Sunbury American and Shamokin journal. [volume] (Sunbury, Northumberland Co., Pa.) 1840-1848, 1848-02-12

poser 10 maze any rave ot tnteteG legal which |
theilehd-r may chose TO exact, providing, how.
ever. that where no agreement exists that the |
present rate Of per cent 10 TO be legal. 1t al.
80 allows interest upon iotersst. or what 10 cal.
led compound interest. We supposed from the
tone Of some Of the Philadelphia papers last su.
tuusn. 'shat such q measure would be brough,
before the Legislature during the present session,
and from the fact Of its being Recommended BY
the city papen and introduced bys member
from that place. We may fairly infer tha, it is q
scheme hatched up by the money lenders o, that
city, 10 ex'ort enor nous interest from unfor,uo.
ate individuals without making themselves lis.
BILE 10 legal animsdverson What make, our
inference more probable is, that the bin express.
ly excludes banks from the privilege of legally
pluncering the poor. o''.'' ''-' ''''''- ''F
| The principal. and indeed the only plausible
Argument brought forward in support Of the
measure is. that money is commodity whose
value anctnates. and hence II 10 ipolitie for its
price to be Fixed by Law. That money is more
scarce ~ one time than another, istrue; but this
does not increase its real value. The cause Of
pressure in the money market arises in a great
measure from the diininuticn Of capita. BY ex.
PortatIon Of specie from The country, not. as the
supporters of the repeal Of the usury laws say.
because capitalists are unwilling TO invest ,heir
money at a return OF sir pcr cent. Lending
money at or 10 per cent does not increase the
amount Of capital in the country. The very
j men who -ause The fluctuations in the money
| market. are the money lenders and brokers
| Th" latter are the orieina,ors OF every panic
which has distressed VI. country for years
man had better invest bis money at s or even 3
per cent. than k-epit idle The lenders ct
money on bills payable at short periods, ought
! not to be- protected by higher rate Of ,ntcres:
than those who lend on real security. The for.
m-r always require tho endorsement Of respon.
sib- person, and the risk 10 no greater. Besides,
he can call in his money aImost Immediately if
he aees fit, which cannot be done where money
is lent on mortgage ..... .
What will be the result Of raising the value
Of money! viii it increase business Must
not the trader, whose capital is borrowed at 10
| per cent, sell his wares at 4 per cent. higher
than he who borrows at the present rate of inter.
esf, in order TO rqnalise his profits The land
holders will suffer for who will invest his
money in land, when. BY taking advantage Of the
wants Of n-c-ssitous borrowers. he may receive
higher profit than possibly be produced from
land. The results Of the passage ofthis bill will
be most disastrous. No benefit will be gained
by any but the lender, and there will be no limit
to the amount Of interest that he will consider
l ner fo r,s Loo n. L.
rate. the more difficult will it be for the barrow.
~r 20 repay. Again. they say the present law 10
Of no effect that dishonest men do. and will
avoid it. is this reason Why the law should
be rrpealsd' II only proves that the restric.
tions imposed on dishonest and rapacious men
ar. not sufficiently stringent. Because Law is
frequently broken, it is not TO be repealed. Far
'he reverse. AZ well might all law be at once
abroga'ed, II certainty OF punishment followed
every breach ofthe usuIy laws. we would soon
he freed from race Of extortioners whose God
iseold, and whose dele hi is to enrich them,elve.
on the ruin Of foihers.
Six per cent. is sufficient compensation for
the use Of money in q commonwealth like ours,
where the administration OF wholesome laws
reduces the risk Of the creditor, by rendering the
recovery Of his claims easy and certain There
are men in the community, whom il 10 necessary
10 restrain by law from taking advantage of the
wants OF others; men who, by their own avarice,
make money scarce by boarding il until they
can realise enormous profits, and who would,
when money is pleniy." never consent to al.
low its price 10 deprecists, II 10 for the benefit
ofsueh men that the repeal of the law Of I723 10
asked. The Legislature must oppres, millions,
place the honest and unfortunate in the grasp
ing hnsers OF the rich capitalist. 10 shield and
crafty q set Of Shyloeks, The rights Of the poor
! should be protected, Law is not made alone
for the wealthy, a. they wish and seem TO ina.
sine. We hope the legislature will reject this
bill. Its disastrous effects can not be calculated;
for il is impossible 10 say where the unrestIain
ed desires OF the eoveious will stop. This mea.
sure, as we have said, originated in Philadelphia
among a set Of men who imagine that their city
is the state, and that the interests of the country
are but drop in the bucket when in conflict
with their own, Ifthere is any alteration TO be
made in our financial affairs, it should be the
abolition Of Boards Of Brokers. They are the
money market. They hold in their power the
regulations Of allour monied institutions. They
can shake the credit Of our soundest Banks, and
exercise this power for their own ends. The
finance. OF the country is in their hands; and for
the proofs Of The use they make OF their power,
I