loan that amount; I want to loan it in large
sums. The lowest sum I will let is $10,000.
Then I get my interest easily, and do not
have to go around and collect it, $1,000 from
A., $1,000 from B., and $1,000 from C. I
collect my interest easily, and therefore I can
afford to charge less."
It is plain, as the friends of this measure
have argued, and as was argued especially by
the gentleman from Washington (Mr. Negley,')
that if you allow money to go into the mar-
ket, like any other commodity, to be regula-
ted by the law of supply and demand, you
will have interest at less than seven per cent.,
and even at less than six per cent. oftener than
you will have it above. That is the expe-
rience in New York. The experience there is
that more money is loaned in New York city
to-day at five per cent. on good investments
than at seven per cent., although seven per
cent. is the legal rate. When you allow money
to go into the market, as soon as the market
is supplied the rate of interest goes down ;
but if you keep money out of the market by
a forced rate of interest, you force it into
other States, and it becomes scarce, and the
rate of interest goes up; and you force the
poor friend of my friend from Howard right
into the bands of the Shylock by the very
provision intended to keep him out.
The gentleman from Kent stated another
proposition which is not pood upon its face
at all. He spoke of the value of the bonds of
the Baltimore and Ohio railroad company as
being an argument to show that money is only
worth six per cent. Does not everybody know
that a while ago, before the crisis, they could be
bought for sixty or seventy per cent., so that
the interest was seven or eight per cent.? It
was because the credit of the Baltimore and
Ohio railroad company was involved, al-
though they paid their interest of six per cent.
annually. Look at our city sixes, with the
city property pledged to the payment of it.
Persons can invest there and have ample se-
curity, But suppose a poor man comes up,
and' wants a small amount upon security in
Howard county, to pay the interest semi-an-
nually, or even if he is to be trusted and has
property, will he not be charged for contin-
gencies? Certainly be will; and money will
range higher on that account.
I say therefore that instead of aiding the
poor man, as the gentleman from Howard
supposes, by refusing to allow seven per cent.
to be taken, we are legislating against the
poor man. And if we allow seven per cent.,
it will be legislating in his favor. Our ex-
perience under the law confining it to six per
cent. in this constitution, has shown that it
has worked against the poor man ever since
it has been in the constitution. So long as
you make it a prohibitory law upon the
statute book, you will find that honest men
owning property will not go into the market
and lend to A, B and C, because they can |
invest their money in stocks or otherwise,
and derive a more certain or a larger amount
of interest than the rate of interest fixed by
law. The poor man who wants money must
go to the men who are willing to evade the
law if you will pay them tor it; and they fall
into the hands of the Shylocks. But if you
change the law, honest men can go into the
market with their funds as money lenders,
and you will find money more plenty, and
poor men can get it at a less rate of interest.
Again, I deny that all the favor is toward
the money lender, even at the highest rate of
interest, A poor man has the sheriff ready
to come into his house to levy an execution
upon his property, and sacrifice all the little
means be has, and unless be can get money
his property will be sacrificed, and he will be
turned loose upon the world. He goes out
and tries to borrow money at six per cent.
Money is worth, more and be cannot get it.
Holiest men with money to lend can do better
by it; and be is thrown into the hands of
other men. And even if they do charge him
ten or twelve per cent., I say that it is to that
man's advantage to save his little property at
ten or twelve per cent. rather than to allow
it to be sacrificed.
Again, there are men that want money to
invest. They are engaged in a great enter-
prise. Money is worth twelve of fifteen per
cent, on the street to-day. But they know
that byengaging in this enterprise, and ob-
taining the loan of money, they can make
fifty per cent. Is there any hardship in
taking twelve or fifteen per cent. from that
man? You are doing him an actual favor
by loaning him the money at that price, from
which he can realize double or treble the
amount of interest you charge him.
I have had a little experience in lending
money on mortgage. I know from my own
experience, and think it is the experience of
every gentleman who has lived in a commer-
cial community and engaged in money trans-
actions, or who has been in a condition to
observe them, that money will range accord-
ing to its value, whatever laws you make to
prevent it. Money will bring its value. 1
know in my own experience, with my own
clients and others, that when money is worth
twelve or fifteen per cent. on mortgage, it
will bring twelve or fifteen per cent.
Mr. SANDS, How do they get it?
Mr. DANIEL. I will tell you. A comes up
and wants to borrow $1000, on mortgage.
B has the money to loan. But B says, " 1
cannot lend you that money unless you will
give me twelve percent." " Very well," says
A. Then B takes out a year's interest, $60,
and hands over to A $940, and takes his note
for $1000 with interest at six per cent.
Mr. MILLER. Would it not invalidate the
contract, if these facts are proven in a court
of justice?
Mr. DANIEL. No sir; it would only invali- |
