The Montgomery advertiser. [volume] (Montgomery, Ala.) 1885-1982, 1907-05-18
Letters to The Editor
THE MONEY LENDERS Law.
Some More Important Light On the
Matter.

Matter.
Editor The Advertiser:
A good deal has been said and pub
iished recently adversely to the pro-
visions in the revenue bill enacted py
the present legislature in regard TO
foreign money lenders doing business
in this state. A careful consideration
of the paragraph in the same Dill IN
reference to home money lenders Will
disclose the fact that much more
serious mistake has been made In this
particular
have no disposition to untustly
criticise the legislature for such ms
takes, because / am well aware Una.
it frequently happens that Dill o.
this kind is hurriedly prepared ana
hastily passed in the rush of the clos
ing days of the legislature, and IN the
multiplicity of matters many thousn nj
full members do not have time TO carr
fully read and digest all OF the pro-
visions of such bill
In the hope, however, that the at
tention of the legislature being caleo
to this provision they will SO an, amen a
the law as to let it remain like II
was in the old law, / submit the fol-
lowing:
Section 0 of An Act entitled An Act
to further regulate the revenue nr iaws
March Z. 1907, provides that every
person firm or corporation engaged
in the business of lending money snali
pay an annual license of one hundrea
dollars" Each county, Of course, win
collect an additional fifty dollars
which will make this license, annually,
one hundred and fifty dollars.
Referring to an act similarly wora,
ed Judge stone says. The term
business, as here used, is the synonym
of employment, signifying that when
occupies the time, attention ana iaooi
of men for the purpose or liVelihoou
or profit" and many decisions of our
court follow this Interpretation; ana
while one solitary act probably Woulo
not constitute what Is UNDERSTOOD oy
the term engaging in the business,
two or three or several continuous
acts might and probably would be con-
strued as engaging in the business,
And this would apply 10 person u
small means who might possibly nave
one or two or three thousand dollars 10
Ioar as we'll as to those who are weolthy
and have many thousands to loan Inc
Inequality of the tax is enough 10 con-
denim II if nothing more; put the taA'
Won will observe at once Is very pur-
yensome to person, a man or widow
who has only few thousand ooliars
to loan; for instance, WluoW VIM
has received, say two thousand ooI-
lars on a life insurance policy at the
death of her husband. desires to lend
II out, and does so in small amounts
of three or four or five hundred dol-
lars as the opportunity presents ilse!l'
and receives therefor tne ieSal ;n
lending out the entire two tnousanu
dollars, and had to pay me daga ilee sSe
of one hundred and fifty dollars sho
would receive net for the loan OF ne
lars, or one half of one per cent IN
terest This license, therefore. TOT
those who have small amounts TO loah'
is practically prohtbitiVe
uuires guardians of minors who nave
money to lend it ON good security
either a mortgage on real estate OF On
note with two good surltles. suaro
| to do this-he is required by the law
| to do it-and yet. there Is no proVIs-
! ion whereby he can reimburse hih
self for the one hundred and 1llty uoi-
lars that he would have to pay to en-
gage in the business: and II there was
| such a provision. would 1t not pc
| hardship on the minor, many OF WhoHl
have only a small amounr-a few thou-
But, perhaps, the most serious re-
suits following this enactment VIII
fall on the innocent and unsuspectlng,
who. If they engage In the business as SIS % %
| ing the license. will violate the crlnl-
/ nal statute Sec. 5467 of the criminal
| Code, and the transaction VIII be abso-
! lutely void and they cannot even COZ
! loaned This suggestion needs not l"
| be elaborated foP the most optuse 10
| SOC what pernicious results Will Iol'
low, and what hardships and lnJustice
/ might come upon those VINO IN Boou
| faith had loaned, perhaps all theH
| earnings of a lifetime. , ...,
Moreover as soon as people wnU
have surplus money to ioan learn ,,' o.
! the Insecurity of engaging in lehdlhe
their money, they Will noid II, AND
| money persons who would like to Dor
row money to help them carry on iheiI
| business. or to buy a farm, or to build
IN Industries, or for other legltimate
purposes or to pay off mortgages al
| ready on their homes. will find 1t a
very difficult undertaking-for money
is exceedingly sensitive ana easily
seeks a hiding place; ana banks VIII
not make long time loans.
There is hardly an advancing mer-
chant in this State that Is not engag-
ed in the business of lendlng moneyL
they lend some money to practically
/ every customer they have; and some
times. not infrequently, they lend mon
ey in largo amounts to their custom
crs with which to buy land, pay on
mortgage Indebtedness to others, ano
for various and sundry purposes me
| large majority of owners OF FARMING
| lands in this State are necessarily Ell
gagged in the business of lending mon
ey from month to month all through
| the year to their tenants. Every sue
cessful business man who has saved
| some money would like to nave the
privilege of lending it as he sees op,
| portunity to do so. Many widows whc
| receive perhaps, a few thousand dol
lars from a husbands life Insurance.
policy, to keep from wasting the 1T
tie substance. most invariably seeA