Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1857-01-28
UsURY LAWs-DAYs OF GRACE ON COMMERCIAL
PAPER

York"
UsURY LAWs-DAYs OF GRACE ON COMMERCIAL
PAPER.
Several changes important to commercial and
business men, are being agitatsd 10 the New York
and Pennsylvania journals, with reference to drafts
and promissory notes, and evidences of indebted
mesa of q similar character. The most important
Of these is the renewal of the effort to secure
q repeal or modification of the Usury Laws. For
two or three years q large class Of the business
men Of New York have stEsnuously and persist
entity urged upon the Legislature of that State the
expediency, if not necessity, Of the passage Of
law repeating or materially modifying the existing
laws with regard to usuTy. We notice that 3
number Of petitions, numsrously signed BY mer-
chants and citizens Of the city of New York, have
been presented to the Legislature, now in session,
praying the enactment of 8 general law sbrogsting
the penalties to which capitalists are liable who
demand and receive for the loan Of money a rate
Of interest higher than thEt established by law.
Among the petitions presented to the Legislature,
was one from JOIN B. MURRAY Of the city Of
New York, praying that the petitioner and his
heirs and assigns be forever prohibited from plead
ing usury BE sets forth that it is to his interest
and & necessity to borrow money at more
Tran legal rates that capitalists are afraid to &C
cOmmodats him, on account Of the usury penalties
and in order that be may be accommodated be
prsys the House, if it will not make general law
to that effect that it will forever prohibit him from
pleading usury."
In Pennsylvania the question is also beginning
to be discussed with considerable freedom and
earnestness. The Pittsburg Pos, argues that
GBut for the constant and successful evasion of
the ursury laws they would be felt an intolerE-
bic nuisance, depressing at business and all times
producing ruinous consequences. 1t Is difficult 10
find any reason for law fixing uniform and in
flexible price for money, while the prices of all
other commodities are regulated by the varying
circumstances of scarcity or abundance, and the
actual value of the articles to the purchaser. No
article of property that passes from hand to band
can bsVe q uniform value at all times, and in all
places. Corn, q few years ago could be bought in
Illinois for q shilling q bushel on account OF the
difficulty Of getting it to market Suppose 8 law
had then been enacted fixing that the uniform
price for oil time. Would the law be enforced
noW2 By railroads and other means it can reach
markets cheapy now, and commands the price it
is actually worth Does not the value of money
vary with circumstances Various new branches
Of business are springing up daily, requiring the
use of large amounts of money. The construction
Of railroads requires millions every year. The
demand for it almost exceeds the supply. Under
such circumstances the price must necessarily be
enhanced.
After quoting the above the New York Post
points to the more favored condition Of the mod
eFn debtor, when compared with the pains and
penalties inflicted upon his ancient prototype; to
the protection which mider laws throw around
his personal liberty; to the restrictions imposed
with regard to collections Of debts by evies on his
personal property, and to the whole tendency of
recent legislation to render the collection of debts
difficult il the extreme and absolutely impossible
if the debtor chooses to practice little ingenuity
in order to keep what he has from the grasp Of
the law.
'Thers are" continues the Post, examples of
persons who live in luxury and msgul6cencs with
Judgments for debt hanging, we were about TO
say, over their heads, but the metaphor is too
strODg-witb judgments against them il some dusty
pigeon hole for which they care as little IS they
do,ior last years newspaper.
''This is enough for the debtor. He is sufficient
" favored by the law as it now stands. We do
not object 70 the changes which have been made
in his favor; the cause Of humanity has gained by
tor should be content with these advantages
The law should st least recognize the validity of
engagements honestly entered into between man
and man, when it attaches such easy penalties to
their non-ful6ment. It should not allow the
debtor the further privilege Of absolutely annuling
an engagement which be is amply able to fulfil
and which, but for the temptation offered by the
usury laws, be might be disposed to fulfil cheer
fully"
The proposition is, that the usury laws favor
TOgues to the injury Of honest men, and that the
latter have to pay for the risks which capitalists
assume in lOaning money at illegal rates.
The repeIlers contend that if money was recog-
nized as q marketable commodity, the price ct
which it could be obtained would be considsral "
lessened, iRIsmuch AS its recovery would be placed
on the same footing a debt incurred for mer.
ChandiSs, or in the purchase Of horse, or house.
or any other thing which men are accustomed TO
buy or sell They say, moreover, that with the
abolition Of restrictions upon the rates Of ussnce,
the supply of money would increase ia propo.-
ton to the demand, and, as q consequence, the
price would generally rule infinitely lower than it
does under existing circumstances, inasmuch as it
would bring into the field of competition many
persons whe are now deferred from entering i. by
reason Of such transactions being pronounced il
legal, and jeopardiziDg not only the principal and
interest thus loaned, but also making them liable
to degrading penalties.
Another matter Of commercial consequence is
also beginning to besgitsted and that is the sbol-
itiOn Of days Of grace on commercial paper. Its
Contendsd that this usage, though sanctioned BY
custom in some instances and by statute in others
isGrelic Of the earlier days of commercial enter.
prise and is uusuited to that drecuess Of gurpcss
which ohsrCterizes the mercantile operations of
the present day; that serious complications and
Misunderstanding, and law suits, are constantly
growing out Of it, and that manifest improve.
ment would be effected if every bill was made
payable on the day Of maturity, as expressed upon