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

1 etf%eAS :. NAN pdCitig hQfult6 mat the
lowest rates there, are from ten TO forty per
cent. The usual rate, ! beliye, is about
twenty.
IN Rhode Islanda virtual repeal Of those
laws took place in 1877. From that time
t9 The present gradual increase has taken
place."
Bsiore 1887 the Siaie Of New York
trusted 10 the fallacious policy 50 often de-
Hsnded by money lenders, and found out BY
i,sad experience that it was fatal 20 the indas-
| Try Of the people. At that time the Assem-
bly, applied a remedy which continues to be
| the law Of the State, and is the most severe
of any OF the United States against usury.
The us9rer is liable to lose his whole debt, 10
be fined thousand dollars, and to be impris-
Oh Ell six month";
In message of Gov Clark to the Assem-
bly, in January, 1855, he makes very able
and eloquent review Of the whole subiect.---
quite briefly tom bis messugc.
.'The argument relied upon by iise advo-
Gates ot repeal is that il viii make money
cheaper. BW wherever iiBis experiment has
been tried n oor country, the opposite effect
has been produced. Even in our commercial
metropolis, where are foundIhose who ara
n:ost Strenuous on this svlj .ct, that descrip-
tiaD of paper supposed tasbe exempted IRON
the taint Of usury, can be negotiated only at
rates OF interest varying from twelve to twen-
ty-four per cert per anDUn. Borrowing at
this ouernus rate leads 10 aim ,st certain ruin.
1t may be answered that only ia time Of
pressure are The rates so bfgh. But what III,
the power 10 regulate tile wade question re-
sides with capitalists is to bring down the
rates! What is to make money more plen-
tiiul aud cheap, when tbose who posses IL
haYe to keep il scarce and dear!- There is-
given amount of capital among us seeking
Investment. Ii our laws rigidy prohibit the
taking Of more than the legal rate of in ter
est, that capital would be available for all
legitimate business purposes. If looms are
maie reluctanily at legal rates, it is becanAe
usurious ones may be obtained through tho
violation or evasion Of the laws"
Bui. sir, to come nearer bone npon this
subject, let me read a letter written by Hon.
w. w. Wick, late member of Congress lroin
Indiana, and formerly Judge ia one of the
Courts in tha, State. II presents a most
will picture of the disasters that were
inflicted upon sister State BY the expert
nient of free trade in money.
''WAsHIEGToN, D. c., March II, 40
'SIR:-Your note OF inquiry is before me.
propose to leave for hume this evening,
and NV reply must necessarily be brief.
In Indiana the usury laws were repealed
twelve or fourt ssN years ago, perhaps more.
ana were net re-instated for three or four
years. The irgitful results Of Ihe repeal
were not inneadiaily developed. Maby
Il strick Ell deer retired 10 die in secret, To
proud make known his ruin, induced by his
own inprudence and absence of legal pro-
lection against il. Many were sold out nf
house aud home, ere public attention was
directed to the subj CT; but no so 1ner had the
effects Of the repeal been dev clipped, and be-
come the sui .ct of public discussion. and
controversy, lhan anirresiStable public opip-
ion called for usury LaUs. The first step
was to fix the rate of legal interest at six
per cent und to sanction contracts ut ten
per cent. In two or three years the taking
of more than six per cent was prohibited.
= 'If | had time, would be glad 10 make
sketch of the desnlatons left in the irac *
of the usurer, during his belief reign in Hoo
sier land' was Judge Of one of our circuits
ut the time, and was 'shnddering witness
TO these desolations. | have rendered Judge
nent upon contracts for payment of fiiy
or seventy cents pes day or per week for
the loan Of 6fty or hundredado!lars, and in
some instances the interest and had become
more than ten times the amount ofthe prin-
cipai Ii is worthy OF remark thar the usu-
rer rarely brought suit for his money, until
the accommodating interest had elled The
debt TO an amount apProximating closely the
value of the debtors estate. The usu-
rer, in the mean time, coveted and gloatei
over his daily or weekly accumulation Of in
teresi, and the debtor (poor fellow!) lived
upon the hope Of eXuication through some
rnirac ulous intervention. 1 am convinced
that in some Instances they had secret
faith that the creditor could not find ii in bis
heart to demand the entire sum legally due.
or relied upon private assurtnce from the cred
itort t like effect.
''Had the Legislature not interfered and
tied the hands of the spoilsr, an immense
nmount of property would have schanged
hands in a few years. As it was, clerks ia
stores, vendors of spirits by retail g., in
many Instances became weakly, almost with
out capita al of their own; and by the use, al
limited interest, of the money of same
friend " ho knew them well, andscouid watch
over their operations; and TO make them
wealthy, a great number OF small farm
ers owning in lind worth from five
to fifteen hundred dollars were ruined. Ia
many instances the ruin had not hall donS
lis work, when The estate of the borrow
was engulfed. Discouraged, ashamed ard
indignant, he either fed lO dissipation or be-
! came man hater. know many men OF
excellent natural qualities, and much inclin-
ed 10 be moral and gay, who became hope
lesIy demoralized or misnnthropical. The
moral desolaliun created by the absence OF
| nsury laws will tell upon any community, 10
an extent almost infinitely beyond The meFa
ruin Of estates.
To show that il is best to repeal usury
laws as an experiment, il is only necessary
to say, that The ntracts made in the year
or the absence OF such laws, could not nat
urally develop til cir Consequences during
that year to auy considerable extent. As
years pass away, the evil results will deve'--
op themselves in geometricai ratio Long
before they dcvelcpe their iuli- force aud ef-
fects, the community VIII demand usary
laws, aud tue blighting curses of many
withered or achng heart will tosloM the adj
vocates If their repeal to their graves
! In haste Yours truly,
w w. Wick"
! Another striking examples upon this sub
| ect is the history ut Wisconsin. But a few
/ years ago, and thut young and beautiful Safe
| relying up IN her vast resources, and anxious
| to invite capital within her borders, repealed
all laws upon The sui ct of usury Thither
| locked thousan ds oil human vultures anxious
for their prey. For time all went merry
as n marriage bell. Money was Pleniy;.