Delaware gazette. [volume] (Delaware, Ohio) 1855-1886, 1858-02-19
NUMBER 46.
BY REQUEST.
REMARKS OF MR. PARSONS

In iIoass q Rearesentatiys, January l.a, o., rirs BIZ.
4 10 establish nIforrn rate Of u.erez4
! Mr. Parsons said:
Mr.. SPEAKER believe, sir. tiat The
subject now under consideration is the nost
important one 10 the int rests of the Stale
ut large, that Viii commaud our attention
during the present session IL should be
aPproached with caution aiid ,ieIiberatiop.
anh with an eye single to the promoii 10 Of
our common welfare. The bill before MS
proposes to tx the uniform rate of interes,
+ by law, at seven per cent, and with this
provision most cheeriuly concur | did
not intend to speak upon This subject, nor
should ! do SO now, bat tfat senliane nts
! have been advanced upon this Gsor, which
/ ii carried into practical operation, would. in
my opinion. result disasrrouslv to tie pros
perity and heal,hful growth of our Stale and
our people. | therefore deem II nv duty IL
give my Reasons for the support Of this bill
| Il did not expect at this late day, and with
the experience. of HE last fifty years TO
guide us, to tad single gentleman upon
| this foor advocating the doctrine of Tree
trade in lnonry-leaving the law open Cor
the lender to exact such rates Of interest Us
the necessities of the Borrower might die
tate. Such, hcwevcr, seems To be the
opitIion of my honorable friend frofn HAmil-
ton, the provisions of whose bill are now
before uie. | nm aware tilat to bring about
this state ofthings has been the dAreing OBJ
Ject of capitalists in all ayes; and the cur
rent of authority by writers upon political
economy has almost uniformly been in favor
Of this doctrine. Still, sir, experience has
fInf -,,f
kind to protect the borr over from the ra.
pacity Of the money lender; and am one
of those who believe that stringent usury
laws are the best protection the people cam
have upon this subject.
The best ar r5ument in favor of the neces-
sity of such laws, is The tact that we find
usury' laws in every civilized country on the
globe; and believe, with the exception o.
California, in very State of this Union. Sir,
this doctrine of free Trade in money proceeds
upon the false idea that money, like other
property, is au article Of merchandise
This was the great aud fundamental error OF
Mr. Bentham, who is the standard authority
with the free traders upon this question:
| Sir, money is not merchandise-it is not an
article to be bought and sold like other pro-
iperiy. 1t is the standard value by which all
other properly is measured. It's value is ar-
fixed by Government, apd it is the only le-
gal tender for the payment of debts.-
| Therefore tits superior to, and independent
of, all other kinds OF property merchun-
disc, and the rules and reasoninss that APP
ply to the doctrine of free trade in other
property is not applicable TO this.
/ To illustrate this point, | quote from
work written by the Hon. John Whipple, of
Providence, r.. L., entitled s.Free Trade in
Money, or note shaving the great cause of
fraud, poverty and ruin; stringent usury laws
the best defense Of the people ugainst hard
times. An answer to Jeremy Benthun." :"
Mr.. Whilpple is u lawyer of gre at age and
experience. As lawyer and profound
thinker he ranks among the ablest and
mos: accomplished in New England. Tae
work TO which now refer, was published in
the Blnkers' nj 'gazine, at the time it was
written, and received the most critical at
tention from all persons interested in the
science of political economy. He says:
':Money exists only by legislation; mer-
chandse is the product of idividual labor or
private enterprise. Mney is the legal
standard by which value is measured-mer
chantise is that which is yulued by the aid
of this standard. Money Gs such, has no
! intrinsic value; merchandise is sought for on-
ly on account of its instrinsic value. MJ-
ney is perpetual in its na,ure, and is design
ed for all time; merchandise is temporary,
and adap:ed to special wants and made for
wear or consumption. Money is concen-
trative-centerng 10 the keepipg Of few;
merchandise is dffusive, being required am.
consumed by many. Money is legal GER
| tificate Of value, and is transferable tor what
| it represents; merchandise Is the thing val
ued for what it is, or ills uses. If money
were merchandise as money, then yard
sick would be merchandise sa measure, aiId
/ the cloth would measure the yard stick, as
much Us the yard stick the cloth. If money
be merchandise, and "a law be passed to nuke
/ it SO, then all merchandise shall be made
money, which would be literal destruction
of the invention IF money. Money pays
! debt at the will of the owner; but law re-
cognizes such power in mercha ndse. =
X = Money merchandise ceases
| to be money; merchandise as money exists
nowhere except by legislation. Money ex-
| lists only relative agent for measuring
the value OF other things; merchandise is
! priced for what it Is in itself Money is an
agent to promote want; mercandise supplies
want. Money saves labor merchandise
susians it. Money makes the price; mer-
chaDdise pays it. Money is borrowed aud
| loaned; merchandise is bought aud Sold
"Whatev,.r may be said to the contrary,
these fundamental distinctions are universal
lY ackno Wedges; Tor what people are CON
tent to borrow money on special terms OF
security, all are earnest TO sell merchandise
on credit, and without security. Pure sps-
ers of merchandise ure politely solicited 10
buy; while borrowers of money are cere-
monousy permitted to make their PROPOSE
! tions."
] do not propose to labor this point and
take up the time OF the LEGISLATURE, 5ul
shall proceed TO show thai wherever hi III
rate of interest has been allowed by law
or wherever the doctrine of Tree trade in no-
ney has been tested the result has always
been disaster, and ruin to the people.
quote from the some uuthori'y above men
toned.
"Ssy informs Us that in ancient Times
the more severe the penalties, the higher
were the rates, but he furnishes no facts IL
justify his opinion. On the contrary the on
lv fact he does state refutes the whole pr J.
position. liz s,ys that letters patent are st'!
extan authorizing the Jews to loan at eigh-
ty-six per cent. per. annem. Here then Is
the customary rate in that reign under tree
trade system. Previous to the reign oi
Henry VIII the customary rates were forty
per cent. The taking of in'eres; was lhen
denomnrted usurv. In the thirty -seeenih
OF Henry VIII. the rates were established
ut ten per cen,. Tney were reduced irou'
time to time, until the reign ot Anne, when
lhay NJ ere estnhished at i've per cent, and