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

useless, all laws regulating or fixing q legal
rate of interest. They say the Legislature
had as well to regulate or fir the price of cot
ton or any other commodity, as TO regulate
or fr the price of money. Very good But,
We usk, 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 II
bale of cotton shall be $500 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 If all countries have invariably
fixed legal rate Of interest They tell us
that money fuctuates, and is worth more at
one time than at another and for that reason
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 as the
lawful interest! The relation between that
dollar and dime is fixed and immutable. The
dime is to the dollar as one is to ten, and that
relation is Interchangeable. Hence, if the dollar
is worth more at one time than at another, so
with the dime. II the dollar is worth twice
dime worth twice as much at one time as a:
another. By thus adopting fixed rate Of
interest we have to pay the same ratio at 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 render 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 a legal rate per cent. would fail. Thus,
if we were to pay it with coffee, flour or corn,
then it would be highly unjust to fix legal
rate per cent; for in relarion to these COM
modities money fuctuates, but in relation to
money il fuctpates not.
Let us illustrate. A is a money lender; B
and c borrowers. Each borrows 8 100 at ten
per cent; B pays his interest with flour at $5
per barrel. Hence, at that rate two barrels
will amount to $40. c pays his interest with
money, $40. 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 fluctua:ed,
SO that now money is worth twice as much
ms it was last year, or what is the same, -four
is worth only half as much as it was last
year. When comes to get his 800 A de-
mands of him twice as much as he did last
year, that il, he demands of him four barrels
of -four instead Of two, MS he did last year,
He shows B the justice of his demands, and
pays him four barrels accordingly.
B is now gone and c enters for his 800.
Having just received twice as much interest
from B, A naturally expects the same ut the
hands of so he demands at his hands $50
rs interest. Of course c is astonished, and
demands an explanation. A shows him that
money IL worth twice as much now as it was
last year, ami shows him that B has just paid
him four barrels of flour instead of two. c
reasons thus, If money is worth twice as much
as il was last year, my money has increased
in value as well rs yours. II your money is
worth twice as much as il was last year, my
money, from the very same reasons, ought to
be worth twice as much also. He then shows
A that although b had paid him twice as
much at one time as at the other, yet regard.
ed as money, he lad in fac: paid the same at
each time. At one time he gave two bar
rels of -four at S5 per barrel, and at the other
he gave four barrels at So so per barrel, so IN
either case be had only paid $40. Rather,
then, than pay more himself, he proposes to
buy four barrels of -four, which he can do
with $40, and pay as 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 reader
upon his inquiry where he will not fail to see
the wisdom of the Usury Laws. What We
mean 10 conclude from the above is, that con
sidered in regard to supply and demand, the
interest upon money ought to be the same at
all times, and that the interest upon money
being paid in kind constitutes grand oxcep.
ton to general rule. Risk and other ex-
traneous matters has not been taken into ac-
count because it is foreign to the merits of the
case. u.
tH-lt is stated that the quantity of land |
open to presumption in Kansas is sufficient TO
$4,000 familles--or half n mil |
lion of individuals. 1t embraces an area OF.
l26,253 square mil.s-twice as large MS Vr-
gina, three times as large as Ohio, and four
teen times as large as Massachusetts. There
is room enough, therefore, for half n million |