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

borne in mind that as their business
increases so do their expenses; and
since the foolish liberality Of banks
in eliminating charges of exchange
has caused the entire profits to de-
pend upon interest, even the bank of
$50 10000 capital viii have close
squeak to make both ends meet
Section of article "a OF the CON
stitution is sabiect to change by the
legislature Until the small banks Of
Oktlhoma, which constitute three
foufths OF all the banks, become
much stronger than they ara today
that section should be reduced only to
providing penalty Of forfeiture OF
the interest. Even this is not wise at
the present time.
Usury is a relative term. What is
usUry in one place is a reasonable
and proper charge in another. Or
iginally the word "usury' meant
any premium paid or stipulated TO be
paid for the use of money, and bore
no stigma whatever On the contrary
the Bible speaks of the Just masters
dealings with three of his servants
TO whom he entrusted certain talents.
To one OF them he said Math. NXV.
i27l Thou ougLtest. therefore, 10
have put my money to the exchanges,
and then at my coming should have
received mine own with usury. The
secondary definition OF usury came TO
be Amy premium in excess of the
rate established or permitted by law,
which varies locally" The real mean
ing Of the term "usury," as determin-
ied by tie practice between man and
man IN every state in this country,
us 'En excessive or mordinate pre-
lmium paid Or stipulated 10 be paid
Tor the use Of money borrowed. =
lTms. while in some communities ?
lper cent per month upon small loans
1 is cheorlully paid by the borrowers.
oniy demanded by the lender because
lha cannot do the business for a less
rate and i've, and the loan Is just
land beneficial, so in other communi-
tiles wnero banks deal in thousands
land millions Instead of in less than
hundreds seven per cent rate would
/ BE- usrrious because greater than q
reasonable profit
III the last above statement, | have
given extremes. and yet, ] have stated
an incontroverdble fact, upon recogni-
liion OF which IS based the life of one
half OF the state banks cf Oklahoma
Pass your criminal penalties against
banks: pass your provisions which
practically convict the banker before
lhe has an opportunity to be tried be
fore the court and jury, and you Will
liust as certainly strike down these
banks and put them out of existence
las though yru blew up their vaults
and their officers with dynamite. j
does seem that The legislature Of Okla
lhon,s should take prids in conserving
land LNildine W the state banks. AS
Ia democrat ! desDe to exalt tile state
lShnll it he said that a democratic legis
latlre has stricken down the state
banksI Is democratic Legislature
lrcadv tc shGmStize It's own bankers
as criminals for making contracts IL
the regular course of business whlcl
contracts ere as beneficial TO the boz
rawsr as they are TO the lender
VIM a demoCratic Legislature enact
law which is a bid TO shyster lawyer
to bring suits against banks2 Wil
IL write Itself down as inimical to tn
continued prosperity of the s.ate2
/ do not believe It,
Il it is hWe that I'm the state o
lOklahoma there are money lender
who are charging extortionats rate
o, interest upon PLEDGES and chattlei
then let tie legislature pass sectio
OF the law preventing such extortio
aul FIXING 2 penalty therefor. tn
definition cf ;he term "extortiOn," ca
therein be made the rate 1f per cen
, lpe- month. or over. of IL upon care
!, llnl examination OF the business @
! the smaller banks. 1t can be iustl
fixed at - per cent per month, L
: that be the sum provided such
lprDvision as this could easily
, lamended IN the future II Il was fOun
ina. u did not anord sufficient pr
ltection HI SO far as large banks al
r concerned none OF this regulation
lof any Importance because their rat'
can easily be kept within 10 per cen
and as 90 the smaller banks vii
very few exceptions, inyestigatio
which can readily be institute
through the state departments
Guthrie. viii demonstrate the conte
tian male IN this article that. as
ride. banks only charge such rat
as are essential 20 their continuani
in the business. IN other words, SUI
rates as Hlll pay the expenses Of q
institution and a reasonable return
tie capital stock