Semi-weekly standard. [volume] (Raleigh, N.C.) 1853-18??, 1858-08-07

ard Of any one se that has done so.
and these becoming rarer every day while in more
favored States, an owner of paying real estate can
always borrow from one half to thirds its value
nv mortgage on his property, 1.-THE best Of all secu
rites to the capitalist and certainly the hest for the
borrower to ofer) Who among us, with good in.
terest paying real estate. any other kind nr both
combined. worth $50 OOc. could borrow $40 600 at
q per cent? The truth is, borrowing money now-a-
days in North Carolina, at 6 per cent is unknown:
he time has passed-it is obsolete
rs to the second question: " Does the present
law operate to the disadvantage of the Staey" The
affirmative is shown in what precedes. An example
is to be found in the fact that whereas prior to the
law passed by the last Legislature repeating in the
particular favor Of the N. C. Railroad Company,
its own law against usury, and permitting that cor
poration to borrow money at per cent. The Pres
ident of that Corporation was only noting with
other borrowers IN the market, and had to pay a.
high as IL per cent. As soon AZ he was relieved
from the ban Of the usury law, he able to Dor
row all he wanted at per cent. interest, and had
offers for or times the amount he needed! Can
any thing show more plainly that similar benefit
would follow to other b"rrowers if Legislature
would also relax in their favor. and put them on an
equal footing with this preferred Corporation But
and in further reply to the third question, find
the argument md the facts accord. The argument
is all in favor If relaxation of the law will state
bnt one. as | am exceeding my limits. have
shown that the effect of the law has been drive off
capital to States where more liberal policy pre-
walls, that very large amounts have been lost to
the State OF course, if We offer inducements this
capital WILL to great degree, and sooner or later,
return to US. This mus; make money more abund.
ant, and in proportion to it's abundance will of
course, be its cheapness. To illustrate. IL corn
growing County Of our State. tempted by high prices
in New York, should send there so large part Of
the cr"p TO occasion scarcity. the price would
-. e
high enough to pay the transportation back. it
would hack. The case il entirely anala-
gous with money. till it comes to The point Of COM
ing back" and mark we'll the difference, Messrs.
Edi,ors. The corn comes back, and is sold at what
it will bring, and serves to satisfy the furnishing
people but in the of the money, the State STEPS
in, with her msury law, and says stop! Y"n shall sell
no money within my limits, unless you sell it at my
p,,ce, & Der cent, and then you must pay me one
quarter per cent. for doing this So the suffering
people still left to suffer, and yet the remedy is
in their own hands.
Further, az to what would be the result of relax.
ing the usury law: have said it would make money
free. more abundant, aud Of course cheap
that is. interest would be lower. ! do not mean by
this that money is to fall to the low rates Of Europe
nor do anticipate that it will often be low err than
per cent {; but I mean it would at NO time be so
scarce so high it has ranged for the past few
years. aud is likely to range as long the prosperi
~ necessity of the country creates a demand for
it that can only be supplied-owing to our u>ury
law-from the money that may happen to be in the
country. have said the argument in favor of
the rea xa,ien Of The uslry law. Now what are the
.tacts? Among the d cunlents have collected bear.
ing upon til point is one prepared BY the Chamber
of Commerce Of New York, "a highly respectable
body Of the first merchants Of the world and print.
I'd under their authority; in this it is stated that
''relaxati"n has never. in one instance. failed to
lower the rate Of interest,"" and it will be found
that stringent usury laws have always been accom-.
panied by violent and frequent disturbances in 5u.
SineSS." And again, Two instances are upon re.
cord in the commercial histories of France and Rus.
sia The experiment Of trying t" force down inter-
est was tried aud in both cases failed. At the Pc
RODS alluded to- the market rate and the legal rate
of interest running along together at five per
cent. per annum; Government took fancy to re-
duce The statute rate to four per cent per annum,
upon which the market rate rose tu sic per cent,
and the Government DEGREES were promptly re-
voked."
Again: the result of relaxation of the usury
law and its total abrogaion has been in England,
France Holland, and in Spain, to reduce the rates
of interest in erery case; and in all the commercial
Cities Of country, where the usury laws are al
ways ignored, the rates of money have been re-
duced; and in those States that have modified these
laws, making them more liberal, the effect has been
in erery instance 10 lower the previous rates. though
not in all instances to bring it down below per
cent? that is not to be expected in new aid pros
porous countries, where enterprise and industry are
highly paid
What do see at the present momentf In New
York. where the legal rate Of interest is per cent,
money can scarce find investment on good security,
at 8 to 4 per cent! And it is the same in Boston
and in Philadelphia. Be it noted too, that in Penn
eylvania the usury laws have been 50 relaxed that
money is virtually free.
Soue timid men among us, who are ignorant OF
the practical effect Of taking off the shackles from
trade and commerce which the ignorance and preju-
dice of by gone ages had fixed them. fear, lest If
men have the privilege unchecked. OF charging such
interest their avar!ce would dictate, that q
still higher late would rule; but moments re6ec.
ton will show that this cannot be the result for al.
ready men have the privilege unchecked Of charg-
ing the price their avarce wund dictate corn aud
al the other necessaries of life; but the nvarable
lag Of supply and demand Steps in and regulates
the price, and SD il money were free would the same
Law "step ia, and the very moment that prices be-
came high, throw in sufficient supply TO regulate
the price, This is no theory; it is the practical e.
feet as, witness the recent result in England where
money il Free. The recent panic drove money up
from 81 per cent. in few weeks TO 10 per cent
An immediate result Was, that money rushed In
from all quarters; supplies that were not hitherto
known--hoards that were not even suspected, were
brought forward and in hess than half the time it
took to carry the rates from 81 per cent 70 ten per
cent, It brought e back to per cant. and il = nox
diff alt in England 70 nsake secsars lnyestmsntas
over q per crrits per aanuHH The same. wa the
result in Fiahcs aHa H0ll3nd. and 4lso In our owh
country, wheresvf the nsilYy law wasmoee RELAXED,
Is ID seEu IN the pssssat yaies ofiatszeets ~ 80