Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1855-12-21

ton, that our usury laws oppress those whom 1t was
designed protect aud benefit only the heartless shy
locks %: the land
We have shown that the price of n loan depoilhS
upon the amount of money 10 be- loaned, and tile num-
bcr md necessities Of borrowers. If the capital Is
abundant and borrowers few, the price OF Il loan be-
comes small. Every holder Of unemployed capital
becomes anxious to lend, nnd thus demand Tor bor-
rowcrs is created. In such state Of things, almost
any man borrow. The price paid ior ioahs-
which is composed Of two elements, IN" r"fe N i"t"'
est p1id amt tie amount 0t security gWtn,-decreaseS
in one or both Of liz elements. Either the rate OF i'll
tercst the security required of the borrower Is les
sened.
This being true it is evident that it is always t" the
interest Of the borrowerS-wlch always the nee-
dy class-that capital should be nbundant-that the
number of lenders should never be decreased; but
that every one who disposed, should be allow
cd and encouraged to become II lender of money.
Do the usIry laws increase decrease the number
of such lenders The answer is palpabe. They
drive from the loan market every man who Is TO"
timid or too conscientious 10 incur the risk or the
penalty and odium which attach to the violation oil
the laws. Such capitalists are forced to Withdraw
their money from circulating in its former channels
and to invest it in something more profitable. II mo
ney is scarce, the value of property falls and III suc
cuscs il becomes more profitable for the capitalist 10
invest his money in property than to continue Lending
it ut the legal rate He WILL therefore, do one of two
! things he will either demand u-ury, or invest hl5
money in something that will yield usurious income
The former he cannot do without violating tue law
and incurring peculiar risk hence If ne be too con
sccntious for the former, or too mid for the latter
he will Withdraw his capital iroll the loan-markei-
Such step produces double result. Ii lessons the
capital from which loans are to be supplied, and re
tires from the lending business the two classes viii
whom borrowers had been uble to make the most III
vorable bargains. Such result not only lessons th'
supply of LOANS but il places that supply under III,
control Of men who are neither nll nor too con
scentious to demand all that they can get. The
Shvocks only remain, and the borrower Is forced Il
submit to their greedy and heartless demands.
We thus see that the usury laws work double
harm to the class they were designed 10 protect =
They do not increase but lessen the capital invested
i'm loans they do not increase hut decrease, III quan
titv and quality, the number OF lenders. They benc
Fl, the greedy usurer, because they give him al ex
cuse for raising the rate OF interest The borrower Il
then forced TO pay, not only for the value Of the oa'
but also for the risk incurred by the lender in viola
ting the laws. Hemus not only pay for the loan, bu
must pay an insurance premium upon his honesty
Ne has to guarantee, not only the return of the mo
ncy and its interest, but also price for the violation
of that law which was made for his benefit TIL
law therefore, at every step, benefits the Shylock-
l,ttfh
victim.
We propose to continue this eXamnation iro
time to time, until the Legislature acts upon the qucs