The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1851-03-10
The Legal Rate of Interest-The Iiisga,ity
of IsnIy


The following is copy OF the report m ade in the
Senate of this State, on Saturday, the hrs, day OF
March, instant, by Mr.. Morgans, one OF the Sen2.
tors Representing this city in the Legislature Of this
safe. /, is beet Of such importance and ma e.
nitude that il will receive the early attention OF
our readers
being act to prohibit individuals from interpos.
inI the defence OF usury, lave bad the sano under
eonste'a'ien and ask leave TO submit the following
In Nay 1897. law was passed In relation 10 tn. In
trs.t Of money three teotions OF which are ~ follow.
See "a Whenever u shsli satisfactorily appear ~
the sdmssion Of the defendant by proof that AMI
benz, oil, note, sssursnce pledge, conrsJaucs, COO
tract security or any Evidence OF debt has taken
or received in violation Of the provisions Of sad title
or Ct this act the Court OF Chsucery shall de,srs
came 70 be voic aud any cution thereon
and order the ssrc TO be .urreG an sonseded
Sec ~. Any person rho shail directly or Indirectly
receive any greater Interest d.count or confederation
than s prescribed In tue ssi title snd IN vioson 81
the provisions Of ssid title Of this act, .hau be
deemed auilty OF ni,demesuor anl con Vietion
thereof The perssn 90 offending sha be panisned by
I'm. not exceeding one thoo,aad dollars Or inpri,on.
ment not exceeding elk months, or both
See ~ II shall % the duty OF all courts Of justice
10 charge The gtsndju especially to inquire ints sny
violation ofths said title, or Of sA.i ac:.
Whstevsr may have Teen the cau,e rAlch led to the
ado pton Of the lev In 1887 whether there ever was
any good and sunclsnt for the passg. Of The
law, ontaining 90 much o; pains sni pea.ltiss,n
yogr committee will not sop 90 Inquire they never
men the law IL contradictory to sound views Of com
mereisl policy to good morale and TO the age in which
We live. Bed a. In our judgment II IT, aud operating
sgainst the interest, and welfare Of the community
We do 10. p.opo;e 70 AK for its rp.al. We 40 not
opinion nire tenths Of the communlty would
approve. knoring that reforms to be Permanent,
must &c sradusl, We have TO propose tia. the
interca q money shAll hereafter, or nov, remain
az seven per cent per snnum; that whenever NOR.
titan this amount shall be taken In any form IL shall
be usury; and that whsn.ver prosecuted Tor within
not the only. but tho entire
shall be forfeited and ell the costs Of salt shall BE-
paid BY the party taxing the usury such is the sub
stance Of the bill which ss propose to present. IL is
,inpls, ana explains t.sf no argument is Ieeied TO
prove q TO ,hov ito proariety sny reasons are de-
b. made, Jour committee md such reasons with.
out labor on thsi part in one Of the memorials which
has been presented TO The Lsgssture for the repeal
modification ct the usuiy lsw, and which they
spectuly trs'ent tor the consideration of tbe senate
let Because experience ha. proved that Il Is entire
" usee.s for the Accomplishment OF the en- posed
The legal rate Of inter this State Is fixed at seven
per which It Is rtrpeotfully urged is more oene
ncsl for ali Interests aud On every account than the
lover rate sometimes proposed Of elk per cent; yet
higher rate than seven per cent IL continually nay
almost daily taken and amid the chsngss Of the mo
ney market will continue to be required and paid,
notvi.hssnding the restrictions and crstiss Of the
u. provisions BY Grand Jury, while the law itself
hss teen presented - "a powerful temptation 10
fraud the part OF debtors highly Buriou. o ubIi
morals az veil AZ the lssful business u the p.ope
Sd. Bscsu,e The Lac has operated. under iesa con
structon, In fsyor az Borrowers enabling them % de-
ceive the Lenders Of money and deprive them o. their
property, BY pleading usafious confederation a. bar
to Judgment
s,h. 9ecsuse u is us tn the borrower a, we'll asto
the losner OF money The III 1stis bsarrg
ci be ,een IN the fact thattsevs per eeut
lawfully perntts 20 be col ected unpaid Jefre
the tsle OF property ten per cent interest IL 70 be paid
on r.de.nirg property Fold under mortgage: and
tvsrfy per cent b sllost3to pa~obrober on good
unity Nher.s 70 nfgs;istiDg psper or promissory
nttts CT securities - that descrFti parties recev
Ing more than seven ltf cent iDterste liable &c lose
th,ir money and sre else guilty OF isdsnssnor snd
sytJ.c' % tine and in pyi.onmsnt
Str Bscspss money 10 q commodity subject 20 fuc.
tuAticps in vMUe, ssstrding 10 its abundance or