The Sun.
London, England, 1854-08-05 00:00:00

the Government virtually annulled the act of 1841, and
saved the bank from its stoppage. What then were they
going to do now ? Why they were about -to extend these
exemptions to all transactions in money. In October,
1817, during the commercial crisis the exchnteees from the
United States and other markets had set in decide fly in
favour of this country, and it was quite clear that the
pressure was not the result of any national operations but
of the artificial laws of 1844. Now, before they passed'
bill of this nature, it was their duty to make some change
in that artificial law. At present the natural tendency of
events was to make money cheap, but, the' effect of this
bill, without the removal of the existing artificial- restric-
tions,. would be to reverse that tendency.' In that way the
measure would act most injuriously upon trading and
agricultural men of small capital, who experienced no diffi•
culty now in borrowing money at five per cont. • Mort-
gages, which sow carried that rate of interest', would be
suddenly foreclosed, unless they took some stens to prevent
an artificial scarcity of money, and rather than go to the
expense of a transfer upon a threat of foreclosure, men of
moderate means would be content to add an extra two or
three per cent. to the interest they were paying for their
money. Such, then, being, the state of things in the
provinces, the house was bound to have some regard for
the interest of the small farmer or shopkeeper before they
passed a measure which might be very well calculated to
further the ends of Lombard-street, but would most cer-
tainly act oppressive upon the really industrious portion
of the community. If they were to extend to land, whose
operations were not regulated by the London money mar-
ket, a bill which would render it liable to artificial panics,
they should at the same ti n e repeal the act of 1844, or
reduce the cost of transfer..., real property. Dealers in
money were the servants, ..Inmerce, but pass this bill
without the necessary kpieguares which he had feebly
attempted to point out, ”d they would soon become its
absolute masters. He shOuld therefore move that the bill
be committed this day three months.
Mr. HUME admitted the calamities which the Bank Act
of 1814 had produced in the shape of commercial panics,
but he did not think that was a sufficient reason for re-
fusing to repeal the usury laws. They were just as great
an incubus upon trade as the act of 1841, and it would be
unwise to refuse to accept one boon because they could not
at the same time obtain another. This was a step in the
direction of establishing free trade in money, and it was on
that account that he supported the bill, leaving it for a
future session to rid the country of the evils which it
suffered under the act of 1844. Next year the whole
subject of that law would have to be reconsidered, and he
hoped under those circumstances the discussion which had
been opened to-night would be postponed until that
period.
Mr. W. A. WILKINSON thought the speech of the
'lione gentleman the member for the North Riding was more
suited tai the e+.tinct animals of the Crystal Palace than the
HouSe a Ciimmons of these days. (A laugh) The hon.
member seemed to argue as if the usury laws -could force
men to lend money whether they would or not, but all
such absurd notions had long since been exploded, and now
the universal impression was, that the usury laws inflicted
as much injury upon land as upon trade or commerce.
Mr. MALINS said the usury laws had already been
virtually repealed in reference to bills of exchange, and for
the sake of removing anomalies in the law a measure of
this nature was required. Advanced upon any other com-
modity than land a man could demand what interest he
liked for his money, but money could only be lent upon
land at a fixed rate, namely five per cent. ; the consequence
was the law operated most injuriously upon the occupiers
of the soil. In the case of personal security, you might
take any rate of interest you pleased, but if an advance in
money were made upon the security of land the whole
transaction was vitiated if you demanded and received more
than five per cent. Instead, therefore, of injuring the land
the Chancellor of the Exchequer was conferring a lasting
benefit upon it by assimilating the law of real property
with that of personal property, and one immediate effect
of this proposed change in the usury laws would be to do
away w th many vexatious Chancery suits which arose out
of mortgages on land under the existing system.
Mr. SPOONER contended that the session was too far
advanced to admit of this question being fairly discussed, but
it was hopeless for him or any other independent member
to think of -successfully resisting the further progress of
this bill. His great objection jg•the measure was, that it
would interfere with existing bareains, it would unjustly
press upon parties who had borroAckthoir money at fixed
rates of interest, and in the case ofeimall mortgages he was
afraid it would be productive of=greitt hardships If that
difficulty could be got rid of, he could uot see why money
should not be made as free as any other commodity, but as
no one could tell what would be &weak, of interest after
this bill passed, he would much rather that it should be
deferred till another session, when sbme steps might be
taken to protect the interest of small mortgagors.
'After a few words from Mr. HENLEY and Mr. TVGREGOR,
41tiVamendment was negatived without a division, and the
house went into committee.
The clauses having been agreed to,
Mr. CAYLEY suggested that the bill should not be a
permanent one, but should be tried for some time as an
experiment.
The CHANCELLOR of the EXCHEQUER said that
having been so cautious heretofore, he really thought the
time had come for taking some decisive step on this sub-
ject. (Hear, hear.) The object of the bill was to establish
freedom of trade with regard to money, and the House of
Lords having passel it without a division, he should be
sorry to see the House of Commons come in and stop them
in that career. (Hear, hear.)