The Evansville daily journal. [volume] (Evansville, Ia. [i.e. Ind.]) 1848-1862, 1857-05-16

HE OSURf DAWS-OUR DONDS.- lie
May number Of Hunts Merchants Maga.
zine discusses. in its leading commercial
article, the ,exed question ofthe ,usury
laws with unusual clearness, pith and
brevity. We commend to our readers
the following observations: ,t.s,.s@, n
"rhe demand for money is steady and
rates OF interest are far above the average
of past yerrs in all parts Of the world
The general impression now is, that,
pital will command an increased rate of
usance for some time to come. In the
light of such an expectation, the tenacity
with which many OF the country people,
living remote from the commercial cent
tres, cling TO the letter ofthe usury laws
is perfectly astonishing. The operation
Of these laws is directly adverse to their
interests, and yet they still fondly cling
to the notion that by force OF legislation.
they can oblige CAPITALISTS to'loan money
in the rural districts at less than its mar
ket value. The people Of the far West
are wiser, because their experience has
been less restricted. a farmer in Illinois
can borrow, the means to, put in q crop
of corn into field which would other.
wise lie waste, and can clear enough on
the crop to pay twenty per cent. per an
NUN for the money, and still make, a
good thing of it, He expects to borrow
the money at the lowest rate he can get
it. on the same principal that he makes
the buyer pay him the highest price for
his corn, and he does not find it any
hardship to be left to make his own bar
gain. But in sOme States, New Yotk CIR
instance. the farmer insists that the capi=,
talist shall lend him his money at per
cent. or not lepd it all, as II a fair rate
could be fixed by hwl The result is, that
when money is worth more than that
rate, the rural districts are drained of
their surplus capital. The money goes
to the city; part IS invested in business
paper, or in contracts more openly usu-.
rious; while parts spent in the purchase
of bonds or stocks, which the high value
Of money has so depressed that for $3.50
or $500 the buyer may possess that
which g,veS the, legal interest on 81 900,
The countf ymen always possess the
means of borrowing the cheapest, and if
they would not stand in their own light
but would allow money to bring what it
is worth, the rate would always be in
their favour City borrowers maybe the
most prompt in paying, bnt their circum-
stances are less easily ascertained, and
their fortunes fuctuate more rapidly.
In the country, Credits more wisely gi-
ven, and landed security is always at
hand. In England, where the lower clas
ses and the poor have no advantages, in
general, comparable 10 those enjoyed in
this country. and where the want Of
usury laws would soonest result in OPP
preston. If this was the tendency Of such
Freedom, there is no such restraint, and
for loans payable within twelve months
the law Of demand and supply regulates
the rate. Even if the repeal q, the ususy
laws should lead to higher rates of inte-
rest. such an advance would be only tenn
porary, as the high price Iwonld attfaet
capital to the locality. and the proper
level would soon be reached. We trust
that the day is not far Distant wi,eIf IN
such restraints viii be removed. and the
value of money be regulated like that of
any other commodity, in open market''s'
I~-r l.