Weekly graphic. [volume] (Kirksville, Adair Co., Missouri) 1880-1949, 1884-03-07
An IMPORTANT DECISION.


lips. OF this state, IN the case of Long
VS.. Long, taken up from Knox county.
promises TO put a complete stop to
the loan Of any more "toreign" capital
in the state of Missouri. In rendering
his decision in the case Judge Phillips,
after reviewing tie decisions OF the
lower courts, went into the question of
the application OF the Missouri Bank.
ing law, which had been pleaded as
making void the notes and trust deeds
altogether, and while respecting former
decisions by the supreme court in their
application to existing contracts, gave
it as his opinion that if that question
rested with him for decision, he would
feel compelled 10 decide them void and
illegal
Under this decision the eastern loan
companies doing business in this state,
notably the Connecticut Mutual Insur-
ance Co., and other Insurance corpo-
1ations, as an instance, have instruct
ed their agents to cease altogether the
loan OF any more funds 20 Missouri
borrowers. The decision will cause
the immediate withdrawal, it is estima-
ted, OF thirty or forty millions OF capi-
tai, and by the calling in as they expire
Of loans already made, add many mil
lions more to the sum total OF capital
shut out of TIE state. Such condition
of affairs cannot do otherwise than
create much hardship and greatly re-
tard the progress Of the state in every
r industrial enterprise that may demand
the use of cheap capital. Most Of these
funds thus barred out and driven away
from our borders was to have been
loaned at six per cent The law on
which the decision is based is an old
one having been on the statutes books
since 1887. 1t was passed at a time
when wild cat money was a serious
grievance, and was intended to protect
the old state of Missouri bank from the
competition of the uncertain and fiuct-
d uatlng currency issued by private banks
S in Illinois and Indiana. Ii has hereto
II fore been argued that its provision;
: did not apply to the new order ofthlng;
+ which have obtained under the Nation
al banking system.
We notice that some critics are IN
clined to condemn Judge Phillips fol
rendering such an opinion, but itstrke:
q US that the proper shoulders on which
to rest the blame, is Legislature thai
allows such a law to remain on the
!. statute book. If it Is the law, then lei
US abide by its legitimate consequen'
ces, or repeal II. Judges cannot be
e properly censured for strict construc'
q ton of the obvious and plain provisions
e OF law. Commenting on the law and
: its effects the GLobe-Dem0cyat in re-
e cent editorial says:
e No argument is required to demon
trate the humiIiauHg fact that this Law
Is in theory and spirit the same as those
0 early statutes and DEGREES which now
n seem so preposrerous and incredible
e Neither is it necessary to specify the
! embarrassing and injurious effects Ger.
tain to be produced by law which /:
{ SO clearly an embargo apon business
e and Encouragement to enterprise oi
Il every kind. l. is not pleasant to ad-
Il vertise the existence OF a law in Mis-.
souri, which must not only retard the
material development of the state, but
also expose her reputation for intelli-
= genoe to scornful and mortifying criti-
6 cIsm. The truth should be told, how
ever, and the responsibility placed
where it belongs. Missouri IS and has
been for years in the clutches of the
+ democratic party. That party is the
. supreme influence in its legislative,
, judicial and executive affairs. 1t enacts
and interprets all laws, and determines
the manner Of their enforcement. This
measure of which we are ueatlng IS a
democratic measure, and all the dis
credit and all the harm it brings upon
the state and her people are justly and
: directly chargeable to the party that
has the state by the throat.
The Post Di5Patth (dem.) is almost
equally severe with the Glo6e-Dem0crat
in its Characterization of the men and
measures which have prevailed in this
state under the administration of the
dominant party. Itsays
Finally. the history of this proscrip-
tive legislation against foreign capital
is the history of the repeated, persistent
and corrupt attempts or the ST. Louis
capitalists to drive out foreign capital.
The men who wrecked and ruined the
local life insurance companies here
were at Jefferson City year after year
trying to drive foreign life insurance