The Corvallis gazette. [volume] (Corvallis, Or.) 1862-1899, 1885-11-13

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legal interest to per cent, pei haps
some OF the capital now loaned out
would find it's way into new manufac-
turing enterprises The GAZETTE is
not in accord with the sentiment of the
above quotation, because the expert
ence of time proves that such is not
the fact, for legal interest is already re
duced to s per cent, and has been so
reduced for eight years. When that
reduction was made, money was plenty
in Oregon and large quantities thereof,
Was seeking loans for eight per cent,
and any one who had anything like
reasonably good security could borrow
all the money they wanted from eight
to ten per cent. Since that reduction
coupled with the mortgage tax law,
money has gradually become scarce and
more difficult to obtain, until borrow
ers cannot be accommodated at all, and
those who do secure loans, are only
able to get them after much delay and
great expense, and still manufactures
have not increased by reason of such
reduction III interest, and the reduction
of interest will not increase anything,
but will simply have the tendency as
it always has done, to drive the money
to more favorable localities. The fact
of the matter is, Oregon people are not
skilled in manufacturing, and to expect
to drive their money into manufactur-
ing OF any other investments about
which the owners of the money are not
versed, is mistaken idea; for men do
not accumulate capital by investing
it in something about which they know
nothing, but they do accomplish finan-
cial results 10y putting their money in
to investments Which they know and
understand. In order for Oregon to
advance in m manufacturing interests she
must first have come among us people
skilled in different manufacturing in
dustries with sufficient capital to par
italy carry the respective industries in
which they are skilled. People thusskill
ed if found worthy can no doubt find
Oregon capital to join them. 1t is a
mistaken idea that is occasionally found
that an act of the Legislature by reduc
ing the standard of legal interest can
regulate money and thus force men in
to other investments. You might as
well try to make IL man by legislative
enactment sell his horse worth two
hundred dollars for fifty. If you thus
limit the value of Il mans horse below
its inst value, in an Oregon market, he
will take it to Washington Territory
OF to Idaho, where he can get its full
value, and 90 it is with the man who
desires to loan his money; if Oregon
people do not want to borrow it at its
full value, and they through the lesis
lature attempt to put its value down
below it's worth, the man can not he
prevented from taking his money
where he pleases, and hence he takes
it to Washington Territory and Idaho
and other localities where people are
willing to pay the value thereof and
this is what makes in a great measure
the scarcity of money III Oregon and
which is causing many a good man to
be sold out under the hammer, when if
he was permitted to borrow money for
time, and pay its value, he could af-
ter awhile work out ard save his prop
erty. The usury law is in favcr of ID
few local men throughout the country,
who loan through agents and charge "a
/ bonus often times larger than the rate
of interest, but it never operates in fa-:
vor of the poor man, who borrows and
pays for the money. If you do not
believe it, ask the needy borrowers and
see if he can not point you to some
brokers office where he paid a bonus
amounting to more than the legal inter
est. That inevitable law of na5ure,
that of supply and demand regulates
the market value of commodities, and
you might as well try to legislate the
value of wheat or cabbage, as to legis-
late the value OF money. One will
succeed as well as the other. The
mortgage tax law was passed for tie
purpose of requiring those loaning
money on landed security to pay taxes
thereon, the interest of which seems to
have been for good purpose, for there
d.