The daily intelligencer. [volume] (Seattle, Wash. Territory [i.e. Wash.]) 1876-1881, 1877-12-13

Thursday, Dec. Is, 1877.
INTEREST ON CAPITAL.

Some years ago. tue Ctase OF oregon
passed lsw making it impossible to
recover judgment upon . note bearing
greater interest than one per cent. per
month. All subsequent efforts to re-
peal this law were utterly futile, and
immediately on its passage, thousands
Of Oregon's hard-earned dollars were
sent to California where the rate Of in
terest was regulated. not by statute,
but by the higher and more potent Law
Of supply ard demand. During the
year 1866, there were recorded over
10000 worth of mortgages in Tehsma
county alone to Oregon capitalists.
whose money had been driven out Of
the Webfoot State % this pernicious
aud ignorant Legislation.
A writer in the Portland Standard Of
last Tuesday has an article on this very
question, in which he advocates furth-
er reduction of legal interest to seven
per cent per year. Should this become
the law OF Oregon, the splendid resour-
ces Of that State would be completely
paralyzed. for the capital now en-
ployed there would seek more rcmu-
nerative channels. 1t has been only in
the last three years. since the Bonanza
kings flooded San Francisco with mon
ey ct nine per cent. on all good loans
Of more than one year. that Oregon
money began to return home for in
vestment. The writer says
II also maintain that the supply Of
money would be Just - great with the
rate of interest fixed at Z per cent, % IL
is now, or ss il may he in the future
with the present fixed rate Of IL per
cent. All the capital (very nearly
that is in the State Of Oregon, general
property - we'll a. money, ha been
realized or made upon aud from our
own home industries. This is an unde-
niabls fact. Besides. foreign capital
may be obtained Just O. readily upon
good security At Z per cent. as at .
higher rate; and who denies most an
pie lsscurity being both required and
given In Oregon, for oil loans. dare
say there II not Q State in the Union
where the security for loans generally
il 20 good . in Oregoa. Tho climate
and never-iailing crops and natural re-
sources of the country make this so.
"But manufacture 10 about all that 10
needed to make Oregon tho most -four
ishing and prosperous region ever
known on the American Continent, and
If foreign capital cannot 10 obtained at
rates that will justify the borrowers
engaging in manufactures. IL is no ben
eft to us to obtain it ut all. As has
been said. about all the capital used in
Oregon was made or accumulated In
Oregon from and upon its own re-
sources"
The srticlequoted il s1cellently writ
ten in a literary point Of view. but We
deny many Of its material allegations.
The idea that capital can be borrowed
in London at I per cent. we do not
readily credit. unless the sursties bs
United States bonds. The best Gov.
eminent securities in England bring
three go per cent. while mercantile
and manufacturing paper Is generally
negotiated ct 8 or per cent. The in
crease Of Que per cent. especially in un.
certain enterprises. 10 not enough to
justify the sending OF capital this far
away from home for Investment. At
the same time VIC fully concur in the
writer's assertion that "thsre u not .
State in the Union where there ID a.
good security for loans ~ Oregon" We
de- not know Of any State. bat We do
know Territory and tho name Of that
Territory 10 Warrington.