St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1891-03-20
LET,S BE CHEEREII.

1nere are two curious things about
the usury bill which seem TO have been
overlooked Ivy It's promoters and by
those whaye criticised and commented
on it.
The bill undertakes to protect limo
cent holders of negotiable paper trans
ferred TO them for value before matur-
ity from the pains ana penalties of any
usury which may have tainted 1t at It's
inception. But. under the decisions of
our supreme court, there can be no
such person as an innocent holder OF a
mortgage which mas once been tainted
in this way. In Minnesota a mortgage
is not negotiable instrument. 1t passes
from owner to owner subject to all the
defenses available against it when in the
hands of the original mortgagee The
note secured by il is negotiable, and, no
matter how illegal at the outset, is free
from all stain liz the hands of the guilt
less purchaser before maturity. But
tie mortgage can never be cured, no
matter who owns it. nder the DAVIS
law. and under our present law too. for
that matter, the holder of mortgage is
liable at any time to be robbed of his
security if it was gotten i'll the begin
mig by fraud or with usury. or in any
illegal manner. This Is really a terrible
state of affairs. and enc would think
that the Eastern capitalist would never
expose his money to such risk. But
he seems to have been willing Just The
same.
There are very few states in the
Mon where this difference is made be
tween note and a mortgage. and it is a
very foolish distinction. which does no
credit to courts holding it. But our
supreme court has gone even further
than this, and has held that promis-
sorry note. one OF the coupons of which
is past due and unpaid, is matured
paper, and that whoever buys 1t takes
ii snbject to ali defenses like the pur-
chaser of any past due commercial
paper This is opposed to the
view of most courts of last
resort, but it is the law in Minnesota
One would think 10 one would be will
Ing to bay prOmissory note with cOu-
pons attached which was more than six
months Old. Just see. All that two
dishonest people would have 10 do
would be to conspire together on this
wise. A could give b anote aud mort
gage on their face bearing per cent
interest. but really carrying p per cent.
b could hold the noie six months and
then sell ii with the first coupon unpaid
10 {. who knew nothing about the
usury. If undertook to fcrecose the
mortgage, \ could stop him. because
the mortgage would not be good on ac-
count of the Illegal interest in anybody's
hands. however innocent he might be-
Ii { undertook to sue on the note. \
could defeat him. because the note hay
ng passed TO him with the first coupon
past due and unpaid would be dishon-
0red paper, even if the principal note
was not to mature Tor five years. Iiav-
ING euchred { in this fashion. \ and Is
could then divide the swag
All these dreadful things could be
done under our present laws. This is
simply blOOd-curdling, and ii seems out
OF the question that any sane man
should have risked ANY of his capital in
Minnesota. \ good many intelligent
people have, Just the same.
The GLOBE commends this legal dis
QUESTION to the WIseacres who are in
such cold sweat over the DAVIS usury
bill. which has just passed the senate
The GLOBE is opposed to the bill for ii
good many reasons. But if it prevails
Minnesota can probably survive it. 1t
Will still be possible to borrow money on
good security. There is no Immediate
demand foi Mysteries or smelling salts.
The end is not yet.
1t does not pay 10 bc a prophet of evil.
Look at SIROCCo in the Merry Mon
arch" He caused very genial gentle
man no end of discomfort, and did not
have bit of a good time himself And
after all it turned out not to have been
necessary to pat the clock back. and
there was no funeral. That is the way
it is off the stage. Something always
happens to avert the Impending dis
aster. Most OF our bridges of sighs are
crossed before we get TO them.