The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1930-05-16
Bv III. l.. MAURY

BY ID. IL. MAUKY
There is noticeable in the daily
press a very agonizing cry that
the state will soon be ruined, if
payments for compensation to in
jured wOrkmen and to widows and
children Of workmen killed in SER
vice be made interest-bearing by
law. Never before have the peo-
pie of Montana had the disastrous
effects of paying excessive inter-
est brought to their attention in
such lurid light. One would think
that nothing had been said on this
subject before in the history OF
the world: that the taking of the
widows cow to pledge had not
been previously criticized by a GER
tain Mr.. Malachi, in Palestine,
some $500 years ago.
1t depends somewhat in these
matters on whose OK is gored. In
the proposed law the rate of in
terest which will be charged on
deferred payments of compensa-
ton if the law is enacted by the
voters, in Montana, is only 5 per
cent per annum. Curiosity asks
how this rate would compare with
the general ideas of the people of
the United States on the subject.
The Legal Rate
The ordinary legal rate in Mon
tana is 8 per cent per annum and
one naturally wonders how that
rate which working men pay when
they borrow money (unless they
pay more) compares with the rates
of interest in other states. An ex-
animation of the rates of interest
in other states shows two things:
0) that the usual legal rate of
interest in Montana is as high as
any state in the Union and higher
than all except seven states, ~
the other interesting fact, that the
people advocating interest on de-
ferred payments to workmen at a
rate of only per cent per annum
are somewhat modest in behalf of
the workingmen who are crippled
and the families of those that are
killed in service. Only three of the
states have as low legal rate of
interest as 5 per cent and not a
single one has a rate of interest
lower than per cent per annum.
Table of Interest,
The table of interest rates
might be interesting to voters for
two reasons: The voters may think
that the rate of 5 per cent sug-
gested by the new law to be paid
to working folks is not immoder-
ate, because no state has a lower
rate of interest than 5 per cent;
some voters may think that it is
high time for the Montana legisla-
ture to follow the lead of other
states, particularly in the North
west, and cut the rate usually al
lowed by law from 8 to 6 per cent
per annum. The majority Of the
people in the United States have
come to the conclusion that 8 PEI
cent is an abnormally high and
disastrous rate of interest.
For persons who are interested
in such matters the following table
is appended:
States where the legal rate of
interest is 8 per cent per annum
Alabama, Alaska, Colorado, Flori-
da, Montana, Utah.
States where the legal rate of
interest is Z per cent per annum
California, Georgi, Idaho, Nebras-
ka, Nevada, South Carolina, South
Dakota, Wyoming.
States where the legal rate OF
interest is 6 per cent per annum
Arizona, Arkansas, Connecticut
Delaware, District of Columbia
Indiana, Iowa, Kansas, Kentucky
Maine, Maryland, Massachusetts
Minnesota, Mississippi, Missouri
New Hamphire, New JERSEY. New
Mexico, New York, North Carol.
ina, North Dakota, Ohio, Oklaho-
ma, Oregon, Pennsylvania, Rhode
Island. South Carolina, South Da-
kota, Tennessee, Texas, Vermont
Virginia, Washington, West Vir-
ginia, Wisconsin.
States where the legal rate OF
interest is 5 per cent per annun,:
Louisiana, Michigan, Illinois.
Consider go Fair
An analysis of the foregoing
table indicates at a glance that 50
states of the American Union
think that 6 per cent per annum Is
a fair and just and legal rate,
These 81 states with the 6 per
cent per annum interest rate,
along with three states having the
D per cent interest rate contain
more than three-fourths of all the
people in the nation. The vast
overwhelming majority of the neo-
pie of the United States think tn Ar
more than 6 per cent per annum "
abnormal. '' -
Where state permits a LEGAL
rate of interest abnormallv high-
er than other states the danger Is
twofold. In good times, capitaI
rushes from other states into the
state where the legal rate is high.
vast numbers of mushroom banks
spring up over night (when there
are two good wheat crops in sue
cession or when there is anv other
fGnnOrQrxT