The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1908-04-23

M A. A. Lesueur, Antlers, Oklahoma.)
No one thing has conduced more 10
rapid development OF the state of
lahoma than the small oans which
We been made by banks to farmers
zee its opening as a territory, not
outstanding the fact that these loans
We to very large extent been what
called usurious.
The borrowers Of this money have
most uniformly been thoroughly in
med as to the real rates of interest
y were paying, for the reason that
banker can afford to deceive his
stomer in this respect, and that
tn few exceptions the banker makes
/ ull explanation of the percentage Of
- crest on the loan and the rate of
crest per annum al the time the
.ntract is formed. SO that no subse-
eth complaint OF deception can lie,
such deception would H. major
of cases be discovered by the bor-
liver. which would make him dissat-
led with the bank
Every good banker. who has been IN
business for any length Of time,
n relate numerous instances OF
here his customers have come into
office. thanked him for the friend
% of the bank and assured him thal
for l. friendship and encourage
mi 1t would have been impossible
him TO reach the development OF
business which had been attained
a vet. persons who are ignorant o.
relations between the bank and
customer. on actuated by mfomd'
prejudice condemn the bank TOT
.eiving rates of interest which are
Derativelv necessary to it's conun
n existence.
rhat state is the best off which the
,st interferes with the natural laws
business and exchange.
rhe rate OF interest in community
largely governed by the communtN
elfl1 If the people appreciate inc
lue Of the bank, do all they can i'
eli It's deposits, and otherwise te
stain f. as Aank grows in vol
e ~ business voluntarily and
thout compulsi ., reduces the rate
interest. L.,
banks as rule. are saiished VIII
moderate recOmpense Tor the use oi
air money, though shareholders
erein. like other people, are deslrons
reasonable remuneration TOT ih'
OF their funds. The cases y
ieh banks declare unusual or ahhor
Il dividends are too rare to JUSTIN
Moderation in this argument Vers
perhcial examination wni conVln.'
fair minded person that TINS alie
ton is borne out by the facts. Most
when il has been urged II mas
.en thoughtlessly used or selilshN
Moved To make some ulteriOr point
rhe trouble about reaching lusl
fair conclusion as TO Legislation
on usury lies to a great extent v
fact that few legislators take tl'
{ ms TO investigate the subject by
actical demonstration, but are IN
4 enced BIZ misinformed prejudice.
rhere is In the general mind oil th'
hlic a nebulous idea that rates o
crest can be arbitrarily greatly re
ced below those which prevail an'
at some how or some other now th'
nks will manage TO survive max
N loans as their customers demand
otherwise transact the buGina
ieh is necessary 10 modern ne1a
little practical figuring viii snow
at this is so far from being tru.
II drastic usury laws are passed
solutely confning banks to the leea
~ nfract rate tens of thousands OF Ell
ms Of oklahoma will be deprived e
henedt OF making small loans y
of their business, and a very larg
mher eomparatiyely, of the bank
ich are now doing business IN I'M
tie will be compelled TO hquidate'
AS IL is. charging the rates OF II
est which now prevail banks Vt
hiking only fair returns upon lhei
,estment. after deducting the nece'
~ expenses of conducting then
sfh less rates of iraerest upon IN
me or anything like the same yo
al az business which they enlol
az cannot earn this reasonable i'
rhe man who nesds $500 or S20.V
thirty or sixty days may be gus
solvent and deserving OF TIC loa
~ the man who borrOws from S3,VV
Ss 000 or mere. Not only that Dl
Az 90 or $1,000 may be just q
.aratiyelv demanded for the success
bta husinees as the loan OF SSVVo !
ooo is ia tho man of greater mean
,a vet $500 at ten per cent l'
IN days amounts 10 twenty-i'
MS. which win not justify the pll pan
eranting the accommodation y
le is not to make a note OF any hil
less fhan dollar and 1t Is sa
Factory and rarely complained
casionally. where a sum as smah I
~ Isl needed for few days, 70
nix will make the note for flty cenl
,ich barel-, covers the clerical WOl
cldept 10 the numerous times II mu
entered aud attended 70. And y
ese and other similar small tran
lions. under one hundred doilai
bich constitute the major part
q business of small banks. are spo
of as usmious Too many peop
alre The average amount IN bai
ms in the thousands when the ia
that they are in the hundreds