The Marlboro democrat. [volume] (Bennettsville, S.C.) 1882-1908, 1904-03-11
LAW AGAINST usuRERs.
The Legislature Has Passed Law
Against Small Money Lenders.

The Legislature Has Passed u Law
Against Small Money Lenders.
Small money lenders and the public
generally in this and other cities of
the State are interested in the bill
passed during the session Of the legis-
'lature just closed in regard to the
regulating of the amount Of interest
and expense to be charged by firms
lending -meney In sums of less than
twenty. I've dollars, taking as security
household furniture or other personal
property. There has from time to
time been a great deal OF complaining
in reference to this matter, it having
been claimed that these firms were
accustomed to lend small amounts in
sums ranging from three to ten dol
lars, and SO drawing the papers to
evade the present state law against
uSury.
There have been many instances
told of where ignorant people have
borrowed from these firms, say three
dollars, and after having paid inter
est for several mouths at the rate of
five to six dollars per month have in
the end found themselves greater in
debt than In the beginning, and not
only lost the original securities, but
also the money paid by them from
time to time as interest on the
amount borrowed.
The need Of some legislation to pre-
vent this excess interest, If it may be
so called, though stronger name is
generally used, has long been felt.
Several bills aside from the general
State law have becn framed from
time to time, but none of these have
as yet been able to prevent the evil,
aud loan firms" have llourished uI
to this time rs the green bay tree.
During the meeting Of the Legislature
just closed Representative Hugel
Slnkler Of Charleston county, intro.
duced bill bearing on this matter
and this bill passed the house and the
senate, and there seems to be no rea-
son to believe that the governor will
refuse to give it his approval when it
comes before him for his signature.
The bill itself is beginning to attract
a great deal of attention throughout
the State, and seems to he SO framed
as to meet all of the present methods
used to evade the usury law. The
bill which is beginning to attract at
tention and is elicitiHg f;iv0rd bic com
ment from the press, is in full as fol-
lows:
Section |. That it shall be unlaw-
full for the lender of money on a mort
gage or bill Of sale Of chattclS, as
security for a loan, his agents, en-
ployeeS, or any person in his behalf
where the sum loaned is under TWEEN.
ty-tive dollars to charge the borrower
with any sum, or sums Of money for
the drawing OF the mortgage, bill of
sale or any papers connected with
said loan, unless the said papers be
drawn up and prepared by a duly H.
cenSed and practicing attorney at law,
magistrate or notary public not con
nected in business with the lender,
which said officer SO drawing said
papers shall receive the whole amount
SO paid by the borrower for the serv-
ices SO rendered, and no part of said
fee shall be given by the said attorney
at law, magistrate or notary public,
to the lender, his agents. employees
Or any persons in his behalf
OCCUlOu - lidU III Stldll Uc u1ldW
ful for any person in his behalf, as
set forth In Section Eereof, to
charge any sum or sums for the ex-
animation of any property proposed to
be given as security for said loan, or
for any services whatsoever rendered
in the negotiating, making or effect
ing Of said loan, under whatsoever
name the same may be denomin ated
Section 3. That it shall be unlaw-
full for the lender of money as afore-
said, his agents. employees or any per-
son in his behalf, to have inserted in
his mortgage or bill of sale, as repre-
senting the Indebtedness OF the mort,
gage or vendor, an amount i'm exces,
of the actual amount of money re-
ceived by the borrower.
Section 4. All mortgages or bills
OF sale hereafter given as security fol
loans in or on which charges have
been made or which on its face Shal
show an Indebtedness greater than the
amount actually received by the Dor
rover in violation Of the preceding
sections, shall be, and are hereby, de
clared null, void and of no effect.
| Section .. This Act shall 20 int
effect Immediately upon its approva
by the governor.