710 AGRICULTURAL ECONOMICS 



endeavored to strengthen that law, and the Comptroller has recom- 

 mended that an amendment be made to the national bank act, 

 authorizing the Department of Justice to bring suit in such cases 

 instead of leaving it to the customer who has paid the excess rate. 



230. "AN EFFECTIVE USURY LAW" 

 BY JOHN FIELDS 



Far be it from me to do or say anything to hinder the folks from 

 getting any kind of a law against usury that they think they want. 

 The " 30-day" special session of the legislature has surely by this time 

 "done its do." And I shall be very happy indeed if the result will 

 be that no Oklahoma farmer will ever again pay interest at a rate 

 higher than 10 per cent and that 6 per cent or less will be the average 

 rate. I confess, however, that I have little expectation of adding to 

 my store of happiness from that source. 



It has always seemed to me that farmers would better go fishing 

 than to try to do much business on money borrowed at a rate of 

 interest higher than 10 per cent. The only purpose for which borrow- 

 ing money at such a high rate holds any hope of profit is for the pur- 

 chase of a cow, a sow, and a dozen hens. These will work it out, if 

 given care and fed home-grown feeds. But those who borrow money 

 at 10 per cent or more to buy cattle to be fed or wintered, or to pay 

 for food supplies which might have been grown on the farm, should 

 not expect legislation to confer prosperity upon them. Make 10 per 

 cent your own limit. Stop right there and go out of business before 

 you start instead of later as you surely will. 



Of course, it wouldn't do at all to suggest that the law taxing 

 moneys and credits may have something to do with high interest rates 

 in Oklahoma. Every man's bank account is supposed to be taxed. 

 Compare the total of the bank deposits returned for taxation with the 

 total bank deposits as shown by the next consolidated statement of 

 state and national banks in Oklahoma. This law brings very little 

 revenue and it transfers many large bank accounts from banks in 

 Oklahoma to banks in other states. Men who have a lot of money 

 don't like to get mixed up with an Oklahoma tax ferret, so they put 

 the money where he can't find it. But 'this is a fine looking law and 

 must be preserved as an ornament to the statute book. 



But might it not help interest rates a little to give the private 

 citizen an even break with banks in the business of lending money on 



1 An editorial in the Oklahoma Farmer, February 10, 1916. 



