Pittsburgh Councilman Bill Peduto has sponsored legislation that drastically restricts the freedom of check-cashing business owners.

He sanctimoniously declared, "check-cashing places are bad banking" and that "these places are here to take their [people's] money."

Apparently, Mr. Peduto does not realize that these businesses serve a purpose in the community and that people freely choose to use their services.

Business owners do not magically set interest rates. Entrepreneurs assess risks and benefits of transactions and then determine acceptable prices.

Profits measure success and bad decisions are manifested as losses, debt and bankruptcy. Check-cashing stores issuing "payday loans" face the possibility of bounced checks, and a transaction fee reflects this risk. The $15 fee for every $100 borrowed is obviously acceptable to the customers who purchase the service. If unacceptable, they are free to explore other options.

The councilman's naive and oppressive solution echoes his penchant for statism and corporate welfare. He routinely rewards developers with taxpayer money under the pretense of urban redevelopment and then supports tax increases to pay for the inevitable debt.

Unlike the check-cashing store owners, Mr. Peduto is shielded when his bad investments turn sour. He simply passes those risks onto all of us.

Mark D. Valenti

Robinson Township