New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1854-12-01
THE UsIRH LAWS,

qrOUCd that il has been successfully carried OUT
in England and may safely be attempted here;
and Lot only safely but adyantageously, as it will
cause money TO remain here that would otherwise
90 to Europe. OF this however, az yet we hsve
seen no evidence. Mortgages bearing seven per
cent interest and well secured, msy be bought
here a. discount of fifteen, and we believe even
twenty per cent, thus securing to the purchaser
an interest of from twelve to twenty per cent.
per anbum; and yet the higher the rate Of inter
est the greater il the drain of gold the greater the
striDeency Of the money market, and the greater
tie tendency toward general bankruptcy aud
ruin. But" says the advocate OF repeal, sin
"terest is high because Of the dagger by which the
payment of illt gal interest is surrounded. Re-
I" peal our laws and we will let you have money
" cheaper, because we can do so with safety to
ourselves" What proof 10 there that such
would be the ease : None that we can see.
TIE law recognizes the right of every man to
deal with an existing mortgage, or prOmlssory
note, precisely as be would with any other CON-
modify selling or buying it exactly rs be would
cotton or sugar, free from all risk of penalty or
loss, yet we do not find that the vast quantity of
mortgages, now offering in the market at great
discounts tends in any manner to retain here fo'-
eign capital TO be lent at moderate rates OF inter
est The usury laws have been already 30 tar
repealed as to present but little difficulty in the
way of the usur,r. We have authorized railroad
companies to make special contracts for money
giving the highest security for money at the high
est rates of interest, but the effect thus far
seems only to have been that of enabling Wall ST.
to break down those companies little more rap
idly than it could otherwise have done. We
now permit the Insurer to grant his notes in ex-
change for the highest security, in the form OF
mortgages, stocks, or property OF any other kind
and then 20 buy his oSn notes at has own price,
and without the slightest fear OF danger, enabling
him thus to obtain twenty-five per cent. per an
num- - this does not cause the gold to remain
here alaSugh in the countries to which 1t goes
il commands only FIVE per cent. 1t would GER
tany seem to be desirable that, before making
one more step in this direction, we should have
some evidence that what has already been done
had tended 10 produce, in some degree. the edsct
desied; but that evidence has not been produced,
nor, az we think, can it be.
In reply to this we shall be told to look 70
England; but in answer, we may say, look to
those of our own States in which the experiment
has been tried and see what has there been the
result. Mississippi thought she could attract the
money lenders TO her soil by allowing them to
take exorbitant interest; but the only effect OBJ
/ tanned was that Of enabling the few who had
morey to obtain thirty, forty, fifty and sixty per
cent per Snnum fIom the many VINO wanted it,
and the experiment was soon abandoned as tend
! ing to make the whole body Of the landholders Of
the State hewers Of wood and drawers of water
for the few who controlled the money market.
Wisconsin tried the same experiment, and with
the same results. As We have been informed, it
was not uncommon to pay, or promise to pay,
forty and fifty per cent. per annum, and this con-
tinued until it became At last obvious that the
State would lie ruined by the exactions of the
money lenders, and then the legal rate was fixed
at ten per cent. In our own State, we have
striking evidence of the effect Of legalzing
high rate Of interest on the highest description
Of security, in the fact that mortgages bear,
almost everywhere in the State, seven per cent.
Elk per cent. There is no more difficulty in Dor
rowing in that State, at the legal rate, than in
our own. Men who have money thst they wish
to invest securely, are content with six per cent,
when they would demand seven il the law per
mittcd it, and banks charge six when, under our
system they would charge seven and there is
no more difficulty in obtaining subscriptions to
III -. -. al. l.. w.
real the usury laws in that State, and the price Of
money at the banks will rise to ten or twelve per
cent, to the great advantage of the stockholders,
but who beside are 10 benefit by such q meas
ure We are quite unable to see. The bank would
have no more money 10 lend at the one price than
al the other, but il would make double dividends,
and thus enrich the few who had money to lend,
while impoverishing the many who required to bor-
row. Repeal the usury laws OF the State and notice
would at once be given to all the mortgagers that
the rate Of interest had been advanced TO seven,
eight, or ten per cent and the debtors Of the
State would find themselves compelled TO pay the
advanced rate upon an amount probably little
short OF hundred millions Of dollars-requirng
three, four, or FIVE millions Of dollars to meet the
demands Of their creditors. Do the same thing
here, and scarcely week will elspse before the
same operation will be performed throughout the
State aud to an extent tha; would tax mortsagcrs
probably not less than eight OF ten millions of
dollars annually.
The measure here proposed by wallst. ap-
pears to be tminently calculated to gu the already
swelling pockets Of the money lenders, and to