The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1892-10-30

name and stigma, mingled with thu
hatred for themoney loaner and con
tempt for the jews still finds place il
many minds.
Whatever may be said of the oppres
sions q capital. comparatively few 81
the evils are In any way attributable t.
the money loaner. No business has beer
so hedged about as money lending
Competition among the money loanen
has reduced the rate of interest in thu
great money center of New York on first
class loans till the per cant. usury Law
is useless. The rate Of interest never wal
so low and usury laws have not fixet
this low rate. Usury laws have had
very little effect on rates OF interest
Severe usury laws have increased tn,
rate with the increased risk to the lender
while moderate changes have been effec
tive in lowering rates OF interest.
One might think from the crusade
against the Insurer that this is a new
question in the United States. Not so.
Nearly every state in the Union has
usnry law. Florida has repealed herr
and Colorado and Maine have none
Texas permits the highest rate by con
tract-12 per cent. per annum. Tel
states, Nebraska, Iowa, Minnesota, Mis-
souri,. Arkansas, Kansas, Oregon. Wis
consin, Mississippi and South Carolina
and the District of Columbia allow by
contract q rate as high as 10 per cent
per annum. In In diana, Illinois, Ohio
Louisiana, Alabama, North Carolina the
highest rate allowed by contract is
per cent. per annum. In New York,
Vermont, New Hampshire, Massa
chusetts, Connecticut, New Jersey
Pennsylvania, Delaware. Maryland
Kentucky. the Virginias and Tennessee
only 6 per cent. may be charged. Thu
legal rate OF interest, unless otherwise
named in the contract, Is in most of the
states, 8 per cent; in some per cent.
in few per cent, and IN Colorado IL
per cent.
The penalties for usury vary exceed
ingly. In many cases all interest Is for
feiled; in some cases the forfeiture Is
commensurate with the amount OF
usury sought to be charged; in Delaware
and Arkansas principal and interest Is
forfeited, and in Tennessee the entire
contract is void, but an action for the
debt may be maintained. Tennessee is
the only state making usury a INSIDE
meanor that we are aware of. 1t was
formerly so in New York and probably
other states.
The legal rate of interest in Kansas is
6 per cent. per annum, but 10 per cent.
may be expressly contracted for. Usury
forfeits the excess charged and sum to
be deducted from the principal and law
full interest equal to the usury. Thus a
charge of 20 per cent. would forfeit all
interest.
There is sufficient in what goes before
to indicate that the prejudice against
money loaniag as indicated by usury
legislation is general, and In this country
is not confined to locality or party. 1t is
peculiar to no section and in most cases
the severity of the legislation is all that
any reasonable anti-interest man could
ask.
1t may be objected that these laws are
not enforced. If not the man who pays
usury is to blame. 1t is true many men
who seek the money loaner, and solicit
him to make them the loan and agree to
a rate which the law calls usurious,
feel in honor bound to pay
the usury. The law cannot change this
feeling and If it prevents the borrower
from setting off his usury the law is not
the fault.
In conversation lately with a Peoples
party advocate we explained the usury
law of Kansas without telling him that
it was the law in this state. He pro-
it the laost just and equitable
law he had ever heard of. When told
that that was the law in this state and
so much complained of by his party, he
was frank to admit, after reading the
statute number of times to satisfy him.
self that he had not been imposed on,
that SO far as a usury law is concerned
Kansas has no cause of complaint. In
his opinion 10 per cent. is not too high a
rate of interest, but he had supposed
that any rats might be contracted for, 2
to per cent. per month, for example.
This is not written to defend the Kan
,as interest law nor in the interest of the
lsurer, but mainly to give certain facts
hat fair men may draw their own con-
!, lusions. Our opinion has of
course here and there cropped
cut but facts which are given as
We be believe, with substantial correct
ness, and we think will be useful to him
who will give them unprejudiced con-
'ideration.
Adding the significant fact that the
ate of interest in the east is about 4 per
,ent, being lower than any proposed
lsury law in any state, we may con-
dude.
/. That competition, demand and sup
by, reduction of the risk of loss to the
minimum, reduces interest, and not
lsury laws.
2. That usury laws have been product
We of little good, taken as whoie-rigid
lsury laws usually resulting in harm,
y lille moderate usurv legislation has
,een attended with better results.
3. That there is a misunderstanding,
.eal or pretended, which traces SO much
If the wealth of this country to the
money lender, when as matter of fact
a small number OF our
7ery rich men are in any way connected
with money lending.
4. That usury laws are as severe In
most of the states as the reasoning Pop
lists would ask.
8. That the prejudice against usury
comes not alone from the expressions
If the usurer," but from certain unrea-
onable antipathy To all interest On
money, intensified by religious and race
iatred carried forward through genera
lions without much reason, coupled with
he miscaIculations of the debtor visited
,n the head of the creditor.
6. That IN the present campaign The
Try against the usurer Is not with the
purpose of securing the enactment Of
lsury laws, but with q view of securing
;otes by appeals 10 prejudice and not to
eason, that the political fortunes Of Ger
ain selfish individuals may he advanced.
SUPPOSE
rom tbs Asch;xoa Chsrnpisn.
All who read Judge Horizons admir-
,bIe dedication address In tuesday,