The Abbeville banner. [volume] (Abbeville, S.C.) 1847-1869, 1856-02-28
From the R'chmo"d Enquirer.
Repeal Of the Usury Laws,

We showed that such laws were not sus.
tanned by any prccept of the Bible, the
prohibition therein being only municipal
regulation, peculiar to the Jews, and whicl,
It would he scnseless in nations, differently
situated, to adopt. We also proved tl,a,
money dues not receive its valre from die
tum of governments, but was regulated by
the gre.,t laws of value. Which govern every
other commodity, lie: the prime cost OF
production aud the supply aud demand.
We also demonstrated that the repeal of
our antusury laws would benefit the needy
borrower in every way, and could possibly
injare only that cas whose trade it was to
oppress by extortionate loans.
We desire, in the next place. to examine
the effect Of anti-usury laws, historically.
Tho friends OF these most unwholcsnme
restrictive statutes, answer the arguments
advanced against them, by saving that they
are distractions and theoretical, unsupport-
cd by actual experience. Let us see whether
the answer is true.
The history of every nation, ancient and
modern, proves that the complaints Of
mouey borrowers, against money-lcmlers,
have ever commenced with the first efforts
Of the government to control the rate of
interest on money; and that these com
plants, lending to more stringent legisla-
ton, have increased fari 1'nssM with the
rigor of the laws. Thus, in the earlier pc
Rod Of Roman history, we hear nothing of
such complaints, hcc;,;,sc free trade in
money existed; but SO soon as the govern
ment undertook to manage dealings in
money and to prohibit or restrict the ra,c
Of interest, just as soon do we hear lou'l
and bitter complaints against cxtortionate
usurcrs. These complaints led to scvcrcr
laws, which, in their turn, led to still louder
complaints, until, rs we are informed by
TacituS, this became the most frequent
cause Of selition and open rebellion. At
one time, when the matter came before the
Roman Senate, it found that a large ma
jority Of the Senators were deeply involved
in their violation Of these laws, which they
had helped to enact. 1t WAS asccrtanch
that even the vir;uouS Brutus had received
forty five per cent. Oh money loaned. "Tbc
price Of money" says Montesluieu, rose
higher, just in proportion to the severity Of
the law and the danger Of the borrowers
taking advantage of it." McPhcrson, in
his history Of commerce. bears the same
testimony. "The clamor and prosecutions"
says lie, "raised against those who cook
interest for the use of money, WAS SO vio-
lent, they (the lrn!crs) were obliged to
charge it much higher than the usual
price, and hence the usual rate of interest
was what we should nav call most extor-
tionate and scandalous usury."
The Koran prohibits all interests upon
money, and hence we find that, in all
Mlhomcdan countries, the rate Of interest
is most exorlitant. Indeed, we are inforln-
ell by travellers. that interest in Mahnme-
dan countries is ten or even twenty times
rs great as i'll countries where its receipt is
allowed.
IIallam tells lis, that during the 18th
century, when the rate of interest in Italy
and Catalonia, where parties were allowed,
Tor tie most part, to make their own bar
gains, was comparatively moderate, while
in France and England. where it was wholly
prohibited, it WAS cxor|ilantly high. Hume
says, that in the times of Henry vi. of
England, when all interest WAS prohibited,
the lowest rate Of interest was fourteen per
cent
Tile following fact. which is well au,hen-
ticated, speaks most conclusively upon the
effect Of such restrictive laws. In 1865,
France made five per cent. the legal rate OF
interest. In l7GG, the law WIS changed,
aud the rate reduced from five to four per
cent. 1t is said t!tat before this change
loans could have been easily obtained, on
good security, at five per cent; but an nd.
ditlonal per cent. was now charged to cover
the risk Of Iegalilv. The same thing hap
pened III Livona, in 1886, when the En-
press Catharine reduced the legal rate from
ak to five per cent. So soon rs the change
was made, the market rate Of interest rose
one per cent. higher.
VI, as already stated, the lowest rate Of
interest was fourteen per cent, although
the taking OF any was sternly prohibited.
This remained tl, current rate until the
law changed, and ten per cent, was allowed.
In the preamble to this law the following
remarkable language occurs: "1hc pro-
hibting act of Edward VI hath not done
SO mech good as was hoped for; but rather
the vice Of usury hath much more exceed
lngy abounded, to the utter undoing OF
many gentlemen, merchants, occupiers and
others, to the importable hurt of the Com
monwealth."
All laws against usury were abolished
by the Revolution in France; vet, it is s.id,
that no rise OF interest followed In IIol
land there are no laws against rsurv, and
we find that t'e rate of interest is lower
here than in any other country.
Such is the uniform testimony Of history.
We defy the production of single contra
dieting fact. The proof is conclusive, and
should convince every reasonable and
impartial man. Let lis see if VIC cannot add
to this testimony by facts Of more recent
date.
Tie anti-usury laws Of England have at
last yielded to n half century Of fierce at
tack. The test Of their injurious effects
was most thorough and convincing. First,
these laws were repealed as to negotiable
paper. and the effect of this partial repeal
~as most sensbly experienced during the
fnoaey pressure of 1887. After this the
geAer*l law was repealed for one year; at
the cad of that year, the repeal for another