Delaware gazette. [volume] (Delaware, Ohio) 1855-1886, 1858-02-19

d,it. and that, too, with an equal amount lof
the interest. I have no doubt that the re-
suits in our State viii be most disastrous"
T.he prediction of Senator Walker was
fu.gT realized. Interest ranged from two TO
ten per cent. a month, and loans we're exc
cuted fer long periods of time, on specula-
tons as high as forty per cent per annun---
Although the experiment lasted but a few
months, il Is the opinion Of intelligent aud
respectable citizens OF Wisconsin, thu. The
enterprise of.ihe State received a check from
which il viii not recover in twenty years.
7 esaId also quote at considerable length g
letter sfitfca by r. W. Wright Esq, c!
Waukesha, Wis written in 1851. | will
only cite a single passaga
men got a passion for borrowing, and as
the demand for money increased. aud 9Th
the demand the hazard or danger of losing
it; the rate Of ~interes; advanced, the rate be-
ing always in a ratio compounded OF the in-
convenience and hazard. As the result OF
this, we find nearly one-third Of the state OF
Wisconsin under mortgage, a greater part OF
which will sooner or later have to be sold at
the end of n decree. Nan are now paying
the most exorbitant rates Of interest Ia res
cue their farms from destruction; viea, had
il not been for the law OF 1919, and the spirit
of reeElessness aud extravaganza it inspired.
not a dollars encurnbraace would evsr have
been pu, upon them. Hundreds OF farmets
are now laboring in the mines Of California,
to keep down The interest on the land and
mortgages hanging ovsr their property IN this
State"
/ thin, sir. I have sufHcfratly demonstrate
ed ny propositions, that Money is not an ar
tiele Of merchandise; and that wherever q
high rate of Interest has been allowed by
law, or the free trade system ir money has
been tested, tina. the resalt has been disaster
aad ruin to the people. viii, however. a:d
a single famiiiar illustration upon this sub
ject.
Did you ever, Mr. Chairman. visit a large
and populous city and IN some nar.ow street
or iaEe, sce suspended over q dlngy door,
three geiden apples, docking as tempting az
those that grew in the gt-deao of lbs ~ticaper-
ides! Wherever yoa see that sign. it is like
q ship at sea with a Dig at hslf mast--o sly
nal of distress. There is tho seat Of free
trade in money. IF you enter that den. you
viii 6nd lis grasping, avaricious, hawkryed
owner ready to receive yoii. He lends mon
ey for hire. Usury laws do not affect him,
for he is.abope the lazy er belo~ it. Gen
tlanen who think money is merchandise, and
merchandise is money, may here bcko!d Il
ssriEing Illustration of The difference. They
may also see 4 practical Illustration Of the
principle, that, "the necessities Of the Dor
rover must regulate the price with the len
der.o See that shigering. pale'accd widow,
as she draws from under her arm a Cashmere
shawl OF considerable value, the lust relic OF
better dsys-ihe gilt Of her dead husband.
With shesitatine air she deposits il on the
counter. She wishes TO pledge it for i loan
of money tha, she knows she can never pay.
What, sir, is money worth TO kse newt---
Simply lifet life 10 herself and her starving
little ones. She eau afford to pay high tvr
money and she does. The wretch who lerds.
knows the valoe os money and her neces-
sites too we'll. And SO he drives his bar
gain, and drives her forth crushed and beskeR
hearted, with a p~ittance that will ndd l'tle
to her stock OF Iite-httle to the comfort CT
her cheerless dwelling. Had that shawl
been made by government money, or coull
have been exchanged for food upon the same
terms as money. she would have been rich,
and beyond the need of pity or the hand al
charity.
I think / need not follow this train of tho't
further. Mich more might be said, but /
deem il unnecessary. The whole history o:
this question has shown that high rates OF
interest has served 10 concentrate power in
the hands OF u few,-for the borrowers of
money. are many, but the lenders are few.
Ii we must have free trade in money, let it
be placed, in all respects, on a level with
merchandise, and then | will make no OBJ
lection
Next. | object to a rate Of interest high
er than sere1 per cent, as | believe no legiti-
mate business can pay a higher rate OF in
terest than this and thrive. | believe the
law allowing ten per cent. has proved injuri-
Gus TO vast aud i'm portant interests IN the
State. Though a ffsrc may have been bene-
flied by it, the nla1y have suffered, 1t is
said tha, if the present law Is repealed it
will prevent large amounts Of foreign cspitall
from coming to tile State. Let US admit this
to be true, and yet can2ot believe that tits
would form 50 great an evil as is imagined;
though as 4 matter of fact, | doubt whether a
much larger amount of money has been
loaned by foreign capitalist under The present
law than under the old one. The repeal OF
the present law may prevent money coming
here but not capital. In ten years at sim
pie interest, the whole amount thus borrow
ed goes out of the State us interest, leaving
the State still pledged for the original loan.
] do not believe such investments are desir-
or do they Indicate a healthy prospect
ty.
Why, Mr.. Chairman, look at the uhation
Of all kinds ofsproperty in our State, before
the terrible crisis we have just passed swept
like a tornado over the land, induced partiu-
ly by high dividends and spasinodic attempts
to make legitimate business pay dividends
that shonld equal the rate of interest for
money allowed by law. | proceed to give
my reasons for this belief. If a high rate o
interest is allowed by law, the effect is to
withdraw capital from active use thai. would
otherwise give support to vast numbers en-
gaged in mechanical and manufacturing hu-
siness. Ii will not be denied that the sourc-
ss of our wealth aud rosperi'y SIS 4 nation.
lie with the producing classes, the mechanic,
the manufacturer and the agriculturist. Oar
large manufacturing and mechanical esfab-
lishments with their smoky chimnies pointing
the skies, give support to thousands
of families, " no in their turn produce wealth
and actual capital. Nav, sir, for the capital
lists to engage in. these pursuits, the induce
ment of making money must be the Object.
He will not take all the risk Of failure
commissions in The commercial world of the
consequent. loss of his all, unless he can in
vest his money, by SO doing, at a better rate
than he can in any other way. Now, sir.
what in~ducemcnt is offered him TO invest his
means, so that they will add to the wealth
and prosperity of our State, and give support
to thousands of unemployed men and sheir
families, if he can realize a greater divid-nd