The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1889-03-08
REDUCING THE INTEREST RATE.
There was hot fight in the Minneso-
Ia House of representatives Saturday ov-

There was a hot fight in the Minneso-
ia House Representatives Saturday ov-
er the usury bill reducing the legal rate
of interest from toto s per cent. and pro-
hibiting the collection of commissions
which together with the Int crest would
exceed s per cent. per annum. There
was considerable opposition to the
bill, principally against the prohibition
of commissions. A substitute was re-
ported providing that a commission of
2 per cent. per annum be allowed, and
also providing for heavy penalties for
violation of the law The substitute
was not looked upon very favorably,
however, as many thought it better to
do away with it altogether rather than
open the way for perjury. The substi-
tute was lost by vote of As to AZ, after
which the question of the passage of the
bill itself came up and resulted in its
passage, yeas 90, noes 35. Mr.. Barr vot-
ed no, Perrin and Lassow yea, and Mr..
Davis was absent.
The flrstsection of Mr.. Sevatson's bill,
simply provides that the rate Of interest
should be reduced from 10 to 8 per cent.
The dispute, however, was over section
2, which is given in full as follows:
Section 2. That section 4 of said chap
ter Go of the general laws ofthe State of
Minnesota of the year 1879, be and the
same is hereby amended by adding
hereto the following proviso:
Provided, further, that 1t is the intent
and purpose of this act that no person
shall claim or collect, either by himself
or his attorney or agent, in the form of
| commissions for making any loan, or
for examining the security therefor, or
by any other device, any greater sum
than Sper centum per annum on the
amount actually received by the Dor
rover from the date of such loan; and
all bonds, notes, bills, assurances, con-
veyances, chattel mortgages, and all 9TH
er contracts, whereupon or whereby
any payment of money or any indebted
ness is contracted or paid in excess OF
| said per centum per annum in the
| shape OF commissions, or for services III
| examining The security therefor, or by
any other device, shall be void, as here
| in provided. But nothing herein con-
tanned shall be construed to apply to
money actually paid to any practicng
attorney or notary public for examining
| the title TO any real estate and drawing
the necessary bond, mortgage or other
conveyance in connection with said
loan; provided, that the charges are us
ual and reasonable, and are not intend
ed as a cover for usury; provided, that
the payment of one years interest IN
advance not exceeding s per cent per
annum shall not be regarded us usury.
1t would seem that this section would
90 far toward taking away the occGpa-
ton of the money brokers and loan
agents, unless money gets so easy that
capitalists will be glad to pay the COM
missions themselves. In such case
the provision would of course be verv
good one. But is it not out of the ques-
ton that the Eastern capitalist will send
his money West and loan it without the
Intervention of some well-informed per-
son on the ground upon whom he can
depend? And will not the payment
ola commission to the agent cut down
the capitalists returns on his money to
figure which will prompt HIM to make
his investments nearer home? Will
this not have but the one effect of max
ing money close here where it is SO
much needed-in fact, make it impossi-
BILE for farmers and others to obtain
money al any price? These are serious
questions which should be thoroughly
investigated before any further steps
are made toward putting the law on the
statute books.