The Athens post. [volume] (Athens, Tenn.) 1848-1917, 1857-05-15
USURY LAWS.
from the Lebanon Herald.l

-1nere is now Delhg mannesteu vi tne pio'
lie mind disposition to do away with, as
useless, all laws regulating or fixing legal
rate of interest. They say the Legislature
had rs well to regulate or fix the price of cot.
ton or any other commodity, as to regulate
or fix the price of money. Very good. But,
We ask, when did any Legislative body ever
attempt to fix the one any more than the
other How can the one be regulated and
fixed without fixing the other also? If we
say the price of $50 shall be bale of cotton,
what is that but saying that the price Of u
bale of cotton shall be $50? So we see from
the nature of the case it is impossible to fix
the price of money, as many suppose.
Seeing their position in this respect to be
without foundation, they tell US that the |
Legislatures of all countries have invariably |
fixed n legal rate of interest. They tell us
that money fuctuates and is worth more nt
one time than at another aud for that renson
interest ought to be higher at one time than
at another. This is all very true. And legal
or fixed rate of interest is the very thing to
bring about such an effect. Let us suppose
it to be agreed by all that money is now
worth ten per cent. That is, for each dollar
we borrow we pay one dime. Now what in-
Justice can there arise from fixing that us the
lawful interest! The relation between that
dollar and dime is fixed and immutable. The
dime is to the dollar rs one is TO ten, and that
relation is unchanpeable. Hence, If the dollar
is worth more at one time than at another, so
| with the dime. If the dollar is worth twice
| ny mach at one time rs at another, so is the
dime worth twice as much at one time MS II;
another. By thus adopting fixed rate o!
interest we have TO pay the same ratio ut all
times. That is, the principal and interest
bear the same relation to each other at all
times.
This apparent anomaly arises from the fact
that when we borrow or hire money we pay
the hire or interest in money. That is, we
pay it in kind. And the reader will not fail
to remark that it Is the only article the inter
est or hire of which is paid in kind. Were
we TO pay the interest of money with any
thing else but in kind, then the reason for
fixing legal rate per cent would fail. Thus,
if we were to pay it with coffee, fonr or corn,
then it would be highly unjust to fix legal
rate per cent; for in rearion to these COM
modities money fluctuates, but in relation to
money il fluctuutes not.
Let us illustrate. A is money lender; B
and c borrowers. Each borrows 800 at ten
per cent; b Bpays his interest with -four Mt SIS
per barrel Hence, at that rate two barrels
; will amount to $40. c pays his interest with
money, &l0. We see they have both paid
the same Next year they come to borrow
again. But by this time there has been a
great change; things have greatly tluctua:ed,
, SO that now money is worth twice ms much
, MS it WINS last year, or what is the same, flour
is worth only half as much MS it was last
year When B comes to get his 800 A de-
mands of him twice us much rs he did last
= year, that is, he demands of him four barrels
of flour instead Of two, MS he did last year.
He shows B the justice of his demands, and
B pays him four barrels accordingly.
B is now gone and e enters for his Sl00
> Having just received twice as much interest
from b, A naturally expects the same at the
f hands Of c so he demands at his hands $40
, demands an explanation. A shows him that
money is worth twice as much now rs it was
last year, ami shows him that has just paid
him four barrels of -four instead of two.
reasons thus, If money is worth twice rs much
as il was last year, my money has increased
in value as well as yours. If your money is
worth twice us much as it was last year, my
money, from the very same reasons, ought to
be worth twice Ms much also. He then shows
A that although B had paid him twice as
much at one time MS at the other, yet regard.
+ ed as money, he had in fact paid the same at
each time. At one time he gave two bar
rels of -four at SIS per barrel, and at the other
he gave four barrels ut So 30 per barrel, SO IN
either case he had only paid $40. Rather
,, then, than pay more himself, he proposes ia
buy four barrels of -four, which he can dc
with go, and pay as B had done. But by
this time A has seen both sides of the case
,, and accepts the $40.
!. We have said enough to put the reade,
r upon his inquiry where he will not fail to see
-, the wisdom of the Usury Laws. What We
mean to conclude from the above is, that con
sidered in regard to supply and demand, tn,
, interest upon money ought to be the same a
>, all times, and that the interest upon money
being paid in kind constitutes a grand excep
tion to Il general rule. Risk and other ex
, traneous matters has not been taken into ac
. count because it is foreign to the merits Of thu
case. u.
e tg-lt is stated that the quantity of lane
: open to presumption in Kansas is sufficient t.
accommodate $4,000 tamilles-or half a mil
o lion of individuals. 1t embraces an area o
l26,253 square miles-twice rs large ns Vir
J.. gnia, three times as large as Ohio, and four
y teen times as large MS Massachusetts. Ther,
r. is room enough, therefore, for half a million
h Of independent quarter-sectiOn squatters
q, | with urp 4, InDtiOn Ia 6np lands at the min