Northwest Arkansas Times from Fayetteville, Arkansas on October 18, 1974 · Page 7
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Northwest Arkansas Times from Fayetteville, Arkansas · Page 7

Fayetteville, Arkansas
Issue Date:
Friday, October 18, 1974
Page 7
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Page 7 article text (OCR)

Amendment 57 Would Allow Legislature To Raise Interest EDITOR'SNOTE: This i.s the fourth and last in a series of articles about the proposed constitution arnend- adopt or reject In the general ments that Arkansas voters will flection Nov. 5. By BILL SIMMONS LITTLE ROCK (AP) - Under proposed Amendment 57, the 10 per cent limit on the amount ot interest that can be charged in Arkansas could, and probably would, be changed. The proposal would amend Section 13 of Article 19 of the state Constitution. That section says any contract for more than 10 per cent Interest is void, thereby making 10 per cent the maximum interest that can be legally charged. That limit has been construed by the courts of Arkansas as an across-the-board maximum applying to all types of contracts, including bank loans, retail credit, and so on. .The proposed amendment says the interest maximum would be 10 per cent "except when the General Assembly shall otherwise provide . .." This, then, would authorize the General Assembly to set in terest rates. They could be higher than 10 per cent or lower than 10 per cent. It also is possible t h a t the legislature, rather than setting a single, across-the-board maximum rate t h a t would apply to all contracts, could set one rate of interest for bank loans, an other rate for retail credit, an 1 other rate for other types o contracts, and so on. This pat tern has been followed in som other states where the legisla ture determines interest rales WHAT PHILOSOPHY ' _If legislative authority ii ranted by the people through pproval of proposed Amendment 57, one of the early decl- lons by the General Assembly ikely would be over what phi- osophy to follow in setting In- erest.' The questions that might arise could include: --Should one flat rate be set? --Should rates vary, depend- ng on the type of contract? --Should the rate approved by the legislature be fixed until altered by the legislature? --Should the legislature fix a rate tied to something else, such as. the Federal Reserve 3oard prime rate, so that state rates would rise and fall in con- unction with federal bank rates? Proposed Amendment 57 was the last of the four constitutional proposals referred to he people for adoption or re- lection in the general election Nov. 5. The other three were referred by the General Assembly, but Amendment 57 was referred by Millions that had been circulated among and signed by registered voters. The signatures needed to pul the proposal on the ballot woult; have totaled 64,807, but th backers of the measure turnec in nearly three times as many-188.44G. The Arkansas Credit Require menls Committee, official sponsor of Amendment 57, is hackee in its effort by many of the state's leading businessmen. They contend that Arkansas 10 per cent limit, set in 1874, no longer is realistic and also lacks the flexibility needed in times when interest rates flue tuate significantly. Rising interest rates in recen years have created a "credi crunch," which causes economic hardship on businesses whicl extend credit or loans under a 0 per cent Interest maximum, he ACRC says. Lending institutions must pay nterest on money they borrpw n the federal system. THoy dmellmes pay 11 to 14 per cent. Lending in Arkansas at 10 per cent, plus bearing the cost it paying personnel to handle he paperwork involved In such oans, creates a money-losing proposition that cannot be long endured, at least not without adjustments, the committee says. Ono "adjustment", to to raise ;he price ot goods so that the money lost through unreajisli- cally iow interest on credit is ·cgained by inflated prices on the commodity Itself. The ACRC contends this is happen- ng in some instances in Ar- ;ansas and will happen more if nteresl rates can't move up. Another adjustment would be .he gradual elimination of cred- "t. The S.S. Kresge Co., which operates K-Mart stores in Arkansas, has given notice that it intends to do that. Foes of Amendment 57 say that Arkansas has done we'll under the limit and (hat the people have bcnefittcd. They cite growth in per capita income in the stale, among other things. They also say that the absence of a hard-and-fast interest ceiling in oilier states has led to exorbitant interest rates, particularly on the smaller loans, which,, of course, are the kind t h a t most Arkansans obtain. Vofers League Plans Study Of Land Use Unit meetings of the League of Women Voters will be held in Kaycttcyille next week. The topic for discussion Is "Land Use; Can Wo Kcop Public and Private Rights in Balanc?" The meetings will be held at the following places and times: T u e s d a y , Mrs. Genie Donovan, 1503 Cedar. 8 p.m. Wednesday: Mrs. Mary Jane Fitch, 12 E. Sycamore, 9:15 a.m. Thursday: Mrs. Trudy Scott 603 Vinson, 1:15 p.m. All interested persons are invited to attend and fur (her information may be obtained by calling 521-3296, or 442-6327. Jimmy Kay Howard, 17, of pringdale was found guilty Thursday In Washington Circuil 3ourt on two counts ot burglary nd two counts ot burglary and jrand larceny. C i r c u i t Judge Maupin Jummlngs sentenced Howard to six years In the slate prisor on each of the four counts bul Uorkettes To Sing The Uarkettes, under th direction of Dr. Ken Ballenge vill perform at the banque Saturday night of Region 6 o he Airstream C l u b at tlv Arkansas Union. .. ·'..·-'. EVEREST JENNINGS WHEELCHAIRS FOLDS TO 10" Faydttvllle D"if E.StdeSijiur* «M8« Howard Sentenced On Thefl Charges 5th Annual ANTIQUES Show and Sale Rogers Armory October 18, 19,20 10 a.m. to 8 p.m. 27 Dealers uspendecl three years of each enlence on good behavior. The cntences are to run con- uiTcnlty. Howard had pleaded guilty to he charges ' of the four b u r g l a r i e s which occurred jclween July 8 and July 25 of his year. Northwest Arkaniai TIMES, Friday, Oct. 18, 1974 · rAVITTIVILLI, ARKANSAS Rodgers Murder LITTLE ROCK 'API -- State Police are optimistic of solving the Sept. 26 slaying of Fern Cowcn Rodgers, 67, of Searcy because of new evidence that has been uncovered, Rlaj. W. A. Tudor of the Stale Police said Thursday. Tudor would not elaborate on the evidence. To reveal tht information would be detrimental to the investigation, he said. Mrs. Rodgers was the wife of a prominent Searcy physician, Dr. .Porter Rodgers Sr. RE-ELECT REPRESENTATIVE CHARLES W. STEWART WHO BY EXPERIENCE IS EFFECTIVE Democrat Candidate For State Representative, District 10 Paid for by Joann Stewart ma^^ Looks Like A Calculator . .. Works Like A Slide Rule! nonesuch by: Warner Brothers cases Texas Instruments electronic calculators The Texas Instruments SR-10 New Low Price! 69 0 Special key functlonst tqyars roots, squares, reciprocals, change sign, scientific notation--as well as addition, subtraction, multiplication and division., · Instant 8-placa accurcfcy, from simple arithmetic to complex equations. · Handles numbers at large os 9.9999999x10.99.. ..or as small as 1.0000000x10.98. 0Fast-reeharge long-Ufa batteries, AC adapter/charger Included. 0Packer .portability. Weighs only 9 ounces. Simple to operate. 0 Bright red display shows 9-dIglt numbers, 2-dIgit exponents, minus signs, overflow sign and low-battery warning. 0 Guaranteed by Tl to be free from defects In parts- and workmanship for one full year. · An extra-function calculator a an economical price. ' Business Machines--DIUARD'S--First Floor Now.. .Three Convenient W»y$ To Charge Thm tan pgpuhr end* otnKpki* your DMwiftoradKecrd ·· · .. -At M NUAmrs Hid MLURW PWIoMJtwi «MM in Arkmn Open Monday Through Saturday 10 a.m. until 9 p.m. TM Reg. 3.97 ON SALE GIGANTIC SELECTION CtOC£ ClIMb 5} CHARLES WUOfllNEN " TIME'S ENCOMIUM ' · ONE WEEK ONLY!! the · Albums shown above net n«c«i»irlly In stock. NORTHWEST ARKANSAS PLAZA

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