Lynchburg daily Virginian. [volume] (Lynchburg [Va.]) 1852-1861, 1857-05-14
The lsury Lave.

AS Il plaCllCdl question hluit ilNiH us MUM
bearing, this subject is beginning to engage the
public attention. We have observed that mum
Der of our exchanges from widely separated por
tons of our country. have been discussing the
subject with view of elioiting all the facts near
ly or remotely bearing upon it. Not long since
the New York Herald had able article in favor
of the repeal of all statute regulation concerning
interest or at least an authorization of all private
parties to charge l2 per cent. and the Banks 10
per cent, but leaving the commerce in money to
be regulated below that according TO the law Of
supply and demand. Moro recently we met
with another article upon the same subject in
the Charleston Mercury, in which the moral fea
ture in the question more particularly noted
In many parts of Virginia with which We ARE nc
quapted, there arr apprehen,ious entertained
that we are fast drifting towards crisis similar
10 that OF 1887. Tie spirit of speculation Is rife
and men are not content 10 accumulate by the
slow and ordinary process of Legitimate trade.-
The prospect that new cities to -ping up
everywhere as if by magic in oar at present
sparsely populated territories, has diverted ihith
er large portion of the active, and We may add
necessary capital of tho old State-, with the ex
pectation that results are to follow that will
multiply the investment in ratio fully equal to
that which the highest flight Of fancy ever at
tributed to the far famed. wondrous lamp Of a
laddn Prompted by this unnatural stimulus,
men have been induced TO pay the most eAorbi-
tant rates of interest % per cent being general
" the minimum rate. That this state of things
will continue long no person who has read the
L., 1al III.
changes and exercised sound judgment there
can beieve-but that many will be dsnppont
ed, and that some who have invested their all in
Western lands are doomed TO be tortured by
the pangs of hope deferred, and find with good
Doctor Young, that, though ultimate benefit may
accrue 20 somebody from their investment; TO
them ''evep gold may como day too late" The
Illusion will vanish, leaving record more sad
than the bursting of the famed mississippi Bub-
ble' has written in the annals OF wild and ira
tional speculation.
But tho cupidity of man has taken advantage
of this inflated condition of affairs in our newly
settled territories, and vast quantities of our cir
cuatng medium have been transferred there
either to be invested in land or, TO be furnished
to those in whom the thirst of speculation pre-
dominates over every other principle and there
by prompts them to bid high for the means to
crafty their mania. Doubtless, after all portions
of the country shall have felt the Inconvenience
and pressure that is ocoasioned, the bubble will
explode and the evil measurably work lis own
cure. But how shall it be allevated, or what
means shall we adopt to remedy, il part, al least,
the injury we have sustained from being brought
in competition with the superior inducements
that are now Turing men to the territories :!
That is the question of greatest Importance at
present, and one that should engage the calm,
philosophic attention of practical men. 1t ha.
been asserted, and We think with considerable
force. that the State should remove the restrio
tons that are now imposed, and leave money t.
be regulated like all other commercial interests
by its relative value according to tho principle
of supply and demand. II is 80 in England, wher,
the rates of discount are advanced when tho do
mand increases. and tho effect of this is to cal
out money that would not otherwise be in cir
culation, the demand is accordingly sup
Piled, and the price of money goes dowI
again. Whether the effect in this countr,
would be similar have no certain means
OF determining. Rather than remove al
restrictions, however, it might be better to in
crease the lawful rate so as to proven t as far a
possible the diversion of captain other directions
and yet not leave those who are compelled t
enter the market as borrowers completely at tn
mercy of the lender. We are aware that Their
are many objections TO proposition of this char
aoter, amongst the chief of which is this, tina
men would be protected and sustained by law il
the nefarious practice of expressing those VIII
are not really able 10 pay heavy rates of nteres
and yet are compelled to do so. Under existn,
law this practice prevails to onerous and in
iquitous extent, and those who are denominate
shavers dig more deeply because of the ris
they incur whilst thus setting the law at def
ance. They act upon the principle Of insuranc
Companies; the greater the risk, the heavier th
premium. 1t is not for this class that we coul
desire to see any change in existing statute reg
uiations, for they deserve no projections; but
has occurred to us that if loans could be left sub
ject to special contract with reasonable restric
tons, money, that would otherwise seek an in
vestment in stocks lands, &C., because NOR
than six per centum could be realized from thes
sources.-would be loaned to enterprsing an
industrious young men from whose efforts an
management the country would receive NOR
decided advantage, and many of whom for wan
OF the necessary means to establish themselve
in business are compelled to follow the tide O
emigration that flows westward, and their servi
ces are thereby lost to the State. We do no
pretend to speak by authority in this matter
nor at the dctsiion of any parties, and least o
all shavers and extortioners, but merely throw