Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-07-25
Jeff Davis Would Compel
Loans Without Any Security.
DISTRICT BILL is UP
Discussed in Senate, But Is Displaced
by Unfinished Business.
IS OPPOSED BY MR.. HEPBURN
Declared to Go Beyond the Power of
Congress, in Some
Respects.

Senator JEFF Davis Of Arkansas told the
Senate today that a law ought to be pass
ed compelling men to loan money with
out security. The Senate was considering
a loan shark bill applying to the Dis
trict Of Columbia.
Il belong to the borrowing class" said
Senator Davis. What we want is not q
law regulating the rate Of interest. but a
law doing away with the security. Con-
gress ought to pass a law compelling
people who have money to loan 1t, but
without anything to compel the borrower
to pay it back"
The bill was finally displaced by the
unfinished business
Senator Curtis called UP the bill in the
midst OF morning business and unani-
nous consent was given for its consid-
GRAFTON. He EXPIRE sed tho opinion that
little time would be taken In Its constd-
GRAFTON. He expressed the opinion tina,
would be fulfilled until the voting on the
committee amendments began.
Started by Mr.. Hepburn.
1t was Senator Hepburn Of Idaho who
started the discussion.
This is not conservative legislation -
he began. 1T seems to go beyond the
power Of Congress in some respects.
"It is in the interest OF the banks and
had its inception there. They want
monopoly Of the business OF loaning
money in the District.
II have as much sympathy with the
weaklings that have to borrow money as
any one else. But how far the govern
ment can go Is a large question
Mr.. Hepburn called special attention to
the amendment just read, proposing to
reduce the amount Of money which can
be loaned at the rates fixed In the bill
IS per cent per annum-from $500 to 800.
The reduction was probably made. he
said because 500 represents about one
months pay, and 1t was not thought best
to allow the borrowing Of more than pay
for one month. He expressed doubt as
to the power of Congress to so limit the
amount OF the loans.
Calling attention to another amend
ment cutting the interest charge from
per cent per month to III per month,
Mr. Hepburn said he wondered if the
change was suggested by some bank.
Intended as Protective.
tinued, is intended as protective
measure for government employees. 1t
has not been suggested. he said, that
Ice men and others engaged in outside
business need the protection.
Under the civil service the govern
ment employees have the guarantee Of q
life job" he remarked, land they feel
justified in mortgaging that life tenure
to almost any limit. l am told that
some employees are mortgaged for year
that is, their salaries for a year. 1t
seems to me they should have guardian
instead of a government position"
Senator Curtis replied to Mr.. Hepburn
that the amendment was suggested in en-
tire good faith. After the committee had
decided that 1S per cent per year was q
proper rate OF interest, he explained. he
still thought the rate too high. and. in an
effort to prevent the charging Of such q
rate on all except small loans, proposed
the amendment cutting down the limit OF
loans from $500 to 500; and the amend
ment was adopted.
The discussion drifted into talk Of the
legal rate Of interest In the District. and
Senator Burton of Ohio read the law Of
1902 which fixed the legal rate at . per
cent, but which allows 10 per cent in
terest by contract. A charge of more
than that interest, the law specifies, shall
result in the forfeiture Of the entire in
terest
Senator McCumber wanted to know
why some persons should be allowed to
charge more than the amount fixed by
the present law. If 10 per cent is the
right charge, he declared, why allow
any one to charge more.
Senator Burton. in addition suggest
ed that the persons against whom COM
plant is made for charging as high
as 800 per cent can be reached by the
present law.
Senator Curtis pointed out how
ever. that the borrowers must go into
court to get relief under the present
law; and that the man who borrows
IS or $40 will not go into court
This bill is designed to protect those
who have to deal with men that charge
800 per cent or more as interest on small
loans" Senator Curtis demonstrated. 1T
is aimed at the persons living off the
misfortunes of the poor people of this
District
it is for the regulation of money lend
ers,' Senator jeff Davis of Arkansas re-
marked. Would il not be wise to cut out
the provision for security and compel the
fellow to loan money!"
Senator Heyburn's next move was that
the bill be returned to the Senate District
committee for further consideration. Mr.
Curtis expressed the hope that the mo-
ton would be voted down. Senator Page
agreed with Mr.. Curtis and limited that
Mr.. Hepburn was opposed to the bill, as
shown by his sending it to rule nine a few
days ago
Mr. Heyburn's reply was that the plac-
ing of the bill under rule TX did not harm
it's chances for consideration. He re-
marked that he had been held up by
terests of the District, because he had
asked that certain District bills be put
under rule TX. but he denied strenuously
his opposition