The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1904-03-02
UsURERs HARD NIT.
Money Lenders May not Place Fic.
titious items in Their Contracts
for Purpose of Extorting Un-
lawful Interest.

bUt W PUo0 W 6AsVs 1aNS Ou
lawful Interest.
It seems that good deal of atten-
tion has been attracted recently to the
bill passed during the session Of the
Legislature just closed in regard to
| the regulating Of the amount of in
terest and expenses to be charged by
firms lending money in sums less
than twenty-five dollars, taking as
security household furniture or other
personal property. There has from
time to time been a good deal Of
complaint in reference to this mat
ter, it having been claimed that these
firms we're accustomed to lend small
amounts in sums ranging from three
to ten dollars, and so drawing the
papers as to evade the present State
law against usury. There have been
many instances told of where ignorant,
poor people have borrowed from these
firms, say three dollars, and after
having paid interest for several
months at the rate of five to six dol
lars Per month have in the end found
themselves greater in debt than in
the beginning, and not only lost the
original security, but also all the
money paid in by them from time to
time as interest on the amount bor-
rowed.
The need of some legislation to pre-
vent this excess interest, if it may be
so called, though a stronger name is
generally used, has long been felt.
Several bills aside from the general
State law have been framed from time
to time, but none of these have as
yet been able to prevent the evil, and
"loan firms have fourished up to
this time as the green Bay tree. Dur
ing the meeting of the Legislature
just closed Representative Huger
Sinkler, of Charleston county, intro
duced bill bearing on this matter,
and this bill passed the House and
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
great deal Of attention throughout
the State, and seems to be so framed
as to meet all of the present methods
used to evade the usuary law.
The bill, which is beginning to at
tract attention and is eliciting favora
BILE comment from the press, is in full
as follows:
A bill to regulate the giving of
security for loans under twenty-five
dollars, and the charges to be made
therefor
Section l. That it shall be unlawful
for the lender of money on mort
gage or bill of sale OF chattels, as
security for a loan, his agents en-
ployees, or any persons in his behalf,
where the sum loaned is under twenty
five 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 paprers be drawn
up and prepared by duly licensed
and practicing attorney at law. magis-
trate.or notary public not connected
in business with the lender, which
said officer so drawing saids papers
shall receive the whole amount so paid
by the borrower for the services so
rendered ana 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.
Section H. That it shall be unlaw
full for any lender, his agents or en-
ployees, or any person in his behalf,
as set forth in Section l hereof, to
charge any sum or sums for the eXami
nation of any property proposed to be
given as security for said loan, or for
any services whatsoever rendered in
the negotiating. making or affecting
of said lean, under whatsoever name
the same may be denominated.
Section g. 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 mortagage or bin of sale, as repre-
senting the Indebtedness of the mort
gagor or vendor, an amount in excess
of the actual amount of money receiv-
ed by the borrower.
Section f. All mortgages or bills of
sale hereafter given as security for
loans in or on which charges have been
made, or which on it's face shall show
an Indebtedness greater than the
amount actually received by the
borrower, in violation of the preced-
ing sections, shall be, and are hereby,
declared null, void and of no effect.
Section 5. This Act shall go into
effect Immediately upon its approval
by the Governor.