The Rhode-Island Republican. [volume] (Newport, R.I.) 1809-1841, 1820-03-15

been taught by experience, that it is
more dangerous to intrust those who are
largely indebted to the banks, than those
who are indebted in an equal degree to
Individuals !; and it would be fortunate
for them, ifthis knowledge were suffic-
lent TO secure them against the effects OF
contracts already made with those instit-
utions. But it too frequently happens
that the banks, conscious Of the superi-
,ority Of their process, and confident in
the security which that superiority gives
them, carefully conceal from the public,
as far as it depends upon them, knowl-
edge OF the circumstances Of their debt
or; and whilst the gales ofprosperity APP
pear to be waiting him onward to afila-
ence and to wealth, and whilst every one
is willing to repose an unbounded conf
dence in the integrity OF appearances,
the banks suddenly check him in his Ca
Tcer, tempest bursts upon him, over
!wfelms him in ruin, and leaves every
beholder confounded at the magick pow
er which wrought the sudden and won-
derful change. The baaks are safe;
but to the residue OF his creditors moth.
Ing is lett, but the blighted wreck Of his
fortune, if indeed wreck remains Did
all demands in law stand upon an equal
footing, the banks would find it To their
interest, at least not to conceal the cir
cumstances of their debtor, thst others
might not be induced to intrust him be-
yond his ability to pay ard they would
likewise find it to their interest, never
TO give credit upon that property which
had already been considered by private
creditors as security for their demands.
This process, by frequently constrain-
ing the debtor to renew his obligations,
enables those institutions to obtain
greater rate of interest than would be
otherwise allowable by law. No matter
whether the enforcement of this process,
or the mere dread of its enforcement, o.
blIges the debtor to give new obliga-
ton for the same money; the effect is
the same it enables the banks to obtain
rate Of interest greater by more than
one per cent, than the legal interest of
six per cent, per annum. And this one
per cent, OH tine amount of debts due
from the people ofthis State to the banks,
annually exceeds the ordinary tax of
twenty thousand dollars levied for the
support of government. II it be polite
IN. government to make laws against
usury, it is not polite in the same gov
ernment, thus to make other laws,
which in effect give usury sanction.
Neither the average profits Of agricul-
ture, nor of manufactures, nor Of COM
merce, arc in the opinion OF your COM
mittee, adequate to the payment OF such
interest; and the consequence is that the
debtor, in order to satisfy bank demands
Is driven for relief from the usury of
those institutions to the usury ofindivid-
uals, andfrom the usury Of one individ-
ual to that of another, until he finds him.
self involved in difficulties from which
he cannot escape but by the kind inter-
vention of this Legislature.
There is no species Of property that
suffers more from this process than tha.
OF real estate. Unlike most sorts Of
personal property, it is not susceptible of
division and subdivision for the purpose
Of sale the number of purchasers cannot
be multiplied at will; it must be sold
whole and not in parcels, consequently
the number of purchasers viii be few in
to the magnitude Of the es-
cate but as price depends upon compe-
tition, and competition in a great meas
ure upon the number Of purchasers, the
sacrifice of property will ever be conside.
rable, whenever large real estate is sold
on an execution at forced sale add tD
this, that the slow and periodical returns
Of agriculture will always have depreci-
ating influence upon the sale of landed
especially when the purchase
money is to be immediately paid. --Fp' |
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