Year: 1876

raise the rates of interest. Formerly, when land,
in lots and farms, was sold and partial payment
made, and the remainder of the purchase money
secured by notes and mortgage, the practice was
| invariably to write the notes with interest, and
meaning OF course SIX per cent. But now | ap-
peal to every gentleman in the House, accustomed
| to write such instruments, whether the practice
has not changed, and whether the seller does not
exact seven per ceLt? am told in all quarters
of the State that such is the practice and that
seven per cent. has come everywhere to be
considered the established rate, as much as six
per cent used to be. And it is q further fact,
well known to all, that in nine cases out Of ten
the men who let money and sell lands are better
OH than the borrower and the buyer. So that the
effect of the law has been to burden the poorer for
the benefit Of the richer


have other evidences of the effect of this new
law. 1 have had letters and newspapers sent to
me from different parts Of the State. This pro-
position to revive the old law excites attention
Reckoning day has come. People are feeling poor
and are looking round to see how it happens that
they are so. The newspapers and letters from
Aroostook tell most extiaordinary stories. Ac.
cordng to them the rates Of interest run from
twelve to fifty per cent, and a distinguished and
| wealthy Houlton gentleman is quite right wien
he writes: these practices are inhicting great in
jury upon the people-especialy upon the men Of
moderate means" Several gentlemen from the
Penobscot valley are equally emphatic. Among
| them Mr.. Egery, ofth well known firm Of Hinckey
4 Egery, writes me: "Your interest bill has my
most hearty approval and hope it will become


law; fully approaching its necessity for the relief
of the business and labor interests of our State
Mr.. Egery has had large experience in business,
and Is, am told, at present director in two Ma
| tonal Banks. Those who know him best are
the most hearty in their eulogy of him as one of
the wisest men of affairs in the State and man,
who while prospeping himself, is desirous others
should have fair share ofthe wealth they create.
| The Portland dealers in money afford striking
,lz..~ A. Al -. NJ
them money lenders the other day, but it seems
they object to the term, and will change it to
bankers They send a man here as their agent,
to instruct the House in finance, in order to pre-
vent the passage of the bill before the House.
They distribute here speech of Mr.. r. II.
Danas against usury laws, and as it bears the
Portland imprint, suppose they had it printed
for circulation here. They spend their money to
prevent this legislation, and why Do they want
lower rates of INTEREST," They could have it by .
dash Of the pen. No need Of sending anybody
here 10 get lower rates of interest. take no OBJ
lection to the gentleman they have sent here. He
is IN the occupation of his professional business
But, say, that in sending him here and keeping
him at some considerable expense for weeks in at
tendance upon this legislature, they afford conclu-
sive evidence that in their judgment the effect Of


the present law Is TO ruin the rates OF interest and
because it does they resist its repeal. There is
fine irony in one of the addenda to Mr.. Dana's
speech distributed here, which states that "the
effect of the repeal of usury laws is to lower the
rates of interest" Does anybody suppose these
banking gentlemen would banker after law
which was to cut down the rates of interest And
is it not something like obtaining goods under
false preences pretend to believe the effect OF
the present law is to cut down the percentage they
get .or the use of their money!


| have stated, Mr.. Speaker, what believe
TO have been the effect of tue present law upon
the movements Of money in the State, and now
propose to examine the reasons given for retaining
it. They as well stated in Mr.. Dana's speech
| as anywhere, and as it is made text book by the
opponents of this bill, will examine it, remark
ing that Mr.. Dana sets out with deprecating high
rates of interest as a serious evil. He says he
should oppose change of law that would add to
the rates Of interest. Now, if l have not failed
| in my endeavor, have shown that the effect Of
the present law has been to do this very thing that
Mr.. Dana objects to, and furthermore that 1t was
the avowed design of the parties introducing this
law to compass the very object that has been
achieved. So that may cite MIR. Dana among
other witnesses against this law and in favor Of
the restoration Of the old one. And 60 further
| and say Mr.. Dana's theory is wrong as applied to
the State of Maine. The upshot of his argument
is "that there should be free trade in money among
| individual citizens of the State" He bases it on
the general progress of the free trade idea as prac
ticed and as advocated in books upon political
economy. 1t is difficult to treat such an argument
seriously. Nothing but the place Mr. Dana occn-
pies in law literature would induce me to do SO.


Mr.. Dana says usury laws put men in the State
under guardianship as one Of the Finance Com
mittee expressed it the other day, sit is treating
men like children to say what rate of interest they
may take.


But that is exactly what the whole body of our
statutes does. Take this volume l hold in my
hand and see how it curbs and restrains the citi.
zens of this State. And l refer now to their vol
untary action with each other-the same hind Of
action that it had when one man agrees to pay an
other ten per cent. for the use OF money. No one
can keep "house of ll-fame" he cannot ''gam-
ble," however privately he shall not sell ''iquor'
of any kind, not even ale; he shall not keep
bowling alley billiard room, except by license;
he shall not sell any of farming products, un-


less inspected, and the sale CT wood and bark with
cut survey involves forfeiture. The voluntary
intercourse of the sexes is punished, and the man
who proianely curses and swears is punished too,
as well as he who does any work on Sunday.


| Here laws regulating mems pleasures, and
saving what they shall drink, and what they shall
say, and how they shall act, and how they shall
transact their business. And you cannot say of
them they are based upon some theory of morality.
| They simply treat the people OF this State like
children" in this particular because in the judg.
ment of the legislature it is best to do so. And
these laws. the most of them, are duplicated in
every State in the Union.


Money is matter of thorough regulation in this
State, as well as elsewhere. As q measure of 9TH
er values it has always been as carefully guarded
as the yardstick or the half -bushel or The pound
weight. In this State go so far to declare
the maximum dividends our Savings Banks shall
1
i of things between providing for the use of money
and providing for human conduct in the particu-


lars have enumerated, and particularly in decar-
ing how much interest Savings Banks shall pay


What general free trade may be in the future in
the intercourse of nation with nation l know not.
| have never seen anybody in this country that
| inclines to introduce it here Boston used to be
protective until it found it could ship manutac-
lures foreign with profit, and now It inclines TO
free trade. But it still wants Custom Houses, and


in arranging a tariff will take incidental protec-
| ton Even Mr.. Dana says that. The Maine
ship-owner has long been disposed to low tariff


because the ship is natural free trader. But
Maine does not want to share the coasting trade
with the cheap vessels and cheap labor of New
Brunswick and Nova Scotia, and it wont admit
foreign built vessels to registry long as it
can prevent. The leading free trade theorist Mr..
Dana, cites is Stuart MILL but Mr.. Mill says
the free trade theory is for old countries like Eng
land, and is not adapted to new countries like the
United States. We are getting ever the notion of
protection for the sake of protection" and liber
slzng OF national legislation very wisely in the
direction of lower and more uniform tariff. But the
whole discussion as to international free trade,
which Mr.. Dana introduces, has no place here.
|