American union. [volume] (Morgantown, Va. [W. Va.]) 1855-1859, 1857-02-21
TEI woIgxT OF MONEY,
UsurY---Days OF Itraces

oaurY---Says OF SfrSceA
(, For several years past the comu,er-
cial world has been excited by schemes
looking to the repeal OF the various
laws that now exist upon the subject
Of usury in the several States. The
merchants Of New York have taken q
lead in this matter, and been very ear
nest and unanimous in petitioning
their Legislature to remove the com
mon restrictions upon the use of mon
ey. They allegc that money has be-
come common article of merchandise
and that it's value depends entirely
upon the demand and supply--that it
would be quite as unjust to fix the price
of -four or pork by lcgislate enactment
as the interest that Should be paid for
the use Of money. Hence is urged the
necessity of abrogating the penalties
to which capitalists are liable who de-
mand and receive for loans rate of in
terest higher than that legally estab-
lished. The same question is being
discussed in Pennsylvania with much
freedom and earnestness. In Indiana
as We have already noticed, repeal
of the usury laws is being agitated, &
here in Kentucky, as will be recollect-
ed, the Legislature of 1854 discussed
various projects for the establishment
of a conventional rate of interest.
Its argued by those who favor q
repeal of all usury laws that, with the
abolition of restrictions upon the use
of money, the supply would increase
in proportion to the demand, and con
sequently that the price would rule in
finitely lower than it does now, as it
would bring into the field of competi-
tion many capitalists who arc now fear
ful of jeopardizing both the principal
loaned and the accruing interest, on
account of the legal established rates.
There are other reasons alleged in IA
yor of heproposed repeal that we need
not mention, as they will instantly be
suggested upon reflection to every in
telligent mercantile mind. Z"
I Another matter Of Importance to
commercial interests is the abolition of
days Of grace, bill to that purport
having been introduced in the New
4 York Legislature. The custom Of all
! lowing three days Of grace upon bills OF
exchange, drafts payable at sight, and
4 those which are payable on a subse.
quent day, if drawn upon II bank OF
banker, is regarded as behind the pre-
!. sent commercial age and not suited to
that directness Of purpose which char
acterizes the mercantile operations OF
the present day. The principal diff.
culties which have arisen appear to
have their origin in bills Of exchange
growing out Of the diverstie5 which
prevail with respect to them among the
various States Of the Union. For in.
stance: In Maine, New Hampshire.
Massachusetts, North Carolina, South
4 Carolina, Wisconsin and Ohio, it is
provided by statute that days of grace
be allowed on bills Of exchange paya-
bic at sight. In Kentucky, Indiana,
Alabama and Texas, days of grace are
allowed on bills Of exchange payable
at sight, though not provided by stat
ute. IL Louisiana days Of grace are
allowed on sight bills, but the usage is
to pay on presentation. In Vermont
and Connecticut, days Of grace are dis
allowed by statute.
In the following States days of grace
are not allowed on bills payable at sight
by the usage among banks and mcr-
chants; but no legal decisions have con
firmcd this usage as law: Rhode Is
land, New York, New jersey, Pennsyl-
yania, Delaware, Maryland, Virginia,
! Georgia, Florida, Illinois, Iowa, Mich
igan, Mississippi, Missouri and Tenncs-
see.
In Arkansas the statutes provide
that "foreign and inland bills shall be
| governed by the law Of merchants as to
days Of grace, protest and notice."
LouiSUiUc JOural.