Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1817-10-17
IFRoA \ LATE GLASGOW PAPER.
REPORT OF THE COMMITTEE
OE TIE

Appointed TO consider the propriety OF Petit
oning Parliament forthe Abolition of those
Laws which Regulate or Restrain The Rate
OF ihterest.-Z7th OF May, 1871.
Tonr Committee. havirg inlly considered this
Important subject, beg leave TO report their o.
piniOn rs foioNs.-
That the interest Ut money is The fair profit
OF stock, and Legitimate comps DsatiOn dae
~ the borrower to tue lender, for the adj
vantage derived from the use OF the princi-
psi.
That cur laws which in ancient times prohi-
bited the enjoyment OF this derivative reVen0e,
originated in supcrstitou, ignorance. aud po-
verify; and that tia regulations OF more receut
periods which reStreDea ia extent, were f. ind
cd IN opposition to the principles of political
1cOnOlny.
That the rate of interest like the price of
every other commodity, ought 10 bs left 10
ITS O'gn level, and to depend the state Of the
money market, with respect to supply and
demand, as the simple but iniallibls test OF
value.
That the prejudices which existed against
the uncontrolled exercise of pscuuiary con.
tracts are now i'll IA great uisaSUre dispeued;
aud thai the pnblic opinion generally has aT-
ucipated the sanction of the Legislature for
the same freedom that prevails in every other
species of commercial transaction.
That tie arguments which have been adduc-
ed Tor the continuance of the laws against usu-
ry are equally unsupported by reason aud IN
founded III fact. They do not prevent prodigsli-
~, because there can be no restriction 10 the
mortgage of property, or TO the purchase OF
goods, " MICH may be sacrificed to obtain the
obJect.-Ihev do not protect simplicity, be-
cause the current rate OF interest would be as
easily ascertained as the value of o(heF articles
which persons OF every degree ofinlellect ars
permitted freely TO bny They do not benefit
Indulgence, because the needy nrs often preciu-
dcd from accomplishing what may be the means
OF preserving them irOsl destruction aud al
though there is prohibition against borrow
ihg at higher rate, there 10 no provision for
supply at lover. They do not CHI rex mpro.
Vdsnt SpeCnlalicns, because the loan /. not
HoTuIreu on ths taiih 81 SUCCESS iuIhe project
90 much as on the solidity of credit in the bor
loNer; ana because the moDied interest will
Always prefer the thrifty, aud may ne safely
entrusted with the mana cement OF their avs
affairs.
That tile laws against usnry are not orIy at
tended with no advantage, bntar productive
ct eXtsnsiNe injury. They interfere with the
private concerns of individuals over which il
y squsl!y unjust and impolitc 10 cxerche con.
trout. They Interrupt the operation of mer.
camille Poity, which, by allowing the scale of
bnIiness 10 he regulated by the relatiTe wants
and possessions Of Tie community, efiectuaIly
ADJUSTS the balance of price. They increase
the emSarTa'sments OF The country ia n time
Of general pressure, by rendering Illegal the
means OF relief, and depriving the sufferer of
refuge, till the revival OF confidence asd the
rcturn OF prosperity. They cOmpeI MANY tho
are possessed OF property, 10 dispose of Ii for
whatever 1t may Produce; and, as Lord Bacon
upon them, bad markets 10 swallow them Gmjte
mp" They induce others to evade the law.
aud TO pay an exOrbitant premium for tse sc
c0mmodation.-They expose the dea. ers i'm th.s
illegal traffic TO such risk and infamy as mar
rows the competition, and raises the terms he
You'd all moderate bounds. They corrupt the
public morals, by holding out temotatiOn To
information, treac. cry, and ingratimde They
impede the progress OF commercial enterprise
and agricultural Improvement, by restraining
the free lutuN OF money into those channels
winch might ditiuse wealth, industry and com
fort over the community. They divert the sur.
pins capital OF the HaIion from its legitimate
and patriotic employment at home, to the ac-
sovnmodation and aggrandizemeUt of foreign
countries, who are willing 10 afford an ade
auate remuneration for its use, and who, i'm
the event of war, may subject the whole 10 for.
fetuTe.
That the laws against usury arc not ONLY
hurtful aud nexpedent but in great measure
inefbcacl0us aS legal door is opeued tor their
evasion. 1t is perfectly known that the prac-
fice of raising money on Tedeemable aud deter
minable annuitiUs, has of late grown to an a.
farming extent, and Obliged the borrower, who
sould otherwise bays relieved his necessities
at the rate OF six or seven per cent, 10 pay so
high as ten, twelve, and even fifteen per cent
1t is perfectly known, that the interest is an
HANGED in the mode Of supply on beritabIe Sc.
eurieeS, by the original cost Of the conYe, ance
aud by frequently changing il as n profit to
lie attorney. II is perfectly known that tbe
SustOm Of charging commission on tie dis
count OF bills, las been prevalent among nioni-
ed men and private bankers which At the rate
Of hd'lper cent, every three months amounts
10 seven per cent per anDum. IL is perfectly
known, that The loss by drawing aud e-dra,T-
Ing on London. 10 which many respectable
Houses IN provincial places have seen Obliged
to submit, for the purpose of tempOTaryaccOn-
mediation, has been very serious. In short il
Is perfectly known, that, till OF late aud for
many years past II was almost inpracticalle 30
procure loans to any considerable extent If
the Common rate Of interest, even on the most
uneScepiOBabe security.
That tle repeal Of tue laws against usury
would not be followed by a rise Of tile rate OF
iuisrest as natural consequence foTnot only
y such shppositiQu contrary 10 the principles
which regulate price, but ii is notorious, that
IN London the rate at present, on good securi-
ties. n lower than the maximum that in HOI-
land, Flanders, Switzerland, aud other cOun-
tries where there were no legal restraints,
money was always pTocurabie at n more mo-
derate return aud in fact, that tie very exist
ence Of such restraints defeats the object OF
their enactment, ia exact proportion 10 the
strietness with which they are enforced.
That The repeal OF the laws against usury
would not occasion that Inconvenience or detn-
ment TO m0rigdgers which has been appfe-
heuded, because The fdic Of interest has oIrea.
dy been stipulated by The bonds TO be FIVE per
cent, and there is no reason 20 anticipate more
advantageous terms 20 tho lender at present
and because al all events, there Is, even uuder
Tie existing system, no impeachment to the Gre
diinr ceiling UP his money. and tOFeclesiug the
mortgage, wherever ne esteemed IL 10 be tor
BIS advantage