Lynchburg daily Virginian. [volume] (Lynchburg [Va.]) 1852-1861, 1854-09-02
DAILY NIRGINIAN.
SATURDAY MORNING SEPT .. 1854.
Repeal Of the UsurY Laws.


policy. and is, in the very end at which il aims,
calculated to work injury to society it is strange
indeed that it should survive longer than is re-
quiste for bill to pass regularly through the
legislature. II seems TO US as clear as noon,
that both these propositions are truein reference
to Usury Laws. The policy of restraintby gov
eminent upon the business Of the private citizen,
upon the idea that Government knows better
what is good for the individual than he does him
self. was in ancient times universal, and has only
given way before the lights of comparatively re-
cent investigation. There was once IA time IN
Virginia when the charges Of hotel keepers were
regulated bv statute: and at earlier date, 1t was
the business of the sheriff from time to time 70
fix the price of labaur. Modern political eoono-
nv has demonstrated that every such interfcr-
enoe is impertinent and detrimental and that the
true function of government is 10 protect the cit
izen in the use of his own faculties and fortune
in his own way-not TO dictate the manner or ox-
tent of that use.-Accordingly all such restre-
tons, except those upon pecunary bargains, have
been long since swept away. Why these have
been suffered to remain iii difficult to explain
Several years ago, the influence of these res
traints upon the commercial community IN Eng
land was so sonsibly felt ts be injurious, that
statute exempted mercantile seeurties-biils Of
exchange and negotiable notes from their np-
plicatiop This was sound to work well, and
within month past, bill more fully to
carry out that reform has been introduced
into the House of Lords, with the emphatic Op-
proyai of several of the Law Lords" and most
experienced and profound iurists--sueh Lord
Brougham, e chancellor of England Lord Camp
belthe present Lord Chief Justice, Sir Edward
Sueden, ex- chancellor and perhaps the highest
living legal authority Whose opinion was cited
and many others Ii has usually been our boast
TO lead Great Britain in legal reforms and the
history of the Legislation upon rights of property
in the two countries shows, in many enses, the
adoption of reforms there from quarter to IA
half century after they have been successfully
achieved in Virginia In the mattero Of the Isu-
ry Laws, however, they are getting ahead of us
We deem it to the interest, especially of every
mercantile community, that these legislative
re straints upon free-t trade in the money markets
be abolished, and accordingly shall present some
of the real effects of the Usury Laws. 1t is urg
ed in their support, that they tend to prevent
prodieality-to protect the needy and the sim
ple-and to disceurageproiector who would else
waste the wealth of the State in visionary
schemes.
So far from accomplishing their objects, obser
walton and experience show, what priori reas-
oning might anticipate, that their real effect is,
to make prodgality more prodgal-to bind
four fold burden on the edy-and To discourage
enterprise and invention. Add to this, that they
prevent men from obtaining loans when they are
in want of them. SO far as they are needed and
when not needed, las is very genera,l serve to
bring the law into dscredit with the people that |
they tend to corruption, by Holding out to the
debtor reward for breach OF faith and an act of |
treachery;that they hold out 10 men of weak NOR
ais, when the sum involved is large, u powerful
temptation to perjury; and occasion,aitcr every
monetary pressure, much vexatious, expensive and |
angry litigation, while they serve TO keep I
the rate Of interest up in times of plenty Mon
are not apt to quarrel with that 10 which |
they have been. all their lives accustomed; |
and this principle may, perhaps, explain
why these laws remain upon the statute book.
Nothing but the prestige of their hoary antiquity,
and the influence of habit could protect from the
hand of reform enactneuts violative Of soand |
odious and oppressive in their actual working,
The leaven now working in the British parlia-
ment was first infused into the British mind, |
half a century ago, by Jeremy Bentham-whoso
defence of Usury' left little to be said by sub
sequent writer's ; and we confess ourselves in
debted him for the first distinct ideas we ever
had upon this subject. His tract has never
been answered
Nothing is more frequent than for a man
in urgent need of money, when it is somewhat |
scarce, to be fully able to afford seven or eight
or ten per cent, but not more. lie cannot get it
at six and, unless he uses some device 70 e,ade
the law, be must 60 without. The consequence
infalbly is, that the law is either eyaded by some
expensive shift, or he is deeply "shayed"-for
the usurer must be paid, not only what money as
an article of market value is worth at the time,
say eight per cent, but additional eight ten |
per centfo the risk the penalty of usury lays |
him under. He might have the fullest confidence
IN the good faith of the borrower but he knows
that should the borrower die and his executor
get wind of the transaction, the law comDeis him |
to plead the statute and for these risks he must
be paid. The consequence is that a man in need |
OF loan, tor some purl asential TO his sue
cess in business must either suffer loss for want
OF 1T, or pay rainous premium for the intended
protection the law would give him-a favor which
ne would be most happy to dispense with.
Again, mo laws but necessary ones, and those
enforced" is the definition of a perfect urispru-
dence. A law openly violated by the respecta-
BILE portion of the community affords dangerous
tn vlp l.