INTEREST ON MONEYS.
The time having arrived for the consideration of the bill [H. R. 3] concerning interest and usury, Mr. Buskirk called up the special order.
Mr. CAUTHORNE moved that the speechs onthis bill, with the exception of Mr. Buskirk's, be limited to five minutes.
The motion was agreed to.
The bill was read the second time; also the report from the Judiciary Committee, recommrnding that the bill do pass, with certain amendments.
Mr. COLE moved to amend the bill so as to make the rate of interest 7 per cent., instead of 6, etc.
On motion by Mr. WALKER the amendment was laid on the table--yeas, 46; nays, 39.
Mr. CARTER--If this bill prevails, it will, by reducing the interest to 6 per cent., very seriously effect the school fund of this State, and it may be we will have to increase it to direct taxation in order to make up that deficit. He moved to refer the bill to the Committee on Way and Means.
Mr. KENNER said he would rather have a direct taxation levied to make up a deficiency than to have the poor people of the State burdened by keeping up a high rate of interest. He belived the time had come if the Government of the United States could borrow money at 3 per cent. the people of Indiana ought to be able to borrow at 6 per cent.; that it was a fact that Indiana was full of money and did not need any foreign capital. The time had come when Indiana does not want to pay an outrageous per cent. of interest. He thought this a just measure and urged its passage.
Mr. BERRYMAN--If money can be borrowed at 6 or 7 per cent., why should the Legislature of the State step in between the borrower and the lender and say that it should be lent at 6 per cent? If the supply is so great that it can be borrowed at 6 page: 171[View Page 171] per cent. it will be lent at 6 per cent., and the less legislation we have the better. If the supply increases, money will go down to 6, 5 and 4 per cent, just as the supply and demand increases or diminishes. There is no necessity for this bill. No good reason can be given for its passage, and I earnestly appeal to the members of this body to pass no legislation except such as the times and people require, and not enact laws that will in the end work bad results.
Mr. BARTLETT--To-day, second class paper is negotiated for less than 7 or 8 per cent. The poor man who has a mortgage on his farm, will finally be able to remove that mortgage and be the sole possessor of his land. Is it not wise to let them work out their own salvation? For the good of the people, I think we should let this thing alone; and let the law of supply and demand work out the proper result.
On motion of Mr. Neff, the House took a recess until 2 p. m.
