The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1857-05-19
THE DAILY DISPATCH.
raesssy Nisrsiss, May 10 :ss7.

Teees.y Mernlnas May ID ss55.
The Usary Laws.
The subject ct the Usury Laws b beginning to
attract the attention Of the press throughout the
State. II b consended, and h seems 10 as with
good reason. that the State should remove the re-
stricticua that ars now imposed, and leave MONEY
10 be regulated Ike al other commercial interests
BY Ito relative value according to the principle OF
supply and demand. The Charleston Mercury
has recently published an article In which the
moral fsasurss Of the question are particularly
discussed. The New York Herald argues In favor
Of the repeal Of oil statute regulation concerning
interest," or At least an authorization Of oil private
parties 70 charge u per cent and the banks 10 per
cent, but leaving the commerce In money tobe
regulated below that accordingly to the law Of
supply and demand.
The Lynchburg virginian refers to the appres
hsnsions, entertained In many parts Of Virginia,
that We are fast drifting towards crisis similar to
that Of 1897 The rifeness Of the spirit of specu.
tion, especially In the West, has directed thther
large portion Of the active and necessary capita
OF the old States and men have been induced by the
unnatural stimulus pay the most exorbtant rates
Of interest, % per cent being sunerally the mini
mum rate. The virginian asks what means shall
Ne adopt to remedy, In part, at least, the injury
we have sustained from being brought 10 compe-
tition with the superior inducements that are now
turing men to the new territories and, in reply
advocates removal Of some OF the RESTRICTIVE
statutes concerning interest.
I'm Eugiand," it remarks. "the rates OF discount
are advanced, when the demand increases, and Is
the effect Of this Is to callout money that would not
otherwise be In circulation, the demand is accord"
ingy supplied and the price Of money goes down
again. whether the effect in this country would
be similar We have no certain means of deternin
Ing Rather than remove all restrictions, however
It might be better to increase the 90 as
20 prevent n far ~ possible the diversion of capital
IN other directions and yet notleave those who are
compelled to enter the market As borrowers, com.
rietely at the mercy of the lender. We are aware
that there are many objections to . proposition Of
this character, amongst the chief of which is this
that men would be protected and sustained by law
in the nefarious practice of expressing those who
are really unable to pay heavy rates of interest
and yet are compelled to do 30. Under existing
law this practice prevails to an onerous and ini-
qutous extent and those who denominated
shavers, dig more deeply because of the risk they
incur whilst thus setting the law at defiance
They act upon the principle of Insurance Compa-
tu0 greater tu6 EtbA, buc Hcu0tJ VIC premium
1t Is not for this class that could desire to see
any change in existing statute regulations, for
they deserve no protection; but it has occurred to
us that loans could be left subject 10 special cons
tract with reasonable restrictions, money, that
would otherwise seek An investment in stocks,
lands, &c, because more than six per centum
could be realized from these sources,-would be
loaned to enterprising and industrious young men,
from whose efforts and management the country
would receive more decided advantage, and many
of'whom for want of the necessary means to es
tablish themselves in business compelled to
follow the tide of emigration that flows westward
and their services are thereby lost to the State
We do not pretend to speak by authority in this
matter, nor At she dictstion of any parties, and
least of all shavers and exsortioners, but merely
throw out these suggestions which our readers can
elaborate at their leisure. If law be indispensa
bly, necessary to protect the poor borrower from
the rapacity of the Shylocks who have money to
lend 1t would be well to make practical applica
ton Of 1t to abuses that patent to everybody"