Evening star. [volume] (Washington, D.C.) 1854-1972, 1857-12-28
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L tC0NNUNIcATRp.
TIE" RkvIsKn CopE- - or the var,ou, n,ov,
| sions OF the proposed Code. TO which ,bs s,,.,
ion OF the public has been directed that which
relates to the subject Of interest seem. 70 have
met with tbs most violent opposition. The Gods
oecisfes that the present legal rate of interes,
.nah remain unchanged; but provides that par
ties, oy contract In writing. NAV agree upou the
payment Of any other rate % - ~ : -,
~ Is not our purpose TO enter at large upon this
secsecI OF 10 reply TO arguments that have been
so Often refuted The subject has been exhaust.
co. ana " IS surprising that, at this late dav NJ
semP,s OF this kind should be made upon the
ceuuilty or an Intelligent community
Oae Of the nswsp aper writer's on This s,hisc,
however, has hinted at the precents Of HgoI,,,
Wnt, and seems to think that be has found in
liz san 90 90 Jaw prohibition against the horri-
ue SIN OF : nsnry" To this objection there ire
three answers First, the prohibition referred 70
was PohttedI only, not moral, and Is Therefore
and npsi,Pva ual ooilgat1on: Asa merely internal
ahu PostWe regulation II was doubtless most
Juu'elons-the israelites being an agricultural
,u 10. commercial people II was on the
shnnl clple that Lord Bacon proposed there
ahother for the trading towns But secondiv
tue Prohibition related only TO taking nsnTv ~
on. on dnothtr, not of strangers. We ali know that
lug Jews are the money lenders of the world
Fhlrdly, the word translated 90 usurv,, noa,ns
only hire or interest for the use of money. and
not what that term has come to signify II tbe
tbs,efors aa s! interest. The argument,
lneteioTe, proves too much. its legitimate con
ciusion would be that IL is unlawful 10 take any
interest whatever. All usury law, are mere nos
NV reg uIauohs no one rate of interest is more
natural than another The offence of usnrv 10
not nahum "a Sc 'J 10
Ihere ls one other consideration to which we
would call attention before we dismiss the tonic
me price to be charged for the use of money
depends upon two circumstances. the inconvs
nlenee OF parting with II for the present and the
hazard OF losing il entirely. The Inconvenience.
then being liked the rate of interest that will Is
demanded by the lender (supposinU the restric
uon TO be removed rs proposed y will he I'm nro
portion To the hazard Of losing the principal
=" w hen the law does not en- force rhe pefform.nce
OF contracts, - says Dr. Adam SmitI 6. n ,,,,,s
all borrowers nearly upon the same FOOTING with
oahkrnpis, or people of doubtful credit in better
nesuia.ra countries; The uncertainty Of recov-
erlhy MS money makes the lender exact the same
bankrupts - fN'" i'o"'
so, on the other hand, in proportion to the eff
hcirncy OF the laws, the rate OF interest will he
lower, and the probability of a rise in conse
quence OF the repeal Of the restriction will be di-
mlnished And yet the same writer who has
a1sM W. sucn moving picture OF the evils that
are 10 overwhelm us IL men to be allowed to
make their own bargains we find in the yerv
same article denonncing with equal vehemence,
those sdintary and judrions provisions of the
Code which are designed to faciIitat. tbe coIIeco
ton OF debts, and thus TO nspire that conf J.nce
which is the very life of all business trans.
a &c VI these provisions We shall have more
''When the law prohibits interest altogetber >,
says the distinguished author we have ouoted
above, sit does net prevent it, MANY people
must borrow aud nobody will lend without
such consideration for the use Of their money
as Is suitable, not only to what can be made by
the use Of il bat To the difficulty and danger OF
evsding the Law - vi
TO what extent this observation Is applicable
10 community where the forfeiture of the whole
ueot ana criminal prosec ution are the penalties
Tor taking more than six per cent per annum.
and where il Is notorious that money Is lent eyeIv
day al four and five per cent. 4 month. Let the
people decide. ZnrTc, "'