The republic., 1851-01-04
ii. j. HARRIS, Esq, United Sta
ney, &c, Vicksburg, Miss.
Usury.

of the Legislative Assembly of France. On
the 18th of December, discussion was opened
in that body on proposition of M. ST. PRrEsT,
according to which every stipulation directly
or indirectly exceeding the legal interest of
money constitutes usury, and is to be punished
by fine equal to one-tenth of the capital lent.
If disguised under the form of discount bill
of exchange, sale of goods, &C., the fine may
be increased 10 one-sixth; and if the accused
has been already convicted of usury, or is in
the habit Of lending on usurious terms, or has
compelled the borrower to accept articles of
a value evidently inferior to the price for
which they were sold, the usurer may be
condemned to fifteen days Imprisonment and
fine, varying from one-fourth to two thirds
Of the sum lent. Notaries, having knowingly
drawn up usurious contracts, shall be liable to
fine of from one hundred to three thousand francs.
Persons convicted of usury are declared negi-
BILE to the National Assembly, to the Councils
General, municipal bodies, tribunals of com
merce, Sc, deprived of the electoral franchise,
sc. The following sketch OF the debate is
furnished by the correspondent of the London
Times:
an. ETcHEGoYEN opposed the proposition con-
trary to the liberty of the money trade.
"After few words from NJ. RoauETTE in sup
port of the proposition
IN. LEON FAUcHER opposed the proposition, as
contrary to the social situation and political insti
tutions of France. Under an absolute government,
he conceived that the latter should fix the rate of
interest, and constitute itself the guardian of indi-
viduals, but, when every citizen was invested with
portion of the sovereignty and declared sole Judge
of his interests, such law not only importune,
but would have the effect of elevatng the rate of
money and expressing citizens instead of protect
ing them. At Athens, where the interest of money
unlimited, it varied from ten to twelve per
cent, whilst at Rome, where it was restricted by
the rigorous laws. the interest of money reach
ed an enormous rate, and we find Cato lending at
forty per cent. NJ Leon Faucher then examined
The law of 1907, against usury, extremely se-
vere and the magistrates failed apply it in
all its severity Nevertheless, they had yet
cecded in eradicating evil which Turgot himself
had denounced-he meant the lenders d la petite
maine, VINO required SO, 40, and even 90 per cent.
for their money. The bankers, who in the pro-
vinces had succeeded the usurers never lent under
and per cent, and the money placed on mort
gage produced from to Is per cent in spite of the
law, which fixed the legal interest of money at
and per cent M. Leon Faucher preferred the
law Of 1907 to the proposition, which he feared
would create real and greater dangers. He ac-
cordingly cntreated the Assembly to reject once
more that dangerous innovation. The proposition,
if adopted, would not have the effect of establishing
and extending credit. No penal law could pro-
duoe that result. good banking system would
contribute much more powerfully to that end.
The Bank of France, by it's Eberality, had done
to reduce the rate of interest than all the
strictive laws the Assembly could edact.
an. MATTHEW DE LA DRoME, who followed, said
that the arguments adduced by Nj. Faucher, how
ever plausible and able, had not convinced him of
the expediency of allowing usurers to lend at the
rate of so and 100 per cent without any legal re-
preston. He did not concur in his views of the
liberty of commerce; it was, in his opinion, the
liberty of robbing. In l793 the Legislators ex-
plunged usury from the code but no sooner had
it ceased to be an offence punished by the law, than
the abuses accrung therefrom excited innumera
able reclamations not only among the vile multi
tude,' but among the higher classes of society He
then described the evils usury entnied on the de-
partments, and contendcd that it would be prefer.
able for OF them to have been ravaged by
oaiistorms, during ten consecutive years, than ex
posed TO the destructive effects Of usury. Usury
had been branded at all times, and by all civilized
nations; it could not be absolved in French As
sembly He accordingly, called upon his col
leagues, in the name of morality and humanity, to
adopt Nj. de st. Priests proposition.
an. BoINvILLIERs, the next speaker, thought
that the Assembly was about to enact detesable
law, which, he did not hesitate to say, would rem
der the condition of the poor, placed under the ne
cessity of borrowing, far distressing. He
then repeated some of the arguments already pre-
sented by NJ Leon Faucher He believed, with him,
that no legal enactment could consolidate credit,
and that such a result could only be arrived at by
insuring duration to the Government. ['The pro-
longation of the powers of the President, cried a
voice on the Lett The law would be productive
of innumerable law suits, for every debtor unable
or unwilling to fulfil his engagements, will be
tempted to bring action for usury against his
creditor. Left speaking.'l
Supreme Court of the United States.