Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1879-03-06
Judge Mllls's Bill on Interest.

killed by vote to indefinitely pos,
pone. It was thus disposed of Feb
ruary oath but was the next da
brought up, on motion to recousid
Ell, and was carried by a large major
ity, in the Assembly, and is enter
tanned in the Senate, but what the re
suit will be is not known at this writ
ing. A copy of the bill offered b,
Judge Mills has been handed us. Fo
brevity's sake and to make its mean
ing plain to every reader we give on
ly a synopsis Of it.
Section proposes that the rate 0
interest, on debt, shall be six per cent
per year, but parties may contract q
not more than eight per cent.
Section 2 forbids any person, cor
poration or company directly or indi
rectly to receive, or contract by writ
ing or verbally for, more than eigh
per cent; forbids compromising inter
est or taking interest on interest un
less expressed in the writing.
Section provides that in usurioul
contracts the principal is collectablt
but no interest is colIectable.
Section makes the same penalty
for discount above eight per cent. al
for interest above eight per cent.
Section provides that to avoid 8
usurious contract the party may eli
Their plead tender of the principal OF
offer to give judgment for the princi
pal, and if interest has been paid i,
shall be deducted from the principal
Usurious interest can be recovered or
suit if suit is begun within year Of
payment.
Section 6 repeats conflicting laws
Judge Mills, being one of the Ju.
dietary committee, to whom the bill
was referred, made the following mi.
nority report. 1t is peculiarly in the
Judges style. 1t goes somewhat into
the depth of the subject as we'll as
presents it in terms comprehensive to
ordinary minds. Two other members
of the committee, G. L. Frost and T..
w. Spence, signed this report, but
asked to have the legal interest in.
stead OF 6 per cent. We give the re-
report in full /:
The undersigned regard it as pro.
per to present brief history OF the
legislation of this state on the SUBJ
jeot of interest. On page 156 of the
territorial statutes of 1889 We find
that interest on money was limited
TO IL per cent, the penalty for the
violation of the limit was the forfeit
ture of three times the excess above
II per cent, recoverable by suit.
When the territorial was supplanted
by state organization the statutes
were revised in 1919. That revision
authorized free trade in money. See
Rev. Stat, 1849, CHI. as. The winds
OF Eolus let loose from his cave nev-
er created such commotlon on the
physical world as the dreams of wild
speculation on the part of the Dor.
rover and fifty or a hundred per
cent. profit, on the part of the
lender, stirred up in our enter.
prising young state. In many in
stances both lender and borrower
met a common ruin.
But during that period of insane
speculation, there was a class OF cool
calculating, svaricious men who
profted largely off of the folly and
inexperience of their over saDguine
neighbors. 1t is a law we'll settled
in political economy that rate Of
interest exceeding the profit of leglt-
innate business disposes persons en-.
gagged in useful pursuits to sell all
they have, convert it into money,
loan it out and take no farther con-
Germ in mundane affairs than to COL
lect their interest. A violent reac
ton followed. The heart of the
people was red bot against the
plausible theorists who insisted that
free interest would fiud it's own
level.
The legislature of 1851 enacted a
usury law, see chapter l72, lmpolitic.
cruel, revengeful. To take interest
above II per cent. was a crime the
lender was deprived of both princi-
psl and interest and scourged with
additional penalties. In 1856 the
popular indignation was somewhat
appeascd and the law was Sc modi-
fled as to only enforce the loss of the
entire interest. The revised statutes
of 1859, see chapter 81. continued
the maximum rate of Interest at IL
per cent. The present rate, 10 per
cent maximum. was fixed by chap.
ter 202, laws of 1860. A summary
of the interest laws of all the states
as late as the year 1873 may be
found in 3 Parsons on Contracts,
page loo.
The bill now introduced differs
from chapter 70 OF the revision of
1873 in fixing the rate of maxi.
mum interest at eight per cent, and
when there is no contract. at six per
cent. The second section of the bill
sets forth no new principle. The
discounting of notes where the pur.
chaser was aware that the note or
contrac. was execu ed so as to cover
unlawful interest. was always usury;
but many persons are not aware of
this rule and it is therefore express.
ed 10 the bill.
The penalty proposed is a loss of
interest entirely, and any payment
of interest on an usurious contract is
to be deducted from the principle.
The Supreme court has decided the
same rule.
The present loan does not require
the borrower 20 tender the principle
loaned as q condition OF pleading the
usury act. Such o condition in fact,
utilities the law. rhe plaintiff may
take his judgment for the principle