Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1879-03-06

iair ueailng men Will not 90 there
: to loan out their money. and vi
want none other.
We affirm that it is ten per cent
! that has caused the timidity of cap.
ital in making investments and loans
; IN our state as low as six per cent
The resources of the producing class.
es by the gorge and draughts oil
twelve and ten per cent. ever since
wisconsin became the abode Of
whltc men. Is it TOO much to assert
that had not the lancet of ten per
cent. pierced go deep, drawing blood
from vein and artery. Wisconsin to.
day would have been in such q
sound, healthy financial condition
that our people could have borrow
cd money on almost the same terms
as the general government?
| We conld then have enacted six
per cent. as the maximum limit OF
interest. But if Limitation law drives
away capital from our state, we as
sert that ten per cent. is expelling
from our borders great deal of the
bone and sinew of our country. SO
alarming has this great stampede be-
come that the governors of three
neighboring states in their annual
messages to the legislatures, the gov
errors OF Illinois, Michigan and Min
nesota have advised these bodies to
reduce the rate of interest. The
governor of Minnesota does not
name the reduced rates. The two
other governors propose seven or
eight per cent. as the maximum
limit.
And what should be the maximum
rate OF interest in all communities
and states 2 Clearly there can be
40 other just and salurary rule but
this. The rate Of interest should be
equalized with the profits of legiti-
mate business as nearly as possible.
1t is the universal belief and expor.
fence in this state, that the profits of
such business, take it in mass. falls
far below ten per cent. The insati-
ate jaws and craving appetite of ten
per cent. devOurs the bank, the
store, the workshop; Gusts the in
dustrious farmer from his homestead
drives him westward or corrals him
IN tie narrowest limits of the ex-
emption laws, without colt, calf or
lamb to begin the world anew, as
the present assembly has decreed.
But will the passage of this bill
actually reduce the rate Of interest {?
A large amount of the loans made in
this state are not made by bankers
or brokers. The successful mechan
10 or farm laborer loans to his neigh
Dor. Such lenders take no risks and
generally keep inside of the law. A
great many lenders are satisfied
with moderate, fair interest and are
either too conscientious or too timid
to violate the law. Interest, in most
instances will at least equal the leg
islative limit: for this legislation is
regarded as fair expression of the
community as to what money is ac-
tually worth; and as mnch may be
said about the disregard of the usury
laws, the present bill if passed, will
govern almost every transaction.
Money borrowed at a lower rate
will be applied in paying eff ten per
cent. mortgages aud debts, and in
short time but few debtors will pay
the latter rate. Moreover, we see
by the revised statutes of the Unit
ed States, sections 5197 and 519S,
that national banks can exact no
higher interest than is allowed by
the usury laws of the state where
they are locased, and a violation of
this law is punished By loss OF the
entire interest. 1t is said that both
borrower and lender violates the
law, but all such laws regard the
fact that the one transgresses the
law unwlllingly through necessity,
the other through greed.
We have not quoted dry statistics
for the facts to which we have al.
luded are patent to every member of
the assembly.
The underlying principle of the
usury laws-that is, the right OF the
public to limit the profits of private
prop rty under certain circumstan>
ces-has not long since been enforced
by the supreme court of the United
States and is one OF the most impor-
tant decisions ever pronounced by
that high tribunal. L. scouts the
idea that only the profits of corpora
tons can be limited. Such limita.
ton depends upon the nature of the
property, no difference who owns
it. See the entire case, 16 Law Reg.
lister, p. 525. Nun 4 Scott, the own.
ers of Chicago elevator claimed
that an act of the Illinois legislature
limiting the charge they should
make for the storage Of grain was
violation Of the constitution OF the
United States.
The supreme court quote with ap.
proval the decision Of tho supreme
court of Alabama, wherein an ordin-
ance of the city of Mobile limiting
the price and weight of bakers bread
was declared constitutional.
The Legislature will not interfere
Wieu tuO Ia Will 6CLiUu VI INDIVIDUALS
or the mode in which private proper
" shall be enjoyed unless in call
Jog that effects the public interest
and the body of the people. Upon
this principle the state tavern keep.
ers are licensed and the county cour:
is required at least once a year to
settle the rates of keepers. Upon
the same principle is founded the
control which the legislature has al
ways exercised in the establishment
and regulation of mills, ferries,
bridges, turnpikes, roads and other
kindreds ubjects.
To formulate In single sentence,
the rule that defines the extent and
right OF the public to control TIE use
OF private property as enunciated by
the supreme court of the United
States it is this: There are certain
species of property in the use of
which the community at large is in.
terested. II such property may be
concentrated into the hands of the
few 80 that they MAJ Cypress the
many, if 10 the judgment of tho leg