The Sun.
London, England, 1817-07-05 00:00:00

USURY LAWS,

The Chamber of Commerce in Glasgow; ap_
pointed to consider the propriety of petitioning
.rarliament for the abolition of the laws. which
regulate or restrain the rate of interest on money,
have made an able and luminous .report on the,
subject.. The following are the arguments which',
it contains ii--rhat the interest of money is the fair profit..
of stock, and a' legitimate compensation dile by
the borrower to the fender, for the advantage de-
rived front the use of the principal.
" That our laws,. which m ancient times pro-
hibitcd the 'enjoyment of this derivative revenue,
originated in superstition; ignorance, and pci%erty;
and 'that the regulations of More recent periods,
h restrained its•extenf, were founded in op-.
posi'ziou to the. p',:iO'ciides of Foilitical economy.
" That the rate of 'interest, hike ''the Pi ice of
'every Other eonnuallity, might to .be left to • its
own level,' and to depend on the slate of the
money market, whit respect to 'supply and de-
mand, as the simple but test
cif 'value.
" That tie ii..jiidices • .vhielf existed •agninst.
the uncill tr lied exercise of pecuniary Contracts
are Mitv,-ai a great measure; ; and. that.
the public opinion generally has anticipated. the
sanction of the Legislature' for the same freedom

t'tat'fir6VAiis in every 6iiter srtciet aF comaereidl

" That the. argnmentt which hate been rtd-
(loved for the continuance of the Laws against
totry are onoppOrtett by • reatoo; and
~ • • ~
nnfoondo fi.tet.. 'Dies, do Writ preyent pram-
. ,
icalitv, because there eat) be restriction to the
mortgage of pi'Operte or ic3 the piir.chase
~vhicit may be sactiftced to obtaiii the object.
They dO tiicausithe stir-
lt rate of ilitei•e;t ‘,'rynid be as
the: •arne'tif othVr ;asides,' Which rerson
Of evert" degree cif intellect are pertnititeil-tieely fa'
d 'hot beneffr-itlitigente, Weanse' he
needy are often Otanded from aecnntplishing
t•t'hat 'may tie tife nsean.s.olp,reserving-therii from
deiitroet ; atttt xlthough'there 6 a prohibition
against borrowing4it• a• higher rate,..t here is no
'provisiOn for supply at zi lOwei. They do* not
'check improper speculations, becatie the loan is
mot'advaticed on the :fyiith of anceeis tije pro-
ject, so much as on the solidity of Credit in the
borrow'er and because the monied'interest will
alwayt prefer.' the 'thiifty,• and may be safely.eit-
trusteit wish Ilse mairigement'Ot their own ',atilt:

." That the laws against miry-ere not Only at-
tended With no advantage, tiot are prodUciiVe of
extensive injury. 'They interfere tvirli the. priL
Nate concerns of individuals, over Which it is
etpodly unjett and impolitic treexert:tse sti ciintroul.
They interrupt the operation of mercantile pont y,
by allowing' the scale of business to'be.re-
othted by rite relative Wilil3 and poss-essions, of
the cormounity,seffectually I;djusti the balance of
price. They increase the .embarrassments of the
country, in 'a cline of gene'r'al iires-4iite,' by render-
iii;; illegal the mesing-Of relief, and deptiving the
sufferer of a refuge , till the revival+f confidence
and the return of prosperity_ They compel many
who are possessed of property to dispose of it for
whatever it may prauCe; anti, as fiord. Bacon
observes, " whereas usury would but gaaw upon
them, bad markets do swallow them up quite,"--;
They induce others to..evade the law, anti to pay
an exorbitant prernittm fire the accommodation.—
They expose the dealers in this illegal traffic to such
risk'inkinfamy,'at'uarrows the campetition, and
raises
.the toms beyond all moderate bOunds,—
Theycorrupt the.pnfifle morals; by holdiog.ont a
temptation to information, treachery, and ingra-
titude.. They impede the progress_ of commercial
enterprize and agficialtueal improvement, by e-
stralaing the free Wink of money into those cutter-;
nets Which might tliffuse wealth, industry, "and'
einnfolt over the ettatinunity. • Th 4 diVert the
Sat-pins Capital Of the nation front legititnite
atid liatiiotic employment at Borne, to the EtC0111";
modittiob and aggrairdiiement of foreign countries,
Who are willing to. 'afford an adequate reintmerae
lion for its use, and who, in the event of War, may
subject the whole to 'fOrfeiture. That 'he-laps.
against useiry are ~not only lins:tftri and 'inexpe-
dient, but tar a great
,measere ine6Caciens, as a
legal door is opened fire their evasion. It is per-
fectly knoWn that flee 'pract ice of raising honey
on redeemable and determinable annuities, has cif
late gro'ren to 'ati extent, •aiid obliod the
borroWer, who could .01lict wise have relieved his
•
necessities at the rate'6l six Or seven peretait. 'ro
• •
pay so high as 10, 12, and even 15 per
is nerfeetty known-that the interest it'enhaneetfin
the pude ohnpply onheritable securities; by 'the
original cost of, theciafeyance, and by frequently
'ehtingingit as tt` prtifit to theAttdrney. if is
perfectly •custom of charging
a conotOssino 'On He discount of -Bills 'has
been prevalent .atnong nibbled men and private
Bankers, winch, at the rate 61 a' half •per cent.
every three months, amounts to seven per cent.
per. auburn.
" It is perfectly-kn0.....n, that the loss by draw-
ing 'and, redrawiria-'OO Loudon, to 'which many
respectable honses in'ProVinelar places• have been
obliged to submit, for the purposes of temporary
'ttecOmtninlation, has been vet y serious. In short,
it is petfectly 'known, that, till of late, and for
Many years past, it was almost imp-tactic-able IQ
proeure• kens, to any considerable extent, at the
common .rateof intete'st, even on tlie most unex-
ceptionable security.
"That the repeal of the laws against -usury
'would not be followed by a rise of the rate of in;-
terest as the natural consequence ; for not only is
such a supposition contrary to the principles' which
regulate price, but it is notorious that in London
the rate at present on good securities is lower than
the Mak-Intent ; that in 'Holland, Flanders, Switzer-
land, and othee coon tiles wheee there Were no legal
restraints, Money was always procurable at a more
moderate return ; and in fact, that the very exist-
ence of such restraints defeats the object of their
enactment, in exact proportion to the strictness
*With'. which they ore enforce 4.
" That the repeal 'of the laws against usury
would not occasion that inconvenience or detri-
ment to mnrtgagers which has been apprehended,
because the rate of.inteeesthas already been sti-
pulated by the bond to be five per cent. and there
is no reason to, aaticipate more advantageous terms
to the lender at present;'and becanse,at all events,
there is, even tinder the existing system, .no
pediment to the Creditor calling up his money,and
foreclosing the mortgages, whenever he esteems
it to be for his advantage.
" That the repeal of the laws aping usury
wonid.not create any greater fluctuation 111
terms of loan than is. experienced in all the other
daily transactions of, life,. or in.publie contracts,
where Ciovernment are, left: perfectly free;, and to.
remove misconception, in eases where no previous
agreement was made, the preteet. rate ,ot interest
might he declared to be the rule of settlement.
" That the repeal of the laws against usury'',
wouldmot be at tended with the effect of ernbarrus-:
sing Government in their contracts.foe loans,
eattsealte National -seenrity is. always preferred, to,
that of individnalsi because the terms .are not:
effected by-the legal rate of interest, .but are di-,
rested by the qeantity -of money in.the market, by
the prospect of rise in 'the 'Funds.„ and lry ate
eotnparative advantages resulting from iuvestments
inahe Stocks, and other means of employing ca-
pital'i anti because, on the principle, even if it;
• were correct, of facilitating the Public engage-
Men, S, by -contracting the sphere of competition,
• ttihoeiriet;innigtilitet ,pttlxr•cithbiseeleaoil Lod:rie tclyt, be a
hel)uri;euity3ri of
connueree.74 •

ti.eiVi•rtsi.ii' iNTtLtist:::eki;

CANIATtliiaRt aTOLY n,---kflli*TutS:l;ty beiSa4
Cimtutetlevinetit Day, Ate fullowi4ig DtecAtrt.b
AIiISLtIS Of tfi were c-eated.:—:-