New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1857-05-27

The PrOridence Journal is complaining Of the
drain of capital money to the West owing to the
high rates of intererest or profit there promised
by the spectators in real estate Ii says
"The West is draining Of our capital the money
which ought to build up Providence and Newport
ard Bristol and Woonsocket which ought to vtalize
our own industry and multiply our own products Is
sent off to buy Western lands or TO be loaned to Vest
ern railroads and mortgages OF Western property.
And one great reason is, because the law forbids
the men who want il here from paying as much for
it the Western people offer, and as our own peo-
pie would be glad to give. Western railroad bonds,
bearing eight per cent interest are freely offered at
seventy cents on the dollar the legal rate of interest
in Illinois is 10 per cent, and any higher rate is
allowed by contract; and brokers are in our money
market Offering to loan money in the new States at
twenty and thirty per cent In New-loTk, the legal
rate is seven per cent
1--WE cannot coprste with ell these temptations TO
draw away our capital while adhere to the old rate
of interest nor viii the modification allowed by the
General Assembly on home bills Of exchange meet the
emergency; il is not sufficient TO keep our caPta al
home. We do lot believe that money would be any
dearer if the usury laws were wholly repealed; we
are sure il would be better for all concerned II the
banks were allowed to take eight per cent. Money is
worth that price and in one way and another people
nav H. being obliged TO 90 to considerable iDcOn-
yenence, risk and expense in evading the law. II
our General Assembly would take the lead In this
matter, and would place the legal relations OF our
monetary affairs on tfeDaslr Wncn cOnlUerclsl men
hold 10 be the true one it would add another claim to
those which the State has already established a
pioneer in showing to larger communities the true
principles of government
1T is yexatlOus that We cannot comprehend the
arguments Of the FreeUsury men; but is the fault
ours Money is floating off from Rhode Island to
Minnesota because only ak per cent can legally be
charged for its Use in the former while twenty,
thirty, forty sixty per cent. is charged and prom
sed in the latter-sll this is plain. 1t would DO
better for all concerned if the banks of Rhode
Island were allowed to take eight per cent. -
this, too, we seem to apprehend, though we don
believe IT, But when the writer asserts Id the
same breath that we do not believe that money
% would be any dearer if the U'ury Jaws were
50 wholly repealed" we are brought up all stand
ing. What under the sun do sou want the USury
Laws repealed for. if It is not to make money
dearer at home. and so prevent its being entced
away BY the higher rates of interest at the West
l. il our blindness. our Deafness or some obiusca-
ton in the Free U.ury argument that makes the
bitch at this critical point
Let us here simply record our impression that
GOOD many Eastern capitalists who have sent
their money over the Mississippi to b. loaned TO
land spectators st two or three per cent per month
will wish they bad kept it at home.