it goes down and he is unable to pay for it.
If you demand the payment, he has no real
basis upon which to meet it. Money becomes
tight; and the result is that if he is compelled
to pay, he loses everything. Of course he
will prefer to take the chance of paying thir-
ty-three or even fifty per cent, interest, and
running the chance of a rise in the market
by which he can save something, rather than
to sell out entirely, fulfil his engagements,
and lose all. But if the money lenders will
advance him the money, it will be with a full
knowledge of his condition. They take ad-
vantage of it, The result is that these men
are the only men who are able to pay these
high rates of interest—the men engaged in
these schemes. They are able to pay it, be-
cause if they do not get the money they lose
everything; and if they pay it they are no
worse off than if they do not, and they may
be so energetic as to succeed in the operation.
Losing everything unless they get the money
they can very easily afford to divide one-
half' with the man who comes forward and
prevents the loss of everything,
it is this kind of trade, these operations,
which reduce to such a spasmodic condition
the money market; and it is to control to a
certain extent, and so far as we can, such spas-
modic conditions of the money market in the
State of Maryland, which never has existed
here to the same extent as in the city of
New York; it is to prevent these opera-
tions in our large cities from coming in and
controlling the agricultural interests and the
mechanical interests of the State, and all
classes of men who prefer the pursuit of trade
upon sound principles of business; it is to
protect the men who base their business upon
accurate calculations instead of being gov-
erned by these spasmodic conditions of the
market; it is for this that I prefer, and shall
vote to maintain in this constitution the pro-
vision which forbids a higher rate of interest
than six per cent., as it is contained in our
present constitution.
Mr. DENNIS. Of all the articles that I have
heard read, I decidedly prefer the report of
the committee. I go farther, and say that I
prefer the section in the present constitution
even to that; and I hope to see that adoptee
by the convention. I concede that there is
very great force in many of the arguments
that have been used. it is desirable that all
the capital of the State shall be kept here so
far as possible, and that as much shall be
brought here as can be brought. I presume
it is true that when a higher rate of interest
is offered in a neighboring city than is offered
in our own State, our own capital seeking
investment, will, as a matter of course, go
where it gets the greatest return. As to all
the argument about taking care of those that
cannot take care of themselves, the oppres
sion of the poor, the exorbitant operations of
the money lenders, and all that, I leave it out |
of the question. I do not think it properly
enters into the discussion of the question at
a . Practically the six per cent. rule is not
observed now. Practically, I understand—
for I really have no knowledge of it, tor 1
never went into a bank to borrow a dollar in
my life—when they lend a thousand dollars
they take the interest in advance, which
amounts to more than six per cent. Instead
of lending one thousand dollars, they take
out the sixty dollars in advance, leaving nine
hundred and forty dollars, with the interest
on one thousand dollars; so that practically
the bank gets more than six per cent. And
this question should decide the real point in
issue. The question is whether or not the
interest on money ought to be regulated by
law, and how it ought to be regulated. This
is a question that has been settled by uni-
versal experience. It is true that seven and
eight per cent. are paid in New York; but 1
do not think we ought lo make our action
conform to the state of things existing in
New York; because while that regulates our
markets, you may say that Europe regulates
New York. One is the mere adjunct to the
other: and the circle flows throughout the
world.
We must determine for ourselves whether
money is to be regulated by law, and if so
how far, and what regulations. Looking at
the experience of all time past since we have
regulated this thing by law, and looking at
the present condition of things, looking at
the investment of other forms of human in-
dustry, farming, mechanical, and other in-
terests, pervading our various relations, 1
cannot but think that six per cent. is a fair,
and just, and reasonable compensation.
Thinking so, I hope the provision in the old
constitution will be adopted, and that all
this matter about private contracts will be
stricken out, and that it will stand where it
has been established, where the decisions of
the courts halve placed it, that six per cent.
and no more is to be taken.
Mr. THOMAS. The proposition which 1
suggested by way of substitute, I offeree
simply as a kind of peace-maker between the
two divisions, one demanding seven per cent
and the other demanding six per cent. I am
myself in favor of the proposition submitted
by the gentleman from Howard (Mr. Sands.
1 am in favor of six per cent. I do not think
the legal interest ought to be more than that
1 will even go further than that, I am in
3 favor of putting a proposition into the con
t stitution that all contracts or agreements for
1 any higher rate of interest than six per cent.
i shall be absolutely void, in order to meet the
3 suggestion which was thrown out by my col
i league, in the remarks which he made some
t time ago, as to the decision of Judge Taney
- I will offer my proposition at the proper
f time, in case that which I like better, offeree
1 by the gentleman from Howard, does not pass |
