New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1851-04-03
UEury.


States that have tried the free trade experiment
in money, have been so generally and so rapidly
driven to abandon it 7
am not now aware Of any Of our STATES that
have abandoned Restrictive Usury Laws, ard
then gone back and reenscted them. ce.tain
new States, in the early stsgeso their currency
arrangem onts, haze found that money would com
msnd very high price, and some OF their leading
politicians, who in general are neither practical
business men nor mechanics, have most errone'
ously irobibed the notion dat some sort of
Usury Law would amelorate tho evil There
upon sucr a law would be passed with a sort OF
impusive and i'll digested rush. AS such States
grew older and became more aud more rich In
capital, the rate Of interest would gradually de
cline; but such decline cannot, with any show OF
reason, be ascribed to their Usurv Laws Neither
the affirmative nor the negative OF this question
can be concusively demonstrated. Still, we all
know from actual observation, that as State or
Country grows older and richer, the price OF
money gradually diminishes. There is no sort OF
sound philosophy in ascribing this diminution in
interest money to the action of Restrictive Usury
Laws. On the contrary, we can point to the
fixed fact" that in France In 1866 daring time
in which the market rate OF interest was ruling
at five per cent, an edct was Issued fixing the
maximum rate at four per cent. whereupon the
market rate Immediately rose to six per cent the
additional one per cent. being to compensate for
the risk of illegality. In Russia ten years after.
ward, the same thing was done, with like results.
might ask our opponents why it is that in Hol-
land, where no restrictive usury law has existed
within the Pr~sss century, the rate of interest is
lower than il is in any other country all over the
civilized world And then again, there is Eng
land, the greatest money market in the world
In England they have law 10 govern the rate OF
infar in phaanCa n bargain. tl9V
leave parties to enjoy entire freedom on notes or
bills of exchange not having more than twelve
months TO run and in no place ia the world ex.
cept Holland, can money be borrowed so low as
it can be borrowed in London.
Your correspondent "B.' says "there is no
science of money which ID generally accepted"
We do not need arr more specific science about
money tnsn sboa: sdy other mS'sri" SUBSTANCE
that requires labor TO produce
Indeed, | do not think this studying Eh5
"science of money" so.very deeply, amounts TO
much Were l now seeking for a suitable Presi
dent of Bank, would quite as soon take one
who had never read two lines about Political
Economy, far preferring that he should possess
good practical sound sense and honesty. 1t does
Lot, however, require any very deep research into
monetary science to determine that money is sim.
ply q metal, generally gold or silver or copper,
stamped by public authority, and used as the me
dunn of Commerce. 1t must consist Of material
which has value Of its own, irrespective of any
Government stamp, the stamp being merely the
proofof fact which existed before the stamp was
affixed.
To facilitate the carrying Of money from place
to place, our circulating currency is composed In
part OF Bank Notes, payable on demand in Specie.
The holder Of such notes must feel entire faith in
their immediate convertibility at his pleasure,
into real cash.
When such notes are issued from q sound and
reliable fountain head, they ofvast usefulness
in commerce, or in any OF the concerns Of civilized
life.
d. And now, Mr.. Editor, let US leave this scientific
discussion for the present. If you will only have
the kindness 10 hasten our honorable Senator'S lit
tie in granting the modification, so far as they In
their wisdom may deem fit, will, withg great pleas
uTe have friendly discussion with you, by and.by,
relative N to Mr. N PrO @ currency RsV.
Remarks.
We do not think Hamilton has fairly
answered the argument drawn from the
fact that Alabama began her Independent
existence by legalizing Usury, and, after
trying that plan to her satisfaction, abau-
doned it and enacted Usury Law, and
that Wisconsin, which likewise decreed
Free Trade in Money scarcely two years
ago, has Just enacted Usury Law. Cali
fornia is just completing more rapidly the
same cycle. Why!
Is Hamilton willing to establish per-
feet Free Trade in Money by abOlishing
all laus respecting the collection Of debts,
letting every man make such bargains as
he pleases and fulfil them as he thinks
proper! This plan has many earnest adj
don't know about it. Ii 1t
could be made to work well, it would d.
minish the number Of lawyers and proba-
bly, increase the number of productive la
borers, which we are inclined to think a
good thing.
We do not consider the fact that money
in England and Holland is loaned cheaply
to great capitalists proof that Usury does
not exist there, nor that it is not wide
spread and oppressive.
We have sought no discussion of the
Science Of Money though we believe there
is deeper science involved in it than
Hamilton suspects. We believe the
power Of Money lies not merely in the la
bOr-cost of its metallic base, but that it has
power as money which the intrinsic value
Of the material never gave it. And we bo-