The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1878-02-10
INTEREST.

Editor Democrm-senate hill No. IS was in
definitely postponed Eight per centipterest
L L more tim is allowed by most other States
fofee.the original ARTICLE of the code. In 1874
after the people had passed through the fire
oil contraction and monetary oppression, q
partial penalty. was enacted which involved
the forfeiture of the Illegal rate. There is no
change in the article till you come to the
words mo contract The article, az 1t now
stands in the Revised Civil Code. contaias all
the statute amendments, which have the effect
| OF annullialg the original article. 1t eontra-
1866 and 1860, as shown by Fuquas Civil
Code. All these amendments, except the first,
were made by the influence of the brokers,
not by theIFeopie. Bill No. 55 reads as follows
An act to amend aud re.enaet article 1924 of the
Revised Cvl Code of Louisiana
sEeTroN1 BE ii enacied, ete. That aricle 1924
Of the Reyiseduivll Code, Of Louisiana be ana
as to read as,folows: Interest is either legal o.
conventional. Legal interest is fixed at the fol
lowing rates to wifi ut per cent on all sums
%nS'a On s fssa 4's,a' interest
the ,, rate estabished by their charters The
coed per cent. T'ae same must bs fixed in
wfit In Test monia H. proof Of II is not I'D
| ment of money with interest at q greater rate
than per cent per annum shall be thereby
void. but whenever, in aoy action brought on
Plea to that effect that greater rate If interest
han per cent per annum has been directly or
indirectly reserved, taken or received. by tax
| In the face Of the instrument. or in any other
way In any loan OF money at interest. the de- e.,
shalt forfeit the amount Of the whole
interest reserved or taken, and shall have judy
ment for the balance only which shall remain
and whenever greater rate of interest than
per cent per annum shall have been paid. the
party paving the same may recover back three
fold the amount OF the whole interest paid with
IN two. years from the time OF the payment
thereof
SEC. ., BeNtut1,er enacted etc.. That all laws
md parts Of laws conflicting with this act be and
the same are hereby repealed. and that this act
take effect from and after its passage.
The article in the old Code was good law,
bubthe one now in tho Revised Code is q fraud.
bill should pass. To say that conventional
interest cannot exceed per cent, and then go
on to arrange fraudulent continuance by
which any other rate may be charged, is I'M
worthy OF q place in the Code of any civilized
country. A law without a penalty is no law.
Every bank violates its charter and takes
more than 8 per cent though restricted to
TINT rate. note is made to q nominal party
at II, 1S, or any other rate, and said to be dis
counted by the bank ut per cent. Discount
quently to the actual loan. They can fix the
rate at present without any actual limit.
The abuse in money lending causes as much
distress as the present oppressive taxation.
The lender pays no taxes, though the more
able. Bill No. IS only prohibits more than s
per cent i'll actual loans as general rule of
action. It is the enforcement of the old law
The penalty proposed is that adopted by
another State, whereit works well, and where
money is only half as dear as it is in Louis
lana. At u rate which people could afford to
pay. money would produce more in the long
run to the lender, just like taxation, at lower
rate. it would he more generally paid.
Money is not an article Of commerce and
should not be abused. 1t is standard, a
measure for the people. Though, perhaps, it
is folly to expect such huge reform from the
Legislature, where the money interests are so
largely involved It is a known fact, admitted
by Mr.. Davis former president Of the Bank IL
Louisiana, that Legislation in financial mat
ters is generally on the side OF those who have,
the few, not the many.
But the inexpicabe course OF the reform
Senator from the Fourth District in voting
against his own bill, introduced by himself, |
needs no comment, while the sable Senator
versed in political science and sustained by |
twenty-seven Solons sitting silently by, who |
moved to postpone. shows that he considers
this a question of interest