Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1848-12-05

four hundred years ago il was made lawful TO
lend money upon increase. But welded TO an
cient error, and yielding TO the religious preju-
dices Of the day our ancestors, established 4
rate ofintercst which all persons were forbidden
to exceed under heavy penalties And such
has remained the policy Of the most enghten-
ed nations until the reign of her present majesty
the Queen Of England, during which the laws
OF usufy have been fepea led in her tominions,
excep: in relation TO loans on mortgages; AMI
they have also been extensively notified n ma
ny Of the States oil our Federal Union. During
this whole period, under the Mosaic dispense
ton, The canons OF the Christian Church, and the
acts and rescfip,s OF political power, il may be
safely affirmed that the practice OF usury has ne
yer ceased This long experience of The utter
inability Of laws, sacred and proiane, 10 prevent
loans on usury ought to satisfy every salesman
tina, the policy is radically wrong, and contrary
10 some great principle OF public necessity, and
ought therefore 10 be abandoned.
The true definition OF interest is the price paid
for the use of money, which price is wholly
dependent upon demand and supply. 1t is ma
nifesily impossible for laws to regulate such
price; depending as it does upon the various
operations and wants Of men Our ancestors
attempted in vain to regulate the price of labor
still remain to us in the offences of esta.lng
regrating and engrossing, and combinations
among workmen to raise wages. These laws
are practically obsolete, but are not moro dis
tinguished for folly than the policy which still
maintains the usury laws
The great argument in favor of these laws is,
that they will protect the borrower against the
rapacity of the money lender. But is that the
factl Do we not know it 10 be otherwise! The
hazard of losing any commodity, not money,
however, more than anything else, always en-
ters into the price demanded for lis use. IL you
leave men 10 regulate this element the borrower
to reduce the hazard by increasing the certainty
Of his security, the rate will necessarily be
much diminished. Th. is not only known TO be
true from the conclusions of all writers upon
political economy, but from the higher evidence
of our own reason and experience. But when
the law steps in, and, dsregarding the security
which the borrower may have given, confers on
him the power Of paying or at his will, the
hazard becomes obviously 50 imminent, that no
lender will incur it without the only indemnity
at his command a premium sufficiently large 10
cover the losses occasionally 10 be expected from
the dishonest borrower.
Il is in vain Tor the law TO attempt TO regulate
the IN, il may continue TO sacrifice thousands, as
il has heretofore done, but The practice Of usury
will continue SO long as il is interdicted by law.
No man will pay six per cent. Tor money when he
can oban il for FIVE per cent nor will he lend mo-
ney al 6 when il is worth in The market; and
the inevitable consequence OF legal restraints upon
money dealing is 10 diminish the supply, and OF
course 10 enhance the price. BY repeating he
usuTy laws, and allowing every man 10 be his
own chapman, competition would prevent the
making OF extraordinary profits, just as certainly
as j: now does in every other department OF ca
piIal and industry. The Bank oil England is, |
believe, now taking three per cent. on loans of
money; while about two years ago il discounted
at the rate Of eight per cent, with immense at-
yan,ases, no doubt, 10 the business Interests OF
that kingdom Had The Bank been prohibited
from dscoun,ing al that rate. and had therefore
wholly declined affoIding such facilities, many
a commercial house would have been declared
bankrupt al once, or have fallen into the hands OF
usurefs ultimately for a similar destiny, which is
now in high credit and prosperous condition. =
Thoroughly satisfied that the usury laws are i'm
moral in their tendencies, pernicious in their et-
tects, and destructive OF those they undertake 10
betfend, | urgently recommend their uncondi
,onal repeal.
The debt due from Henry and Emory college
is still without prospect OF payment; but res
pecttuly recommend for adoption The plan fur
the liquidation OF The interest annually falling
due thereon, which will be found in The annual
report Of the superintendent Of the Literary fund
Should this plan be adopted by The General As
sembly, this institution will materially aid in
supplying our State with wei! educated teachers
respectfully refer you TO the above report for
Information OF The detailed progress OF our eiu
caional system.
think il very important to the Interests OF ed
ucaion, that uniform sci of School books
should be carefully selected and adopted Tor gen.
eral use in the State. The practice now is 10
change School books with every change OF teach
ers, 10 the injury of the scholar, and al no Sigh
expense 10 parents Some Of the School books
in use are also found 10 contain exceptional SEN
limenls. These objections would all be obyialed
il The plan suggested were adopted respect
fully recommend il 10 your consideration.
The University Of Virginia around which so
many OF our hopes have clustered, is moving
steadily EDWARDS in her career OF public useful
ness, chcercd by her increasing prosperity in the
performance VI her various and important dulles
| herewith communicate the report OF the yisi-
tors VI the deaf, dumb, and the blind, WITH lis &C
compan wing documents. Ii will be observed thai
Increased accommodations are desired. and thai
the sum OF 1900 is requisite TO supply them
am no. sufficiently Informed as 10 The proprie-
~ oil making this appropriation, 10 advise upon
i. But 50 recently as October lS47, the principal
of the deaf, dumb and The blind, eloquently says
that eli is subject of graduation to all friends OF
humanity, in common with yourselves, that so
many children OF misfortune have furnished forth
10 them here, home unsurpassed, might say
unequaled, in this country, for The spacious and
comfortable accommodations afforded, the sub
al oil 6fi ic
beauty and saubrily OF It's SITE"
herewith communicate The reports OF the SUI
perintendens OF our lnnatic asylums.
herewith also communicate The report OF The
board OF visitors OF the Virginia Military lhsli-
,uie. This institution is realizing the fullest ex-
pecta'ions OF its most ardent and enthusiastic
friends, and is entitled 10 the favor Of the Stale
and her authorities
herewith communicate the report OF Alexan-
DIRE Vauemare, our State agent Tor International
exchanges; and also, particular instructions as .
the manner OF collecting and preparing objects o.
natural history, &c. | respectfully recommend
his agency 10 the continued favor OF the Gene
ral Assembly The system OF International ex-
changes, 10 which Mr.. Vauemare has devoted
his time and fortune Tor the last twenty wears Of
his lie, is one by which a large amount OF good
may be effec ed al an iderable expense, and
commends itself to The best feelings OF our nature
recommend that the appropriation be increased
10 the sum originally expected, and that il be
made permanent
also communicate herewith the various re-
ports of the several banks OF our Stale, with the
single exception of the Merchants and Mechar-
les Bank OF Wheeling The exceplionabie prac-
lice OF our banks, upon which in my two preceding
messages freely ahimadverted, still continues. II
is unaccountable 10 me that the banks oil This CT.
" should permit specie 10 be daily quoted al a
premium, establishing the depreciation OF the
currency in ordinary use, and rejecting strongly,
in my judgment, upon the proper character Of
our Institutions. This practice has been the sub
iect OF frequent conversation and remark here, as
vel as fseyere animadversion 10 the monied cir
c!es OF other States, and is really injurious to our
public reputation. Still il continues, without
prospect Of change from The voluntary action OF
The banks as now administered; and | therefore
recommend that law be passed, giving 10 The
State The appointment OF majority Of The direc-
tors, who, as representing STATE policy, and hav.
ing the power, would no doubt deem il their duty