The British Press; or, Morning Literary Advertiser.
London, England, 1825-02-18 00:00:00

t N.,.

-

0' N.

‘<, -

1 .s

-

scheme, front which, after ten years, they would nut get a single
farthing, would be as mischievous as any of the bubbles that such
a measure was intended to suppress. In all far speculations he
would say, that neither the Lord Chancellor, nor any other nun in
this country, had any right whatever to interfere. interest
was high, then we were told that it was not the time to introduce
this Bill ; now that it was low we are met by the same opposition.
Ile (Mr. Hume) was firmly of opinion, that if this Bill should
pus, the rate of interest would never again, so long as he lived, be
so high as 5 per cent. lie therefore hoped the measure would
succeed. Suppose he were to propose what was called a Double
Act, and say that hie Hon. Friend should not let his land above
lss. an (hear, near ;) that land in Yorkshire should be of co
more value titan in Donietshire, would it not be equally as just.
as that it should be said a man who had money should not lend it
at st higher profit than 5 per cent ? lie wan sure his lion. Friend
let his terms as highly as he could, and why then should ru:
monied men make as ninth of their money as they could ? He
was quite satisfied, that if his Hon. Ft tent! could but get rid of the
knowledge of his having formerly opposed the measure, be would
most cordially join in not only doing away with this law, but of
all ether restrictions on the use of property of every description.
Mr. CRIPPS said, that the argument in favour of the Bill was,
that it had driven young men to raise money upon annuities. He
granted that there was some truth iu it; but there was always
great deal of disgrace attached to these transactions. (Hear, hear.)
But how wore these annuities obtained? Only bemuse the per-
sons who grunted them had no other security to give; if tbey had,
they might obtain money at five per rent. as well as other persons.
He would venture to say, that if this Bill was passed. where one
individual was mined now, ten would be ruined then. He had
not the slightest doubt, that every person would have to pay a
nigher rate of interest than at present ; and that that interest wuul i
be obtained with a thousand times greater facility than now. lie
hould oppose the Bill, because it might possibly do much mis-
chief; and nut only so, but because it could not do any good. In
his honest opinion, this Bill, if passel, would. in time of war, be
extremely pernicious. In his honest opinion, this measure touched
most datigerou things, and was calculated to produce evils to the
country whirls could not at present be seen. He should therefore
give his feeble support to the Honourable Member for Wareham
(,11r. Calcraft). in his opposition to this Bill.
31r. JOHN 8311TH thought that the repeal of those laws would
be extremely advantageous, and their continuation highly in-
jurious. Ile emaidered it to be laid down as a general principle,
that money would somehow or other always find its value ; and that
means would be always found to gain it. He had known frequent
instances of men who had been forced to raise money at a very con.
siderable loss. in cases of bills of exchanite. men had often been
exposed to the most ruinottsconsequences, and lie had frequently lent
aunts of money without interest, to save persons from the effect of
thjs deplorable system. He knew that the Bill might perhaps
fail in this (louse; but he felt sullied that, like the Catholtc ques-
tion anti many others, the House would at length see the neces-
sity of it.
Tike SQLICITOILGENERAL said, he would first observe.
that It 'has his intention to 11101: the reading of the Bill this day
six months. If the evidence that had been ti.lien by the Com_
mittee had been emeet,/the repeal of the existing laws would be
highly injurious. He agreed in the principle of the lionoundde
31eariter who had just sat clown, and whose temperate and collected
manner of arguing was at all times so evident, that the question to
be considered was Whether or not these laws would be bene-
tidal to the community at large ?" Ile (the Solicitor-General)
allowed that there were sonic instances in which those restrictions,
which the rising laws created, might he beneficially removed, par-
ticularly when the borrowers were mercantile borrowers; but he
felt assured that other classes of the community would be injured
by sufh a system to an enormous extent, and the mercantile duties
formed only a portion of the community. Was any landed pro-
prietor n blind to his interest, and with understanding so crippled,
as to fancy that if those restrictions were taken off, he could get
money cheaper than he now can ? To him any alteration must
prove injunour—to him there would be one great evil ; it %residua
when the lender wanted to call in his money for the purpose of
lending it to another on more advantageous terms. although the
tnetchant who had his capital vested, principally perhaps in
BEL of Exchange, might not feel the injury attending this
sudden call, which he might be able to answer, the landed pro-
yfietor, whose situation and whose circumstances were very different,
must r.ccessarily feel it deeply. It was clear to him that the landed
proprietor must borrow on far less advantageous terms than the
merchant. lie would look at the question in another point of tiew.
We were told that eight out of ten estates in this country were en-
cumbered with debts. The country gentleman, therefore. must
borrow, not to speculate, like the merchant, on great returns,
nut to make • corresponding interest, but to pay those debts, or
tb Inched with his affairs. There were a third class who were to
be considered in the discussion of this question—men who had
no security to give ; and those persons formed a pretty large portion
Of tile country, and were certainly frequently under the neces-
sity torroiving. it was idle to suppose that they could get
money, eitept tin 'exorbitant terms, unless there were sore
testridtions. The repeal of the usury laws might be useful
to eh: rich berrower, although this was what he was tot reads'
to admit, but to the small borrower, whose necessities obliged
him to borrow, the case would be very different. He would
beirome liable to • greater inherit, and more at the mercy of that
eliding and rdinottasystern. 'Could any ore conceive that he who
could no: trite even the set:tufty of a day, would not be used far
motel:V.oly than him whose security was unexceptionable ? Such
Oise's, had no choice between borrowing and not burr swing, as the
merchant I.ad. He would now advert to another and a material
principle for consideration. As the laws now stood, no man could
obtain a higher interest than S per cent, and if he did so he would
become liable to very high penalties. The repeal of those laws.
'however, would have the effvdt of exempting lenders from the
bankrupt laws, because, if a man had money, he would take
care to employ it on every establishment there he could gain a
large interest, and not be answerable for the debts of that esta-
blishment. lie would not become a partner, but he would lend
• sum of 50,0091., for example, to a flourishing brewery, for
which he would be satisfied to reteive only half the profit, say 1U
or 11 per cent., while, at the same time, he would receive the brew-
ery as his security, and not be answerable for any of its debts. He
knew no reasons why restrictions should not be placed upon money
as well as upon corn, and restrictions had been placed upon the
latter. lie tilt assured that the repeal of the Usury Laws would be
productive of much public inconvenience and injury. It was not
in the levity of the moment that lie offered this opinion, but after
mature consideration lie bad formed his Opinion on the subject. He
moved, therefore, that this unpropitious Bill be read a second time
this day six months.

Mr. Sergeant ONSLONV said, that of all the arguments that
had been brought forward on this subject, that respecting the
Corn Laws was the most singular. Ile, for his part. had al•
ways understood that those restrictions were for the purpose ce.
affording protection to the corn grower. His Learned and Hon..
Friend (the Solicitor-(ieneral) had alluded to a case in which
a lender might advance a sum to a brewer, perhaps, and re-
ceive a aunt of 13 or 14 per cent. imerest or profit, without be-
coming a partner. and therefore not answerable for the debts of the
establishment. Did his Learned Friend know the purport of tl.e
Bill before the House ? It was to tic the rent of money--
tire tent he would call it--and thus prevent the very evils the
Hon. Gentleman anticipated. His lion. and Learned Friend had
alluded to three cloves of the community—the merchants l the
landed proprietors, and those who have no security. Ot the
latter he (Syr. Sergeant Onslow) would observe, that the repeal
of the Usury Laws would enable them to deal on fair terms.
The argument of the Hon. and Learned Gentleman had been
very strange with respect to the other two. The landed pro-
prietor, he had observed, must borrow under greater disad-
vantages than the merchant. If this were the case, how was
it that the heeded proprietor always found it more easy to ob.
gain money then the merchant? He (.fr. Sergeant Onslow)
would leave any man to re9ect how different things must be
when lie who wants money must yield to the most exorbitant
demands of him who has the impudence to make them—and
when a person wanting money can go with his security to a
market where there would be fair compensation. He hoped the
Hon. alembers would see the matter as it really was, and pre.
vent the innumerable evils that were daily occurring, and mule,
were it otherwise, daily occur.
Mr. ROBERTSON supported;the amendment. He contended,
that the effect of the Bill would be, to COMlllit any man who wanted
money to the grasp of the usurer. In answer to what had taller)
from an Hon.-31 ember in the course of the debate, he begged to state
that Adam Smith was not opposed to the system of laying restrictions
on the rate of interest, so fu front it, it was his declared opinion,
that " the various reductions of interest were judicious and well-
timed, (hear, hear ) and that it should generally be fixed at the
lowest rate of profit at the time." The Honourable .Member, after
some further observations, said, that in order to show howaniquitous
and baneful usury had always been looked on, he would cite, in the
first place, the authority of Solon : when that great legislator was
appointed to re-model the State of Athens, and to correct the vari-
ous abuses in it his first step was to annul all debts ; his second
was to enact a law to prevent usury; for the future from set-
ing the body of their creditors. lit the middle ages, too, the same
course, as to restricting interest, was pursued in all those States
that had risen to any eminence; and when the necessities of Princes
drove theta to borrow money at a high rate of interest. and to abo-
lish the laws against usury, the almost universal result was, that
the State sunk given her emir.eoce, and was reduced to the low st
pitch of distress and misery. To come nearer to their own times.
if they looked at France, they would End that very soon after the
Usury Laws in that country were repealed by the Convention, the
interest on money rose to twenty and thirty per cent.
Captain 31ABERI.Y said, it was a mistake to declare there
were no laws in France regulating the rate of interert ; there were
laws to that effect. So far the principle was established; tlicu.th
he was free to admit that the prattiee was dit!'erent, and tkrt
the laws were little observed. He would not follow tl e
Solicitor-General through all the points of his speech, l tit
would ask, in answer to the last case put by that Honourable
and Learned Gentleman—that of a person who had no security
to give—what man in his senses would lend such a pe sin mo-
ney? (Hear, hear, hear.) In answer to another case put by
the same Honourable sad Learned Gentleman, and al rat
seemed to make such an impression on the Hoitse—ihat of
the brewers—he would simply reply, that if the person to be
set np as the r.otninal proprietor, had good security ta give
what would prevent hint from going into the market and get-
ting money at the common rate of interest (hear, hear), instead of
giving up all the profits of his establishment by paying twenty per
cent. or perhaps more, as it was said he would be induced to do?
After some further remarks, the Honourable Gentleman went on to
state, that the laws, as they now reed, were insufficient, and were
every day evaded in the city ; of this every person who was ac-
quainted with mercantile transactions must Ise aware ; and, indeed,
these laws were violated almost in the case of every lean, as a