Gloucester County Democrat. (Woodbury, N.J.) 1878-1932, 1899-03-23
To Raauca the interest Rats.

O ft&QUGo kH0 tnIGfGSG f1@tSa
House bill No. 16, which passed that
body and went to the Senate two weeks
ago, was considered in the Senate last
Thursday, and amendments calculated to
defeat it were voted down. The progress
of the bill is watched with much interest,
hence the arguments f II and against it will
be of general interest.
Senator Stokes offered an amendment to
make the legal rate four per cent. Presi-
dent Reed opposed the amendment, saying
it was simply intended to kill the bill.
Mr.. Stokes denied this, saying that if FIVE
per cent. was good thing, four per cent.
would be better.
Mr.. Reed spoke at length in reply. He
said you might as well say, speaking for
the lender, that if six per cent. were good
seven per cent was better. But the fact
was that the Senate was not legislatiDg
for either class but for the public at large.
1t was a question of the greatest good
for the greatest number and five per cent.
was the rate which seemed to conserve
the interests of ali the people best. Every
bank and every money lender was against
this bill. Government bonds sell as low
as threel per cent. and command pre-
MUM. The tendency is downward for
every one except the small borrower. The
claim that money would desert as if we
reduced the rate to five per cent. while
six per cent. rate prevails in New York
and Pennsylvania is q tallacy. Since
1858 Pennsylvania has had a six per cent.
rate, but history does not tell as that
money sought investment there to the de-
moralization of New Jersey while New
Jersey was charging seven per cent. The
fact is that capital will be sufficiently pro-
tected. The ones who need the protection
here asked are the farmers.
Mr.. Stokes-Wou't the Somerset farmers
prefer four per cent.
President Reed-Perhaps they would,
but it would be unfair to the lenders. We
are legislating for both classes. Rich men
now borrow at four and five per cent it
is only the middle class business man who
borrow from the banks that have to pay
six per cent Banks are paying big divi-
dends on their capital, the average earn
ing in the State being about ten per cent.
bank in my town pays Is per cent
Mr.. Stokes said this was on capital, not
on surplus, if there were such case.
MONEY THE POWER.
Mr.. McDermott said the banks were
amply protected at Washington. Money
was the power there. He referred to the
scandals attending United States Sena-
torial elections, abiding to the Ohio Leg
slature as for sale, the presence of thief
in the canvass before the Pennsylvania
Legislature, and the money influence in
California and Delaware The whole thing
was stencil in the nostrils of the honest
people of the nation and made it ques-
ton whether this popular government was
to be a failure The money power of the
country. if not of the world, is in the hands
of about twelve men. They can run the
price of money up from / to 100 per cent.
at will Legislation could not remedy the
matter it vas question simply of supply
and demand. Mr.. McDermott went into a
b story of the finance and usury laws dat
ing back to the middle ages, and wound up
by declaring that men would charge for
money what they could get. He did not
think the borrower would benefit with
per cent. rate of interest, but on the con-
rary would flnd it harder to borrow
money.
Mr.. Martin vigorously opposed the
amendment. He said the farmers carried
the burdens paying more taxes than any
other industry in the State. They were
not only forced to pay the six per cent,
but they also have to pay the taxes of
those who loan money to the country, He
knew of farms that would not sell tor the
amount of taxes. There was no demand
in the State for a four per cent, rate The
five per cent. interest bill does not protect
large borrowers but the small ones. the
poorer men. Six per cent. Interest for
large borrowers is a thing of the past
They seldom pay it, but the po,r man is
forced to pay it, The effect of the amend
ment would be to kill the bill.
PITNEY STANDS BY BANKS.
Mr.. Pituey said be had yet to hear the
6xst intimation that a reduction of the
rate of interest was desired He said he
believed the bill was presented in all SIN
cerity for The best interests of the people,
although it did not commend itself to his
judment as fully as some others. The
amendment is designed to improve the bill
After further remarks by Messrs Reed.
McDermott and others, the amendment
was defeated, 8 to II. as follows:
Ayes-Messrs. Evans, Francis, Huchin-
son, W NJ. Johnson, Ketcham, Pitney,
Smith and Stokes-S
Noes-Messrs. Barber, Braun, Cross, Fos-
Ter, Hand, Martin, Miller, Packer, Reed,
Stanger and Van CIeef-l1.
On Tueaday the bill was defeated to
10 Mr.. Stranger voted for 1t.