Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1876-02-07
Remarks OF Mr.. HObsOn OF Wiscasset.

Mr.. SPEAKER-The question of re-enacting
| usury laws, as proposed by the gentleman from
Calais, is very important one, and largely con-
Germs the interests of our State. In one point
most heartily agree with him; that is, that no Or
dinary business will afford to pay more than per
| cent; will go farther and say that in my judg.
| ment it IL beet not TO hire money at all.
But the question is, will usury laws restricting
the rate of interest, give us cheaper money than
| our present system? In proof of the afirmat of
| this question, the gentleman has given Us q very
| able argument; but, sir, l must confess that it
struck me that but little of it was to the point; tais
was so papable, that it seemed to me and others,
that ne was hitting something else over the head
OF the Interest question; but of course must have
| been mistaken. He discussed taxation, banking
southern States; but these have little to do with
the question. and proves no hing for or sgainst It,
| Ii he desires to attack defend the National
banking system, let him do so it taxation is too
high let him point his guns at that; if the south.
| ern States have been mismanaged, let him fight Il
out on that line but he should not attempt to make
one system unpopular by attributing TO it the OBJ
| Jectionabe features of another. The gentleman
amused US by his successful rdicule Of the subject.
His illustrations were very happy, but were all
| based on a remark made US, he said, by an oppo.
nent, that usury laws dealt with men as with chill
| dren 1t is very easy matter to set up target to
| shoot at. What surprised me most, was the strik-
ing absence of facts and figures. Both systems
have been tried, one for ages, the other in our
State for five years. Ii one is good, why did he
not give US more of the results; if the other is
| bad, why did he not show nI Whatfe facts and
| figures he did give, l thought were generally
against his theory.
The gentleman in his remarks on first present.
ing his BILL stated that the present law was passed
| through inadvertency and as he thought msappre.
henslon. In his speech he also stated that it was
passed in the closing hours of the session. This
last statement may be correct; but if so with his
opinions on the question, and ability to defend
| them, he must have been negligent Of his duty to
l hpV a Ahtn oky 81 l.
suuggled through without his opposition. But in
regard to its history, have to say that the meas
ure was first introduced in 1852, by the member
| from Bath Mr.. Hayden.] After long and able
discussion it received only ten votes in its favor.
After that, think it was discussed every year
with constantly increasing strength until 1870,
when 1t was passed without opposition as tine gen.
| tleman admits. This does not show inadvertency
or misapprehension, but on the contrary great
revolution in public sentiment, just such a revolu-
| ton as has been going on during the last half
| century in regard to great many other relics of
| olden time.
| The gentleman claims that this law is having
bad effect on savings institutions the deposits have
increased from 10 to 80 millions of dollsrs Does
| he mean to have us understand that this law has
caused that increasef If SO, it seems to me to be
| an argument in its favor. But he says some of it
| has been sent out of the State and lost. Inreply
have to say. that if this law has caused an in
crease Of 320 per cent. in FIVE years we can afford
some losses; but we shall soon learn to be more
| careful with our Investments by all means let US
not be afraid to increase our savings because we
may lose some of them.
The gentleman from Machias, in his speech yes
| terday, cites the Savings Bank in his town as a
| fearful monument of the bad effects of free trade
| IN money. 1t seems to me that Savings Bank
with deposits amounting to nearly $500 900 in
town OF 500 inhabitants cannot be any great dis.
honor or disadvantage. If it has, as be says, reg.
| ulated the rate of interest at 8 per cent in these
times it has done well, done good work. As
the gentleman never loaned or hired money, his
experience is not of much value; but am told
that there are older men than he in Washington
county, perhaps in Machias, who have had diff.
erent experience, and would testify that this very
Savings Bank is an honor and great benefit to the
| town; at any rate am told that there is no one
in Machias who is desirous of closing it up. But
if there few banks in the State that have not
been rightly managed, become shaving institu-
tons even failed, it only proves that they in
wrong hands, and sooner or later the people will
rectify such mistakes.
| The gentleman from Calais states that dividends
have increased under this law from to per cent.
To my mind there is only one objection to this,
that is the lack of safety If such increase can
be made safely, am perfectly willing; it goes
into the pockets of the laboring of our State,
| the men and women who run our mills, cultivate
our farms, build our railroads, our ships and
| them; are they not increasings | am quite as
willing that they should get good dividends that
the money lender or business map should. l know
| that there is an idea prevailing in some quarters
| that the poor man should not become rich or edu-
Gated, but should live on and on in one condition
but thank God we have no classes caste in this
country; democracy and republicanism which are
synonymous terms teaches that the rail-splitter,
the tailor and the tanner have just good right
| to aspire to the highest positions in the land the
lawyer or man of wealth, and we know that they
| sometimes obtain them One Of our distinguished
orators once expressed it in this way "The young
| American, however poor, like the young eagle,
can lace his eye the sun, and soar to the high
| est summit of honorable ambition" Now, sir, if
| organized systematic effort will give good dv-
dends to depostors in Savings Banks will be the
last TO object.
But, sir, it seems to me that if the gentle,nan's
argument proves anything, it proves too much.
We now have law prohibiting Savings Banks
| from paying over per cent; if they disregard
that law and pay per cent, would they not dis
| regard the gentlemans proposed law, as every
| body did while it was on the statute book, and
| take 7. s, 9, and sometimes IL per cent. think
| they would; and all the gentleman would accom-
plish would be, not reduction of interest but .
| reduction of honesty, if l may use that term.
One of the gentleman's arguments is that the
banks or money interests have sent an agent here
to fight him and his bill. l should like to hear his
authority for this statement. Certainly no agent
| appeared before the Committee on Finance; with
| out discussion consultation, they were unan-
nous against it. Men had perfect right to come
here from Portland Bangor or Calais, to listen to
| the Rentleman's very interesting speech; it Is
| u uiLl, We ChnuOt utlp IL, huu uO
net wish to; but no man is justified in saying that
they are agents, paid or unpaid, of the money in
terests of the State. l know it is favorire idea
with some to array one interest against another,
| but is it worthy of the gentleman, his vast ability,
learning, experience and knowledge of man
After assuming that their agents are here, he
asks what they here for, to lessen the rate OF
! interest or increase it | shall try to show
| before l am done that they may with proprety
have an interest in this question from desire TO
do their business honestly, legitimately, and not
be obliged to be law breakers; also to enable them
| to retain the funds that they have in charge in
the State for the benefit Of the business interests
| of the State.
But, sir, to leave the gentleman's arguments and
look at the other side of the question, think it
is very simple one, one that any successful man
answers every day in his life. l, as q money bor-
rover, am in favor of the present law, because l
believe its tendency is to reduce the rate of inter-
est,-has already done something 10 that direc-
ton. and will when it has fair trial, under fav-
| orab.e circumstances do more and as q borrower
am opposed TO the bill, because believe it would
drive capital out of the State and raise the rate OF
| interest.
| Since 1870, circumstances have been very un-
favorable for testing this law. For several years
before and after, many gigantic enterprises were
I