New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1851-04-03
THE SCIENCE OF MONEY.
Usury Laws-Why Needed.

The following essay is from the pen OF
one of the ablest and most eminent Political
Economists in the country. We trust it
will receive due consideration.
To the E6iOr of The TSibuae:
Notwithstanding the indisposition of some OF
your correspondents to agree with you, you are
certainly quite right in regard to the Usury Laws.
Abolish hem where you may, they will be re-
established, and for the simple reason that there
is no commodity whatever that is liable to changes
90 extraordinary as those we see take place in
regard to the price Of disengaged capital, CON-
monty called Money. Wheat may advance in q
season twenty, thirty, fifty, or even hundred per
cent. the consequence of unfRvorable seasons; so
may cotton or wool but in every case the change
is gradual and its cause is understood, and there
fore those who need those articles have afforded
to them time to protect themselves to certain
extent; but such is not the case with Money
The rate Of interest doubles trebes, or even quad
ruples within few months, and those who suffer
under the change are generally unable to deter
mine for themselves whence the suffering comes.
All they know is, that whereas last month Money
was seeking for borrowers, and interest was
therefore low, this month borrowers are seeking
for Money, and interest 10 therefore high.
OF all trades the simplest is that Of lending ost
unemployed capital, and it is the one that most
needs association. A thousand men may have
among them such capital to the extent of 100000,
and yet not single one may have 5000. Were
each OF these men 70 undertake to invest his own
little sum- the waste oflabor would be great, and
the losses, from want Of Judgment, would be
very heavy. They carry il to the saving fund,
aud constitute themselves portion Of its proprt.
elcrs, and their capital and that Of thousands Of
AalA = wurseA ~ IN
themselves by clerk or two, whose services
woud be paid by one tenth OF one per cent. or
perhaps far lees.
Wherever the power Of association for such
purposes is most perfectly enjoyed, the invest
ment Of capital goes on most steadily, productive.
ness Of labor most rapidly increases, the rate oil
interest is most steady and the quantity Oh com.
modites received in return for given quantity OF
labor, or for the use of given quantity OF capital
10 largest. Nevertheless, the fsvorite object OF
most legislative bodies, foreign aud domestic 10
that of devsing restrictions on associations Tor
banking purposes, and bank Of discount Is Dat
an enlarged savings bank.
The Bank of England enjoys monopoly OF the
power of trading in Money, except so far a. 1t
may be interfered with by joint stock banks, the
stockholders of which are subject to so many re-
strictions and responsibilities, that prudent men
avoid them ss they would the plague. The con-
sequence Of this is, that vast sums accumulate
on deposit, by the use VI "niCh INC VahA ~ o"e
bled to make large dividends. Unemployed capt.
tai and low interest next produce speculation, fol-
lowed by great demand for loans, high interest
and ruin to all around. So, 100, is It in France
The Bank there has also monopoly, and makes
large dividends. To find employment for their
capital lalready employed by the Bank the dc.
positors are forced into speculation, sndthe result
OF this system 10 seen in sperpetual recurrence OF
crises in both France and England. The crisis Of
England is followed by one among ourselves, and
thus are our people ruined by circumstances over
which they have not, and cannot have, the slight
est control.
Interest il now very low in England, and she
sells US cloth and iron credit. She thus closes
the avenues for the employ ment OF our own CAPT
tai that should be employed In producing iron and
cloth Capital is, therefore, as we see, suPera-
bundant, and unproductive to its owners. Alittle
while hence England will cease to sell on credit,
and will ask pay ment Of what We owe. Capital
" i'll then become scarce. and those who now Dor.