The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1858-06-12
BALTIMORE.
SATURDAY, JUNE IL, 1858.

The State of Maryland is behind the age in more
respects than one. She has failed to establish
uniform system of education; she has fixed the
legal rate of interest at six per cent, and by her
statutes against usury has crippled the movements
of trade. Ifgnorance is bliss there is at least
person to every household.sin the State, who may
be said to enjoy perfect happiness, for nearly a
sixth part of the whole population of the State can
neither read nor write. Whether the morals of
the people, or their capacity for selfgovernment
are improved by their primitive condition, we
leave it for political economists to determine. 1t
is natural however that where Ignorance prevails,
business enterprise should be ttered by Anticipated
laws, and by preiudces that had their origin in
the dark ages of the worlds history. The man
who first caused two blades of grass to grow where
but one blade grew before, has been eulogized as
benelactor to his country, and if example is at all
times better than precept we have only to look
around and seewhat Others have DONE to understand
wherein we ourselves are deficient. One glance is
sufficient to satisfy us that the most thrifty and
prosperous members of the confederacy are those
whose systems of public education have been estab-
lished on a uniform basis, and we find, moreover,
operation, the more general has the diffusion Of
knowledge become, while the morale of the people
has been proportionately improved How then
can we hope to rid ourselves of our absurd restris-
hons upon trade, or to rival contempora1 res in
enterprise unless we provide, as they 10, for the
intellectual advancement of the foorer classes
What reason indeed have we t. hope for judcious
legislation, long as eack county in the State is
vested with power to 40 as 1t pleases with respect
to its public schools, and may even decline
altogether to provide for their maintenance
In 1850, Constitution mongers, in the plen-
itude OF their wisdom, fixed for ten years. the legal
rate of interest at six per cent. per annum, and
this too, at time when Ohio was inviting the
Investments of capitalists by the offer of eight per
cent. per annum, and New York by rendering seven
per cent. per annum. Pennsylvania, like Mary
land still continued to fix her legal rate of interest
at six per cent but the drain upon her capital has
admonished her of the necessity for relaxing the
stringency of her usury laws, and the influence of
the superior inducements held out to the employ
ment of capital in other States of the Union has
prompted her to pass law dispensing with all pen
ates-beyond the forfeiture of the excess of interest
for taking more than six per cent per annum and
establishing the validity of the contract no matter
what the rate of interest may have been unless re-
dress is sought in the Courts within six months from
the date of the transaction So far then Pennsylva-
mia has done well. But we regard this as only
the entering wedge to further legislation upon a
question of vital Importance to commercial men,
1t is an example worthy of imitation by the State
of Maryland. In France, Holland, Span and
Piedmont the restraints of usury have been re-
moved. In those countries the old ''non-pro-
ductive' theory concerning money has been eff
fectually exploded. Money is now regarded as a
commodity, and its market value like that of any
other commodity, is made to depend upon the rela-
ton of the demand to the supply If the demand
for money is great and the supply small, the rate
of interest increases; but it, on the other hand the
supply of money is abundant, and the demand is
light the rate of interest declines So beneficial to
the interests of Commerce has this entire abroga-
ton of the usury laws been found in England and
on the Continent, and so thoroughly convinced are
the ablest foreign fnanciers that all restrictions
upon the trade in money more injurious to the
borrower than the lender, that the only regret now
manifested is that the old statutes against usury
should have been suffered TO remain in force sc
long. Cannot we of Maryland derive Il usefu
lesson from these facts?