The Caucasian. (Clinton, N.C.) 188?-1913, 1895-01-31

the President announced the special
order" which was Senate bill ], To re-
restore the legal rate of interest TO six
per cent, with mendments--one
amendment by senator Moody, Of Hay
wood, making the legal rate SIX per
cent, with eight per cent. by special
contract. and making violation of
these provisions a misdemeanor. An
other amendment by senator Fowler
provided for making any violation Of
the six per cent. clause a misdemeanor.
senator Moody accepted Senator Fowl
er's amendment.
senator Adams congratulated the
senate that there We're times when
matters beyond the pale of partisan pol
itic- could be discussed. He objected
TO the amendment Of Senator Moody,
because he was of the opinion that the
penalty could not be enforced against
the national bankii. system, while it
probably could be enforced against a
private individual. He based his
opinion on a statute of the United
states which. by decision Of both the
United States Supreme Court and the
State Supreme Court provided that
national banks could not be reached
for violation of usury laws, unless such
laws We're enactmeDts by the United
states and not of the State. He did
not think that the bill before the Sem
ate could be made to reach national
bank if it carried the amendment of
senator Moody,
Senator Moody asked if national
bank officer who might violate the pro-
visions OF the bill could be reached as
an individual, even though he might
not be- reached as "a bank" or a national
bank officer!
Senator Adams thought the statute
referred to by him was for the prOtec-
tion Of the national banking system,
and that il could not be touched by the
course of procedure suggested by Sem
ator Moody.
Senator Sigmon asked.if the propos-
ed law would prevent the maker of a
note for 500 from receiving 800, also
the interest on the 500.
Senator dams said that a claim for
usury could be made under such cir
cumstances, and that double interest
could be collected from the lender by
suit for same.
Senator Moody was of the opinion
that some such Legislation as was pro-
posed by his amendment was necessa-
ry, for he believed that the law would
|
He wanted to make usury a crime, and
he hoped he could reach the individ-
uals of banks through his amendment.
Penalties amounted to nothing with
banks and "shaving shops They
completely ignored them; but when
you made usury a crimes disgrace, you
would be getting at the matter. In
doing this we will have carried out our
pledge to the people of North Carolina.
Any "cheap john bill, which did not
look toward accomplishing genuine
reform of the interest bill and inforc-
ing that reform, would disgrace this
Legislature in the eyes of any ;ntelli-
gent, thoughtful man. If the worst
came to the worst, he would vote for
the original bill: but it would not be
worth anything, and the bankers, the
"shaving shOps,' etc, would laugh at
it in their sleeves.
, Senator Carver agreed with Senator
Moody.
, Senator Fowler contended for some
provision which would make usHry a
a crime, for otherwise it would be no
, protection and of no benefit to the
small borrowers. Why should any one
, want mild penalty for violation of
the law? If a 6 per cent interest bill
be passed, it should be one which will
mean something, and one which will
be feared and respected and obeyed.
If nothing better could be had he
would support the original bill, but he
did not think it would be effective.
Senator McCaskey wanted to know
if the proposed law would reach a case
in which a premium had been agreed
npon for money loaned, in addition to
the rate of interest prescribed.
Senator MewbOrne did not think the
: discussion of penalties germane now
, We want a six per cent. bill. Lets get
that first. Certainly there are penalties
somewhere OH the books or can be put
there, and penalties should be attached
. to it, even though it required a ten day
= discussion to arrive at what it should
be.
Senator Marshall favored the origi-
nal bill.
!. Senator Sigmon said that money
: would always sell for what it was
! worth: when it was not in demand the
, , rate of interest would be cheap, and al
! the legislation enacted here would not
change those conditions. When we
trifle with money, we trifie with the
life of our country. Money is the thing
which concerns us more than any Other
\ one thing. He thought there was al
ready an effort at two much legal re-
: strictiOn concerning money.
u Senator Moody said he would be will
; ing to an amendment which would pro
vide that attorneys fees and al
other expenses should not exceed {
greater amount that the prescribed
y rate of interest. What he wanted wa:
to see these rascals who were oppress
in everybody and everything by mean:
y y of money behind prison bars.
. Senator Carver said that a suit t(
recover usury or to convict lender, Of
crime, would cost more than the inter
est or even the principal in man,
- cases.
:, The question on the adoption of th
u amendment of Senator Moody was pu
p. and lost.
Senator Cook offered an amendmen
providing that the legal rate of inter
- est shall be six per cent. for such tim
: as interest may accrue, and no more
:, that violation of this rate shall involv
~ forfeiture of the entire interest, an
)! that the party or corporation by WHOM
. a greater rate of interest has been pal
y. ~ may recover back twice the amount @
-, =, interest paid in an action for debt
" such action must be begun within tw
years after the payment of the indebt
sc edness; that in action to recover o.
:; such note the party against whom tn
10 action is brought may plead as coun
40 ter claim the penalty above provided
's viz, twice the amount of interest pai'
~ and also the forfeiture of the entir
~ interest.
VI Senator White, of Alexander, though
that the amendment of Senator Coo
~ was the proper solution of the who
n matter As soon as he heard it.
is thought:
Is This is the way long have sought,
l! Ard mourned because l found it not"
'.e IN Senator Rice thought, in view of tt
% amendments offered, that the matt
~ should be re referred to the cOmmittt
:. andImade that motion.
,S Senator Sigmon also favored a re-r
II" ference. He said it seemed to him