Semi-weekly standard. [volume] (Raleigh, N.C.) 1853-18??, 1858-08-07
The Usury Law.

not taken the trouble to cast up, ana We nave not
The Usury Law.
We invite the attention Of readers to the fol-
lowing extract from letter to the Editors OF this
paper on the subject of the nsury law Of this State.
Our correspondent is thoroughly acquainted with
his subject. and discusses it with force and ability
His views worthy of attention and consideration.
and will be concurred in, We doubt not, BY many OF
our readers:
'By the bye, cannot something be done to modi
fy present oppressive, ''old foge, and barbar-
Gus usurv law during tine session "f our next Legis
lature? 1t would be treat triumph for the Demo-
cratic party 10 initiate in our State the free trade
in money, which has been found so beneficial else
where; or If not free trade, ut least more just
and liberal policy 1t shoud be the duty of govern
ment to make money rs easy of obtainment and as
plentiful within her borders possible. Our State
by retaining the old English law Of usnry, and even
adding to it "pans and penalties" have driven off
from her limits millions If dollars which, if retained
and circulated among her own people, would. like
the life blood" it is, add activity and energy
and enterprise to her citizens. Whereas by her
present system, and especially by her law taxing in
tere<t 10y which she permits in one law per cent.
to be t"ken-by another prevents more than 81 to
he made) she drives off very large sums to other
States. wise and liberal in their policy. States
that. knowing how much industry and enterprise
are forwarded by free circulation Of money and its
abundance in their borders, inrite capital from
every point whence it can be attracted.
That we have men Of large capital in our State, il
we'll known. and also that a very large portion Of
this capital is invested elsewhere-much Of it at the
North, thus dep'iving of it's benefit and giving
aid and comfort" to those who little deserve it at
our hands, This should not he.
1t would be invidouS mention instances of those
who have invested elsewhere; but one extraordi.
nary came to my knowledge short time since, that
7 uf.oir from, infN hx,
good authority, that nearly one half Of the capital
stock of the Bank Of Commerce of New York was
or had been owned by q Nor'h.Carolina farmer!
Nv Commission Merchant in the same city, told me
few years ago. that ne had in his hands and had
had for some .n"nths $25, OGO belonging to another
in Pitt county, drawing no interest, but waiting "a
good investment" Another citizen of our State
pays tax on Just mion How much Of this,
think yon. is used in North.Carolna? Scarce any
but a lew State bonds >ow is it net obvious that
If additional million only, thrown into the
circulation of our State tia, comparative ease would
som result to her suffering people? Manfes,y So
In considering thus questi II. viz: the policy of
modifying the present usury law. at least so far as
to permit to make contracts for the Use Of mon
ey, (if made in wriiing) high 10 per cent
and not constitute the State-ss is the case
guardian for gr"acn men, in the transaction of their
bnSine IS virtually saying to her citizens "You
may manage all your other business matters your
way, but you have not sense enough to know
or not! You may bny a horse at $l5I' not worth
over 500. but you shant buy the use of 500,
though it be to save your property till you get in
Sour crop, at any higher rate than SOL" How con.
Trajectory! How prel'oSterOus! And yet we cling
to law made in England generations past, when
gold and silver only were used for circulation, and
these almost exclusively in the hands of the Jewish
u>urer. against whom the law passed. And
now, when all this has changed. and when money,
trade, and commerce distributed among all classes
of her citizens, England has sehotty n6rognted her
uSury law, and money sells at from to 10 per cent,
according to it's value, like any other commodity,
aud generally worth only to per cent We
retain the old law, which was enacted against
state OF things that nerer existed among us! But
revert.
plain questions to be answered. LIST. Does the pres
ent usury law fulfil its objects? I'd Does it operate
to the disadvantage of the State? Sd. What would
be the result Of more liberal policy?
In answering these questions, Messrs Editors, nv
limits will not allow me to 60 into argument,
to give my authorities. ] will only state that
for two years past, have given much attention to
this part Of State policy have collected all the
informaiion-mosy practical-on the effect Of the
usury law and the result OF its abrogation &c., &c.
am, as you know. North Carolina farmer, and a
borrower-never a lender-of money. This being
prem,s. d. 60 on to answer the queries above
Does the present usury law effect its objects? What
these objects? Certainly to keep down the rate
Of interest to the borrower at per cent. and to
make money reasonably procurable at per cent.
Does the present law effect either Of these? Ger
tainly not. If any man is ignorant of what is
passing around him to know that shaving"
or buying notes, has been going on during erery
pressure for money, at rates of IRON 10 to To- ard
even 20 per cent the poorer the borrower and the
greater his necessities the higher the rate-et him
ak the first sheriff constable he may meet and
he will be told it is So 1t is notorious to dwell
upon. The more eau ious capitalist will not run the
risk of the violation of the law. The field is, there.
FORE left without rivalry to the less scrupulous who
of course, make the poor and oft times ignorant
borrower, pay heavily for the risk he runs. Would
this be if all were alike freely to compete? Mol
The cautious capitalist in forced to send his money
Of the State where liberality him,
and oft times himself follows his capital; thus the
State loses DO h capital and citizen. A prominent
example IL that Of Gen. NJ of Edgecombe county.
who moved to the Southwest, and took only 1916.
900 with him, thus lost t. the State forever Il An
other case is that of Or. A.. Of Nash. no moved to
the Northwest, with 100000, and who told me
himself, he would have preferred remaining and in
yesting nearer home and at a less rate thar he was
now getting, because he did not wish to move and
he preferred the North Carolina securities to those
OF the Northwest.
Again: Does the present law snake money rea.
'sonabiy obiainsble At per cent ?" An answer to
this will soon be had should any one doubt the neg.
atve by his undertaking to borroys fsw thousaidx!
Nh, the money il not to be had in any part Of the
State at 6pvr cent. except in very rare instances,