Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1857-02-23
THE MONEY MaRKET-THE USURY LAWS.

BY RITCHIE Il DUSSAVAST. 80.
uONnAT MORNING, FEBRUARY as.
------
THE MONEY MaRKET-THE USURY LAWS.
In the February number Of That very interesting
and vaua3ie periodical, Hunts Merchants Maga-
zine and COMMERCIAL Review, there s an editorial on
the subjects named above, which We commend to
the serious aad thoughtful consideration of our read
srs. huch has been snid, pro az. cor, respecting
the usury laws, aud many Ut our best ctzens euer.
tain widely variant views respecting the Froprety Of
regulating tee value Of money by law-or rather, Of
determining, by statute, tho price that shall be paid
for The use OF money. In Virginia, the subject has
OF late been somewhat sgituted and discussed, md
it more than prouabls that future Legislature
will be called on to besow upon 1t mature and prac-
tical dcberatiou. Therefore. We need not oftr an
apology for publishing the rather practical remorks
OF Mr.. Hunt which follow;
"The usw year has opened with fair prospect of
business, but moderate actual trade lu most parl.
culars. TIE strlngercy in the money market has
been slightly relaxed, but there has been no return
to low rates. nor, indeed, do we any promise of
such q return, throughout the current year. Oar
readers tba! in Of the State, the laws
regulating the r3ance for money have been 60 lar
modified that it s not crime to receive than
certain fixed per cen,agei but there is still relic Of
this h.rbarisIp !sf in many Of ths States and much
Inconvenience is thereby experienced, although the
iaw is everywhere opsny and VIGOROUSLY violated
Il car be made plain 10 the dglest apprehension, that
there is no more prcpriefy in fixing the rate Of iute
rest by statute, than ,bs price OF OATS and yet the
usury law. reman unrepealed. The show of srgu.
menr by which the sta;uieis maintained ls not the real
ground Of opposition 10 reioru The friends Of the
law found chiefly in the rural districts; and their
fear ths: . capitalists th1 c:iy are allowed 10 take
openly The current narkst rate tJr money, there will
bc none offered IN bond and tnurtGge The present
nominal quotations. This Is moi said publicly, but il
Is me pilh OF all tie 3no f op :cons free trade
m money. Those who assL:ne this ground, place
themselves at once IN false position. II
s-ven per cent bo the legal rate of interest
and raonpy Is worth more, aid landowners are only
enabled ~ borrow at lhis rate, because the law Tor.
LIDS tnr lender 10 take higher rate, then the law il
certainly unjust and oppressive. II money is worth,
Oh rhs average rorc than the legal rate, then the
restriction is totally unnecessary. The landowner
can offer IN. very highest security for borrowed capi
Ia; aud for this 7enson he will always be eDabled TO
borrow al the lowest market rate. Ii money Is worth
10 per csnt, and the law prescribcs per cent, then
the lsuduu rl will not be abs 10 borrow all, and
fh.
curse II n aregulating the rate OF interest were
repealed there eau I'D question but what the usanct
OF MONEY wcrld be secured nj sUine decline from the
average curren: rates, rs hoLus is now asked for
the increased risk Of bubecng loaa 10 the saint of
u.ury. Perhaps Vf tho best tests OF the sound.
ness 81 heae views, lies in tho feet that in G the
Safes where reform inns been tried, 10 voice hes
been raised in favor Of nreturn 10 the old system.
"rhr lact is ths world 10 every age has been, and
still Is, governed 40 much. There are too many re-
strctons upon t.Ads aad too much len" OF the sau'
ta-y ovrrailSu ut natural laws. If want OF any
lind DO experienced, those who suffer rush at
10 ,he fuun,aip Of aui bory Tor power to create HI
arbitrary source of help fu,ge:!ul Of the great truth
Ii II The demand ia sure tn produce tie supply by
process whichwiii be in perfect harmony, with other
i.tere.is The evil effects of this interference with
natural laws il daily experienced An instance is
seen In the working @! iae :Nscin OF marine insu-
rance in the system Of New York. There were
y.ra! large companies ia the f-id, who had grown
rich in :ae business; tins ai.fa'y drew in otte:.
i, no were aL3icus Ia share the p:ot.s. Or course
me new cucefnu must oh-r some nduc-Inent to the
custcurrs ii the Old companies, to securs protta.
ole business. But SCH. wise heac thought that x
would be a beautiful regulation sGa all tho coInpa'
ME. should be couud by certain standard, and the
esact rule OF insurance on every article should be
governed by .a.iE, TO which all should CONFORM
dark the result The ra;es being the same In all the
companies, tho -iehe! aud more lnucnts ricxrd the
cream Of .ae business aud lett the next c5o ce 10 TIE
spcc.d class and 60 on tho ll; auG this rule
Icos rhhe-.,d ",''I al who ro-- INV d"a'n "rc"
tIe lis. failed above Them were sorely GRIP
Med In connection with this very business, q pro-
;ect i. now on foot equally absurd. The insurance
compeules hays discovered th:t large number OF
vessels are lost through cereessn-ss, or ignorance or
y7ant os nsrve the part ot thn coipmhnder. 80
,:iey now propose Board of Examiners 70 pro
noupce Upon the competency Of shPnastere! Why
no, reach the difficulty IN The simplest Wayi latheEe
less rsk of loss nader good captain Than poor one
Very undergraduate the ra;es accordingly Let skill
a. car., and n that makes up thorough seanan-
chip, bring lie price IN lowering tue ratoa OF insu
rance; th. re- VII! ue lack OF the supply, the mo-
ment iLe:e is demand for il a. gu equivalent CON
pen.a;on. The shipuaster audes whom ship shall
Insure at the lowest prcnrr 70, VIII stanu at the nede
of his class without certificate, and he whose wee
.el pnys NOR. than a. average rate. will be dropped
from the roll Hi;buat IN. black ball OF The Board OF
Esa,piuers. The same rule applies TO the building
fuing, and marnipg Of vessels Incre should De 10
arbitrary Classification, but each ofce Should nave
lis og spector and the rate Of insurance should be
nicely CIRCULATED to give an advantages TO everything
that goes 10 insure the safety c: voyage, and tue
delivery Of cargo in good order.
"Thi. rule will apply to- oil classes OF business an.
all human experience. No peopl. will ever be sell.
reliant who taught TO dePand upon ;he watch snc
care of government ot society. In some parts oi
Europe dear bread will create revo!utiop not be-
cause. soIne superficial thinEeIs asser'' 'h"' te
,na.sss ar. discoGented and rcbeous simply on 40
cor.t Of an empty stomach bus Gpc.usp the people
are not taught 10 the effect OF natural laws nnd
therefore look upoa the ufaiclon as something the
toyerru:sn. could have easily prevented, if 50 dis
posed sVsne philan;hropsts are continually harpine
upcn plans to protect tho publici they wonld erect
gates at the ferries, as nigh Enmans sailows' sh
The impatient passengers should iaii oVeroosfn ana
Tould hays me 2olice Argus.eyed in watching pc
desirans through lhe thorousbf.ros, lest soms one
should do himself mischief. In the cities OF ih'
Old World where such care ia taken, there are tel
accident. to one in those places nearer homs' wher'
people 81 left to look out for themselves. iiaots
wa,ahful self reliance eau only be fostsred where