Daily evening star. [volume] (Washington [D.C.]) 1852-1854, 1854-08-31
WARRINGTON NEWS AND GOSSIP

advantages, or the spirit and character of the
people, have always resulted In signal fail.
ures. And 90 with the attempts to regulate
the price of merchandise and, particularly,
the price Of money, which is as much an ar
ticle Of trade and traffic, as corn or cotton. I
The time was whom the necessity of enfofc-
ing stringent laws against what was termed
usurious practices, was as much question of
religious belief and observance as it was for
Legislative cognizancs; but in spite of laws.
in spite of prosecutions, fines and penalties, and
in spite of anathemas hurled at the laity by
ignorant interpreters of the Scriptures, it has
been found that usury laws have invariably
failed to accomplish what they were intended
to effect. In the place Of cheapening the price
Of money-of keeping the standard of interest
at what is termed the '1egal rates''-expsri.
ence has shown rs that the directly opposite
effect has been produced. In times of com.
mercial distress, money of course is scarce and
dear, and the risk of loaning becomes in
technical language Of brokers, "extra hazard.
ous."
Under such circumstances, what sane capi.
talist would risk the principal of the asked for
loan, for the paltry temptation of low rate
Of interest, which he can obtain in the best of
times on such substantial collaterals as bonds
and mortgages? If he loans at all, he asks
premium from the borrower, not only to pro-
tect him against the hazard of the times
but against the swindling practices of men
ever ready to avail themselves of the corrupt
privileges of the usury laws, when the day Of
payment arrives.
In no city in the Union are the services of
bankers and brokers more urgently required
than in the city of Washington. The nature
OF the occupations of our floating and perma-
nent population has produced this state of
things; and to add to the embarrassments of
the retail business of the city, money in the
place Of circulating in daily streams, flows
from the treasury only once month, thus
making general payments dependent on a
fixed future day. In New York, Boston, Phil
adelphia, New Orleans, and other large cities,
millions are borrowed every day in the week !;
but the largest portion of these immense loans
are effected for the purpose Of adjusting CON-
mercial balances In Washington, on the
contrary, the sums loaned are for the purposes
of labor or the ordinary necessities of life :;
and have, therefore, an actual in the place of
an apparently fictitious use or application.
Many an employee of Government, in conse-
quencs Of the failure Of Congress to make the
needed appropriation, or in anticipation of his
monthly dues, has been compelled to pay from
one to ten per cont interest, per month, for the
loan Of small sum of money. In one in.
stance, We knew fifty dollars premium being
asked and given for the use of one hundred
dollars for only thirty days We do not blame
the broker in the slightest degree, for the high
rate Of interest demanded and obtained. The
apparent Shylock "shave" inferred double
risk. Risk as to the peouniary ability of the
borrower, and risk as to the usury laws being
made use Of as q rascally subterfuge to avoid
the payment of an honest debt. "But think, :"
say the apologists of the usury laws, "of
the enormous profits of the money lender -
Do these apologists of bsrbsrous law, ever
think of the enormous profits of merchants,
manufacturers or traders? Have they ever
heard Of miller buying wheat one day for
IS cents bushel and selling it the next day
for $1.5Ol Did they ever hear of merchant
buying mousselin Do lanes at auction for ten
cents yard and retailing them for twenty five
cents yard? 1t is unnecessary to multiply
examples Of this sort.
The old usury laws Of Maryland are still in
force in the District of Columbia, and to Con-
gress alone can We look for the removal Of
these relics of ignorance, folly, superstition
and oppression. In England, usury laws nc
longer dis6gure its statute books. On the 18th
of June last, Q bill for the entire abolition Of
the Usury Laws, wa introduced in the House
of Commons, by the Chancellor Of the Exche-
quer. In his remarks on the subject, ne said
tina. the usur1 laws were already repealed
except in a single instance, and the measure
was chiefly intended to sweep away a mass Of
useless legislation. Tracing the history Of
the subject, he observed that the great offender
against tho usury laws had been the State
The superstitious notions on the subject, partly
Judaic, partly Mshomedan had disappeared
and Parliament had disposed of the restric
tions one by one, until the only one which re-
manned was that affecting loan of money Sc
cured on real estate. Explaining the grea
Inconvenience which had been occasioned il
Scotland by the existing restrictions in regard
to mortgages on land, and in England in re-
gard to railway debentures, be observed tn.
| usury laws had driven men to an enormous
system of evasion of the law. Let us, h
urged, fully recognize free trade in reference
to money, and let those who desired to Dor
row, obtain money at the current price Of tn
day.
| With such an example the Federal Govern
ment should not, cannot, longer hesitate. Let
Congress abolish the usury laws in the Dis
trict Of Columbia, and the States will promptly
recognize the liberality and wisdom of tn,
principle establishe1, by similar acts of abro
cation.
Memphis Navy Yard sec in the Mem
phis Appeal of the 18th instant, an opinion 0
the Attorney General, of the 9Th, stating tina
the proviso concerning Mr.. Perrin's accounts
in tho famous section of the naval appropria
ton act ceding the Memphis navy yard to tn
CITY of Memnhis il not a condition defeating III