Weekly North Carolina standard. [volume] (Raleigh, N.C.) 1850-1858, 1858-08-11


600 with him, thus lost to- the State forever! An
o her case is that Of DR.. A.. Of NASH who moved to
tie Northwest, with 800, 900, and who told me
himself he would have preferred remaining and in
vestng nearer home, and at less rate than he was
now getting. because he did not wish to move, and
he referred the North Carolina securities to those
Of the Northwest
Again Does the present law SNAKE money rea.
sonab'y obianable at 6 per cent?" An answer to
this will be had should any doubt the neg.
atve by his undertaking to borrow few thous inds
M. the money j. MT t" be had in any part Of Il
State AT 6 FER cent. except in very rare instances
and these becoming every dav while in more
favored States, owner of paying real estate,
always borrow from one half to two thirds its value,
bv mortgage on his property, (the best Of all secu
rites the capitalist and certainly the best for the
borrower to offer) Who among us, with good in.
terest paying real estate any other kind. both
combined. worth $50 0Un. could borrow $40 600 at
per cent? The truth is. borrowing money now-a-
days in North Carolina, at per cent. is unknown;
the time has passed-t is obsolete
hs to the second question: {" Does the present
law operate to the disadvantage of the State?" The
affirmative is shown in what precedes. An example
is to be found in the fact that, whereas prior TO the
law passed by the last Legislature repeating in the
particular favor Of the N. C. Railroad Company,
its own law against usury, and permitting that cor
poration to borrow money at 8 per cent The Pres.
ident Of that Corporation was only a footing with
other borrowers IN the market, and had to pay rs
high as IL per cent. As soon as he was relieved
from the ban of the usury law. he was able to bor-
all he wanted at per cent. interest and had
offers for 8 or 4 times the amount he needed! Can
any thing show more plainly that q similar benefit
would follow to other borrowers, il our Legislature
would also relax in their favor and put them
e1nal footing with this preferred Corporation But
and in further reply to the third question: we find
the argument md the facts accord The argument
is all in favor If relaxation Of the law will state
but one. l am exceeding my limits. I have
shown that the eec: of the law has been to drive off
capital TO States where a more liberal policy pre-
walls that very large amounts have been so lost to
the State OF course. IL we offer inducements, this
capital will. to great degree, and sooner or later
return to This must make money more abund-
ant and in near proportion to its abundance will, Of
course, be its cheapness. To illustrate. If a
growing County of our State, tempted by high prices
in New York, should send there SO large part of
the crop to occasion a scarcity, the price would
rise at home, in proportion to the scarcity, and If it
high enough to pay the transportation back. it
would come back. The case is entirely anala-
gous with money. Jill it comes to the point Of COM
ing back :" and mark we'll the difference, Messrs.
EdmorS The corn comes back, and is sold at what
it will bring. and serves to satisfy the furnishing
people but in the Of the money, the State steps
in, with her sury law, and says stop! You shall sell
no money within my limits, unless you sell it at my
p,,ce, 6 per cent, and then you must pay me
quarter per cent. for doing this So the suffering
people still left to suffer, and yet the remedy is
in their own hands.
Further, as to what would be the result of relax.
ing the usury law have said it would make money
more free more abundant and of course more cheap;
that is interest would be lower. do not mean by
this that money is to fall to the low rates of Europe
do anticipate that it will often be lou er than
per cent but l mean it would at time be SO
scarce high as it has ranged for the past few
years, and is likely TO range as long the prosperi
ty necessity Of the country creates demand for
it that only be supplied-owing to uSury
law-from the money that may happen to be in the
country. have said the argument was in favor Of
the relaxation of the usury law. Now what the
factsP Among the d cuments have collected bear.
ing upon this point is one prepared by the Chamber
of Commerce of New York, "a highly respectable
body of the first merchants of the world) and print
I'd under their authority; in this it is stated that
lower the rate Of interest" and "t will be found
that stringent usury laws have always been accom-.
panied by violent and frequent disturbances in hui
siness." And again, 1.-TWO instances are upon re
cord in the commercial histories Of France and Rus
sia. The experiment of trying to force down inter
est vas tried. and in both failed. At the Pc
RODS alluded to- the market rate and the legal rate
of interest were running along together at live per
cent. per annum; Government took q fancy to
duce the statute rate to four per cent per annum
upon which the market rate to sac per cent,
and the Government DEGREES were promptly
voked"
Again: the result of Q relaxation of the usury
law and its total abrogation has been in England,
France, Holland and in Spain, to reduce the rates
of interest in suery case and in all the commercial
Cities Of our country, where the usury laws al
ways ignored, the rates of money have been re-
duced; and in those States that have modified these
laws making them more liberal, the effect has been
in ecery instance lower the previous rates. though
not in all instances to bring it down below per
cent; that is not to be expected in new and pros
porous countries, where enterprise and industry
SO highly paid. ..s H..
What do we zee at the present momeHif In New
York. where the legal rate Of interest is per cent
money can scarce find investment on good security,
at q Ia 1 per cent! And it il the Same in Boston
and in Philadelphia. Be it noted too, that in Penn
sy'vana the usury laws have been SO relaxed that
money ia virtually free.
Som tmid men among us, who ignorant Of
the practical effect Of taking of the shackles from