk hOTSe
Railroad Co. Referred.
The Committee on Fisheries reported bill
reviving the act of 1928 regulating the taking
of fish in Naraguagus river.
The Committee on Public Buildings reported
resolve appropriation $337 to pay for the
chemical fire engine in the rotunda OF the cap
itol.
Phe Committee on State Lands reported re-
solve appropriating $1,000 for a road in the
town of Wellington.
The petition of the inhabitants of the town
of Linneus for the Incorporation of Oakfield
Plantation was recommtted to the Committee
on Towns.
The bill relating to the organization of plan
tations was taken from the table and indefi-
nitely postponed.
The President added to the committee on in
vestigatlon into sales Of state lands, on the
part of the Senate, Messrs. Swasey, Wheel
wright and Donworth.
Bills finally passed by the House Monday
were passed to be enacted by the Senate.
HOUSE.
Senate papers were disposed of 10 concur.
renee, except the following: On petition of Da-
vid Newbegin asking that counties may relieve
towns of the support of bridges costing more
than $400, referred to the next legislature by
the House. and sent to the Committee on
Ways. The House insisted.
The Senate resolve relating to compulsory
pilotage was passed to be engrossed under the
suspension of the rules.
A number of petitions was referred to the
next Legislature.
Orders Passed-By Mr. Rolfe of Princeton, d-
rectng the Military Committee to report the expedi-
ency Of repeating chapter 257 Of the laws Of 1874 re-
laing to the rental Of armories by the State by Mr.
Davis OF Jefferson, for two sessions each day abled;
by Mr.. Hamilton OF Dexter, that Mr.. Getchells pay
be made up to the end of the session,
By common consent Mr.. Keegan was allow
ed to introduce resolve asking the suspension
of the rules that he may present an order an
nu!ling the order asking for the opinion of the
judges of the Supreme Court on the constitu-
tionality of the mill school tax. The House by
vote of 36 to II refused to suspend the rules.
Two-thirds was required.
Reports Of Committees: BY Land Committee,
resolve appropriating 5000 for a road in town.
ship E., R. 1, Aroostook county. Printed.
The report of the Judiciary Committee that
legislation is inexpedient on order lookin ng
to the amendment of chapter 81 sections
2 z and 8 of the public laws relating to
liens on buildings was reconsdered and recon-
mitted.
The remonstrauce of citizens of Sabattus vii.
lage against discontinuing the track of the
Maine Central from Leeds to Crowleys juno
ton was referred to the Railroad Committee.
The Judiciary Committee reported bill rel
ative to the settlement of paupers. The bill
provides that no person who has acquired res
idence in town as keeper of draw bridge
shall have right to call upon such town for
aid.
The bill to amend Sec. 65 Chap 1S, R. s. rel.
ative to damage on ways was tabled, pending
engrossment, by Mr.. Bass. The bill provides
that any person receiving injury by reason of a
defect in highway, or his heirs if the injury
proves fatal. may recover damages by suit, pro-
vided the city or town had had notice that such
defect existed at the time of the accident.
The hour having arrived for the considers
tion of the interest bill, Mr.. Haynes of Angus.
ia addressed the House.
After excusing himself for leading the side of
the debate against the bill, Mr.. Haynes said
that he had understood the gentleman from
Calais to say that the act repeating the usury
law was done surreptitiously, The charge was
grave one and worthy of consideration. Mr.
Hayes then proceeded to give the history OF
the consideration of the bill at the time it was
made law, it being reported from a commit
tee and being enacted after discussion. He al
SO stated that the bill was reported in January
and passed by yea and nay vote the 9th of
March, 1870. The first bill only stated that
SIX per cent should be the legal interest when
no other rate was named. Another bill was
passed later in the session, not affecting the
general question but defining it,
Mr.. Haynes said that he thought the charge
OF the gentleman of Calais that the savings
banks were now used by speculators and not
for the savings of the poor was also unfou nded.
Mr.. Haynes read from the report of the Bank
Examiner to show that the deposits are mainly
made by persons of limited means In the
Calais savings bank 8O6 of 1902 depostors have
less than $500 each. The Augusta bank, with
53O3 depositors, has over 1000 who have $500
and less. He then quoted from the Examiner
to snow that during the past year the deposits
were made by persons OF smaller means. He
next alluded to the fact that the fixing of low
rate of dividends for savings banks indicated
that the banks had money which they could
not lend at six per cent. Was this surplus of
money and this lower rate spoken of a bad re-
suit of the law.
He next noticed the fact that Mr. Pike re-
marked with some severity tie large surplus of
the Portland banks. Were not these surpluses
the result of earnings laid by? Has not the
gentleman a mill built by his rsurplus profits?
Generally the rate OF interest is less than the
profits which is made by business. Men who
know what they are about will not pay more in
terest than they make from their business
True, men occasionally pay more than they can
make, but those cases are exceptional. Persons
VINO invest their money in bank stock at six
per cent, expect to have it doubled in about
eleven years. Such men were called hard
names, but those who doubled their money in
malt that time by the profits of mills, vessel
building or any Other business were not thus
criticised.
Mr.. Haynes next read a few extracts from
Bentham's work on usury. In this connection
Mr.. Haynes said that one gentlemen who op-
posed the bill would advocate eight Der cent.
as the rate of interest to be paid by law. He
Ieareo tnat the advocates of restricting the
price OF money have never been able to f. K the
natural rate OF interest. There had been vastly
dlfferent views on the subject at all times
once, 10 England, it was fixed at ten per cent.
rev years after interest was forbidden BY law,
and still few years later it was again ten per
cent, and still later at six pc. cent
but the law cannot control the matter. It is
just as Well to attempt to fix the price of flour
or corn as that OF money. In all countries there
mas mas Deen a legal rate and market rate What
does that mean? Simply that rate is paid by
law, but the market recognized no such law,
and interest was regulated by the great law of
supply and demand
Why was the usury law abolished in Eng
oihpiy ucOduSo Wu6Q E0gllSl money
could get greater interest in other countries.
England was drained of money Free trade in
money became necessity. So in Maine when
we have laws fixing the rate of interest at six
per cent. Maine capital will go abroad when it
can get greater interest outside. When our
savings banKs are required to loan money at
the rate of six per cent on real estate, their
money will as naturally flow outside for invest.
ment where greater interest is offered. as water
foWs down hill. Money is commodity and
will seek the best market.
Mr. Haynes took issue with the gentleman
from Calais on the statement that the statutes
treated the people as children. He did not think
so: The statutes treated minors, paupers and
criminals as children. The old law of the State
relative to fixing the rate Of interest was the
onlysstatute tending in that direction.
The speaker then referred to the usury laws
in the past to The efforts of governments to fix
the price of bread. Even Demosthenes advo-
Gated the laws of that time which visited those
who sold wheat above a certain price, with
death. Nevertheless there were those who
sold above the price. But the old law acted
against the borrower. He paid for the viola
tion of the law. His note was ma le to cover
part of the interest and often third party
made the negotiation-always at the expense Of
the borrower.