USURY.

Manawatu Herald, Volume XLII, Issue 2163, 14 August 1920, Page 3

USURY.

Tn delivering judgment in the moneylending ease, Simpson v. Baldkind, Hit the Wellington Supreme Court on Thursday, his Honour Sir Bassett Edwards staled that at the time the loan was made the eurrent rate of interest was about 0 per cent. Baldkind had lent the money on chattels, a class of business that most money-lenders would not he bothered with. It entailed a certain amount of risk. Tor instance, anything might happen to a motor bicycle, or to a piano, for that matter. Therefore when money was lent on chattels the lender was entitled to a greater rate of interest than that ruling at the time. Money lent on chattels was more or less a gamble, but in the case under review Baldkind was not gambling. Baldkind had a good security, and what was more important, Baldkind knew he had a good security —a security of considerable value. Simpson wanted money in a hurry, and when he borrowed £IOO he agreed to repay £155 at the rale of £3 per week. It was only necessary to review one action. Nobody could possibly pretend that that rate of interest was not excessive. Simpson had offered to pay 20 per cent. Even 20 per cent, was too much, and under the circumstances could be called excessive. Certainly it was quite enough, and he would reduce the rate to 20 per cent., which meant that the amount due to Baldkind was £l(il 0s 10d. He gave judgment accordingly, Simpson to pay, in addition, the costs of proceedings that had been taken against him in the Magistrate’s Court. The question of costs in the Supreme Court action was reserved.