Delaware gazette. [volume] (Delaware, Ohio) 1855-1886, 1858-03-26

flies to the monied Shylock, his last resort.
! Shy lock tells him he must pay him five per
cent. per month for the use of his no
fey. 1.-The law gives it,'' aRdshe must have
it, Now, sir, ask the advocates of free
trade whether he would be free TO take it or
let it alone. He is free to take it, and does
take 1t. The crisis coftihres; he finds col
lections impossible and his loan only serves
sto grace his fall and make his ruin glori-
ous."
Now sir, TO illustrate further suppose the
Honorable gentlemen from Lucas mr. Ray
mond, who has been put forw ard as the free
! trade champion IN this discussion; suppose
/ | say, that gentlemen steuld be travelling
| through wilderness country, and should be
way laid by rufians and robbed, and after be-
ing robbed of his money should be strung up
1 to tree, and while thus suspended between
| the heavens and earth, should in my traV-
els pass by him and he should call me to take
my knife and cut him down, would say to
him, true, | have knife, but it is my knife
and 1 paid my OF n money for it: to be sure
1 can cut you down; bot l had nothing to do
in putting you there. III you will give me
one thousand dollars viii do it; if not, you
may lang for ali Of me-. Now, sir, ask
whether the gentleman in that case would
be free to accept or reject my proposition ;
The merchant in the case have supposed
would be just free to accept or reject the
proposition of the moneyed capitalist, as the
gentleman would be in the predicament
have imagined him, and no more SO.
| assume that nloneys being the creature of
Government, the Governmentnot only has the
right, but it is its duty to prescribe the pre-
mian for the use of money. The question
then arises, What is q proper rate of inter
est? What, can the borrower aGcTa to pay
/ for the use of money to be employed in some
regular business! If ten per cent, then let
lit be established at 10 pei cent; if per
cent. then it should be per cent; and if7
per cent, is all that the borrower can afford to
pay, them that rate should be established as
| the maximum rate
The act passed March IA, 1850, uuthori-
zi,,g parties to contract for the payment of
interest It the rate OF 10 per cent, was an
ac, intended IL be a compromise between
properrate ofinterest and isse trade IN mon
ey. presume no member Of this douse Will
claim that any one can afford to pay a per
cent, for the use of money to be used in ag-
ricuItural, manufacturing mercantile pur-
suits. The borrower is compelled 10 pay
that and more sometimes is an emergency
to pay debts with And sometimes, the bor
| rover can afford to pay 10 per cent. Interest
for the use of money to cheat some one with.
! But the manufacturer, the merchant and agri-
culturist, who pay 10 per cent interest tor
/ their capital, will in time be broken up and
ruined. Such is its history. and the ohserva-
ton and experience of every member of this
House must confirm this proposition. ap-
peal to members to recall to their minds the
recent failures among the merchants, drovers
and ma nufacturers, and then answer them
selves the question, what proportion of them
were ruined by high rates OF inierest!' The
/ number of recent failures in all parts of our
/ State; the families who supposed themselves
in the possession of a competence, if not al
auence, who have suddenly and unexpected
ly experienced reverse of fortune, and
have been stripped destitute, is a subject
painfully distressing to a contempldtiVe
mind. The wife and children is most in
stances are kept in blissul ignorance of the
true condition of the husband and parent,
unfit the seizure of their household goods
by the officer, or the istoi crack of the sui
eide makes the unwelcome dlselosilre.
In many instances. loans at high rates of
interest are made to young and inexperenc-
ed persons, who manage to indtce their
frienia TO indorse for them, 10 start them in
buseniss. They have no appreciation oi
money. They have neither the experience
nor the judgment to manage money or con-
duct any extended business successfully
They embark in wild and hazardous specnia-
tons, expec ting suddenly to become rich, and
as suddenly become poor, and very frequent
iy involve friends with them in hopeless ru-
in. The man nf experience, whose jltlg-
ment is IIutured, who has '.Iearn.d to la
Dor and to W Ait,'' and whose habits of indus
try and economy are confirmed, and who is
willing to make riches by slow but sure ad-
Vancement, refuses TO borrow money at this
ruinous rate. 1t is therefore loaned to un-
skilful operators, who are entced away from
some honest anI worthy occupation, Ill
which they could make themselves useful to
community, and respectable members OF So
cety, for more snowy and ambitious pursuits.
The facilities for borrowing money should
never be made too easy. The farmer, well
to do in the world, sometimes wishes to hor-
row money to stock his farm, or to purchase
agricultural implements for farming. The
public interest requires that he should be ac-
commodated a1d at a reasonable rate OF IN
terest. And SO with the merchant, the me
chanic, and the manufacturer,
As stated upon former occasion, was I
member of this House when this law was
passed, and was one ofits supporters, and tc
use the language of our distinguished Seua
~, rno01har n
5 this House, and one Of its most active advo
Gates and supporters, 81 confess my snPpor
of this law with n feeling of shame" Iti
a law tina. originated with the Brokers o
Sd st. Cincinnati. They had their paid lob
by to leg with members for its passage du
: ring the whole session, and SO far MS know
e every member of tn House that passed thi
i law now regrets its passage. Such is th
: case with Senator Pugh, DR.. Carney of Del
aware, Mr.. Copeland Of Marion, and others
, And think any one must come to the SAM
IS conclusion, who has reflected upon the sub
IL ject.
At the passage of this act, the state wa
e upon the eve of long season of unparaliel
e ed prosperity. 1t was just after the close c
t the war with Mexico. The people had en-
e tirey recovered from the financial embar
D. rassments of 1887 and 1898, and were ou
t, of debt. The Russian war in the Crimea
D. and famine in some of the countries in tn
y old world; the gold mines of California an
.e Austraa-all these causes combined I
or keep up the prices. Real estate, both i
x the city and country, advanced with rap
t: dity unknown in our history. All the spec
s. ulator had to do was to borrow money, il
ne vest it in real estate, and no matter what tn
lit -. - L ., ..,., $50 H., I-oon;,- ;t So