The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1854-10-06
The View York ChsmSer Or CsmsAegcs.
RlpoHT or THE COMMITTEES ON rHE REfnAL OF THE


UsUsY LAWS
Tho Chamber OF Commerce met 1t the usual place Of
meeting yesterday The committee the repeal OF tho
usury laws made the following
RgPoG.
The committee appointed al meeting Of tho Chamber
of Commerce Of September = to prepare an argument In
favor Of repeal or radical change Ia usury laws
beg leave to submit the following report. That they
have bestowed upon the subject such thought and
search a were found prscu able. pisclaimlng all At
tempt presenting any original views your committee
VIII sdduoe simply such obvious facts and reasons
will their opinion show the pressing need of reform,
in.tks laws referred to.
In the beginning of 1887 Legislature strongly
disposed to repeal the usury laws committee, TO
whom the subject HAD been referred embodied Jeremy
BenihAm's DefeDcs Of Usnryr in their report and /.
Was printed a. Legislative document.
Before the close of the session, however, the grsa.
panic of that year commenced resulting In the general
snspt nsion OF specie payments BY the Banks Of the
United States and the Legisture instead OF re
reang the usury laws, passed enacsnenss greatly Ia
crossing their severity
these
The sr der who receives han per cent per
annum forfets the whole lint; IS also liable TO
fns OF Thousand dollars and six months imprson-
ment. Both b. and lender may DO made wit
nesses in the civil trial
Under tho criminal part Of the process however the
defendant, 1t would is technically shielded from
the harm Of any ufessons that may fore cd
from him on the c,vii trial The Law also declares
Be the duty Of ali OF justice to charge the grand
jures specially into any Violations act
10 this point II mag % uaenonea ia passing grand
jnrJ has paid al stts. tiun VIII steysr.
The act was hu ricd though uader he great excite
ent Of the memorable caInmeTcial distress
II was 50 done unoer the houe-i nope that Il might
benefit borroweIs in tair hour ot Iced The result uas
been dametricai5 the opposeo u wha' was iatcndei
There perhaps never .ignsl failure under
good int MT whenever the unavoidable vicsstides Of
trade carry the rates Of interest the smallest fraction
above the legal rate the Law comes in medd some
and way TO compcats confuse all hnan
cis movements That nndcr the d.usive notion that
rsurers cunning enough n evads the penalties
and reorstess extoruns that have been heard Of
Here has st cd this law upon our statute books for
seventeen years and every Who has resorted to s
pecuniary features has fastened upon himself brand
Of lnfsmy that he get clear and -
wickedness 70 think Of touching it. Grand juries
mindful Of their oaths turn leaden and blind eye,
to its constant infractons because its penalties
nth their sense OF what is honorable among men
The huniAtipg conviction no longer be resisted,
that this law has been continued for reasons utterly Of
rianos With the honorable feelings which prompted its
enactment Sharp sighted ohJo soon saw that they
could profit by the maneuyres and devices into which
they could draw their customers.
Your committee w1ll now endeavor to present fair
dgest Of the that have generally bscn assigned
for these stringent measures
First IL cIximed by the friends Of restriction that
government brightness money that Is the creature OF
the deriving Ito value aud powers from egsation-
Is the only Article that Ii made legal teuder in the
payment Of debts, that citizens have neither the legal
nor tho moral right to money coin for any other
purpose than circulating medium whereby to mea.
vAue the money of the people does stand
In tho same alton to them nat their ott property
docs.
These consideration they urge upon government not
only the right duty d,ctst what may be paid
by citizens to each other for the use Of their own
money.
Our opposing friend, also insist that tho power of in.
cooperating bank gives Cove nmeIt the right, and In
poses upon them the duty to regulate h prices for the
of money in which the banks oeal and that too
though such money has passed into nd yidual bands
They assign some other minor for their par
tAty to restrictive u-ury laws, which your committee
win notice In their order Rat the points here stated
form the main foundation q tberclam, SO that if
rsfrte and dspel this their whole structure
viii, Of cou.se, fall to the ground.
As We have upon side all historl facts from the
modern times together With all the pr eminent political
ecouornsts for century past 1t will be strange we
cannot ultimately convince opponents Of the rasty
of their views
We're We, however, to fail in establishing our own
opinions, ard be mpeled to al nit AL the rights claim
Cd for State government stl the resrictonsts viii
In Il the great mex pedsncy well the utter
fmpossibiy Of usirg such right in the way they pro.
rose very grave uistcks is committed whenever ths
power Of state is exercised to prevent n needy yet
us.fu and enterprisieg man from borrowing mainly be-
cause he canrot and party ling to lend for the maxi
mum rate Of interest xed by law
Your committee are, however, very far indeed from
making any such admission They positively deny
any such duty incumbent upon them Money is not
formed By legislation, it derive any OF S intrin
EoyernmeUtll
The only legitimate province Of government IL 10
do what ier constituency require Of them in preparg
the material thatthe public msy have previously found
By Perience to be the most suitsele for circulating
medium 1t is also The province of to take
all neodful action towards securing the safety OF what
ever may be used TO- curre1cy.
IN regard to the coioage of money it has been found
that Of the t~o modes, y ecttsr was and H. to invest
tie governm. mt OF the United states bu state gov
ernnent with authority tn stamp certain pieces Of gold
and SILVER, carried to mint that had bcen previously
established under authority originally derived from the
propertyand the stamp to be with device and letter
Ing indcsrg the value of such pieces Of gold silver
fore no
tntrinsio value to the metal Governmental action In
coinage the most convenient mode of the two Is
not indispensable. II Congress were a.. any moment to
repeal all laws In regard to the Mint business would
ely assemble and adopt the same or some other
hslvisws here presented in regard to tbs origa Of
coinage, strkingy illustrated by nm extract frop
the y3iting. Of one Of our arst literary men, Dr. Dew
miles cut of from the Of the world engaged in the
various calnss Of life accustomed to barter but not
. gold mine discovered Tho metal is found to
% very valuable fer various purposes and like every
Of M exchanged for so many bushels Of corn or yards
o. ciota But the permanent and universal value OF
this metal and its being 90 portable and ndestructble
circulating nedun tho farmer would know Il he sold
corn for that he could buy cloth for II In another
The tgqpbs ard Of transporting the produce Of
ne iarn TO- tho distant manufactory" I'm this sy-
CHANGE thu Jumps Of gold of would be weighed
and would be natural to stamp the weight Of each
As there would Do this trouble Of constantly weighing
this circulating medium, and the danger Of mistake
and deception, the community would appoint com
nittee, or deputs its government IL IL had one,
70 do this very thing; and tho natal would b,
cast into various quantities, bearing distinct dsnomna
lions, to fully the purpose Of conyenent
medium" Here, then, we have . mint
and hsrs W have money Nobody win deny that IL vas
commodity when each man dug from the earth, and
bxohapged o. his pleasure The action OF the govern
hnent confers no peculiar character t. Tho govern
mont simply weighs the metal and aflxcs as 1t q
Label on IL, q, stamps II coin 70 tell what II il
worth" cit does not create this value but simply in
eicatss it, geo Dewey upon the moral la~ OF con.
only from s1 III: habit o. s2ns ~ mo-
cuar and Agical, that any prejudice exist against
what u calied usurious interest. The practice
of usuYy has acquired bad name from former and s
occasional abuses Of II But the principle must s Be