The Sun.
London, England, 1828-05-21 00:00:00

also, 'that during the panic in 1825, ao much as SC
per •cent. was'given for money seemed on the publi
He knew that in the city now, though good
done at two and a half per cent., sniall tradcsm
dhurged at the rate of 20 or 30 ; and he knew
house alone which made 6,000/. or 6,000/. a
such transaction& During the panic in ila
the rate of interest ruse to 10 per cent. but as
was no impediment from Usury Laws, the niaril
'found its leecas and in the course of a few wee!
interest felt to four per cent. There was anotkel
which he should merition, in reference to the off
those laws upon partnerships. A banker of his acqu
ance had a son whom he wished to succeed
the firm, flow which he was himself retiring. lie ss
at the barite time to leave about 50,000/. in the bai
the legal interest, the better to secure the successitm
3011. The whole arrangement was almost concluded,
a solicitor interposed, and cautioned the parties that i
an usurious transaction, the father having derived fra
besides the legal interest, the additional advantage of I
ding for his son. But in addition to those objection
the severity of the penalties Ivan those who iufringt
law. He was himself aware of a case. ill which a
was committed in the penalties fur an usurious crier i
sum of 32,000/. ; the penalty amounted to 36,00
(Hear.) In fact, the penalty was nut only double tle
on which the usurious transaction arose, it inclual
other sums which could in any way be concreted witl
transaction. There was but one security against the hart
of suck a code, and that was, that their own aevelit,
vented frequent convictions under them. Men coal
be found to bring in verdicts in particular cases
they knew that the same thing was done every day.
commercial world. Under these circumstances, the
which he should propose was to du away with that p;
the law which voids the engagements entered into.
any rate of interest above that which the law admit
to change the present penalties, allowing persons a
sue for the legal interest of five per cent. and not
it. The immediate effects of this would be, to afford
relief to persons whose necessities might require intuit
assistance. The next advantage would be, that, th
dividuala, being no longer liable to pay the enormous
ties given by the present laws, but only the addition
of interest above the legal rate of interest, would lie
to advance money, on higher terms than the
rate, to those individuals of whose moral charactse.
were secure, and whom they believed to he too Ito
able to take advantage of the law over them..
next, and perhaps the greatest, advantage of all was,
it would put the transactions of coinnierce on a loon
security, and would give them a stability which it wf
possible they could acquire under the present law: B
this, no one, under the amended law, would be at
turn the misfortunes of individuals to his own profit
to procure from them grinding cngagewents for $
term of years, because individuals thus called upon t
money might at any time bring their cases into Cool
get the usurious interest avoided. A prodigal, too:
was anxious to raise money, would not render him
beggar for life by hoirowiug moaey at au extravagan
of interest, which was to continue for years. Ile woe
longer be obliged to resort to Jews awl money-lendel
did their dirty work iu corners; but by the open col
tion in the market would be able to get rid of his sect
without allowing any body to take advantage of i
He was aware of the value of precedent in all legis
measures, and therefore he would say that lie found
cedents for the course which he was going to purses
only in this country, but almost iu every nation of Et/
In the Court of Chancery a plaintiff was often told 4!
shall be entitled to no usurious interest, but you sld
entitled to your capital with the legal interest calct
from the day on which the debt was originally
tracted." In all foreign countries the usury laws, i
formally, were at least virtually repealed. In Franc.
Holland, and Russia, there was a fixed legal rate
terest ; but he believed that in all of them the dis
of bills was permitted at a much higher rate of iutt
indeed, in the Government Bank of Russia the die
was whatever they could get, which, however, was
laced by the market value of money at the time. If 3
system had been advantageous in other countries, be
that it would also prove advantageous brie. He ti
that the observations which lie had already urged s
be sufficient to induce the House to give him the leas
which he was then moving. He had endeavoured to
cipate all the arguments which might be urged a
his measure, and he believed that he bad nov
none of them unrefuted, except that which
that this was was not the proper time fur bri
it forward. Not the proper time ! Why, if
there could be a proper time, it was the present.
market-rate of interest on mortgages was only 4. per
and on good bills only 2or 2 per cent. It was ao
below the legal rate of interest, that he did not cm
that any change in the law could create a detrimenta
was would
either bbeao dfuaogoughni
otted:
tdtsosh,boetiireltsi hooyolrensoeatfr'iiiitn!,:s)leaoaHen!ree.roey;:istireaiig.n:
in it. He therefore submitted his Bill to the House
It
eash,frionp:
oicpeotodr;ttbii4afitl
nuo,ertime
it
of it the better. The Honourable 'Member,
recapitulating the chief advantages which be antic
from this Bill, and after drawing a pathetic picture s
misery, and poverty, and ruin, which the existing la
flicted on many opulent and respectable persons in th
of the panic, concluded by moving for leave to bring
Bill to amend the laws affecting usury.—(Loud cr
.$ Hear" from all parts of the House. )
The CHANCELLORof the EXCHEQUER.--N
could have heard the able speech of the Hon. Ml
without feeling that much inconvenience had been int
on commercial transactions by the existing laws.
serious fully justified the lion. Member in plop
and the House in taking into their consideration,
practical amendment of those laws. On this grou
would not oppose the measure in its present stage---t
must be understood as reserving to himself full disc
to deal with the amendments according as he should
Bider thesis calculated or not to effect the removal
present inconveniences. As to the imputation on thi
vernment for not having brought forward a meant
the subject, he should say at once for the Governmen
beeno recently appointed,
dese ta
rends
,
andalso,
himself, that when informed of the Hon. Mover's into
to introduce a motion on the subject, be (the Chao
of the Exchequer) declined taking any step in the m
not that he did not think the subject worthy his attei
but because,
evilsun. Member would consent to withdraw has na
't
h
occupied in other public engagements which
impossible for him to give the
that mature
measure iu thi3
stem—but he had said, in addition to this,
the
consideration
sidneg butirateh itscen itiliyip tari
in which
be would consider the subject fully in the vacation, and
forward some positive measure next Session. He was ntached to the existing Usury Laws, nor to any other s
merely because it was the existing one—but when lie sal
the present was a system of law which had grown up wit
commerce of the country, which was closely interwoven
our commercial customs and transactions, and to st
the circumstances of commerce had, in a long cow
time, accommodated themselves, he thought it most
dent to postpone the discussion of them until he el
have considered how far it was possible or experlie
legislate on a repeal of the whole system.
Sir R. HERON was willing to consent to a reps
the extravagant and absurd penalties enacted by the
Laws—but it was impossible to go the length of a tot
peal of these laws without affecting the rate of mortg
The absence of such laws would produce a variation e
value of money most dangerous to the interests of n
gagers. He could nut agree with the Hon. Member i
opinion of the result of the Committee of 1815. fie
R. Heron) thought the result of the evidence on tls.
mittce was adverse to the repeal of the Usury Laws;
though these laws had been repealed in 1825, 411
panic would have occurred. Though he would
some persons who had suffered might have been cast)!
escape by means of a free trade in money—but some s'
have been injured, too, at that time, by a repeat
many distressed traders got then the loan of money at
interest from private friends, which they would not
got, had they 'been able to borrow it, in the open In
at 50 per cent. If the Usury Laws were totally rer
the same result would follow here as in Holland, I
if
opulent merchants usually retired from business It
asetxi
io yet
s nh et
a to attempt any material alteration
existing system
in the present circumstances lie did not
t p e
d