The National Register.
London, England, 1818-08-16 00:00:00

r~ ~.MI

REPORT FROM T!ll•: COM'IITTE•E 0.1.' THE
1.". S L' LAWS.

This having been printe,l, we have selo.r.tc.l
the f,llotciu;;, as being t:te of a gentleman who
::,)cars to have v:ell unierstnal the subject, au3 t'cont
w nom Commi:t clerivzd consi.lerable information.
EDWARD BURT:::1i:1VM S'...!.;;Dr.ti, Eine in :.n:

You. li.tvf• Iwo: :It Itiy y:•ar4 cotivt.r,.:3t t‘iLts real prow ty ?
iii.s.%a!:l% tillt,•la seats.

Ye, y esteasisels• so ?—Certainly. •
1.i.; VI. y hal an opp tiviire of obsers leg the effect of the
s mem len led property I have.
Ii 've ties been beriedrial or otherwise ? —They have been
dee:die:ly iniu,iral to the interest of the dueled proprietor.
kind s 'emelt to ;fauna the Committee your sentiniems
t-,,.a+ the •iialect cry limier' propi beer will have in im-y
when, let wabre it, and e always two rates of interest ;
oee the mai ket rate, and the other the legal rate. the
la it Let tate rises above the legal vete, the Tended propiieter
••:lit Ilerl,.7llily resin t to %rime shift to 0%.01e the usury laws ;
Ili:, is Ilene under the coheir it eraiititig life aininittet.
sueli dealiegs the transaction it in truth a loan ; the party
advancing the iiienty always fixes Nitta a rate per cent. at
v.-hitch he is ttiiliii to lend cis money, to which he adds the
costs of higher the teraie are 010 11101 e
toe transaction Ilse shape of a loam becailie the very
exorbitaney of the terms revilers it an act of dine on the
part of the hurl iiwer toward.; th ns if to re-ptirehase the
:enmity as slum as he trashily can : far in all these case,,
NiIIII•Mt one chceptit n, a revel. to re-purchase is inserted in
tee eratit of his. annuity ; in speaking of suet trans:ie.
thee, I iiiVi• Me:viably observed that tile pateies treet :hem as
leans, mid not a• a purchase tint anilent of int
Are three aimaities es-nerally grant.:ll for the :ite of the
grantor ; aml mit, for one life, or for more live>?— When
the burrower hits oily a life interest the annuity is tiectissariiy
granted fur his life mile., but when the grantor has a Inrger
t: rest, for example, .1 long term a years or a Ice simple,
tee auenity is rhea wanted for three lives at the beret, and
tie. of the survivor of them; noel as this ditiiiiiistice the
tole of the seem iiy, a smaller sum is generally added a, the
charge ofinsarance. I have knoren annuities granted for
three lives at tell par ecnt.npou fee simple estates nniecitim
I. reed and of great annual valve in register coonty. I have
aim> known annuities granted for four lives, and mure would
ire been added but for the danger of or ity eettiikg vatic
tee transaction on account of the inadequacy of the consider
ar:l.n. Letterly nnmty 41111I:Illv3 were granted fee a term of
yaa+s certain, mot denendine upon lives.
if there were no levis of avitrictiutl on the rate of interest,
cool.l or conk! not better terals have bean ohlained ?—•I am
of opinion that better terms ceold live been ob-
teined, for there is a stigma which attache: to liiCll %l h 0
npon anionic; that chives all respectable men out a
tee merket. Some leading inn did latterly embark in still
reneactiene, but I never lot inetance knew a man efrepuita-
eiOil ill Illy OWC 11101.uSSI011 lend mduey in snob a meaner,
although we have the beet ineani of ascertaining the safest
aecinitics,a::4l of oirtaining the hest terms. In all Icons two
solicitors are invatiably concerned, one for the borrower and
one for the lender; mid altholigli the borrower always pays
the cepense of the securities, yet a reviler professional bill
is invariably made out; whereas in the case of an annuity,
although it is in shietnees a 10:1.1, one solicitor only is em-
ployed, and lie never wakes out a regular bill, bat charges
what is termed a lumping sum for all his expense and trou-
ble in the transaction. Besides this a
.iiidgnient is neatly in
every case entered 1111 azainst the borrower, with liberty to •
issee out excretion if the annuity is a few days in arrear.—
'rhis is never hone upon a reenter loan.
Are von aware of any ineunvenience .that would result
fi•oin the repeal of theme laws ?—I have latterly turned that
over ft eqneetly in my nine', end I entertaiii a confident opi-
nion, that the repeal of the laws wualul not in ally manner
prejudice the landed interest ; fur as money can now be
obtained upon real serority at four and a half per cent. al-
though the law as it 110 W stands, live per (TO. to
be taken, it clearly iodises that it would still be obtained at
that rate, that is, at lollr anti a half per emit. if the law allow.
ed cent. per cent. to he taker. But where sums are owing
open personal or slight seemities, I should nut be sur-
to teed if tile parties were to claim a somewhat larger inter-
est for tints sudering the limn to remain on sue!' security, as -
snon as the laws are repealed. I should not have thought it
wise to repeal the laws tiering a moment of agitation ; but
the repeal of them How would scarcely be felt.
If the Committee understand you rightly, eitey conceit, e
you to mean, that if the laws were repealed, the rate of in-
lercet would behlldigted to the securitice ..—i'recieely so ;
money, like every other commodity, will find its level in the
market. At this moment I think clearly, that the repeal at
die usury I uws would not raise the rate of interest un 10.111 i
upon real securities.
Does any thing else orenr to you %--Without being able to
vouch for the accuracy of the accomit, I sent this 11101-Iliag to
the registei's Mitre in which the grants of life annuities are
enrolled, in ()hire to ascertain roe number Or annuities en•
rolled in the last funk months, and tke whither in the corres-
pouding forte monthe of last year. It struck me, that 05
money Was 110 W and the rate of interest coneetpiently
lower in the market, the number would be foiled vi have de-
creased in the fate nionthe in this year; and the numbers
which have been given to me as the result of a very hasty
examination, were .151 in the first four months of the yea i
ISIT, and 314 ill the course of the last teuir months, being a
decrease of 117 ; hut .1 cannot take upon myself to say that
this is the actual result. With the knee of ilie Committee, 1
will just add a few things that orcur to me ; I would first
draw the ettention of the Committee to the Act of the 53d of
the Kim!, sv bieli was framed by me, and which was, to a coil. -
sidcrable degree, a relaxation of the usury laws, fur as it fa—
cilitated and rendered more secure the grants of life alintih
tie., which are weedy an evasion of the nsui y It did to
that extent comic' act their effect. If the wane laws are
repealed, it would be necessary to repeal bell) that Act and
the Art of the Mit of the Rlog, which letter was repeated
by the Act of the 53d ; tOr it would be absurd, s it seems to
are, to leave these provisions oo the statute book, when a
men may by law take what he Call get f. r the loan of his
money. In repealing the usury laws it appeals to me that
it would be scry desirable to add two piovisions; the sore
that on man Omelet lend money et interest without disclosing
his tiante, as Hit lender, or the face of the seem it y•
would pi es eut all litteltrli ti ausac lions. I inssi It never
knew :in instenee, all timigli now and then PO riereau
for hiatus may ore 111 nn sslliela a person faisly lending his
Mm.l.s qt itileir.l Wel, lit Strums lit conceal his name.. The
oho r pros gsiou which L -would take the liberty to suggest