New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1856-03-24
UsURY.


York Legislature by Mr. Mahen, to abolish pawn:
brokerage, and prohibit pretended sales, made to
eyade the statute of usury, by declaring them
misdemeanors. Under the present law all such
sales are deemed fraudulent and parole evidence is
admissible to impeach them; but we have no law to
punish the extortioner criminally, unless ne has
actually received Illegal interest If Mr.. Mahen's
bill becomes law it may have beneficial influence.
1t is curious fact that nearly all the States ex-
cept Massachusetts, have attempted to do away
with the usury laws and sgnally failed. In 1884 q
law was passed at Albany, declaring all loans usu-
riOus where illegal interest was received, and all
bonds and notes void except in the hands Of
bona fde holder or indOrser who had no actual
notice of the usury. This reservation removed
every practical restraint on excessive interest
Usury stslked abroad at MONDAY. The effects of
this law were disastrous. The representatives
from the interior of the State, however, in 1887,
succeeded in repeating this clause, and passed the
act now in force. Repeated attempts have since
been made to reenact the obnoxious law, but yet
the country members have stood firm.
On no one subject have the concurrent opinions
of all nations, in all ages, been unanimous in
condemnation of usury. The Hindoo Institutes of
Menu the Koran, the laws of China, all the nations
of antiquity, Of Modern Europe, and all the States
of America have enacted severe laws against it.
In the first ages of the Roman Republic it
was discouraged by the twelve tables subse-
quently six per cent was permitted as ordinary
premiums, eight per cent for the convenience of
commerce, and twelve per cent in cases of maritime
risk. Christians, by the common and canon laws of
England, were prohibited, but Jews were permit
ted, to take usury until the reign of Edward l.,
when the statute was extended to the Israelites.
Within seven years after this prohibition the fines
and forfeitures incurred by the Jews for usurious
transactions amounted to four hundred and twenty
thousand pounds 1t is hardly possible that all
mankind should have been mistaken on this sub
ject. They know that men under temporary
want of money will sacrifice everything to obtain
temporary relief; that within or vanity will prompt
people to borrow on any terms without calcu-
lsting the consequence.
To condemn all interest as usury is absurd. The
Catholic Church, in the plenitude of its power,
when its dogmas were enforced with fire and
sword, attempted to carry out such an idea, and
failed. Mutual benefit induced men to risk her
anathemas, and interest was freely taken under the
pains Of heresy. Interest is the mother of com
merce; but usury is the parent of bankruptcy.
A fair premium on the use of money is just and
necessary; but, as Lord Bacon says, 1.-THE
tooth of usury should be ground, that it bite not
4" too much; and on the other hand, way should
"be left open to invite moneyed men to lend for
/" the quickeniDg of trade"
Those who say legislators have no business to
NEEDLE with private contracts as to rates of inter-
est, do not know what they are talking about.
There are innumerable instances where Govern
ment interferes between debtor and creditor for
the benefit of society The late United States Bank
rpt law was an example; so is our law known as
the "two-third act" Every country has some
insolyent law of its own. Courts of Equity often
give relief against hard bargains Courts will not
sanction post-Obh bonds-that is, where an heir
contracts debts to be paid the death of an ances-
tor out of an anticipated legacy. A mmtgsgOr is
allowed an equity of redemption, notwithstanding
any agreement TO the contrary; trustees and
guardians, on account Of their position, cannot
make any bargain for their own ACKNOWLEDGEMENT
with their benefciaries; spendthrift will often be-
prohibited from squandering his estate.
fit is proper to interfere in the above cases. why
10. in usuryl Surely if a man has an uncontrolla-
bic right to stpulate the interest, he has equal
right to prescribe the penalty, and Shylock the
same right to enforce the bond. Society, how
ever, cannot permit such a state Of things TO
exist. 1t may be said that men will not incur un-
reasonable penalties. Unfortunately, we see every
day individuals for a small loan giving uncondi-
tional mortgages on property twenty times the