that these young men need and should have
protection.
I agree that it is impossible under any system
of legislation heretofore adopted to afford
them perfect protection. Means of evasion
have been found, and they have been vic-
tims to the inordinate demands which have
resulted in grasping as high as twenty-five
or thirty-three and a third per cent for debts
perfectly well secured. I do think that this
is a great and dangerous innovation. We
have got along very well without being obliged
to go to New York. If they insist
upon going to New York for seven per cent.,
and if it is necessary to make the rate seven per
cent., make it so; but I utterly protest against
throwing down every sort of protection to
the thoughtless young men who come into
life weakly confident, calculating upon profits
which they will never realize, and becom-
ing victims to the first sharper with whom
they come in contact. Make your interest
what it should be. Let it be seven per cent.
if you will make it so. There is a different
of opinion upon that su bject in spite of the
alarm lest New York should take away all
our capital. I hold in my hand a letter from
an intelligent gentleman in the city of Balti-
more, who says in so many words that six
per cent. should be the legal rate of interest,
and that most alarming, dangerous and mischevious
results will follow if that ceases to
be the rate. He says :
'' As this question is of very great and
vital interest to the citizens of our State,
pardon me for saying that the means, thrift
»and industry of the State at targe should be
carefully guarded," &c. "The statute rule
of interest should be six per cent. If it be
thought proper agreements might be made
for sixty or ninety days with a larger in-
terest—seven percent."
Mr. DANIEL. Who is that?
Mr. CHAMBERS. James W. Allnut, a very
highly respectable president of the Bank of
Commerce. I maintain that the policy of
this report has been found through all time
to prejudice the pecuniary interests of a
State. I do not think that moneyed institutions
have gone on better in New York than
in Baltimore, or better in the State of New
York than in the State of Maryland.
I here is another argument. Our people
are paving seven per cent. in fact. I suppose
now it may be said to be the universal prac
tice everywhere, and I am prepared for such
a proposition here, to charge to the borrower
the taxes due to the government of the Unite
States, and the State and the county, making
up just about one per cent. This makes the
interest just about seven per cent., which the
borrower pays. You may assume money to
be any standard you please, except that which
merchants engaged in large speculations
and making in anticipation enormous profit
place upon it, and this is about as much a |
money is worth ii the ordinary/•)' pursuits
of life. Farmers do nit make six per
cent. on their capital. I venture to assert it as
a fact, having been in that department my-
self for some forty odd years. I say that
'arming throughout the State of Maryland
dec's not procure six per cent. on the capital
employed. I say that human employments
except those which are carried on at a great
risk and therefore produce great profits, do
not pay that amount, a business which pays
six per cent. in Baltimore being rewarded a
lair business,
But I say again, I do not care so much
what rate you fix. if yon will restrain the
money lender, and protect those who are
borrowing money from his high rates. My
own opinion is that six per cent, is enough,
and I shall vote against increasing it; tint is,
six per cent. with the addition of the taxes
and dues, making" it about seven per cent., is
as much as I think persons out or' the city
can possibly derive a profit from by the loan
of money. In the city there are thousands
of ways by which mercantile men manage to
get more. They put their funds into a bank,
and get their discounts, and make their arrangements
by which they can get cone, two,
or three per cent. a month. I am willing to
let them manage their business as they like.
But there is a class of people, chiefly those
residing ill the country, young men coming
into the possession of real estate, who have
all the comfidence and ambitous expectations
of youth, who hope to realize the largest
crops from which they are to obtain almost
fabulous sums; and it will ie id to nothing
but damage to let them go heedless and
thoughtless" into the market, even under the
very shadow of your constitutional provi-
sions. to find themselves victims, ruined and
penniless. I ask for protection for these,
At the proper time I shall offer the following
amendment, which I hope the chairman of
the committee will adopt:
" It shall always be lawful for parties hav-
ing money on bond or mortgage judgments
or other security to contract for the pay-
ment of taxes, and dues to the United States
the State of Maryl and, the county and other
public dues by the borrower, so as to retain
to the lender the clear amount of legal in-
a terest."
e Mr. SANDS gave notice of the following
- substitute fur the report of the committee :
i "The rate of interest in this State shall
r not exceed six per cent. per annum, and no
d higher rate shall be taken or demanded, and
^ the legislature shall provide by law all neces-
e sary forfeitures, fines and penalties against
e receiving or demanding any higher rate of
o interest."
i Mr. MILLER, The subject-natter now under
consideration, is certainly one of great im-
3' portance. We cannot touch this question of
is money very well in this convention, without |
