The western Democrat. [volume] (Charlotte, N.C.) 1852-1870, 1857-08-18
THE USURY LAWS.


1t is now this day august s. three years
since the memorable adjustment of the
Usury Laws by the British Parliament
Such an important change in the CONNER
cial policy of the country could not have
been adopted either suddenly OF without
mature consideration. In fact, the change
had been going on, gradually, for more
than twenty years; and the advantages OF
experience were thus sought, from time to
time, as the restrictions were, step by step
removed, and the commercial circles of the
country thus finally relieved from the oper-
alton of the. former vicious laws.
In the year 1888 the first important in
novation upon the Usury Law policy was
made in England. Parliament abrogated
all such laws in reference to commercial
paper having less than three months to
mature. Even this was highly beneficial
change, because it promptly relieved more
than half of all the commercial paper of the
country from the unwise and heavy burden
previously existing.
After four years trial, it was found that
commercial and manufacturing people, of
all classes, pronounced the new features of
the law to be advantageous in their opera
ton to borrowers, if not to lenders. The
next step was in the year 1887, when Par
Lament granted further relief by removing
the usury restrictions upon all commercial
paper having twelve months or less to ma
ture. This would seem to cover the ground
entirely, and to furnish all the relief that
commercial circles could reasonably de-
people and tho English Government, that
tho Uaury Laws, even in their mildest form,
were imperative or prejudicial, that after
various petitions and Investigations, the to-
tai adjustment of these laws was effected
on the 5th August, 1854. The bill to this
effect had passed the House of Lords on
the 9th July preceding, and was immedi-
ately brought forward in the House of Com
mons, where it was favorably considered,
and finally passed. The passage of the bill
was strongly urged in the House of Lords
by the Marquis of Lansdowne, by Lord
Campbell and the Lord Chancellor. Lord
Brougham supported the bill, both on mer-
camille and moral grounds. The Marquis
of Lansdowne remarked that:
1.-The inconvenience which had been found
to result from the operation of the laws
against Usury had been SO many and so
great, that notwithstanding strong prejudi-
ces on the subject of Usury and Usrrers, it
had been found necessary to relax these
laws from time to time. AT the time of the
commercial failures in the year 1886 and
1887, it was found that the greatest relief
which was experienced was the result of a
provision which had been introduced not
long previously into the Act for the renew
al of the Bank charter, enabling the Bank
of England to dispense with the Usury
Laws"
After three years we find no complaints
from borrowers or lenders as to the opera
ton of the new system, whereby money may
be loaned at any rate ofinterest, and on any
description Of property, either real estate or
otherwise. On the contrary, the wisdom of
the change is fully conceded by all classes.
1t is true that rates of interest in England
since that time have been extravagantly
high: but this is owing to causes entirely
creased value of money may be traced to
the greater activity in commerce, manu-
features, and trade--the export of capital
to foreign countries for investment in costly
enterprises-such as railroads, mining COM
panies, banking companies-in the East
Indies, Australia, South America-and in
great speculation throughout England, Ire
land and Scotland.
The beneficial results of the adjustment
of the Usury Laws are fully demonstrated
in England. We think the example may
be followed by New York and other States,
where the penalties of usury are excessive,
and where the law now prevailing operates
as severe check upon the employment of
capital.-N. Y. Courier.
--
during last week, citizen residing in the
upper part of Columbus or the lower edge
of Robson, proposed to clear out deep
ditch which had caved in, owing to the
excessive rains. His wife dissuaded him
doing so at the time, but thinking it
necessary to be done, he persevered and
| went to work. After some time his wife
heard noise like of falling earth, and
running to the place where her husband
had been at work, she found that the whole
bank had caved in, burying him under it.
Assistance was procured as quickly as
possible AMI the man Ding out, but not in
time to save his life Wilmington Journal.