boring Status, where a higher rate of interest
than our own now prevails. I have drawn
up my amendment in the form of a substi-
tute for the section which I will read, remarking
that I require the contract to be in writing
so as to avoid frauds disputes, which might
occur if the rate of interest were to be left to
verbal agreements: ,
" The legal rate of interest in this State
shall be six per centum per annum, except in
cases where a different rate may be agreed upon
inwriting between contracting parties, not ex-
ceeding, however, seven and three-tenths per
cent, interest in any case; and the general
assembly shall pass all laws necessary to car-
ry this section into effect."
I will merely say in conclusion that six
per cent. legal interest with the taxes now
amounts to seven and one-half per cent,, and
that seven and three-tenths per cent. with the
taxes added amounts to nine per cent. I think
that is interest enough if the borrower has
any reasonable security to offer, If he has
not good security, the lender exacts exorbi-
tant interest which is in fact paid by the par-
ty's creditors and not by the party himself.
I think the substitute goes us far as it is proper
to go, and is a reasonable proposition.
Mr. DANIEL. I confess that I do not gee
the force of a good many remarks that have
been made. The gentleman who hats just ta-
ken his seat, it seems to me, in his remark
that every civilized nation has thought it
proper to fix some moderate rate of interest,
does not invalidate this proposition at all,
nor any proposition that is upon the table,
because it certainly seems to me that while
some States are charging ten per cent. inter-
est it cannot be said that seven per cent. is an
immoderate rate of interest.
Two gentlemen, one from Howard and the
other from Kent. have arisen to address the
house, and two subjects seem to have been
the burden of their remarks, two great griev-
ances which they wished to remedy. The
gentleman from Kent (Mr. Chambers) wants
to provide against the lavish expenditure of
their fortunes by improvident young men;
and the gentleman from Howard (Mr. Sands)
wants to keep the poor out of the hands of the
Shylocks. The one is the especial friend of
the poor, and the other is the especial friend
of improvident young men. As has been
very well said by the gentleman from Wash-
ington county (Mr. Negley.) the idea of our
trying to prevent improvident young men
from spending their fortunes is an utter ab-
surdity. The experience of every man is to
the contrary. It has been in our constitution
from time immemorial that six per cent. only
shall be charged. Is it not the experience of
every man in this convention that notwith-
standing this, young men have spent their
fortunes, and have paid a great deal more
than six per cent. for money in order to get it
to spend? I have young men in my eye who |
inherited a fortune, and yet in a few years
spent their fortune, and spent it in part by
borrowing money at fifteen, twenty, twenty-
five or thirty-three and a third per .cent., of
which the gentleman from Kent has spoken.
The gentleman from Kent is contradictory
with himself; because he states here in one
proposition plainly upon this floor that
i money is worth six per cent. and only six
per cent., and that men derive the value of it
when they let it for that rate; and yet be
i tells us almost in the proposition immediately
preceding that every man's experience is that
every money lender does charge twenty-
five to thirty-three and a third per cent. and
gets it.
Mr. CHAMBERS. The gentleman from Kent
said no such thing, " every money lender 1"
1 said that men habitually received that. 1
tried to explain it before, and it is hardly
worth while now.
Mr. DANIEL. So I understood the gentleman.
The gentleman certainly stated that twenty-
five to thirty-three and a third percent, were
obtained for money. I do not care how it
was obtained; for if it were paid the money
must have been worth that in the market.
Mr. CHAMBERS. That is the language of
every money lender.
Mr. DANIEL. The language of every money
lender? I know some men who would not
have it if you would give it to them; who
wo uld not take more than six per cent. although
money might be worth ten or twenty per cent.
' Some. men will not have it. But the very
fact that the gentleman stated, that money has
commanded such rates, and the gentleman says
i that is the experience of everybody that
money is lent in the community at such rates,
shows that those who pay these rates cannot
get it cheaper. If money was.? worth only six
per cent., they would have gone to somebody
else and got it at six per cent.
Now I ask if the rate does not depend in a
great measure on the character of the invest-
ment. Tire gentleman from Howard (Mr.
Sands) has flourished here advertisements in
the newspapers. He is the especial friend of
the poor man; and he has told us that
$40,000 are advertised in this morning's pa-
per to be loaned at five per cent. Now let us
see how this money is to be loaned. "For
live or ten years; the security must be am-
ple; located either in the city of Baltimore or
in Baltimore county; in one sum of $40,000,
or four sums of $10,000." I think the poor
man would be badly off if he had to take
$40,000, or even $10,000. And then where
is he to get the security? It must be good
city security, ground rents, or something of
the kind. When the poor man comes from
Howard county wanting $1,000, applies for
it, the answer is, "No sir; I cannot take
your security; I want security in Baltimore
city or county." Or if he says he only wants
$1,000, the answer is, "No sir; I will not |
