Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1876-02-07
Concluded from Arst psge.l


trbuted to make the year Of 1875 one of the hard
est for business men known in the history OF the
country. Thus we see how favorable 1t has been to
high rate ofnterest. But sir, have the rates OF IN
terest increased under this lawf answer no, they
have been less changeable than under the old law,
never SO high and averaging lower, notwiihstsnd'
ing the uniavorable circumstances; and, sir, IN
ordinary times, l have no doubt that the result
would have shown much lower rate. Seven per
cent is now about the regular rate; before 1870 !,
averaged and per cent know of bank es-
tabllshed in 1854 whose directors before piece
OF paper was discounted voted to ask per cent,
and never discounted piece at less rate, until
After the enactment of the present law.
Let me ask why should not open MAJ ket have
tendency to low rates, or at least fair rate 10
proportion to the supply and demands This Is
the result with everything else, why should 1t not
be the same with money? think it applies with
greater force to money than TO any other article
Lumber, produce, manufactured articles require
great expense in transportation, require SHIPS or
trains OF cars. Not so with money, 1t can go IN
the pockets Of the people without cost, 1t can o
BY mail, single postage stamp VIII transport
thousands of dJllars fIom Augusta 10 New YORK,
Chicago New Orleans, consequently 1t IS most
likely OF all articles to find the best market; and
when you legi.late it below its +, al worth, or what
it will bring, you either Cause the law to be disfe
garded or Oh dive capital out of the state 1hefe
is article that cares SO little for legislation as
money. Liquor is hard thing to control by leg
i,latLre, but not so hard as money. We can seize
hquor but not money. Liquors canno. entirely
elude the grasp OF legislation, but money can.
If the article of corn should fom any cause 60
up to two dollars a bushel, would you call the leg
slature together and pass law that 1t should only
be sold at one dollar! think not. Ga the con-
trary if you called the legislature together at all,
it would be to offer a premium on the production
and importation Of the article; you would tenn
porarily endeavor TO increase the price to stimu-
late importation and production. Our experience
teaches us that merchandise Of every kind always
seeks the highest market, even if 1t lakes ships
and trains of cars to transport it. Our farmers,
lumbermen and manufacturers always send their
productions to the best market and how often has
It been, tnat high price in particular market
has led them into difficulty. One seeing good
prospect would load ship expecting large profits
thing, so that very soon the market would be
stocked, and prices fall below the average, and
Losses would result. This has been the experience
Of every man of business, and particularly with
farmers in the sale OF hay. 1t would be very
nice thing if we could raise hay corn by legis-
lation, the farmers would be willing to have sum-
mer sessions if that could be DONE but it cannot
be done. The ground must be plowed, the seed
planted, it must be cultivated and harvested.
know gentlemen sometimes raise their bread by
legislation, perhaps some gentlemen in this House
are hoping 10 do this in wider field, but it Is not
the kind Of agriculture that will bread the nation,
or that good farmers put much faith in.
10 return to the subject, l ask if high prices
weight, why not money! There is much more
danger IN exporting the bulky article, because it
is expensive to export, and when it arrives at its
destination it must be sold even if at loss but
not so with money: it is not perishable, the
cost of transportation is small and no loss can re
cult, therefore do insist that usury laws i'm
practicable and would result in driving money out
OF the State, or in an evasion of the law, and
think the fact that since the passage of the present
law saving deposits have increased from ten to thir-
fV-fu m ata1 bv fba cps ia
very best Of proof that the old law did drive money
ont Of the State.
Another argument against this law or any that
never can be enforced, alluded to before, Is the ten
dency to make men dishonest. Not permitted to let
their money ct what it is worth in the Market they
let 1t regardless of law, and of course the risk is
great they charge extra for the risk the result Ia
they become law breakers, and as disregard Of
the law in one thing creates disrespect for laws
in general the result is injurious to the morals of
the people, as well as injurious to their interests.
Therefore as l think have shown that the object
OF the law is not accomplished, but positive nary,
there no propriety In legislating for bare theo
ry even if it does sound we'll
Another argument against usury laws: they are
deceptive; most kinds of legitimate business will
rot afford to pay over six per cent and it is great
deal better not TO hire money at all but let not
be deceived; usury laws certainly do deceive they
say per cent. when the fact is I, 8, 9, II, just
what money will bring. How many honest men
have gone into business deceived in this, suppos
ing per cent. was the rate because the law said
so. / have one case in my mind. An individual
had farm worth $1,000 and $1,000 in the savings
bank payi ing him the usual ate He concluded to
60 into trade, and whcn demonstrated with and
told that he would be obliged to hire money, ooh,
we'll says he, 81 can hire plenty per cent. the
law says it shall be no higher. lie risked his
money, mortgaged his farm, was unfortunate and
the first thing he knew he was paying per cent;
the result was disaster and ruin There have been
many such cases. Therefore say let US not enact
law that has q tendency to deceive, let US not
encourage speculation by false inducements.
There Is perhaps an explanation why in some
quarters there Is SO much opposition to the pres
ent law, and particularly to savings banks. We
all remember class OF operators in money in days
when intempela nce showed its blghting curse
more than now, whose touch was disaster and
whose grasp was ruin. Taking advantage of a
mans habits or Insiortune,, they would let him
have small amount Of money tur week a
month, perhaps charging only per cent. nominal
~, and taking mortgage; once 10 the grasp of
such man there was no stopping place on The
road 10 fuin under all sorts of subterfuges they
would charge high rates, perhaps 81 per cent, as
the gentleman from Calais informs US has been
taken in Aroostook, and not only charge high, but
IN some cases encourage the evil habits OF the |
debtor to accomplish his ruin. We can all remem- |
Der farms that have changed hands 10 this way, !
and their appearance; when one of those operat- |
ors got hold of one, it looked though the cater
pillar, wcayil, rust, blight and mildew, were all
performing their work; but, gentlemen. it was a
worse evil than all these; these be cured that
was fatal. Now l have doubt that there is |
some prejudice against savings banks from this |
cause-for they have spoiled the business of such
operators. Any man who can give mortgage
can get money at or per cent. and as the saw |
ings bank don't want the fam, only security, it is
its interest to encourage the debtor and reform him
venture the state nent that in nine cases out of
ten mortgages made to savings banks are paid up, |
while on the other hand the proportion was as
great the other way. Therefore we see that there |
Is some reason for grudge against this law and
savings institutions. don't accuse the gentlemen |
on the other side Of this question of any feeling Of
this kind. was much relieved when the gentle
man from Machas told us that he never loaned a
cent IN his life, and the gentleman from Calais
we know earns his bread ia another way bat it
may be for all that, that both Of them NAV get
some Of their inspiration from sgch source and
not be aware OF il. honor the gentleman from
Calais for his very able support of the financial
policy OF Secretary Chase in the day of our ma
lions severest trial. and cannot even imagine him
sctuatsd by wrong motive. In conclusion, let rs
be thankful for free trade in money and for saw
,ngs institutions, that plan has been matureA
And put IN operation, by which the savings of all
OF Our PEOPLE are united and used for the general
good. From this ! predict more for the intelll-
gence, industry, temperance, and general welfare
oil the nation than from a. her aofa