Lynchburg daily Virginian. [volume] (Lynchburg [Va.]) 1852-1861, 1857-02-03

Tuesday Morning. February 3. 1851

bly We have reason To believe. that, shortl
after the election the Legislature will be Gale
to meet in extra session for the purpose of acting
mon certain matters of State interest, which vii
be referred to their attention by the Executive
The occasion will not be an inappropriate one TO
the Legislature to take up the Usnary Laws, an'
we hope the people will have reference to thi
subject in choosing their delegates The tint
has arrived when these laws should be repeaIe,
or thoroughly modified. The existing legsla
tion. we are we'll convinced, is pernioious in III
effects upon the commerce and industry Of th'
State.
A late writer on this subject says: il Is ar
eued by the friends of the Unsury Laws. that
monfp is po,rer: that he who has the control OF
money has more power than he who has ITS
equivalent in other property. and that the Dor
rover and lender of money do not meet an equal
terms and. the fore. that the owners of money
should be prevented from exerting that power
oppressively, by having the price Of money regu.
lifted by law. This argument is much relied on
by the advocates of usury laws, aud may he said
to form the ground work of all that ean be pro
duced in their favor Unfortunately for the
system this ground work is 50 extremely frail, as
TO leave for the suspicion that the structure
it supports partakes rather
"0f the substance Of shadows
than anything material or substantial. In
word the reasoning is sophistica as will appear.
lfthe law should interpose for the reason stated,
between the borrower and lender Of money,
would it not be proper TO regulate, and ought not
government to regulate the prices of all kinds of
property The one haf quarter of city
may burn down. which would greatly increase
the po,rer of the owners of houses TINT escaped,
and lead them TO demand enormous rates OF rent
Should they be allowed 10 do this : and ought not
poin, to be fixed 10y law beyond which the rates
could not advances And also when hi cad Is
scarce from any cause, should not the seller Of
wheat be limited TO a certain price! Has the
borrower Of money greater claims upon the gov
erhment for protection than the hungry poor,
who must from equal or greater necessity. have
bread "Knowledge is power There may DO
in the country bat one physician who can res
tore a certain patient to heath,-should be be
allowed to ask n fee Of thousand or ton thou
sand dollars. for etfecting a cure These inter.
rogatories. as absurd us they may be, must be
considered in the affirmative if the logic of the
advocates of the usury laws be correct
but ii is alleged that To repeal the law against
usury would BE TO give the lender the power to
Cypress the borrower, and this power. II ~ pro-
sumed would be exerted. Man i aud he- always
been graspiug and avaricioa- tie PIE, lmiiion
is therefore moro Just than hbeiloas; The ASST.
ton, however, that the borrower III case OF repeal
r Al. /. -.
BILE. But this must be decided by facts. A. we
before intimated the experience If the German
cities is decidedly in favor of unrestricted usury.
Where there are no usury luws. We find the rates
of interest ranging lower than IN New York where
the laws against usury nre stringent. Allowing
that the brief trial 10 which the experiment of n
repeal in Eng Gland has been subjected is not fair
test, yet it is significant fact stated in the
House Of Lords hy the Marquis Of Lan.aownc,
that, ''di the time Of The COMMERCIAL failures in
The years 1896 and l-37 il tras found that the
greatest relief nhich ,ras erperieneed 'fas The =,
sult ola provision uhich had been ini5odac,i n,i
long preriossiy into he oet for Tie rcR,wH d
the Bank Charter, enabling Af bank Of Eag-
land 10 dispense wH The HSurg iaus.' 1t h,-,
moreover, been emurked TINT, nj 6ithstandug
the disturbing influences of an expensive war
and the heavy loans required not only by Eng
land, but by France Turkey and Austria. I'll,
English money market has maintained an casy
position as compared with several months rrc-
yious TO the rcpsd In tins country the grow
ing state of 'iforna Is thu pioneer in the usury
reform. In 1850 she passed law allowing any
rate Of interest upon which the parties might n
gree, and this has been attended has been
clearly demon -tratcd, by the most salutary f.
fects. The rates OF interest there. ii Is true
range at higher figure than IN the older state
of the Union where money is less valuable, an,
vary according 10 the security offered, the SIX
to be run, or other circumstances that may deter
mine the price between the borrower and III
lender. These "cxtoriianate" rates, as the re
strictonists would call them, must uece-saril
ruin the borrower, according 10 their theory, bu
Instead of such disaster. we fad California an
her great commercial city, the greatest modcri
wonders of the world. San Francisco bear, in it
bay the flags Of every maritime nation of th'
world. 1t has been destroyed by fire three times
and has been as often rebuilt, rising each time
Phoenix like from its ashes stronger ana more
beautiful than ever. What Is the secret # sucl
prosperity, such ability to triumph over adverse
ty, but energy backed by unrestricted capital
''These facts think cl 'arly prove tn faila
ey oflhe theories upon which the usury laws
stand and afford evidence to show that tn, mon
ey lender does not possess the power to drman
and extort what he pleases for the use of hi. mo
ney when interest is free, but must bee go,rrnc
by demand and supply aud the othe. inciIont
which rule the prices of that and every 9th,