The Caucasian. (Clinton, N.C.) 188?-1913, 1895-01-24
Tur SIX rrE CYST. INTEREST BILL.

The bill 10 regulate the rate OF IN
terest introduced by Senator Fowler,
of Sam pson, il one long looked for
by the wealth producers and burden
bearers Of North Carolina.
IL amend. the present statute
simply by fixing the rate OF interest
at five (JJ per cent. when there Is no
contract, out provides that the par
ties may contract for six 90 per cent.
The second section provides that
the statute cannot be avaded by pass
ing the u.urious note off but that the
tak-r OF such note can only recover
what the original holder could. The
Supreme Court has held that this IL
so under the present law, and that
the remedy of such holder who
transferred the note to HIM
for the interest, and who Is
more likely to be good for it than the
debtor. This section puts INTO PLAIN
words what the court has said Is
already the law in this respect. The
penalty for usury remains as now,
the forfeiture of the interest The
rate Of interest in the great and rich
States of New York, New Jersey,
Pennsylvania, and also in Delaware,
Maryland, Virginia and West Vir-
gina is restricted to six (6) per cent.
North Carolin people are not able to
pay more than the people of those
States. Six per cent. was the inter
est IN North Carolina up to after the
war, and has been so part of the
time since. The profits OF all legltl-
mate business is diminished, and
money should not be allowed to ex-
act unconscionable profits out OF the
needs Of the times. Many States fix
the rate at FIVE 90 per cent. in the
absence of contract. This bill while
doing the same, permits the parties to
contract for six. When our State -four
per cent. bonds, and the United
States bonds bearing three (3) PEI
sent, interest are above par, n stat
ute allowing person to exact dou
BILE three (O per cent. of his neigh
Dor for the use Of money is liberia
enough to the lender. All interes
is the creature of statute, for q
common law, as by the Levitical Law
no interest at all could be charged
1t is proper, therefore, that the Leg
islature should fix it at a rate whlcl
shows some mercy to the debtor Will
permitting the creditor to get doubl
what the government pays for tn
use Of money. AS in all such case
heretofore the lobbyists and the othe
agencies of the money lenders will b
pathetic in their statement of runnin
capital out of the State to the detr
mspt of the borrowers. 1t is only o
such biennial occasions that they dis
play any interest in the debtor class
But n 81, .(G) per cent. law is NJ
likely to run money out of Mort
Carolina into the six (G) per cen
States of New York, Pennsylvanl;
Virgins, Maryland, and othe1
naMed above, nor is it likely to G
elsewhere, nor will six co per cen
law run money into North Carolin
four (D per cent. bonds or int
United States three CD per cent
These and similar arguments al
'good enough Morgans If success
full to be laid aside to be used befol
the next Legislature. 1t should |
remembered that these intereste
lobbyists and agents of the none
lenders are not the men who electe
the members of this body. The Dor
and sinew of the State demand, r
CARELESS of party, return to the s.
CO. per cent. interest law of OF
fathers