St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1891-02-22
THREE BAD BILLS.
At Least So Thinks a Gentleman
of Minneapolis.


TO the Editor Of the Globe.
After the usury, employers liability
and street car bills become laws it will
be time to 90 West and turn the state Of
Minnesota into one vast COW pasture. OF
let it revert back to the Indians, whence
it is rapidly tending.
There seems to be an unaccountable
mania for enacting such laws as will
paralyze industrial enterprises and
effectually shut all Eastern capital out
of the state. This is terrible blunder
and cannot do otherwise than count
seriously against us as regards the
future prosperity and reputation of
Minnesota. Not one Of the brilliant
statesmen now Soiourning in st. Paul
can point to single benefit to state or
individual arising from uSurl0us legiS-
lation.
On the contrary, those states where
10 usury laws exist possess the greater
volume of money as we'll as the lowest
rates Of interest. The prosperity and
rapid growth of every new country is
practically impossible without an album
dance of cheap money. Money, just like
any other commodity. becomes cheap
when the supply exceeds the demand.
Stringent and dangerous usury laws do
not bring about this state of affairs.
Such laws only serve to make capital
timid; drive foreign money out of the
state; make the rates of interest very
high, and offer the highest prem
ium for the rankest dishonesty.
Here is case in hand. Not long since
an Eastern gentleman loaned Mime
apois man, through an agent, 800 on
real estate security. The agent charged
tba hOrrOtynr ahOut Tor 0htaipIp0
the money and doing the business for
him,
Now the noble borrower performs
the baby act, snivels usury, and is actu-
ally trying to steal the Eastern mans
cash because the agent charged him a
reasonable compensation for his time
and trouble. Now | wish to ask the
fathers OF those usury bills in st. Paul
one question: If you were a foreign
capitalist would you send your money
to state to loan, where the
laws made it possible for the
borrowers and agent to conniye to-
gether and beat you out of your money
at the drop of the hat. Would you dare
to trust All agent to do the business for
you unless you could find a man who
would look up good security for your
money, and do the business for fun?
Under such laws the foreign capitalist
will not only refuse to send his money
placed reach maturity will refuse to re-
new, and instruct his Western agent to
collect at once. Then the panic will
begin. There will not be sufficient
local money to meet the demand;
foreclosures will take place, and the
rates OF interest will rapidly advance,
If you want money to flow into Mime
sofa and become abundant and cheap,
do as they did in the good old state of
Massachusetts. viz: Abolish all re-
strictions calculated to interfere with
the flow of money. In that state mo
greater rate of interest can be collected
by law, unless so stated in writing" If
a man agrees to pay in writing, a stipu-
lated price for the money, he is COM
pei ed to live up to his contract just the
san as though he was buying a load Of
potatoes or any other commodity.
This law has made loaning of money
absolutely safe in Massachusetts, and
so abundant the rates of interest
on both real and personal property are
lower than in any other state in the
Union. Only few days since. III. E.
Laid, prominent real estate man in
Minneapolis, told the writer that hun
dredS OF thousands of dollars in the
! East intended for Western loans. was
being held back on account of the dan
gerous usury bills now pending before
the present session of our legislature.
Abolish all usury laws in Minnesota
at once, and you will be astonished to
see how rapidly outside money will flow
into the state, and the rates of interest
decline. JAMES II. PoTTLE.
Minneapolis, Feb. 81.