Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-09-26
LEGAL INTEREST.
THE LATE AMENDMENT PART OF
THE ORGANIC LAW.
It IL SelfExecutinG and Is Therefore in
Full Force and Efect-Judge Fur
man on the Subject
To the Gazette.

| tional amendment upon the subject of in.
| terest, recently adopted, takes effect. Some
| think that legislation will be required to
| put the amendment into operation, while
| others hold that it is already in full force
| and effect.
In seeking solution of this question i.
is unnecessary to enter the realms of specu-
lation, or to discuss the differences between
self-eXecuting provisions in a constitution,
and those provisions which are not SELF
executing; for we have decision of the su-
preme court of Texas, which is directly in
point, deciding that similar provision in
the constitution of 1876, as originally
adopted was in force without legislation,
and that contracts for a greater rate of in
terest than that permitted by the constitu-
tion. which were made after its adoption.
and before there was any legislation upon
the subject, were void as to interest. 100
Tex 536)
For the benefit of such of your readers as
are not lawyers and have not access TO the
books in which these matters are founds1
shall give brief history of our conSftu-
tional and statutory provisions relatHS~to
interest and usury, with the facts m the
case which ELECTED the above mentioned
opinion of the supreme court.
The constitution of 1869 abolished ALI
usury laws in this state, and expressly fgS
babe the legislature from making anNtaNs
lMiting parties to contracts in the &n6unt
Gs6f interest upon which they might agree
for loans of money. In the year 1879 a con-
yention, called for that purpose, framed a
new constitution, and provided, by or
dinance, that the constitution so framed
should be submitted to the people for adop-
ton or rejection at a general election to be
held in the month of February, 1876, with
the further provision that if a majority of
ali the votes cast at said election should be
in favor of ratification, then the new con-
stitution should. on the third Tuesday in
April OF the same year, become and there
after be the organic and fundamental law
of the state This election was held and
the constitution adopted. One of its pro-
visions was as follows: THE legal rate of
interest shall not exceed per cent per an,
nun in the absence of any contract as to
rate of interest: and by contract parties
may agree upon any rate not to exceed II
per cent per annum. All interest charged
above this last named rate shall be deemed
usurious, and the legislature shall, at its
first session, provide appropriate pains and
penalties to prevent and punish uSury."
On the 2lst day of August, 1876, the legis-
l9ture enacted law providing pains and
penalties to prevent and punish usury. On
the 9th day OF May in the same year, after
the adoption of the constitution, but before
any legislation on the subject of usury, w.
borrowed a sum of money from A, for
which he agreed to pay interest at the rate
s6f IS per cent per annum. giving his note
therefor. The result OF this contract was
lawsuit which eventually found its way to
the supreme court, and in the final adjudi-
cation thereof Chief Justice Gould used
this language: ''In our opinion A. occupies
no more favorable position than if his loan
had been made after the act of the legisla-
ture took effect. When his loan was made
usury was illegal by virtue of the constitu-
tional prohibition and although 1t was left
to the legislature to prescribe pains and
penalties to prevent and punish usury,' a
contract for uSuriouS interest was a con-
tract in violation of law
Now let US apply this to the amendment.
The constitution itself provides that amend
ments thereto may be proposed by the
legislature and voted upon by the people;
that returns shall be made to the secretary
of state, and if it shall appear from said re-
turns that majority Of the votes cast have
been cast in favor of any amendment, tine
said amendment so receiving majority of
the votes cast shall become part of the
constitution, and proclamation shall be
made by the governor thereof.
The legislature at its last session pro-
posed, among other amendments to the con-
stitution, the following: GAN contracts for
a greater rate of interest than 10 per-
centum per annum shall be deemed usuri-
Gus, and the first legislature after this
amendment is adopted shall provide appro-
pirate pains and penalties to prevent thes'
same; but when no rate of interest is
agreed upon, the rate shall not exceed
percentum per annum."
This amendment was submitted to the
voters of Texas at general election held
on the 10th day of August last. On the
22d day of this month his excellency, Gov
ernor J. S. Hogg, issued a proclamation de-
claring that majority Of the votes cast at
said election had been cast in favor of said
amendment, and that said amendment had
become part of the constitution Of the
state of Texas.
This amendment now being a part of the
constitution and the supreme court having
decided that such 4 constitutional provision
is self-eXecuting, there can be no question
but that its provisions are in full force and
effect at this time. SAM FURMAN.
Fort Worth, September 25, 1891.