The Birmingham age-herald., 1903-11-07
LETTERS TO EDITOR.
Money Lenders.

To the Editor of the Age-Herald:
 Your recent editorial on Money Sharks in Tennessee" provokes a few observa- tions.
 An investigation of the business of one of the Chattanooga concerns dealing In small loans, made by the writer not very long ago, showed that the interest charged was about TOO per cent per annum. It Is probable that like rates are charged here on the same kind of loans, which were se- cured by deed of trust on personal prop erty, but they may be lower.
 Now, the Age-Herald advises borrowers who have been charged usurious rates to fight for the legal rate. This may possibly help some persons who have obtained loans, but what effect would it have on those who may need loans in future? Is it expected that the legislature will by law compel the money lenders to put out their money at a prescribed rate? This is, of course, totally impracticable. But the al- ternative course of putting an end to the business entirely--is this going to help the borrower?
 If the thoughtful men in Chattanooga and Atlanta who are endeavoring to find some remedy for the evil" have any think ing facilities at all adequate to deal with this problem they will not take much time before concluding that the present repres- sive laws are entirely against the bor- rover. For instance: The high license to be paid by the money lenders-is 1t not certain that this is ultimately paid by the needy borrower?
 Again, consider the usury law. It pre- scribes the maximum rate of interest. But 1t compels no one to lend at that rate, not even the banks. In fact the poor person with his security can get nothing at the banks. He finds, in case of sickness or death in his family that no one Is will ing to lend him at the legal rate. So that he Is compelled to either dispose of his belongings at what they will bring at forced sale (which may be from one-tenth to one-quarter of their value), or to resort to the money lender. The latter charges him rate sufficient not only to cover the risk and cost of collecting, but the license fees and risk that Is created by the usury law.
 The law is as good to the borrower as the elephant, in the story, was 10 the or phaned cartridges. Having accidentally stepped upon the mother, he turned to the little ones in the nest, saying: Poor dears, will be mother to you" and sat upon the nest.
 The matter of usury laws was threshed out thorougly ages and ages ago Like most paternal legislation they do harm to the people they are intended to protect. In those countries and those states of the union where the penalties have been abol- ished no harm has resulted, but only good.
 "The thoughtful men" mentioned, if they will look about a little will easily find that a remedy for the evils in question has been found in many parts of the world. In this and many other countries there are institutions which provide loans for people In moderate circumstances at easy rates of interest They are properly organized under authority of law. man aged as well and on as large a scale as a national bank, they pay dividends to the proprietors, and constitute a remedy for our present system as perfect as can be expected from any human device. Very respectfully. CRAWFORD DOUGLASS.
 Birmingham. November 6. 1903.