New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1853-03-31
LEGISLATION ON usuRY.

LEclSLAIlON ON USURH.
Our anti Usury-lsw friends are entitled TO
commentator for the persistency Of their ef-
forts. They are are again in the field. and
have sent up to Albany less exceptionable
bill than any Of its predecessors. They no
longer propose repeal Of the Usury Laws as
tending to cheaper money to the borrower
and then proceed to stultify themselves by ex.
cepting Banks from the liberty they demand
for private lenders. What they now propose
is simplya modification of the penalties still
denounced against Usury Instead Of forfeit
ing principal and interest, the usurer loses his
interest only by the terms of their bill. But
this, it is fairly presumed, would estop the plea
Of Usury in nearly every instance, and render
the rate of interest practically unlimited
They ask US to print their memorial, which
We decline to do for several reasons-primari.
ly, that it is not true. Ii asserts that IRE.
Taxation [Of Usuy Lawsl has nerer, in one
single instance, failed to lO,cer the rate of in
terest.' Now we know that Alabama, Wis
cOnsin and 1--WE think California undertook to
dispense with Usury Laws, and that the result
was very general and ruinous increase of the
rates of interest; wherefore they were forced
to reImpoSe penalties on the taking of exces-
sive interest, which they still retain.
1t is easy to say that the great mass of bor-
rOwers desire the repeal of the Usury Laws,
but would be hard to prove it. They who look
must be aware that the agitation in favor Of
Free Usury originates with Creditor in
terests and Creditor sections, while Debtor in
terests and sections in the main oppose it,
What they mean precisely by saying that
"twenty-one States are now under the liberal
system as to Usury Laws" and that nearly all
civilized governments have repealed" their
Usury Laws, we cannot determine; we can
only hope that they do not mean what they
say.
There are good many thousand laws in
existence intended to affirm, protect and Sc
cure the Rights Of Property, as is just. There
is barely one important law which substantially
affirms that those Rights have limitations
that Property has Duties as well as Rights
namely, the Usury Law. Weare not prepared
to give it up, nor see it bereft of all it's vitality.
Yet it is perfectly true that some notes are
better worth taking at five per cent. than
others at twenty-fve-that many man needs
a loan, and would make good use of it, who
cannot offer as safe note as his weather.
neighbor. Now we are perfectly willing to see
the hardship which really exists in this direc-
ton obviated as follows: |. Authorize by law
any person or company not engaged in lending
money to insure the payment of notes, bills
and other obligations at such rates as may be
agreed on. If the risk that the notes of three
men who need money will not be paid may be
fairly estimated at one, five and ten per cent.
respectively, let any one be authorized to en-
dorse and guarantee them for such sum but
let the legal rate of interest remain steadfast
and all excess be forbidden. g Then let a
reasonable and fair rate of damage be fixed for
maturity, so that the careless but not insolvent
debtor may be impeled TO make the necessary
exertion and sacrifice TO meet his obligation at
maturity. Suppose five per cent. we're allowed
the drawer of a note for 81 900 would know
that, by letting it lie over, be would incur a
loss Of $50, which be would naturally strive to
avoid If he did not, his endorser might take
up the note at the last moment and collect the
damages as against the maker. This would be
only fair compensation to the endorser for
the inconvenience and trouble to which the
makers breach of promise had exposed the
former. With damages for non-payment at
maturity, Insurance of the debtors solvency
and a reduction of our legal Rate of Interest
to six per cent, We believe our monetary sys-
TEN would be greatly improved-far more than
it can be by the virtual or total repeal of our
Usury Laws.