New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1857-12-04

| Our Hard Money" correspondence third essay
has been crowded cut from day to day because Of
its length. 1t appears herewith.
Many of its positions seem to US entirely foreign
| to the subject in hand. "H,rd Money believes
| in permat ent National Bankrupt Law, no matter
whether under Specie or Paper Currency. 81 do
we. He believes in Land Limitation. So do We.
He believes interest on Money should never be al
lowed, OF should never exceed one or two per cent
-and there we decidedly differ. We understand
bin 10 assent TO the doctrine that GAN power not
| "srapted 10 the Government is reserved TO the
| "Peop'e." When, we ask, did the People ever
ooncede to the Government the power to deprive
them of their nstural right to lend their
money on interest if they see fit Even we, who
hold strenuously to the policy of Usury Laws,
would prefer that the State should simply say to
usurers, IF yeu lerd your money at extra inter-
"est, collect the debt yourself-we wash our hands
of it," But to forbid man ~ take interest at
all is to compel every one who has property or
money to hoard or use il himself, and deprive the
poor Of any chance of ever borrowing dollar.
Hard Money" holds it perft city right that cat
tie or other property which naturally tends to in
crease in quantity or value should pay interest, but
not money. This seems t, us to imply sad con.
fusion Of ideas with regard to the nature and uses
of NOR ey. For instance, here is a mau owning
hundred sheep, which he can readily let to farmer
who will gladly return him three hundred as good
sheep at the end Of three years. This is perfectly
legitimate, according to Hard Money" Bat the
owner having good offer, sells the sheep for $500
in cash; ana this "Hard Money would not allow
him to lend unless at one or two per cent per o.
mum! How can he fail to see that the money for
which the sheep were sod-nO matter whether
Specie OF Paper-is simply the same property in
another form, and entities its owner to the same
legal rights and advantages Money is simp'ya
common denomina.Cr for all kinds of proPertyi
and if anything is entitled to draw interest or rent
for uie, mOneyis.
We do not see, however, that this matter has
any legitimate connection with the question as TO
the relative utility Of Paper Money and Specie.
For, VIGOROUSLY interest is far higher in countries
where Paper Money is unknown-Caiforna, for
irstance-than in others. Wherever region 10
being rapidly settled cities being built, and prop
erty doubling in value every three or four years
there Money will command high rate Of interest;
and the harder it 10 to get the higher the rate will
be-
Hard Money is wofully wrong in suPposing
that the Banks Of this or any other city have no
rs, capital except their Specie in vault, and that
consequently they receive an enormous profit on
their Investment If this were the fact, does ne
net Zee that those very stockholders who receive
these large dividend, mainly pay them Suppose
our City Banks have q capital Of Ninety Millions
with an average of only Ten Millions of Specie in
vault, and that they have (or had) thereupon loans
amounting to One Hundred and Twelve Millions
how much does the public trust them Not Ger.
ainly. the amount of their Loans nor yet of their
Capital, dor yet of their Deposits which are sums
temporarily placed with them BY their customers
for their own convenience. The actual amount
FIR which the Banks are trusted BY the public is
that of their Cuculston-say Ten Mllons-on
whieh TIE interest canno! be heavy, according to
Hard Moneys" ides Of what the rate Of iiterest
should be. But, be it little or much, We hold that
tie Only reason for uphOldirg Paper Money is the
convenience and advantage derived from if BY the
public. WeNOr example, receive at least 100000
Ger snnum in Bank Notes from distant pouts,
which, in the absence Of such notes, would be
transmitted with far mole difficulty and some OF IL
would never come at all. Specie is an excellent
thing in its place; but i will never pass fro STATE
to State, from secton to section especially 10 Small
ums, 90 readily and rapidly as Paper; and |, our
judgueat One Hundred Mlloni IN Bank Noses