The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1897-02-12
THEY DISCUSS INTEREST.
Senate Talks Awhile and Adjourns
for Populists to Caucus.

Senator Sheldon's interest bill, pro-
viding for reducing the rate of interest
on all bonds, notes or other instruments
of writing from 10 to per cent, and
making wholly void any bond, note or
other instrument on which greater
rate of interest than per cent was
agreed, came up for passage in the SEN
ate this morning. After a discussion
which lasted over an hour, the senate
adjourned until o'clock this afternoon
to permit the PopuliSt members to go
into a caucus at 2 o'clock for the con-
Sideration of the measure with a view
of arriving a t decision. The text book
bill, as arranged by the joint committee
was also brought up for discussion in
the caucus.
The opponents of the interest bill both
Populists and Republicans, hold section
of the measure to be the Objectionable
feature. The section reads as follows:
Any bond, BILL promissory note or
other instrument of writing for the pay
ment or forbearance of money shall be
wholly void whenever a greater rate of
interest than eight per cent per annum
shall be reserved or taken or agreed to
be reserved or taken for the loan or
forbearance of the sum specified in such
bond, bill, note or other instrument in
writing.
When the bill came up for third read
ing this morning, the author, Senator
Sheldon, offered an amendment to Sec. 3
which would cause it to further read
providing, that the principal of such
void bond, note or other instrument of
fund of the state" This amendment
was opposed by Senator Hessin, (Rep)
and Senator -Farrely. (Pop). both de-
claring that it provided for the forfeit
tlIre to the school fnnd sometime - +ba+
was previously stated to be void.
Senator Sheldon then offered as a
substitute for the first amendment an
amendment which would change the
section by striking out the word ''whoI-
ly'' and make it read shall be void as
to interest, and the principal forfeited
to the school fund" This amendment
was lost by a tie vote.
An amendment to substitute 40 per
cent in all places where % per cent
appeared in the bill was then intro
duced by Senator Lewelling. In sup
port of the amendment Senator Lupfer
said:
II hope that this amendment will
prevail 1t is not so much the rate of
interest that the people of the state OBJ
ject to as it is the system of usury."
Senator Sheldon opposed the amend
ment. He said:
In introducing this bill I do not de-
sire in any way to interfere with the
business of the legitimate banker. 1
introduced it as a measure that would
protect the people from that class of
men who are no better than highway
men. the usurers. L believe, however,
that a high rate of interest serves to
destroy the credit of a state, and that
a low rate of interest serves TO increase
it. Missouri gets along very well on
an per cent law, and there is no rea-
son why Kansas cannot do the same
Both Senator Farrely and Senator
Hessin also opposed the amendment,
taking the stand that the proposition
to increase the rate was made more for
the purpose of drawing members into
voting for the measure than for any
other reason. Both stated that they
would not support the bill while it car
ried with it the provisions of section g.
but that they were not in favor of in
crea Sine the rate of interest from to
10 per cent Senator Hessin said:
1T has been said that the penalty in
section 5 is sufficiently severe to prevent
usury but 1 wish to say that have never
seen a law and never expect to see law
that will prevent usury. l beg to differ
with any gentleman who holds that the
law now on our statute books is not in
sufficient. 1t is true that there has been
some trouble over the construction to be
court construed it, and we now know eX-
actly what it means. 1t is a law under
representative men. a debtor can secure
Judgment on a usurous contract"
Senator Householder favored the amend
ment. He said:
1.-The great contention against this
measure is that the penalty is too severe.
Gentlemen, no just man fears a penalty
no matter how severe it may be- don't
claim for moment that a severe penalty
will stop all violations. When this mat
senator from Leavenworth county re-
ferred to Antonio as more contemplate
that my heart goes not out so much for
Antonio for Antonios family, who
were bound with him in bond
Senator Lamb: Il wish to ask right
here if Antonio was married man.
Senator Householder: Il am speaking
of the Antonio in real life, the Antonios
of today"
on motion of Senator Lupfer the senate
then adjourned until o'clock.
The Populist senate as a whole will de-
eide in the caucus what action shall be
taken on the measure.