St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1891-02-05
Draws Out Interesting Opin-
ions Of State and City
Bankers.
A Strong Protest Against a
Hampering Bill for
USupy.
Money Is a Commodity, Regu-
lated by the Supply and
Demand.
Legislative Committees Fur
nished Pointers by Lead
ing Finaneiers.

A large numOer OF the PROMINENT
bankers of the Twin Cities turned out
at the capitol last evening to discuss the
interest question before the banking
committees of the two houses. Senator
Leavitt, chairman of the senate commits
tee, acted as presiding officer, and Eric
Olson filled the position of secretary.
Capt, Peter Berkey, of the st. Paul Ma
tional bank, was the first speaker. In
his opinion money was simply COM
modify. and the interest depended en-
tirely upon the question OF supply and
demand, and the legislature would best
serve the interests of the people by
leaving the rate of interest just where
it is. If things are left unchanged, more
money will come into the state. and the
interior towns will be better supplied.
The rates in Minnesota are less than in
Iowa and Wisconsin.
Judge Fl. +. Wells, of Preston, was
next called for, and in brief speech
substantially concurred in the opinions
advanced by Capt. Berkey. In Fillmore
county m Oney is loaned at and even
per cent. The per cent rate is UNI
known in Fillmore. Il, was of the
opinion that the farmers in his section
ness men in the two cities. If any
changes were made it would increase
the hardShipS of the farmers.
E. w. Peet, the financial agent of st.
Paul, and who is recognized as one of
the most clear-headed financiers in the
Northwest, took the broad ground that
there should be no law regulating the
interest on money other than the nat
ural law of supply and demand. There
was just as much Justice in legiSlating
for the lender as the borrower, for the
simple reason that much OF the money
sent West represented the savings of
poor people in the East. These
people sent their money West because
they hoped to realize higher rate. of
interest than they could in the East.
commissions, and practically doing
away with middlemen. =.
EX-Congressman I'll. B. Strait, of the
Germania Bank of st. Paul, called at
tention to some of the points of differ
ence between the banking business in
the cities and the country. The rate is
higher in the country than in cities be-
cause the risk is greater.
Cashier Bailey, of the First National
Bank of st. Paul, agreed with the gem
tlemen who preceded him On that side
of the question. j
Senator La Due wanted to hear from
all parts of the state. and Mr.. Dayton. a
banker of Mobiles county. took the
floor. He was banker, miller and
farmer, and had occasion to borrow
money In all these capacities. He
found that the rate was steadily decreas-'
ing on farm property. -
Hon. III. G. Stivers, of Brainerd, took
the ground that reduction in the rate
of interest would practically prevent
the people in his section from securing
money.
President Joseph Jockey. of the Ma
onatGerman-Am came next with
a carefully prepared paper on the rates
of interest prevailing in the Canadian
provinces and in the states of the Union,
He found that in many of them the rate
was much higher than Minnesota.
EX-Public Examiner Knox, now presi-
dent Of the Security Bank of Minneapo-
lis, was called for. and made a clear
speech advocating the law of supply and
demand. He thought the rate of inter-
est depended in great measure upon
the character of the security. He made
the point that 1t was necessary to have
large sums from the East at certain sea-
sons, and that it was desirable that the
people who have money to loan in this
state be given high enough rate that
they would be induced to keep it in cir
eulatiOn.
E. j. Hodgson, of st. Paul, declared
that the loan agents of the state had
done great deal towards reducing the
rates of interest. He took the ground
that the only way to reduce the rates of
interest was by making money plentl-
full. ~.
Hon. Allen J.. Greer, of Wabasha.
county, expressed the opinion that it
was the confidence the lenders had in
the borrowers that regulated the rate OF
interest in his county.
Senator Keller talked about country
banks, leaving out real estate loans and
city banks. He wanted the farmers
and others to get together and talk over
this question. He narrated numerous
ways of evading usury laws, and
claimed that the best thing that could
be done was to leave the laws as they
are. He addressed a great part of his
speech to Mr.. Donnelly, and asked him
what kind of bill he proposed to intro
duce.
In response to calls Mr.. DonnelIy,,
took the floor, saying that he had come
to listen and not to talk, but he had not
learned much. He had been listening
to just such arguments for thirty years.
He denied that money was commodity.
Ii potatoes were too high everybody
could go to raising potatoes, but when
money was too high people could not
go to manufacturing it, He urged the
members of the legislature to stand by
the interest reduction bills, and leave
the consequences fall where they would.
He declared that the arguments ad-
dressed by the speakers who preceded
him were all 'bosh.''
The meeting then adjourned.