Omaha daily bee., 1892-11-21


Tue wide difference in the laws Of the
various states in regard to rates of in
tcrcst md penalties for usury forms an
interesting aud curious study. The low
est legal ratio provided by any state or
territory is per cent. AID this is con.
iuod to the states of illinois and Louis
lana. Tho 6 per cent rate is the most
common and prevails in Arkansas, Con-
nccticut, Delaware, District of Column
ba, Indiana, Iudian Territory, Iowa,
Kansas, Kentucky, Miine, Maryland,
Massachusetts,, Michigan, Minnesota,
Missouri, Now Hampshire. New Jersey,
New Mexico, New York, North Caro-.
lima, Ohio, Pennsylvania, Rhode Island,
Tennessee, Texas, Vermont, Virginia
and West Virginia The per cent
rate Is found in Arizona, California,
Georgia, Nebraska, Nevada, North
DakotH, oklahoma, South Carolina,
South Dakota and Wisconsin. In
Alabama, Colorado, Florida and Oregon
s per cent is tho rule. 1t is rather odd
that no state in the union has selected
or II per cent, though 10 per cent is
the law in Montana, Utah and Washing
ton, while in Wyoming IL per cont is
the lawful rate.
No laws exist in the following named
states as TO the limit which parties may
agree to respecting the rate to be paid:
Arizona, California, Colorado, Con-
nccticut. Delaware, Maryland, Massa-
chusetts, Maine, Montana, Nevada
Rhode Island, Utah, Washington and
Arizona. In Idaho, Now Mexico, North
Dakota, Oklahoma and South Dakota
not moro than l. per ntmqy be agreed
to- Not more than 10 per cent may be
agreed to in Arkansas, District of Colum-
hia, Florida, Indian Territory, Kansas,
Minnesota, Mississippi, Nebraska, Ore
gon, South Carolina and Wisconsin,.
The 8 per cent limit is fixed in \ la
bama, Georgia, Indiana, Iowa, Louisi-
ana, Michigan, Missouri, North Caro-
lima and Ohio, whjle in Illinois tho
limit is per cent. Not to exceed 6 per
cent may be agreed to in Kcutucky,
New York, New Jersey, New Hamp.
shire, Pennsylvania, Tennessee, Ver-
mont, Virginia and West Virginia
In Connecticut not more than 6 pcr
cent Is allowed by the terms OF the law,
and yet no penalty is attached for its
violation. In a number OF states there
is no law prohibiting usury. In twelve
states tho penalty is the forfeiture of all
the interest, and in three, namely, New
York, Arkansas and Oregon, the pen-
atty Is tho forfeiture of both principal
and interest. In five states the contract
is forfeited, and in ten the interest
above the legal rate is null and void.
In three states, Nebraska, Iowa and
New Jersey, the interest and costs arc
forfeited for usury, and in Kansas and
New Hampshire respectively the for
feiture is double and thrice the excess of
interest. In Idaho alone is q usurer liza
BILE to arrest for misdemeanor
These examples afford evidence that
the people of the different states enter
tain widely different views concerning
the value OF money and the rela tions of
the borrower and lender. While il is
perhaps natural that ratios of interest
should be higher in the west than in the
east 1T Is hard to account for the differ
enccs that exist in states in which the
value of money cannot be supposed to
differ much if at all. Tho great vara-
tion in respect to usury is especially
curious and interesting.