The Evils of Borrowing

Feilding Star, Volume VII, Issue 28, 15 August 1885, Page 3

The Evils of Borrowing

Social economists aver in Auckland that it is a dangerous policy to borrow money, and they contend what ruinously affects the individuals also in

like, manner affects the State. It is, undoubtedly, as dangerous thing to get into the hands of the money lenders, especially when they are -of the Shylock stamp. An illustration of this came under our notice recently in the arrest and lodgement in Mount Eden Gaol of a resident of Cbromandel — Dr Carnell, upon a commitment order issued at the instance of our Resident Magistrate. It appears that some time ago this gentleman became, by virtue of a loan obtained, responsible to Mr Sanderson, of Auckland, for a bill of £60. Already Dr Carnell has paid over £100 in principle and interest, and his incarceration in gaol, is for a balance of £40. When before the court, in answer to a judgment summons, the doctor pleaded his inability to pay the demand made upon him ; nevertheless the magistrate made an order -and sentenced him to a term of imprisonment in the event •I his failure to comply. The nature of the transaction should have induced the Resident Magistrate to deal more leniently than he did. Seme time ago when a similar case was before the County Court in Bristol, the learned judge marked' his sense of the, high rate of interest charged by ordering the defendant to pay off the debt at the rate of sixpence per month. It would have been far more creditable to Mr H. Seth-Smith. had he, in the face of so much, money, having been paid by defendant in discharge of the original debt of £60, acted with like consideration. Dr Camell's friends in Cpromandel, when they saw the course the law was taking, offered to subscribe and pay over the amount, tut this he declined to permit, preferring to pass a season at Mount Eden. Moral: Beware of moneylenders—Auckland Evening BelL