The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-02-25
WHAT OTHER PEOPLE THINK
"CaII" Loans.
~ ~ Tha Journal.

=
are several accounts Of the various cap
tains Of industry and in one OF them they
tell Of loaning money at from per cent
to 35 per cent on call. Now, will you
kindly explain what this means: If by
the day, month or year? Is 1T not usury,
and If it is, where are the laws of usury
and what becomes of the honorable meth
DDS Of commercial business?
Il. s. Information.
Six per cent is the legal rate Of inter-
est in New York state. except that where
written contracts are drawn; and it is
clearly satisfactory to both lender and
borrower, as high as IL per cent may be
charged. This has to do with loans in
the ordinary channels of trade and
finance. Call loans are something to be
considered aside from this Such loans
are made in the Wall street district In
New York, and are known as call loans
for the reason that they extend from day
to day only, and the lender may call them
in at his pleasure. The New York banks
usually have surplus sums lying In their
vaults. The amount varies at the close
Of business every day, and from one
season to another. One day large bank
may have some millions more Of surplus
cash than on another day. The banks
aim to keep their money employed to the
greatest possible extent consistent with
safety, hence gre willing to loan this
daily balance for short terms and at low
rates, that the money may be earning
than to let it lie idle. But they are not
willing to loan such balances for long
periods. as they cannot .fOresee. dra fits
upon them, or Withdrawals of deposits
may run heavy and they may need all the
surplus cash. Hence they offer this
money only to such borrowers as are will
ling to deposit securities for collateral.
and to borrow the money, subject to call,
or to renewal of loan at l p. m. every day,
at the option Of the lender. Such are call
loans. AS rule the banks offer money
freely and the> call loan rates are on the
average much lower than time rates, yet
varying daily and hourly according to
demand and supply. -'s
| When there is a great surplus Of money
! the rate often sinks as low as per cent.
In times Of great scarcity of money 1t
rises to the full legal rate above which
it does not nominally go. When money
| is scarce at the. full legal rate, then the
borrow ersE will often offer premiums for
loans Thirty five per cent: call money
| means that the borrower will have to pay
! G. per cent, but that to secure a loan he
will have to pay; such commission or
brokerage as will make it cost him at the
rate eof 35-per cent to carry the loan
This matter of brokerage or commission
is, of course, subterfuge. While lend:
:. er~may not charge above the legal rate
there is, it appears, nothing to proven,
him or his agent from accepting com
mission If there are several competing
to secure the loan.--Ed. Journal
The Soldiers Home and Pensions
To the Editor of The Journal
A. bill is now before the Minnesota leg
islature to allow all old soldiers who max
their home at the Minnehalla establish
ment run by the state to retain. the: pit
lance given by the general government t
those disabled by bullets or disease i
the service. supposedly in recognition Q
their, valiant services in time of war, owe
those who luckily came through service
without q scar or relic of some old expo
4 sureHthat has stuck to them. Now, Wha
bdid ssstl1e great state of Minnesota bull
that home for? Is it charity hospita
or monument to show that we do car
for our old veterans when they NEE
taxes for = now to support sue
) an institution? Has any one eve
: kicked as to the costs? No; W
want to show to our young men how thes
: great states do care for their veteran.
How much does the SO 900 or 81, 900 l1el
every month Of national bounty help? W
spend more every month on our reforma
tories. jails and prisons. Why not let til
) old soldier have his pittanee.z and let fl
: ture generations know that this state iii
: Enot "scrimp'' the old man. He likes
spend a. little when he goes up town. a
the bargain stores. What if he does ge
= Edrunk? He was sober enough when OF
t nation needed him badly in the civil wa;
: well remember in 1862 that men wei
Il scarce and Indians plenty in this neck
Il theswOOds, and now, when a man asks Il
( q pension he is made to run a, gauntl.
f composed Of ex-rebels and salaried per
. sion, examiners that call you down on tt
| slightest defect and we spend many thou
t sands to convict a poor innocent soldie
$ because he claims he was wounded {
: some night ride with no witnesses
0 hand. oh, these liberal pension laws al
t setting a great example to patriotism
the rising generation, and they will /
S more careful how they offer themselves
y the altar of patriotism. The Soldier
\ Home was intended as meeting place
$ old veterans. where they could go ar
:. receive the gratitude of state, instes
q of wandering around among the towns al
6 Cities waiting for a square meal he1
: and there-a good comfortable home f
them. where you and I know who ps
$ the taxes they are comfortably cared fc
n If they get any money from the outsid
- for heavens sake let them spend it
themselves If they wish to- They sure
: suffered in those dark days Of the wa
. without much to buy or spend and Il
parsimony- of some of the members of t
! Soldiers Home committee is. very tran
- parent and impecunious. I say let the
u have their money - !.
Past Captain J. c.. Rhodes. Jr..
- 3. 6. Merry Camp, No. s, S.. ", Stillwatt
- MINI.
y, Sons of Veterans.
To the Editor of The Journal:
= There is a matter that is interestil