Fremont journal. [volume] (Fremont, Sandusky County [Ohio]) 1853-1866, 1856-02-22
MiseflIane0ns.
For the Journal
The Interest Question.

For the Journal.
The Interest Question.
observe that under the recommendation
of Gov. Chase, the Senate are considerin.
the question of modifying the laws in rela
ton to Interest. If I might be allowed t.
give my opinion, it would be that the,
would do well to repeal all laws on the sub
ject and pass one that should fix the rate 0
Interest at or per cent, where no agree
ment as to rate exists. I mean that tn,
parties to my transaction shall be left a
liberty to agree upon the rate of Interest
as they now do upon the price of any article
which one sells and the other buys. 1 an
aware that there is a prejudice or rathe
superstition, we cannot give it a polite
name, which makes it the duty of legisla
tors to fix the rate of Interest and crime
in the citizen to take higher rate Blu
can any man give satisfactory reason WHY
the Interest of money should be fixed by
law, any more than the price of wheat, o.
of landl Two reasons are given, upor
which the advocates of usury laws chiefly
rely. First that money is the standard by
which to measure other values, and that s
constant variation in the rate of Interest
would destroy its use as such Standard
The plain answer is that this would not be
the result. a bushel will measure wheat
equally well whether the price be seventy.
five cents or two dollars. So dollar will
measure other values equally well wheth
er the rate of Interest be or 10 per cent
As matter of fact, money as a standard o.
value answers all its purposes, whatever is
the rate, for in spite of tho usury laws the
rate of interest is constantly fuctuating, yet
no one pcrecives that money docs not well
enough measure the value of other things
The second chief argument employed by
those who would sustain the usury laws, is
that the poor and defenceless must be pro
tected against the rapacity of the rich
If, indeed, this could be done by law ]
should be rejoieed. But if our law makers
undertake this business of protection, 1 see
no good reason why they should confne
themselves to money transactions. Itseems
to me that there are other matters which
equally demand their interference. Form
stance, the price of wheat is now so high as
to prove burdensome indeed to the poor
Can not our lawmakers by statute reduce
the price to one dollar? And as it is agreed
that this would be a fair price for the pro-
ducer, would it not be well to fix this as the
price by law. Tho answer doubtless will
be, that such law would be utterly useless
that the supply and demand will fix the
price of wheat and that in this respect the
law makers can not protect the poor. This
is true, and it is equally true, that laws
which fix the rate of interest are Just as use
less and powerless. We have not particle
of sympathy with that class of men who
take advantage of the necessities of others
to demand and receive rates of Interest al
together above the market price; and if
laws could reach such cases of extortion we
should be heartily rejoiced to see them
placed on the statute book But experience
has abundantly proved, and is daily proving
in thousands of instances, that laws cannot
reach and remedy this evil. The truth is
they only exaggerate it, If man is in
distress and must have money, and cannot
offer such security as will satisfy moderate
men, or if he cannot find such who have
money to lend, he must resort to sharpers,
and they to acertainty will not only charge
as much as the borrowerwilI bear for the use
of the money, but they Will add an extra
per centage for the risk attending the trans
action as an illegal one. Now if there were
no interfering laws, this man could in all
find men who would be willing
to take the risk of the loan at some reasona-
Dle rate,-at least the market would then
be open to him, instead of being shut up to
a few whose terms he must take or do worse.
we give the following then as our reasons for
a repeal of all laws fixing the rate of Inter
sst in the single case whereno agree
nent is made.
l. Such laws arc useless. 1t is an ad-
nitted fact that they are totally disregard
ID. We see money quoted in all the prin-
,ipal cities at all rates from to SO per
'ent. And it is equally and Increasingly
rue that money is loaned for whatever
Gems to be its market value throughout tho