The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-04-25
INTEREST AND USURY.
1rdce Langley Defines Them in
Binnian's Case.
,ou. -. poRE GETS THE BENEFIT
Attack on Noney-Lenders-I
sgrner spriggs Gets No Reward
FRANKLIN Damage Suit.

-.syaad Dore won a victory ogrr
-, pInaIan In Judge Langiey's court
h...-aev. the court holding that a prom
-. rafs held By Binnian, bearing
szn+ a month interest, was an W
" -s.-stia contract. The action dates
$50, 60. ,sas.en.f,ar %. 1894, when Dore. who
- ,s.su IN tae midst o. mis- Boston frou-
= aDnsiea 70 the superior court Tor an
- "a restrain BinBian from seiiinB
1900 effects covered ~ mortgage
- n secure the note After hearing
- vssetraay the court dismissed
.s-rs.r.s cross-oomplsint for want OF
- and granted a perpetual injgne-
- sgsgrsf foreclosure OF the mortgage.
1870 in effect that where a contract
: ,,xsrious equity will allow only the
ssyzl rate Of interest
=, fArsober > fS.u D0re and Flora r
sstrAeia borrowed 800 Of Binnian. and
- saila terai security delivered 10 tls
faxa agent their pTomisSory note Tor w.
..xa5ie In thirty days. without grace
80 Interest a. per cent 4 month, pay
- snoufs,lv. and TO secure payment OF
a. rote they executed the cfattes mort
80 on this note they claim to have
- 81 while Einnlau, not denying the
.svynsnts. claimed = further amount OF
=. byfuxinx the interest ard principal
= .ss s.n0 note into the neigfrborhood OF
q. Ii a period Of about five years.
assgr the argument OF the motion TO
Assraiss the eross-compiaint and 20 grant
- fpfanct{0u Judge Langley said
aEqaity follows The law. bat equity
ri moi lend It's aid 10 the enforcement
- an tse0uffabla contract. Now. IS
,s.s bearing interest al B per cent a
,sssfs interest 70 be compounded Tnonth-
II making II in reality q per cent a
wear a conscionable contract. con
raj that equity VIII enforce? General
III contract Is 10 he judged by the court
hy is face. al money and investments
ara entitled 70 a reasonable gain, Tor
- use % money IS worth something.
a. the marty who has stored Il away
!. satlflef 70 a reasonable compensation.
y Tho case before the court the party
ssskea = business OF loaning money at
hlgh rate OF interest. and the contro-
.srsy throws ia back 20 the very origin
e usurv There is no usury law IN this
STATE IL there was net q disposition TO
EFFORT there would be no need ia this
world for laws regulating interest. but
g. the earliest times there was manifest
Il disposition 70 take an advantage OF
,hs borrower that became extoEtionate
snd outrageous. So It has happened
that usury has become n part OF the So
r,al conditions. and has manJ times
proved even a dlsturber Of government
IN this ncw country there was early
desire 10 get money. and there has al
ways been a disposition TO give a lair
aud reasonable compensation. In a con-
tract Of this nature the lender. IL he
ehooaes. can withhold tho money. but
the ease il otherwise with the borrower.
whose wants are known and who Ia
sense II az the mercy Of the lender. The
necessities Of the man are known TO the
lender. aud he puts down the screws on
the borrower and makes him submit 20
terms that he would not endure under
ordinary circumstances. The law, there
fore. Is Intended 20 protect the borrower.
on the Pacific coast the rate for. money
has been from 20 10 per cent, and on
the Atlantic about half as much. yet
as a matter Of fact II Is worth no more
here than there. our legislature fixed a
reasonable rate. first al 10 per cent. and
then al per cent. and while II has done
that. Il has so far refused TO gay that
more should not TIE given.
1T IS hard to determine the border
line between just compensation and ex-
tortlon. In some cases before me / have
refused 20 lend the aid OF equity 10 en-
force contracts for per cent a month
aud In others for per cent l could
see no reason why the rate should be
SO much higher than the legal rate. Now
court OF law viii give this party his
Judgment for the full amount OF his
claim. but I think that for a court OF
equity whose existence Is due TO a pol
icy Of relieving parties from the severity
81 an enforcement Of the letter of the
law. 4 would be a travesty 10 enforce a
contract for such demand IA this. It
f. not interest This is a penalty. The
point Of interest Is past when you get
beyond a reasonable compensation. But
this contract Is 20 be Judged from what
appears upon It's face. II shows that
what has been paid upon the note would
more than pay the principal and inter
est at a reasonable rate"
Blnnian's attorney refused 10 accept
the option OF 10 per cent on the note. 1t
appeared from the statement Of Fair
fields attorney that the sum paid exceed
81 By about SIS the amount Of the note
a. 30 per cent. and he suggested % the
court that his client was entitled 20 a
Judgment against Binnian The principal
witness for BiunIau was w. H. Reeves