Daily capital journal. (Salem, Or.) 1896-1899, 1897-04-23
INTEREST
Agitates All the BimetaIIiCs.
Discussion Over the Legal Rate
Continues to Next Thursday.

Two weeks ago the Salem Bimetal
llic Union voted that the legal rate O
interest be fixed at FIVE per cent fat
A resolution had been introduced re
ducing the rate from eight per cent tC
six, and the special contract rate from
ten per cent to eight. This was
amended to read five per cent straight
and no contract rate.
Mr.. Hofer moved to reconsider the
action Of the union and argued that
a reduction Of two per cent from pres
ent rates was more just to all pa rites
interested than to change the rate
from eight and ten to five per cent
straight. He argued that the con-
tract rate was not a recognition Cf
usury but TO protect all classes in dis
tress, and persons making short
loans against exorbitaDt rates. II
there was no contract limit the very
class sought to be protected wO uld
suffer most without a legal restric-
tion. He thought reform measures
should not do injury by attempting
too much, and TO put the legal rate
down to five per cent would be TO pre-
vent any from making a loan at the
legal rate but those who had gilt edge
security, or those who would defy the
law.
d. e. Sherman argued that it was
the duty Of the club to declare what
IT believed was right regardless of
consequences. He was the author OF
the amendment to reduce the rate to
five per cent and believed it was all
anyone could pay.
r. p. Boise made an eloquent plea
for interest at five per cent. He ar
gued that interest should not be
higher than the earning power Of
property and business, but should be
below it. If farm earned six per
cent 1t could not afford to pay over
five per cent. If it earned three per
cent it could not pay over two and
one-half per cent. The Judge proved
that the earning power of property
was not equal to the present interest
burden and he favored even lower
rate than five per cent.
G.. A. Bach said the law could not
fix the rate of interest that was really
collected and he favored all people
keeping out Of debt as the best rem
edy for the interest question. He did
not believe in patchwork remedies.
John Bayne closed the debate. He
opposed reducing the rate Of interest
to the present level of prices and pres
ent earnings of property. These were
gold standaad times and If we ad-
justed interest to them there was no
use to ask for bimetallism.
A. w. Dennis made forcible argu-
ment for a conservative course and
thought reduction Of this percent
was all that could be secured at one
time. If we overreached there would
be reaction and the people would
not sustain it. One of the troubles
of reformers and reform parties was
that they undertook to much and lost
confidence.
He believed to restore bimetallism
would restore prices aud wages, and
the profits of business and farming |
would go up, and II we believe that
we should not recognize the present
low level of prices as fixed, and should |
not adjust interest to this level which |
was only temporary as blmetallism
was bound to come, Mr.. Dennis favored
A moderate reduction of interest TO
5he original terms of the resolution,
md locked horns in spirited manner
with Boise and Others.
The hour of adjournment arrived
before the debate ended and it was
'oted TO continue the discussion at
he next Thursday night meeting and
llso take up the question Of taxation.
There was good attend ance OF la
lies and gentleman OF all parties.