| Show PROPOSED LEGISLATION FOR SECURING LOANS AND THE COLLECTION OF DEBTS Sqme Timely Suggestions on the Important Im-portant Stiliject The Bill Extending Extend-ing the Period of Redemption Salt Lake City January 15 Editor Herald I notice that our present legislature would seem from the many bills of that character introduced t be desirous de-sirous of in some way radically amending amend-ing or changing our laws for securing loans and the collection of debts Such legislation is usually the handmaiden lof hard times and it is only when the i debts incurred without much thought I or hesitation during a flush and prosperous pros-perous period begin to press somewhat heavily upon begn borrower that he too often turns to the lawmaker with a request that the government step in and relieve him indirectly of a portion por-tion of the consequences of his own acts in assuming the obligations he has done I is true that the sum of this worlds happiness might be increased if we were all to follow the Shakespearean injunction Neither a borrower or a lender be but in these times of large financial transactions when in the haste for wealth and accumulation of property the average man is not content con-tent to plod along with the aid of his own capital but desires to use that of others to enlarge his business we must recognize the evil if evil it be as a part of our business system Such being the case the banker and the moneylender are essential elements of the business world and as citizens and in many cases our heaviest taxpayers tax-payers have the same right to the protection of our lawmakers in framing fram-ing our laws and our courts in constru ing them as the moneyborrower In the past the little legislation we have had in Utah bearing upon this question has been friendly to the owner of capital and not unfair un-fair to the borrower Herein Here-in the west if we care to do more than plod along at a slow pace in the development of the many resources of our territory i is necessary neces-sary that we should have the use of outside capital All recognize this and in order that the clear brain cear brin the quick eye and the brawn of the hardy westerner west-erner should obtain the greatest amount of profit it is essential that the rate of interest should be made as low a possible Capital always seeks the line of least resistance and flows most readily to the localities where the security being good the laws are favorable This naturally reduces the rate of interest in that locality and leaves it higher in others and in no place is this more marked than be hM TH 3 T i > vccii u Ltiu ana laano The tendency of legislation in our sister commonwealth common-wealth at least in the last few years has been to make more difficult the collection of debts and a a consequence conse-quence rates of interest have ruled high while with our simple and effec tive laws upon this subject the flow of outside capital to our territory has increased each year and rates of in terest barring the past few months have gradually decreased always being be-ing from 2 to 3 per cent lower on the average than in Idaho This comparison compari-son may be odious but the facts are true As I have said when hard times strike us then comes the attempt to atempt benefit by legislation the borrower at the expense of the lender I is true haSL there are Cases where in the hands of 4ia cruel and unscrupulous Shylock the law permitting a prompt sale and realization dJeahzatitm upon the security for a debt may work a hardship upon the borrower but it is useless to attempt to frame a statute I that win operate to protect his fellow I man from the ravages of such a wolf The community soon learns to know him and he is shunned by all a a pes tilence But ps tienc on the average and in fact almost universally there is a for bearance upon the part of the holder of the securities when misfortune illluck overtake the borrower The or demagoue may howl a different story diferent stor in his efforts to curry favor with the debtor class wih but the average business busines man will admit the truth of this One of the bllls bis pending before our Legislature proposes to give a redemp I I ton period of two yea after sale of real estate On execution or under executon au thority of a trust deed The unques I tionable effect of such a law or even I one making the period one year would I be to keep capita out of our territory territor With the present crowded condition of condion our court calendar it would mean should a judicial procedure be neces sary from two to sar almost four years before the title could be acquired year and no lender would face such a contin gency no matter what the security offered unless possibly he might be tempted by a very high rate of inter est But this bill Proposes to equal ize this and I presume benefit the ya iffiK beneft borrower sstS by giving him thIs right of redemption provided he pay 8 per cent per annum on the judgment sum At this rate should i become a law the borrower who went to redeem at the end of two years would probably after I the interest had been computed afer hereafter to be delivered from his fool I friends in the Legislature If the au thor of the bill really desired to dis tinguish himself as a friend of the oppressed why did he not let the tail go with the hide and make the rate 5 or 6 per cent and thus get in a body blow on the money power One of the direct results of such a law is that the only bidder at such forced sales will be the lender the property will be bought at his own price and a deficiency judgment taken for the balance to hang over the borrower bor-rower a a pall upon his energies and a reflection upon his credit for years No investor will buy property at such a sale knowing that he must wait one to two years uncertain a to his ownership I owner-ship unable to sell should opportunity I offer and without oer wihout even the possession I of the property and its rental There I are many other reasons that might be urged against the advisability of such I legislation but I would only ask our Legislature to consider well before taking I tak-ing these steps or in fact in any way disturbing our existing statutes upon these subjects They have met the requirements of the past have unduly oppressed no one and have given us the benefit of an increased supply and a reduction of rate upon outside cap ital which our excellent credit has deserved de-served Permit gentlemen the widest possible latitude in these matters and the right to make contracts as to borrowing bor-rowing money to suit ourselves as we do in other matters In short if we must borrow for Gods sake permit us to do it in our own way and as cheaply as possibls D |
