MONEY-LENDING TRANSACTION.

Taranaki Daily News, 23 September 1919, Page 3

MONEY-LENDING TRANSACTION.

AN INTERESTING CASE. Some light was thrown on the ways of money-lenders in a casedicard in the Christchurch Magistrate's Court last week, in which Lazarus Wolfe Balkind sued one McDonald for £49 12s, being the balance of loans which, with interest, totalled £4O 19s, and which had bees made by him to defendant between May 31, 1913, and June 12, 1914. Plaintiff claimed, in addition, £2S by way of interest on the amount outstanding. Mr. Rowe (counsel for defendant) pointed out to plaintiff that £23 15s I had been borrowed by defesdant between May, 1913, and June, 1914, and that during this time defendant had paid some £ls back. This left £8 of the original amount borrowed. "And now you arc claiming £00," lie concluded. Balkind replied that was with tho interest. He had charged 80 per cent, interest, the money to be repaid by weekly, fortnightly, or monthly instalments. Mr. Rowe: If a man borrows £IOO, to be paid back in 52 weekly instalments, you make the total amount he has to pay £180? The witness said this was so. but he would not charge 80 per cent, on such a large sum as £IOO. Mr. Rowe pointed out that this method of calculation made the interest not 80 per cent., but 154 per cent. Witness said that unless he charged a high rate 'of interest on moneys advanced practically without security he could not carry on his business. Mr. Rowe said the defence was that the rate of interest charged was too high. The magistrate, after hearing defendant, said he would make the actual amount due £7 15s, and allow plaintiff 25 per cent, on that sum. This would come to £l7, together with costs.