USURY.

Daily Telegraph (Napier), Issue 3226, 1 November 1881, Page 3

USURY.

[To the Editor of the Dai__ Tb-eobaph.] Sib, —Sbme>years ago I arranged to lend

a poor man -filOO for six. years. He w_s to pay me off principal and interest by payments ot 17s 6d per week for six years.. By that time the whole debt was to be considered as paid off. He made no demur, but I hear that 1 some wise acres have stated that this bargain was a most usurious and unchristian one. • Now, as T set some store by my character, and as I have only done what many lf other people would have done- permit me • "to" state" my' account, and I will then , leave it to you to decide whether the .bargain was not a proper and business- • like one. Of course every sane than will , admit that compound interest is a usual - thing. Very well then, at compound int -j terest £100 in six years at ten per cent. (the usual thing) wonld have amounted ,to £177 2s. But of course, as he could not have paid that amount all at once, I allowed, him time as I have mentioned, and this is what tbe fuss is all about. People say that my account, with ten [ per cent. simple interest, was all paid off before the end of the third year. (As if any money at simple interest ?) They have stated an account, which I enclose as a curiosity. Here it is:- • £ s. d. To Principal and interest at the end of first year ... ... HO 0 0 Cr. By 17s 6d "a week for 52 weeks, £45 10s; place £10 (10 per cent) to interest account, and £35 10s to principal... ■" 45 10 0 Leavesdebt 64 10 0 Cr. By 17s 6d a week for 52 weeks, £45 10s - place £6 9s towards interest, and £39 Is towards principal .., .., 39 1 0 25 9 0 Cr. By 17s 6d a week for 52 weeks, £45 10s ; let £2 lis go for interest, and £4219s towards principal, and my debt is paid off and the account stands in credit ... 42 19 0 17 10 0 ]f__is iB by the end of the third year. - Now add ,4th years takings ... 45 10 0 „ .sth years „ ... 45 10 0 „ 6th years „ ... 45 10 0 . Add : interest at 10 per oent for 3 years on £17 105... ... 55 0 . Add interest at 10 per cent for 2 ■ yearson £45 10s ...: ... 9 2 0 -Add interest at 10 per cent for 1 ' year oa £45 10s ... ... 411 0 And they say my account (but it • is not mine; it is theirs) shotts debt and interest all paid off and a clear profit of 172 18 0 I ask.Sir, is this a fair way of puttir.--itf What is £45 per annum to a man who has lent £100, and lies awake .-.t nights wondering what will become of it f It only amounts, in all, to £273, and that coming in in such driblets that it is not worth having (or scarcely worth having). But people are «iO v kind. Some wretch sent me a postcard the other dßy with Prov. 28c. By. and Jeremiah 22c. 12v, on it in big letters. Cannot I prosecute for libel P—l am, &c., Avabos. November 1,1881.