The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-01-16
PROPOSED LEGISLATION.
FOR SECURING LOANS AND THE
COLLECTION OF DEBTS.
Some Timely Suggestions on the Inn
portant Subject-The Bill Extend
ing the Period of Redemption.
Salt Lake City. January Is.

Salt Lake City, January 10.
Editor Herald
1 notice that our present legislature
would seem, from the many bills of.
that character introduced, to be de-
sirous of in some way radically amend
ing or changing our laws for securing
loans and the collection of debts Such
legislation is usually the hand-malden
of hard times, and it is only when the
debts incurred without much thought
or hesitation during a, flush and pros
porous period begin to press somewhat
heavily upon the borrower, that he
too often. turns to the law-naKer with
a request that the government step in
and relieve him, indirectly, of por-
ton of the consequences Of his own
acts in assuming the obligations he
has done.
It is true that the sum of this worlds
happiness might be increased if we
were all to follow the Shakespearean
injunction, Neither a borrower or
lender be- but in these times of large
financial transactions, when in the
haste for wealth and accumulation Of
property the average man is not con-
tent to plod along with the aid of his
own capital, but desires to use that of
others to enlarge his business, we
must recognize the evil, if evil it be,
as a part of our business system Such
being the case, the banker and the
money-lender are essential elements
of the business world, and as citizens,
and in many cases our heaviest tax
payers, have the same right to the
protection of our lawmakers in franz
ing our laws and our courts in constru-
ing them as the money-borrower.
n no CT r;e,1o
have had in Utah bearing upon this
question has been friendly to
the owner of capital and not I'M
fair to the borrower. Here
in the west if we care to
do more than plod along at a slow
pace in the development of the many
resources of our territory, it is neces-
sary that we should have the use of
outside capital. All recognize this and
in order that the clear brain, the quick
eye and the Drawn of the hardy west
erner should obtain the greatest
amount of profit, it is essential that
the rate of interest should be made as
low as possible. Capital always seeks
the line of least resistance and flows
most readily to the localities where
the security being good the laws are
favorable. This, naturally, reduces the
rate of interest in that locality and
leaves it higher in others and in no
place is this more marked than be-
tween Utah and Idaho. The tendency
OIL legislation in our sister common
wealth, at least in the last few years,
has been to make more difficult the
collection of debts and as conse-
quence, rates of interest have ruled
hlgh,' While with our simple and effec-
tive laws upon this subject, the flow
or outside capital to our territory has
increased each year and rates of in
terest barring the past few months,
have gradually decreased. always be-
ing from to 3 per cent lower on the
average than in Idaho. This COMPARE
son may be odious, but the facts are
true.
AS [ have said, when hard times
strike us, then comes the attempt to
benefit, by legislation. the borrower AT
the expense of the lender 1t is true
that there are cases where in the
ldhdS Oh cruel and unscrupl1lous
onylock the law permitting a prompt
SAFE and realization upon the security
LOT deot may work a hardship upon
the borrower, but it is useless
10 attempt to frame a statute
lhat VIII operate to protect his fellow
man from the ravages of such a wolf
Inc community soon learns to know
MIN and he is Stunned by all as a pes-
ulence; But on the average, and in
TACT almost universally, there is a. for
Dearance upon the part of the holder
OF the securities when misfortune ar
lil-iuck overtake the borrower. The
aemagoue may howl different story
~ ms eiIorts to curry favor with the
oeptor class, but the average business
man will admit the truth of this.
| one of the bills pending before o,,,.
legislature proposes to give a redemp-
tlon period of two years after sale of
real estate on execution or under au-
ttnor1ty OF trust deed. The unoues-
llonaple erect of such a law, or even
ulle making the period one year, would
pc 20 keep capital out of our territory
With the present crowded condition If
our court calendar, it would mean.
should a judicial procedure be neces-
Sary, from two to almost four yea re
before the title could be acquired and
no lender would face such a. contin-
sency no matter what the security
oHered, unless, possibly, he might be
tempted by a. very high rate of inter-
est But this bill proposes to canal
lze this, and I presume benefit the
borrower, by giving him this right of
redemption, provided he paw 8 Der cent
per annum on the judgment sum. AT
this rate, should it become a. law the
borrower who went to redeem at the
END OF two years would probably. after
Lhe interest had been computed, ask
hereafter to be delivered from his fool
friends in the Legislature. If the au-
thor of the bill really desired to dis
tinguish himself as a friend of the
oppressed, why did he not 'let the tail
go with the hide" and make the rate
or = per cent and thus get in body
blow on the money power
One of the direct results of such a
/ q Wy &c hot kl1O
forced sales will be the lender; the
property will be bought at his own
price and deficiency judgment taken
for the balance to hang over the Dor
rover as a pail upon his energies and
a reflection upon his credit for years.
No investor will buy property at such
a sale knowing that he must wait one
to two years uncertain as to his owner
snip, unable to sell should opportunity
offer, and without even the possession
of the property and it's rental. There
are many other reasons that might be
urged against the advisability of such
| Legislation, but / would only ask our
| Legislature to consider well before TAX
ing these steps, or, in fact, in any way
disturbing our existing statutes upon
| these subjects. They have met the
requirements of the past, have unduly
oppressed no one and have given US
the benefit of an increased supply and
a reduction of rate upon outside cap
ital which our excellent credit has de-
served. Permit, gentlemen, the widest
possible latitude in these matters and
the right to make contracts as to Dor
rowing money to suit ourselves as we
do in other matters. In short, if we
must borrow, for Gods sake permit
us to do it in our own way and as
cheaply as possibls. D.
|