The anti-monopolist. [volume] (Saint Paul, Minn.) 1874-1878, 1877-08-23
REDUCTION INTEREST.

REDUCTION OF INTEREST.
Hon. William L. Banning. member
of the Chamber of Commerce OF st.
Paul, has taken the lead in a very
laudable effort to reduce the ravageS
of that cancer of high interest, which
is eating the vitals out of our whole
people. The subject is so lmpor-
tant that we give the Pioneer. Press
report of his remarks. Mr.. Banning
deserves great credit for his efforts in
this direction. lie has proved himself
on many occasions the friend OF the
people. To his efforts the state is in
debted for the construction Of the
Lake Superior Railroad, and work
which had added five cents to the
price of every bushel of wheat raised
in Minnesota.
The following is the report
On the second of July Mr.. Banning
offered resolution of the rate of in
terest. At that time he stated that
he did not care to discuss it then, but
desired merely to place it before the
board with q view Of calling it up at
some time. Yesterday morning he
called for it and it was read by the
secretary as follows:
Resolred, That in the opinion of this
chamber the interest demanded for
the use of money in this section Of
the west is far in excess Of its value
for legitimate business purposes; and
further. that the interest of both
lender and borrower would be best
promoted and protected by such re-
duction of this rate as would more
justly correspond with the profits of
business and the financial condition of
the country.
Mr.. Banning stated that i'll urging
the passage of this resolution he would
attempt no more than to present some
of the striking reasons why, in his
judgement. it should receive the en-
phatic assent of this body. The fnan-
cial depression and business paralysis
that now pervades the entire country
challenges the thoughtful cOnsidera-
ton of us all. Whatever of practical
wisdom can be invoked. and whatever
wise and just measures can be inaug-
urated to change and improve this
condition surely is Il part of our indi-
vidual duty and the emphatic business
of bodies such as this.
1t is estimated--and think the es-
innate is loW--that the shrinkage in
values throughout the country in the
last four years is at least eight thous-
and millions of dollars. United States
! bonds. state bonds, loans upon real
estate. and certain other classes Of
property where the amount loaned is
but small percentage of the value of
the property, has not partaken of this
general depreciation. The money
thus employed is not less than thous-
and millions Of dollars. SO that the
eight thousand millions Interpretation
has fallen on lands, houses, stores,
manufactures. manufactured goods.
and like products of the industries of
the country. But mark, in addition to
and more than this. the purchasing
power ofthe interest produced by this
three thousand millions of dollars has
been quite doubled, so that one dollar
thus produced is worth two dollars by
comparison. for it will buy as much as
two dollars would four years ago. TIC
illustrates: \. borrows of b. 81 900 at
ten per cent per annum. on his farm
house or store. fully worth at the time
$4,000. and paying interest on this sum
but as the time moves on, values are
changed. the property is reduced tic
81 900. and the mortgage abSorbS the
entire property. This case fully illus
trates the general relationship be
tween the creditor and the debtor
classes of the country. and urges the
necessity of such adjustment between
capital and property rs shall more
evenly and fairly divide and protect
the rights and interests of each.
Rightly considered. money can only
be understood to be property-differ
ent in its form. It's true-peculiar il
uses, better adapted than most Other
forms OF property for rapid use. eN
change and distribution. but still it i.
only property. \. buys my farm
house, store or goods with his money
or buy his money with my farm
house. store or goods, and there is II,
wisdom or fairness in the policy tina
works out a depreciation in the yalu
of one class of this property and dou
bles the value of the other class.
l do not wish. however. to be mis-
understood in this. | do not believ,
that this unfair discrepancy can b.
best corrected by usury laws. penaltie
or harsh legislation in any form. TIL
/ true remedy is. think. in a genera
agreement and understandings
most thoughtful and fair men are nov
ready to admit-that these high an
/ oppressive rates of interest will in tn
end be destructive both to the borrow
er and lender.
Why. is it not plain to all. tina
| should the rate of 10 and II per cent
l continue to prevail this-or any othe
section of the Countrywide effect vii
be that the creditor class will absor
1 all the profits of business, the value O
: all kinds of property, and produce cor
: sequences alike fatal to both borrowe