St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1889-02-02
HIGH INTEREST
Maintained by the Will of the
Senators,

Senator'S.
When yesterday morning the senate
resolved itself into committee of the
whole, President Rice called Senator
Ward to the chair, and the first item
read from the general orders was
Senate File No. officiating to inter-
est on money and usury. Clark" This
bill amends the laws of 1873 by reducing
the maximum interest on money and
usury from 10 to per cent, and is
backed by an influential element of
agriculturists throughout the state. 1t
has been favorably reported upon by
the judiciary committee. Senator Clark,
the author, moved the passage of the
bill. Senator Compton opposed. He
had been engaged in the business of
banking for twenty-three years, seven
teen of which had Ueen spent in Mime
sofa, and he had given this subject close
attention. The English of this bill was
that it reduced the rate of interest to s
per cent. and meant the forfeiture of
principal and interest if there was more
than that amount charged.
Senator Clark-Ne.
Senator Compton continuing said if
the author of the bill turned to the laws
of 1879, page 40, he would find it was
the forfeiture of the whole amount if
more than the statutory interest was
charged. He had looked up the inter-
est laws of the various states and terri
tories OF the Union. and had secured
the rates and penalties of some forty
four, including the District of Column
bia. In eighteen states and territories
there were no usury laws; nine states
and territories had a forfeiture of the
excess of interest charged, which was
the only penalty; ten states and terri
tories had a forfeiture of the entire in
tereSt; four states aud territories forfeit
10 per cent to the schools; and but three
states have laws similar to Minnesota
one was the little state OF Delaware,
that you could hide within the state Of
Minnesota and not be able to find with
a search warrant; another was the state
of South Carolina, the poorest i'll the
Union. He had looked little farther,
and found the total deposits in the ma
tiol!al and private banks, trust COM
panies and saving banks in the states OF
Delaware, South Carolina and Mime
sofa amounted to $50, SOL |, 433. and that in
the little state of Rhode Island, which
was not as large as Otter Tail county,
and where there was no uSury law
hardly speaking in order. | understand
his argument is being directed against
the existing law.
Senator Compton, wish to call at
tention to
Senator Pope-I make my point of
order.
Senator Compton, think [ have the
right to explain the law aud its effect
upon the state.
Chairman Ward-l think so, too.
Senator Compton continuing said
tie deposits of Rhode Island amounted
to S6S.3So, $50, or S9,0o0,00G more than
those of Delaware, South Carolina and
Minnesota. We are not" he pro-
ceeded. under the old kingdom of
Israel, where man was obliged to loan
his brother without interest, fer if we
were | wonld be an extensive borrower;
but we are in a nation and at a time
where it takes two to make q bargain;
and it is the fact that the man that
wants to borrow money wants it little
worse than the man that wants to lend
it, and the price charged is according to
the risk ruin" Another point enlarged
was that in the adjoining states and ter
ritorieS the interest paid was from 10 to
II per cent.
Senator Bowen desired to introduce
substitute bill. which allowed the rate
of interest to stand as at present.
There was no great complaint from
these people who borrowed money at
the present rate, but his substitute
was
Senator Pope-I rise to point of
order. This bill is not substitute to
Senator Clark's bill; it is merely sub
stitute for the existing law, which we
are not now considering.
Chairman Ward-The point is well
taken.
Senator Bowen-I would like to hear
the decision Of the chair.
Chairman Wharf.-The chair has al
ready decided.
Senator Clark said his bill was not in
the interests of capitalists. bankers or
business men, nor was it introduced to
inj,re honest capitalists or bankers.
That class of men did not need the pro-
lection of this bill or any other bill.
They knew the value of money; but