Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1817-07-15


terest and the quantity of money have no ne
cesSary connection with each other. Two of
the most enlightened political economists in |
the world have exposed the tallacy OF this ldea.
| They show that the rateo interest depends on |
| the amount of capital, andnot on the quantity |
| OF money IN country. But we have'no occa- |
sion to look abroad for evidence on this point.
| Inc quantity of money in the United States |
| has ot late greatly increased but we all know !
| that the rate of interest has not diminished
nor will 1t be diminished while the means OF |
employing capital in this new county, CONT |
nue. as abundant AS they are |
With respect TO the first paragraph in |
| this quotation, ii can only be proper 10 |
remark, that the opinions it contains, are
| thought perfectly correct and as TO the
remaining part of it, to observe, that the
| objections taken by Mr.. IL. TO the prnri-
| pies upon which Sir w. Blackstone pla-
/! ces the defence of the British laws against
| Usury, are clear, and undeniable. But il
is thought, that Mr.. H. might have STA
| ted another objection which would have
been quite as awaiting in demonstrating
the error-and, at the same time, incu-
| died. within the demonstration another cr-
ror which may be seen in the principle
| selected for their defence by the erudiie,
| the profound, and the logical Adam
Smith: political economist of still grca-
[ ter celebrity, than even Sir w. Black
| stone.
| Blackstone places his defence of the
| laws against Usury upon the capacity Of
! the government 10 make correct esti-
| mate OF tlIe general Inconvenience of par
ting with money but admits thar the
government cannot estimate the hazard
| Of leans between individuals which he
also admits, constitutes one essential re-
quisitc in ascertainlng the rate OF interest
bya just standard although, govern
m2nt, therefore, wants one entire branch
OF information 10 enable il to fix a lust
standard, yet lie iustiies the government
in iuterposing 10 fix standard at ram
dom, rather than not fix il at all with
out the information he himself conceives
to he necessary 10 fix il correctly.
| To this mode of legislation with only
oue-lalf Ofthe requisite information, Mr..
II. objects: and intimates the opinion,
that this objection would be deemed So
lid andavailing, if the principle had not
received the high sanction of Judge
Blackstone's name. II cannot be tho't
that there is any thing very extravagant
in this inference. Mr. H. also denies,
that the government can make a proper
estimate oftlie general Inconvenience III
parting with money This opinion is al
so thought to be we'll founded. Black
stone asserts that the rate of interest de
ponds upon the quantity of money in the
Country, which he thinks it very easy TO
ascertain. Mr.. III. denies this position
and asserts, that il depends upon the a
mount of Capital it is supposed he
meant TO have added, compared to the
demand for the use it. This he states
10 be the opinion of Smith. Whether
Smith be right or wrong, or whether ma
| ny other causes may not exist, having a
material bearing on the rate of interest
l. i Al
tallIbility of Blackstone can, in any res
pect, be questioned, it must be upon all
these grounds. 1t might then be believ-
ed, that he is wrong in every position he
has assumed In vindicating the laws a
| gainSt Usury. AS no man is wise at all
| hours, and as Blackstone seems not TO
! have escaped the common lot of humani-
| ~, it must be considered, that these I'M
fortunate reflections fell upon him DURING
the weakest hours of his whole life. But
admitting, what Is impossible ; that gov
eminent could estimate to fraction, the
particular, as well as the general incouve-
nience OF parting with money; and also
the hazard run In every case of a loan
between individuals, yer, il is contended,
that it would not then possess the requi-
site information, nor capacity, 10 pass
laws for fixing the just and proper rate of
interest. The true price for the use of
money, or In other words, the true rate
of interest, Is In state of perpetual t1uc-
tuation, depending upon the perpetually
ftuctuating current of human Transact
ons. The laws fixing the rate of interest,
are of laws the most permanent and
unalterable in their character resem-
bling more than any other, the irrepea-
able laws of the Modes and Persians !;
how then is it possible, that one fixed
of.f ,far.a fl.,fc
perpetually fiuctuating current And
how could government possibly suit its
laws to this variety in human concerns
The most perfect knowledge possessed
by the government, of every minutia.
which would enable il to fix the just rate
of interest this day, would not answer for
tomorrow nor for any subsequent day
during the existence ofthe law and if as
Smith says, the laws follow the market,
with great submission to superior intel.
lect, ii is asked, of what use is the law, if
the market should regulate the law, and
not the law regulate the marketl This
furnishes an occasion for introducing a
mother quotation from Mr.. HIS Speech,
which is again inserted here, for the pur-
pose of considering it in connection with
the part of the subject now under exam
nation:
Adam Smith, whose opinions, though gene
rally correct, are not always TO be taken upon
trust, lays il down a Dlarim in political econ
omy, that wherever great deal can be made
BY the use of money, great deal will common
~ be given for il and of course that when lit
tie can be made, less will be given. This we
all know to be true. In country like ours
where capital is never at loss for profitable
employment, the privilege of employing that
capital, Will be purchased at high price. If,
then the mark IT price of money will regulate
tt1.t. i'm a " mi 10 ic