New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1854-04-03
TIE INTEREST OF MONEY.

An earnest effort is making TO abolish the uslry Law
SO far as it is applicable to mercantile paper II is
said that this movement proceeds from the borrowers,
and that the lenders are very Indifferent about IT, II
so Why does the bill contain provision that the rate
of interest where there is no agreement shall be
seven per cent In all the States around US, from
Maine to Georgia legal interest is six per cent Why
should it be seven per cent. in NewYork The ques-
tion of legal interest lie apart from the question Of
usury in commercial transactions. 1t depends upon
what money is generally worth; or in Other words,
what interest can persons engaged in tfe ordinary
pursuits of society fairly pay during life and still re-
tain an adequate remuneration for their skill and
labor In that point of view is it not obvious that in
this state the rate of interest is too high Is it not
clear that the endog classes too highly favored by
law that the bank, usually divide higher rate of
profit than property invested IN other business Ii
that re 80 should not the advocates of fee trade in
money aso use The adoption OF rule ga to The irga
rofc in absence Of agreement which shall be equita
bic and in conformity with the existing state OF thngs
instead of Obs'inately adhering to rate established
by the Colonial Legislature when New York was as
Wisconsin ard Iowa are now
Tie pArtisaDs of the lenders. however assert that
interest we draw capital from our neghbors, aud are
enabled to use their to construct our own inter
nal improvements and impart stimulus to or dcmes'
tic industry Very plausible indeed We have, how
ever never been able to understand how it u.s. that in
Massachusetts and Connecticut they have always had
the means TO take the lead OF NewYOrk both in max
ing railroads snd establishing domestic manufactures,
without our high rate of interest. Lowell, Wacam,
Lawrence, Waterbury, and many other manufacturing
town. have sprung into existence, enrching their en-
terprsng proprietors under six per cent legal rate
while Cohoes at the head of slOop navigation.wit
the Canal passing through il and power superior to
any two of the above towns is still an unimportant
village With all the superior natural advantages OF
many towns in this State over any IN New England,
the seven per legal rate has never attracted u-
cent capital deyelope their capabilities or establish
their supremacy.
So to- in railroads The stock of the Companies now
consolidated as the Central Road went begging FIR
years ia Walst, while Safest boldly construct
ing railroads in all directions, terminating in Boston
Indeed it was not until the large business OF the West
ern Railroad excited apprehensions to the west
ern trade, that Company could be found bold
enough to construct railroad TO Albany For long
ItIlOI tptuliS VI thC NcSbNih iN"'""f' W
were indebted to the railroads of New England Tor
winter communication between cur State capital and
the commercial metropolis Of the United States.
Let us hear more then. of the advantages OF a
high of interest in stimulating the enterprise and
industry of people. II is just the reverse.
Capitalists living upon interest are no benefit per Sc,
to any community Their capital may be necessary
to the success of libOr and is right tina. proper
compensation should be paid for ts use, but every
cent paid is burden upon industry and every con-
sdcratioD of equity and sound policy urges to pre-
vent that burden from becoming too great. NewYork
has made ii in keeping her rate of interest at seven
per cent. She has encouraged the lending at the
psnse of the borrowing class and enterprise and in
dustry lave contributed too great proportion of their
earnings 70 The support Of the moneyed interest That
has not improved the condition Of the former is OBJ
yOus by a comparison between them and the same
classes in the adjoining States, where interest is ak
per cent Why not then substitute for this effort to
render the trade in money free provision to put the
legal rate of interest upon equitable footing