institution which is controlled by the govern-
ment which has at heart all the interests of
the nation stands upon a par with those peo-
ple "who do hang out their three balls at the
door and wait for their victims." It did sug-
gest itself to my mind that some other em-
blems would be very 'appropriate in some
cases; the cap and bells, for instance.
I have nothing further to say, except as to
its being a sin. We have got the good old
Book for that, in which it is especially de-
nounced as a sin and a crime to take more
than the money's value as interest. It is a
sin to take more than money's value, unless
things have changed. What is money's val-
ue? Look at the advertising columns of to-
day's American, the chief journal of Balti-
more city, which city the gentleman repre-
sents. They show this fact that people who
have large sums of money to loan are willing
to go into the market and loan it for five or
ten years at five per cent.; and they will lend
as small a sum as fifteen hundred dollars at
six per cent. In no case do they demand
more than six per cent. Baltimore city secu-
rities bearing six per cent. interest are selling
at 116; and United States six per cent. secu-
rities are selling at a premium. What do
those facts all go to show, if not the worth
of money to-day in the market? Gentleman
have argued that we might have a condition
of things which would put down the value of
money, that what we have passing as money
now is currency, and it is to meet that view
of the case I presume that they urge propping
up the currency by a constitutional provision
increasing the rate of interest.
I am satisfied, however, not to consume
any more of the time of the house. I think
I have consumed not more than five minutes
now. I think the house has decided not to
pass this section.
Mr. STIRLING. It strikes me that this de-
bate is very interesting, but it has gone to an
extent that I do not think practically tends to
bring us to any conclusion on this question.
We have here the whole question, and it is a
very complicated question, in regard to the
propriety of fixing the rate of interest for
money. The report before us assumes the
absolute doctrine that under all circumstances,
any amount of interest contracted for shall be
recoverable in courts of law. Now I am
very free to say that I cannot support that
proposition, even if I believed it to be good
sense and good law, still I should be opposed
at this time to putting into the constitution
of this State any such broad proposition, one
so contrary to the habitual practice of the
community.
But it seems to me that a great deal of the
debate .upon the other side has been just as
radical, and just as radically wrong, as the
proposition, of the committee. I believe there
may be a practical question as to what the
rate of interest ought to be. But so far as |
the law itself stands on the subject, I do net
know that there is any great complaint at the
existing condition of the law. On the con-
trary, the gentleman from Howard (Mr.
Sands) seems to wish to go to the extent of
forfeiting absolutely the whole claim.
Mr. SANDS. That is not my idea.
Mr. STIRLING. That is the tendency of the
gentleman's argument. I think one of the
i propositions before this body absolutely goes
to that extent. I prefer greatly that the con-
vention should not interfere with the existing
law on that subject. As the law now stands
in the code, it has been decided by the court
of appeals not to conflict with the constitu-
tion. It amounts to this; if a man is forced
to bring suit on his contract, he cannot recov-
er more than six per cent., if the other party
sets up the defence of usury; but the party
who borrows the money must pay the princi-
pal and six per cent. interest.
There is only one practical difficulty that
exists now, and that will be remedied by the
1 proposition of the gentleman from Kent (Mr.
Chambers, ) which proposition I sincerely
hope will be adopted. It has been a question
whether if a man lends money, and stipulates
in the contract that the borrower shall pay
the taxes on that money, such a stipulation is
legal. There is no reason why it should be
considered more than six per cent interest.
There is a difference of opinion about it. But
the practical facts exists that there is a doubt ;
and those persons most scrupulous, most hon-
est, are afraid to put in their mortgage or
contract a stipulation that the borrower shall
pay the taxes. There is no reason why a
man should not have the right in a contract
to require for himself, with the consent of the
other contracting party, a clear interest of
six per cent. That is especially important at
this time when the tax upon money may de-
crease the rate of interest to three per cent.
I think the convention ought to clear up that
doubt and provide that the stipulation with
the borrower to pay the taxes shall not be
considered usurious.
1 should be perfectly willing to support the
proposition of the gentleman from Allegany
(Mr. Thruston,) which I think is better than
that of my colleague (Mr. Daniel,) in that it
does not change the legal rate of interest. The
government of the United States has offered
to borrow money at seven and three-tenths
per cent. interest. That baa become a very
favorite rate of interest, by reason of its being
so easily calculated. It is a great deal easier
to calculate than six per cent., and much sim-
pler, being two cents per day on each hun-
dred dollars. That was the reason, doubtless,
why that rate was determined or rather than
the rate of seven per cent. The national
banks under the first law were authorized to
charge seven per cent., but are now restricted
to the legal rate of interest of the States in
which they are located. The banks of this |
