Year: 1876

We have introduced bill in the Sen
ate which provides that whenever 9
party charges more than II per cent
interest, he shall forfeit the principa
sum loaned; and that any mortgage
loreclosed hereafter for such a usurious
consideration shall, within FIVE years, on
the application of any party in interest
be set aside. We hope the Legislature
will have the good sense to pass this
bill.


We have no prejudlces against men
who lend money for legal and reasona-
BILE interest-men with some heart and
conscience-thev are useful and may be
worthy members of society. But in
many counties, especially those upon the
frontier there are men who make bus
mess of loaning money ar two and three
per cent. per month. They become
centers of calamity for whole
neighborhoods. Wherever they appear
their track is marked by sorrow and suf-
fering; by abandoned homes and dilapi-
dated farms. They are a curse to the
community in which they dwell. They
are a nuisance that should be abated.


Our legal rate of interest, II per cent,
is high enough in all conscience. There
is no pursuit in the State that will, for a
term OF years, yield such profit. Our
present law says that all the interest
above twelve per cent. shall be forfeited
But what poor man can afford to go to
law about the interest alone. But il the
bill we propose were to become a law il
would put an end to usurious interest al
once. No usurer would dare to fore.
close an usurious mortgage if the debt.
or, his wife, his children or his creditors,
could, at any time within five years, rip
open the whole matter and set the mort.
gage aside. And as nearly all this
usurious interest is taken out of farmers
and secured by mortgages on farms, the
business would stop at once


1t will OF course be urged that usury
laws have never prevented usury; tina,
it has continued, in some lngeniou:
form, under the most stringent laws
True; but is not the same true of al
other crimes2 Mankind have been pass
ing laws against theft and murder. ever
since society was first formed, but theft
and murder exist to this day. Will it bs
argued that we had better repeal al
laws against these crimes and leave
them to be decided by the inevitable Law
of supply and demand?"


The tact is that the crime of larceny
has not Indicted one hundredth part a.
much suffering upon the people of Min
nesota AS the crime Of usury; and ther.
is not one home.in our State that ha:
been rendered desoiate by murdel
where there are hundred that nav,
been despoiled by usury.


Now in saying all this we do not de
sire to arouse bad feelings against tn,
usurious moLey-lender. Human natur,
is weak and what the law winks at mel
think it no harm 10 do. And men VIII,
have paid two and three per cent. pc
month for money. will. as soon as the,
become better otf, feel like lending L
some fellow man at the same rate. SO a
| to get even with the world. And it ma
be that in the first years OF the State ",
could no. obtain money, save at usur
ious rates. But all this is past. Tn
great insurance companies are now oi
tering millions OF dollars 10 the peopl
of this State on long time loans. secure
on farms, at ten per cent. The nations
banks charge but twelve per cent. lie
us now put an end to all illegal and u.
urious loans by forfeising principal an
interest.