Western Reserve chronicle. [volume] (Warren, Ohio) 1855-1921, 1857-02-11

Tor The rich, and anOtner Ior the poor
Ii is manifest that this is the working of
the law: the rich man gets the high rate
Of interest, and the poor man the low
Let there be but one rate for all, for God
knows. the rich have the advantage
enough over the poor, without calling in
the aid Of the law in their favor.
l may as well at this point as at any
other, answer an objection that is fire.
quently urged-by way of ridicule, to
laws OF this kind. 1t is this, "the Leg
i%slature has no more right to set a price
On money. than it has on grain, horses,
cattle, sheep. &C." You are aware,
sir, that petitions to this effect. were re-
ceived by this body last winter
Now, sir. when any one Of these arti.
cles become the standard of value for
everything else in the country. then will
the Legislature be called on. to say what
the value Of such an article shall be-
Such was the case when tobacco was
made a lawful tender--a circulating me
dium-a standard OF value, in the colo
MES. And such must necessarily be the
case, with all standards Of value. Such.
l believe. with one or two solitary ex-
ceptIons, has always been the practice Of
all civilized nations, nor can [ see any
good reason for departing from such a
practice now, and here.
But, Mr.. Chairman, if we are to have
free-trade with MONEY. as We have with
other property, let all be placed on a
common level, and 1 have no objection.
Take away all legal distinction between
money and other property, and when a
note becomes due, allow the debtor TO
take his load of wood, or hay. or grain;
his horses, cattle, sheep, hogs, or what
ever he may have to spare, TO the cred
ilor, and compel him TO receive it in pay
ment of the debt. And when tax paying
time comes, let it be the same there also.
and then there will be no need of legal
protection against the injuries likely 10
arise from The use of money.
But, when we place money, by law,
on an eminence above anything else in
the country. and thereby make it an in
dispensible article in business, and then
claim for it exemption from legal re
s%traint, we are asking for it an advan
tage that no State of the Union Except,
perhaps, California; gives, nor indeed.
any civilized government in the world,
save that of Holland; hat stands a sin
gle, solitary instance. l am aware, sir,
that this is a fast age, and we are a fast
people, but it appears TO me, that this
would be a little too fast, even for this
age. and for US.
Now, Mr.. Chairman, to show the eff.
feet, that such a course would have, |
wish to read a short extract from a~letter
of the Hon. w. ". Wick, a late member
Of Congress from Indiana. You will,
perhaps, recollect that Indiana tried the
experiment, a number of years ago, Of
repeating her usury laws.
Mr.. Wick says: 1.-The fli5htful results
of the repeal. were not Immediately de-
veloped. Many a stricken deer retired
10 die in secret, too proud to make known
his ruin induced by his own %imprudence
and the absence of legal protection
against it. Many were sold out OF house
and home, ere public attention was d.
rected to the subject; but no sooner had
the effect of the repeal been developed,
and become the subject cf pulls Us
cussion and conversation, than an ire
sistaJle public opinion, called for usury
idUs." The lawful rate of interest was
soon fixed at six per cent.
He further says: IF l had time, l
would be glad to make a sketch of the
d~esolation left in the track Of the Insurer,
during his brief reign in 'Hoosier land
| was Judge On one of our circuits at the
time, and was a shuddering witness to
these desolations."
Wisconsin, also, at one time. repealed
her usury laws, thinking, as many do
now, that it would increase The wealth
and capital of the State. but a few short
months suficed to show her citizens the
error of their ways. And here, sir. per-
nit me again TO read another extract or
two, from letters Of emineut men on the
same subject.
Hon. p. R. Walker, la:e a United
States Senator from Wisconsin, writes as
follows {: 1.-The argument in favor of this
policy, was, that competition in the loan
of money, the rate of interest being unre-
stricted, would produce a great influx of
capital into the State. IL certainly has
Produced an influx of money. but not Of
capital. The result is, land is to be-
that money has been freely taken. at an
interest OF, from twenty 10 fifty per cent.
The money loaned, was that of non-resi
dents. Now, taking the average rate OF
interest, to be twenty-five per cent, it is
obvious that at the end of four years,
the amount loaned in the State will again
be sent out; and that too, with an equal
amount for interest.
This is a poor way. in my opinion. TO
increase the real capi'al of the State"
He also adds: 81 have no doubt that
The result to our State, will be most dis
aStrOus."
One extract more, and | have done.
R. W. Wright. Esq, of Waukesha.
Wisconsin, writes as follows: 'sAs the
of this, (the repeal of the usury
laws, we find nearly one.third of the
improved real estate 10 Wisconsin under
Ortgage, a greater part of which, will
10 be sold, sooner or later. at the
End Of a decree. Men are now paying
The most exoi bitant rates of interest 10
reserve their farms from destruction,
when, had it not been for The law OF
1919, n the spirit of reckltssness and
extravaganza which it inspired. not a
dollars incumbrance would even have
been put upon them.
Hundreds of persons are o laboring
the mines of California, to keep down
The interest on their land, and the mort
cages, hanging over their property in
his State. Such, in my judgment, has
been the result of this great experiment,
divert money from its legitimate rur-
pose-the purpose of exchange, in Wis
This, Mr.. Chairman, has been the re-