The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1910-04-19


that money is a commodity and that
its value for its use Is based upon
the law OF supply and demand.
Much can be said in favor OF these
arguments, but we must view this
question, as we should view all ques-
tions, in the light Of all citizens in
terested; in the light Of its effect
upon society and the future interest
for the common good and public veal.
II may be stated as tfuism that no
country can prosper without homes;
that no man owning home and orce
pawning 1t for money can retain it long
ncr can any homeless man buy one,
when the rates Of interest upon me
value of such home exceed It's rental
value in the open market The home
/ less could never make purchase ana
the owner or a home would eventual.
I ly lose 1t. We have but to delve into
the social conditions or Continental
< Europe to prove this Compare the
rich states on the Rhine, where rs.
ury is so great as to cause the loss
o. the rich homes, the richest in The
Empire with the little countries OF
denmark and Belgium, where ninety
per cent Of the farmers own their
own homes, due to the assistance OF
the government by providing cooper
alive provisions to assist them IN
time OF need. and where the farmers
md along with them the professional
and business men, are In the happ,cst
and most prosperous condition OF
any people in Continental Europe.
4 Whereas, the farmers on the rich
lands along the Rhine in Germany
4 are in abject poverty and misery
and in their wild effort to tear away
; from such conditions turn naturally
toward socialism and nihilism, threat
ening every strata OF society and
vested interest in the Empire. II may
be pointed out that such conditions
do not exist in Oklahoma, and In a
great portion OF the state | admit
that this Is true. But | do know OF
loans during the past twelve months
exceeding 800 in amount where the
rates OF interest, upon six months
time, exceed ninety-one per cent per
annum 1t may be urged with toler,
able force the necessity Of the invlol'
ability Of contract, and unmistakably
this Is the strongest argument pos
sible TO be made by those opposed
to such legislation. But let me point
out that every political economist,
from Ricardo, and Adam Smiths
Wealth of Nations" down to the
present time. and every school OF po'
litical economy, sustains usury laws,
and that every state in the Union
except three, have enactments gov.
erning usury. The question might be
asked why should political econo
mists sustain this doctrine? The an.
swer Is wrapped up in the following
Illustration; Suppose period when
times are good: general prosperity
among all; production is ample;
wages are sufficient: money and IN
vestment reaps profitable reward;
the farmer sells bushel OF wheat fol-
a dollar, or a bale of cotton for ter
cents a pound the laborer earns two
dollars a day; the banker gets eigh-
teen per cent interest. Everybody is
satisfied, no one is hurt even though
the rate Is above the limit. But a
panic comes. Cor a National Holiday
II you please): the laborer and the
farmer have borrowed money of the
banker, have executed note promis
ing to pay eighteen per cent, a sat
isfactory rate to the lender, the lab
orer goes back to the workshop and
is told that crisis is upon us and
a dollar a day is all that can be paid
He is obliged TO accept it. The farm
er Is told that panic has struck the
country your wheat Is only worth
fifty cents, your cotton five cents, be
cause wages have gone down and the
HliNt vi NOuA plNhuAto must liittN INV
conditions. The notes OF the farmer
and laborer become due; they go tc
the bank and ask For an extension
The banker says a panic & upon us
the rate Of interest Is now nine pei
cent-not much He says the rate
must be higher, Notwithstanding II
requires two bushels of wheat, two
days labor. or two bales of cotton
to earn the same rate that one days
work, one bale Of cotton or one bu
shell of wheat would have paid be
fore. Here Is where the condition
does not equalize itself, and here Is
where the statesman or law givei
must look at both sides Of the ques
tion to meet the needs and wants Of
the people and not permit in the
name of sacred contract" the taki"e
OF all the property, Including Inc
home OF the laborer and farmer ol
other borrower. This is why all poll
tical economists uphold such .eg'5la
tion, and but for these panics and
financial crises oft.umes inaugural
ed by the monied interests ihem
selves in order 10 bring about JUS
such conditions. Here is the argumcn
and the necessity for usury lcgisla
ton. There is another phase o Tn,
question A trust company having tcl
It's business the loaning Of money OF