INTEREST ON MONEY.
The SPEAKER announced the special order being Mr. Buskirk's bill [H. R. 3] to reduce the rate of interest from 8 to 6 per cent.
In pursuance of a previous order, the House resolved itself into a Committee of the Whole--Mr. Lindsay in the Chair.
Mr. BUSKIRK moved that the Chairman of this Committee report to the House that it is the sense of this body that the bill be engrossed, passed to the third reading and put upon its passage. He said: "I think it is the duty of every Representative on this floor, whatever his private convictions may be, to obey the wish of his people if he knows what it is, and I think if the members vote upon that rule that this bill will pass with an overwhelming majority. Knowing, as I do, that the State of Indiana is in favor of a low rate of interest, I consented to the amendments in order to get the main features of the bill into operation. I do not believe there ought to be an amendment, such as would take away the penalty for usurious charges. The time has come when interest should be reduced, because the people demand it. The stand taken upon this question, and the men who take it, shows conclusively that this bill ought to become a law. The strongest argument in favor of this bill is, that foreign Loan Companies will take their capital out of the State. By a high rate of interest these Companies have hooked upon our people their clutches in such a way that our citizens can not do as they please. That a high rate of interest is for the benefit of the few and at the peril of the many, can not be doubted. Furthermore, I do not believe that this bill will have a tendency to drive capital from the State. There is not a State in the Union where rate of interest is over 7 per cent."
Mr. CAUTHORNE--If any bill could pass this House that would, enable the people to pay their debts, or regulate a cheap rate of interest, I would vote for it, but I do not believe it can be done. We had a law sometime ago fixing the rate of interest at 10 per cent., but everybody knows there was not a dollar loaned for less than 12 per cent. Therefore, believing the people do not demand any change, I shall vote against the bill.
Mr. HUSTON said he felt satisfied that outside of National Banks all banks in the State favored the abolition of all laws regulating interest above 4 per cent. Borrowing is not confined alone to poor people. The rich borrow money and the rich loan money. The largest borrowers to-day in this State are those controling the most property and doing the largest business. The mortgaged indebtedness of this State to-day is over one hundred and fifty millions of dollars. Then is it not of importance that we protect the parties whose prosperity depends upon the use of that capital? I say enact laws that will protect poor people; give them the privilege of borrowing money until they shall be able to pay off their mortgages and leave them a home free.
Mr. MORGAN--The rate of interest, to a certain extent, is like the price of hogs and cattle- it is regulated by the law of supply and demand. I believe that it is in the interest of the people that this bill should pass. There are many farms mortgaged in every portion of the State, and by the enactment of such a law, they will be enabled to pay off the old mortgages and make loans at a lower rate of per cent., thereby making a larger saving to the people.
Mr. COLE said the people of his County cared very little about the interest law at present, but considered this enactment favorable to the loaning out of the school fund.
Mr. HAM spoke in favor of the passage of the bill.
Mr. MITCHELL said he was in favor of the bill as introduced. Money invested in agriculture for the last few years has only paid 3 1/2 per cent., and for that reason he was in favor of this bill. There has been no capital driven out of the State of Indiana because of former enactments. which is good evidence that it will not be in the future.
On motion by Mr. BUSKIRK, the Committee rose, reported progress, and asked leave to sit again on Friday next at 11 o'clock a. m.
Mr. FURNAS submitted a report from the Special Committee thereon on the bill [H. R. 252] concerning woman suffrage, recommending its passage.
The bill was read the second time, the report concurred in, and the bill ordered engrossed.
Then the House adjourned to meet to-morrow at 9 a. m.
