THE Waihi Daily Telegraph WITH WHICH IS INCORPORATED THE WAIHI MINER MONDAY, OCTOBER 9, 1905

Waihi Daily Telegraph, Volume v, Issue 1451, 9 October 1905, Page 2

THE Waihi Daily Telegraph WITH WHICH IS INCORPORATED THE WAIHI MINER

MONDAY, OCTOBER 9, 1905

liero stmll tbo-iresß the People's Bight maintain UMimttj'mflusnoe and unliriM 1)T !» ! »l Horopitriat Truth ho *lonmis primus iw . Pladfed to Religion Libarty, Mil

THE exces3i*e rates of interest charged in many cases in this colony for ' money lent has long been a scandal, and we are glad to see that efforts are being made to confine the I rates to reasonable limits. The Pawnbrokers Act, passed some years ago, has done something in this

direction, but its provisions are restricted to . the pawnbroking fraternity. The columns of the Mercantile Gazette show that lenders who are not pawnbrokers, but

money-lenders generally, and who are therefote outside the scope of the the Act, charge interest which is simply exorbitant, and which often keeps the victim under the heel of the lender for undue lengths of lime, and frequently ends in his ruin. It

is a common thing to see twenty per cent, charged for money lent, A Bill to be introduced by tho Premier has for its object tho prevention of

the usury practised 1 too often {on necessitous people. It is called the Interest Charges Bill, and applies to every contract: made for the . loan of money. One clause, sets forth that excep l where the rate of interest is agreed upon in writing, signed by the party; to be charged therewith, the party entitled to interest under any contract shall not be allowed to recover, '.receive, or. enforce payment of interest at a higher' rate than six per, cent, per annum; calculated on the principal Bnm actually lent and from time to time unpaid; The maximum rate of interest cliavgable under ■ any contract shall not exceed (a) six per cent, per annum where the security wholly or partly consists of .land; b) eight per cent, per annum where: the security consists of stock;and (c) ten per cent, per annum where the BPeurity consists of any chattels, calculated in every oase upon the. sum actually lent, and from time to time unpaid; unless, on any pro- :■ ceedings taken io recover snch interest, it is proved that any higher rate, not exceeding the rate con-

tracted for in writing, is, under the circotnatances, fair and reasonable. Air contracts fur the paymentof interest in excess of the rftspsctive rates shall, to the extent of the excess, be absolutely pull and void. All loans are to be made in current money, bank notes, or cheques on bankers, and shall be made in' full, any deduction for interest or otherwise, and no land, goods, or articles of any kind shall be given, ,or supplied, by /way of barter or j otherwise, aa part of a loan. For

negotiating any loan it is not. to be lawful for any person to charge or receive more than 5 per cent, on the amount: of the principal, actually lent, - Such percentage shall include all fees, costs, charges, and. expenses of any bind whatsoever, tor or in connection with, or preliminary to the procuring, negotiating or obtaining of the loan, It shall also not be lawful under the Act for the lender, or any person act in g/f or the lender, to charge or receive any remuneration or reward whatever in connection with a loan, or the negotiating thereof. •