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

lowing extract from letter to the Editors of this
paper the subject of the usury 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 mod
fy present oppressive, "old foge," and barbar-
usury law. during tine session of next Legis
latureS 1t would be great triumph for the Demo-
cratic party to initiate in State the free trade"
in money, which has been found beneficial else
where; or if not "free trade" ut least more inst
and liberal policy 1t should be the duty of govern
ment to make money aS easy Of obtainment and as
plentiful within her borders az possible Our State
by retaining the old English law of usury, and even
adding to it "pans and penalties" have driven Oft
from her limits millions Lf dollars which, if retained
and circulated among her own people, would, like
the life blood" it is, add activity and energy
ard enterprise to her citizens. Whereas by her
present system. and especially by her law taxing in
tereSt, 10y which she permits in one law per cent.
to be tnken-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
forwarded by free circulation of money and its
abundance in their borders, ihrite capital from
every point whence it can be attracted.
That have men Of large capital in State i.
well known. and also that a very large portion Of
North, thus dep'iving of its benefit. and giving
aid and comfort" to those who little deserve il at
our hands. This should not he.
1t would be invidons to mention instances ofthose
who have invested elsewhere; but extraordi.
| nary came to my knowledge short time since that
cannot refrain from stating it. was informed by
good authority. that nearly onehalf Of the capital
| stock of the Bank Of Commerce of New York. was
or had been owned by Nor'h-Carolina farmer !
| Nv Commission Merchant in the same city, told me
1 r. sk,.s hol IL A. L.I
had for some months. $50 600 belonging to another
| in Pitt county, drawing no interest, but waiting "a
| good investment" Another citizen of our State
| pays tax just million! How much Of this
think you. is used in North-Carolina? Scarce any
| but a few State bonds. \ow is il not obvious that
il an additional million only thrown into the
circulation Of our State, that comparative would
soon result to her suffering people? Manifestly
In considering this questi. n, viz: the policy of
modifying the present usury law, at least far
to permit men make for the Of mon
ey, (if made in wriiing as high as or 10 per cent,
and not to constitute the State-as is now the case
guardian for gro,cn men. in the transaction of their
| business; virtually saying to her citizens, " You
| NAV manage all your other business matters your
own way but you have not sense enough to know
whether you ought to borrow money at 10 per cent.
or not! You may bny horse at $l5h not worth
over $lOO. but you shant buy the of 500, even
though it be to save your property till you get in
sour crop, at any higher rate than SCI" How con-
Trajectory! How preposterousl And yet we cling
to law made in England generations past, when
gold and silver only used for circulation, and
these almost exclusively in the hands of the Jewish
usurer, against whom the law was passed. And
now, when all this has changed. and when money,
trade and commerce distl buted among all classes
Of her citizens, England has ehoity n6rognted her
uSury law, and money sells at from to 10 per cent
according to it's value like any other commodity.
and s generally worth only to per cent. We
retnin the old law, which enacted against
OF things that eristed among US! But to
| revert.
In considering this matter, there are two or three
plain questions to he answered. 1st Does the pres
ent usury law fulfil its ohjec,ss I'd Does operate
to the disadvantage of the State? 3d. What would
! be the result Of q more liberal policy?
In answering these questions, Messrs. Editors, my
limits will not allow me to 60 into an argument,
scar: 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
| informaon-mostly practical-on the effect of the
usury law and the result of its abrogation. &C., &c
] am, as you know, North Carolina farmer and .
borrower-never a lender-of money. This being
promised, / 60 to answer the queries above
Does the present usury law effect Its o6)ectsf what
are 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 theses Ger.
tainly not II any man is so ignorant Of what is
| passing around him as not to know that shaving
buying notes. has been going on during erery
pressure for money at rates Of from 10 to ID. and
even 20 per cent-the poorer the borrower, and the
greater his necessities, the higher the rate-let him
ak the first sheriff constable he may meet. and
he will be told it is so. 1t is too notorious to dwell
upon The cautious capitalist will not run the
risk of the violation of the law. The field is, there
FORE left without rivalry the less scrupulous who,
of course make the poor, and oft times ignorant
borrower. pay heavily for the risk he runs. Would
this be 30 il all were alike freely 10 competef No!
The cautious capitalist s forced to send his money
out of the State, where hberali,y attracts him.
and oft times himself follows Ihis capital thus the
State loses DO b capital and citizen. A prominent
example . that Of Gen. NJ, of Eigecomhe county.
who moved to the Southwest, and took only $275,-