Morris tribune., 1891-04-01
usurv Laws.

Is it not a fact that if the rate OF
interest fixed by usury law is less
than money will bring in other places
ON the same class of securities, it will
be removed to those places as soon as
possible? 1t seems so to us, and that
new money viii not come into the
country affected by such usury law
SO long as it can be loaned to better
advantage elsewhere.
Take the proposed usury bills IN
our legislature to-day. They provide
that if any more than certain rate is
taken by any agent or attorney or
other representative of the lender, the
whole amount of principal and inter
est is forfeited. 1t makes no differ
ence that the lender himself knows
nothing about the taking of more
than the legal rate-it makes no diff
erence that he pays his agents or at
torneys we'll for their services, and in
every way in his power guards against
the taking of more than the legal rate,
nevertheless, if any ofthe above named
persons takes from the borrower fee
or commission which, with the interest
agreed to be paid, amounts to more
than the prescribed rate, the lender,
who has not been in any way to blame,
loses the whole sum loaned, while the
borrower, who must have been know
ingly party to the wrong doing, is
rewarded by having his entire debt
Cancelled. Gould anything be more
unfair and wickedly unjust?
Wha, eastern man would send his
money out here 70 be loaned under
such 3 law? Would not any man OF
common sense rather lock his money
uD in the vaults, where it would at
least be safe, even il it brought him
nothing, than to send it to place
where he might be plundered in this
manner!
Such law offers bribe to the Dor
rover, amounting to the whole sun
loaned, to come in and swear that n
paid a commission over and abov'
the legal rate, when in fact he dit
nothing of the sort. He could concoc
a very plausible story. The agen
had insisted that he must have ten
twenty or fifty dollars extra, and tn
sum had been paid to him privatel..
in cash. As long as he could get one
man on a jury to believe this story tn
lender could never get a judgmen
against him.
But this is not all, or even the wors
of it. A dishonest agent could max
a business of inducing borrowers t
pay him large bonuses, on the agree
ment that he would furnish then
written evidence of the usury, so tina
whenever the lender should commenc
suit or foreclose the mortgage, tn
borrower could produce his receipt
or written evidence from the "gen'
shass;sssuttAsst the debt was usurous
and the note and mortgage therefor
void. And the lender, the only homes
and innocent person connected wit
the transaction, is the only perso
punished. The rascals rewarded, tn
honest, upright man punished! Wha
a delectable method this is to raise tn
credit of our state and people, and t.
induce outside people to send thei
money here. Are not men liable Ell
ough to err, without the state otferin
large bribes to induce them to tn
commission of rascality and perjury
We can readily conceive how me
whose credit and character are s
worthless they could not borrow
cent themselves, much less procure
for their neighbors, either at eigl
per cent or eighty, would vote Il
such bill, in order to deprive other
of chance to borrow money, but no
intelligent men of credit and chara
ter, and who have the interests of tt
stale at heart, can vote for bill
punish honest men and reward scoul
drels, passes comprehension.
We close this article by quoting IL
following remarks recently made /
"Sockless" Simpson, the Kansas AL
ance congressman, on the matter
interest T believe in interest. Whe
capital has been ssxmulated it is I
more than right that it should be q
4 lowed to earn an income by being pl
out at interest. The effect of usul
laws is oppressive to the debtor. L
a man make the best terms he ca
The moment you fix a maximum ra
you will put premium on extortio
for men will avoid such law if
stands in the way of a bargain the
want to make, and then the lend,
will always charge higher price f
his money on account of the risk
takes by his unlawful act"
p