The Daily Nashville true Whig. [volume] (Nashville, Tenn.) 1851-1855, 1855-10-22
Repeal Of the Usury Laws.

Repeal Of the Usury Laws.
The subject of q repeal OF the usury laws is
one in which every citizen of the State is in
terested, ana partaking Of this spirit the ques-
ton has already been brought before the House
of Representatives. There are now before that
body bills proposing modification and also
repeal of the laws on the subject Of usury.-
The bill of Mr.. Cavitt proposes modification
of the usury laws so as to legalise as high
rate of interest as 10 per cent on money loaned,
but TO no other transactions does this PROPOSE
ton apply. The bill Of Mr.. Bartlett proposes
to legalise as high q rate of interest as may be
agreed upon by the parties interested, leaving
the legal rate of interest at 6 per cent where
there is no express agreement.
The public sentiment of the State unques-
tionably demands repeal, or at least modi-
fcation Of our laws in regard to interest. Ev-
cry business man knows that it is a rare thing
nowadays that money is not worth great
deal more than six per cent to both the one
wishing TO borrow aud to the man who has it
TO loan; then why should the law interfere 10
prevent the man in want from borrowing ut
such rate of interest as, in his Judgment
and the presumption is that every man engaged
IN business requiring the investment of capital
Is competent To decide in such matters-his
business vii warrant him in giving2 Money
Is commercial commodity, as much SO As
wheat aud -four. cotton and tobacco, or bacon
cor any other article, aud should be lcfL rs IN
tramlneled 10y law To seek The best aud highest
market, as they are. L money is worth ten
or fifteen per cent the law shon,G nterpoSe 10
barrier TO the capitalists receiving that price
fpr the u-e Of his money. Let the thinking,
candid man AK himself the question: Would
it not lie equally right for The Legislature to fix
price upon our bretd,tuifs and provisions and
the I,rnIuc- "l our manufactures and work
shop, ~ u,un our money, whicn, after all, is
bar the Lending cal Inc cIal commodity OF the
void? Is cnuu,r,iaL value fl Icluates the
same ~ does that Of the first named cornmod |
il,s I, day money may be worth ten per
cent, and "a month hence it may not he worth /
three, but our laws fix it, valne at six AZ both |
periods Are such laws just to either borrow
ers or leudersl
Il is an idle notion into which a great many
well-lneaning people have fallen, that a repeal
of our usury laws would open wide the doors
10 sharpers or extortioners. The history of 9TH
or communities settles this as merely an idle
notion. The Bank of England, the greatest
moDied institution in the world, always has
been licensed to charge whatever rate of in
terest its conductors might think proper to
ask. But the demand has regulated the in
terest, aud it has rarely exceeded five per cent;
most frequently the rate has been below that.
The Bank of Amsterdam, the second greatest
monied institution in the world has enjoyed q
similar priyilege-and the privileges thus en-
loved by these two banks make them monopO-
ies-and vet the rate of interest in that great
commercial metropolis has always been very
low, the demand fixing the rate as absolutely
as the demand for breadstutfs fixes the price
of flour Here is the history Of the two great
est, mos; powerful monied institutions in the
world, to combat and successfully overthrow
the idea that a repeal of the usury laws would
iusugurate an era of exhorbitant interest,"
The people of England have fallen in with this
dea, and demanded that the privilege granted
The Bank of England be extended to them,
md Parliament has swept from the statute
books every vestige of the usury laws. This
occurred more than year ago, and "free
trade" in money has received the approval of
he whole business community of England.
The principle for which we are contendng
las received the cordial approbation4 ola large
n linrity Of the business men of the leading
titles of the Union. The repeal of the usury
avs is demanded by every sense of right aud
ustice Every restriction which prevents
capitalists from legitmately employing their
n ney a. any rate of interest should be at once
removed. Let orr usury laws be repealed,
anl ca irnl now lying dormant will be made
productive and useful To both lender and bor-
row r. aud a fair rate ufintcrost will ~ surely
be e. ahlished by the supply and demand, ds a
lair price is fixed by similar contingencies
r q ar or any other commercial commodity.