St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1891-03-04
SENATOR DEANS IDEA.

great success.
SENATOR DEANS IDEA.
Senator DEAN hit the nail good
rousing whack right on the head the
other day. when he suggested that the
best interest law which this state could
have would be one fixing the legal rate
at per cent and putting no limit on
the rate which could be contracted for
! There is no doubt at all about the power
OF the legislature to pass usury law,
and, If it wants to, it can make viola
tons of it punishable with death in
stead of fine and Imprisonment. as is
| proposed by Senate Files Nos and 315.
| 1T the enactment of such a law would
! help the poor of Minnesota. the
GLOBE would be in favor of it. 1t has
as much sympathy with the struggling
masses and as much concern about
| their progress as anybody. The great
mass of people i'll this state belong to
| the borrowing class. and this paper is
| jealous of their interests and fights Wig
orously for them. 1t does not believe
that they will be seriously hurt if the
bills Oh this subject before the mouse
and senate are passed, because it has
the profoundest confidence in the good
sense and honesty OF purpose of the
present legislature. But if Senator
DEANS idea could be crystallized into
law it would be so helpful to everybody
that the GLOBE is sorry to see the SEES
sion go by and sucii an opportunity lost
1t Is absolutely impossible for the leg
lsiature. however wise it may be, TO say
in general what is the lair price for
money. And while it can forbid mems
loaning at 4 higher rate than it sets, it
cannot for the life OF its members COM
pei them TO let their money go at that
Inquire. The use Of money has its value
determined partly by the amount of it
which IS seeking investment. and partly
by the character OF the security. AS
this state has gotten richer the normal
rate of interest has dropped without
legislative restriction. because people
have had it on hand in larger quaint
ties and have let it go at a smaller price
| rather than permit it to lie idle But i'll
times of crisis and loss of confidence, as
during last December. it disappears
capitalists would rather hoard it than
risk its safety for the conventional re-
turn. The only way in which they
can be tempted is by the prom
Use of large profits. If usu-
~ law could be passed strong
enough TO prevent violations of it.
the supply of money at such Il time
would stop. Why should a man loan
his accommodations in Minnesota for
per cent when he can telegraph them to
New York or Massachusetts and get 30
or - per cent for them OF giIt-edged Sc
| curitieS? There would be no sense in
| such course. If no one can get mora
than per cent for his money here. he
will send it i'll the evil day to places
where he can. No one could count the
| failures and disasters which would at
tenda state OF affairs where money was Of
| infinite value to borrower and he could
not have il because the law tied his
hands. Sooner than go TO destruction,
would he not burst his bonds?
But there is still another view. The
risks of new ente rpriSes in new c0un-
try like ours are very great, and people
who have money on them require COM
pensation in ratio with the chances of
loss. maximum rate of per cen
may be all right for advances on safe
securities. In normal times such secur-
tiles can be flOated even now. at much
lower rate than that. But have we
| reached such a pinnacle of complete
I ness that our vigorous citizens should
venture on 10 efforts which involve
more than an = per cent risk? The
GLOBE does not think so. Whoever
loans money on doubtful security is
more than a creditor. He is Jointly in
terested with the owner in his scheme
If 1t fails he will lose. not only his in
terest, but also his principal. II is en-
tirely fair that he should be compen-
stated for his anxiety and courage in the
size OF the return if the scheme
succeeds. The gambler gets high
profit because he may suffer crush
ing losses. Thousands of business
| enterprises in state like ours have lit
tie more outlook than the gamblers
plunge. But they pay in the long run.
They employ men. They bring in cap
ital. They subdue nature They di-
versify our industries. They create
activity. If they miScarry in the first
instance the permanent part of them is
not destroyed. 1t passes into the hands
of others on lower capt alization, is
utilized. and adds 10 the wealth and
! productivity Of the community. We
have to take great chances. To do 9th
| erWise is to stagnate And the iegis-
| lature is very Unwise if it DEGREES that
| nobody shall make move within cur
! borders, the uncertainty of the result of
| which is more than can be measured by
an per cent return in case of success.
There is lot OF vituperation flying
about the senate as to what his constlt-
uents would have done to the senator
from NicOllet county, or to the senator
| from Meeker county. or 70 the senator
from some other county, if he had
| spoken good sense on the stump and at
the hastings. The GLOBE believes that
all the people of this great common
wealth would have appla uded, and will
indorse by their votes men who have
bravery enough to support wise legisla-
ton If it did not believe this, il would
have no right 10 the name American.
Americans believe in the honesty and
intelligence Of the people.
I THE ELECTRIC SYSTEM.
In some of the Eastern cities contro-
vcrsy is waxing warm over the cues
ton whether the electric system of
street transit shall take fireplace Of the
horse cars. Even SO progressive a sheet
as the Springfield Republican is in
clined to stick to the quadruped. and
..,I-,,