The weekly Portage sentinel. [volume] (Ravenna, Ohio) 1854-1861, 1858-02-25
heRT1aere.e law

ouencs e that diseusiion Is bseoming almoetl
universal. Editore au1 eotfsspondehts eil
the press. and lhepsople IT he hre-side, ~
the stores aad shops, are giving much At.
tention to the subject. ASsurediy the ques'
IIien may be termed an impOtant enc. When
popular attention has beeoate- % generaIU
excited. Hsppily Il 10 one upon which po'
litcal parties cannot be divided, ana can
be freed from the embarrassment OF the
worst preiudices Of the country. We feel
too. that this extensive discussion must re-.
suit In better untSrutanding and wiser leg
islative action than have prevailed Tor some
yesrs past, .ss.ss. as 5...~ yaga. |.
We believe the legal policy now IN exist
snce, is detrimental to our rational proper:
i,y; also, that il tends 10 lower the standard
Of morslity. A man asks and receives tsili
per cent. for money upon special ngree'
ment; where this is wanting, the Law giyes
bot six per cent. u may be. taken for
granted that no man will pay ten per cent.
for money unlesS compelled by necessity to
do so--s necessity growing oat Of occaslons
al scarcity, and consequent sbility Of the
lender to take advantage Of the hard need
of the borrower. The law which allows
srch an act, countensaees the violation OF
social duty, upon the simple plea that the
offender has for the time right to commit f
il. Such contracts In general are opposed
to all healthy business, relations, for no
commercial community can long prosper !
whose original capital 10 absorbed in ten
years TO pay for ts mere use. H s15M
It is said, trely OF course. that capitalists |
will lend with greater alacrity for high than
for low interest, and the borrowing class are
always in full complement TO the lending. |
But borrowers upon such terms are com.
pclted to resort to unlicensed speculation to
make good what they pay for the use OF
money, and thus the two evils Of costly and
unlimited credit and improbable speculation
co. operate to mutual stimulation until oil
classes of trade are brought to ruin through
the inevitable and baseless iufstion OF cred,
it. and consequent investmeat in faNclful
adventures. These may be truisms, but
they are the lessons Of universal experience.
: They arc = pact Of the consequences ei
. holding out legislative encouragement to
high interest. ..r....... ...a-...r. .....
That the ten per cent. interest law is a
Q miatoke in our lesislation, is fact beyond
O controversy. On that point. any business
!, man Of enterprise uEd force, is prepared to
testify. ..- .N r...... s..t
For illustration: let the manu- facturer col
r upon the nam Of money to invest his capi
}. tai in manufacturing, or any industria
tmovemeHt, which promises him a fair in
y lercst Of six, seven or eight per cent, be
sides general improvement Of his town
D. where he has grown rich; and he shakes hi
head, and tells his visitor Mat he can maxi
" more money by loaning his capital; tia
es while the factory, that can give employmen
tS q hundred mechanics-the solid men Q
:, the eonntry-wil pay but six per cent. 0
~ most, he is getting ten per cent, and
e. we'll moitgogcd.
&c This is the experience Of the alive men
in Of Ohio, the builders and makers of tn
towns and cities; aud when they want add
tionul capital, in any work, however impol
u' tant, an enterprise in which the whole pee
90 pie feel en- interest and a pride, then nI
as they told-"That Is oil well enough, b,
-. money briggs more on mortgage" Thes
laborers, the architects of our progress, Vi
on whom the money dea!er is dependent 4
ce his capital and his profits, the value and 8,
- curity Of his possessions, are told that cap
tai pays it's proprietor better on mortgages
~ and that, too on the homestead Of tho worl
ing man, the security Of which 10 90 fr,
.es quently a subject VI legislative solisitud
than when employed in building up the cut
stantisl interCsts Of the State.
nc Why 10 it that money is considered wort
ten per cent. per annum! The law rest
%. that, in special contracts, that ruinousl
high rate OF interest shall b. lawful; Writ,
. ally soying that the interest on every doll:
or Of capital in the State. shall be ten per cen
no 1t may be said that bankers are restricte
to six per cent? BY law they are; but ho
does the law operate! In this Legislation
Ter the banker sees u blow at him, direct; an
w. as he is not compelled to loan his capita
yn nor restricted to any one place, when sngas
rd ed in banking, his money 10 easily remove
~ to the ONCE next door, or block, and b
H. 6nds his advantage in the change or reno,
he al to be four per cent, ard that four pt
Il cent. we submit. is q bounty offered by th
State, for his corruption; premium thru
10 upon him, by law, for changing his funt
ll' from the place where he is entitled by la
'ol to six per cent, 10 one where by law,
tan exact ten per cent.
Most Of the discussion we have had @
Z the subject Of money, usury laws, free trad
e. in money, etc., has been simply "theory.
he The fas,s have been overlooked, and in Iss
=. isIsti1n ignored. tits the duty OF govern
" " ment to fix legal rate of interest; and I'll
10 rate should be well considered, in come,
tion with the pursuits Of the people and ii
cd value of their productive industry. I'll
~ rate ia not to be made oppressive. We fin
eU no authority for two entirely different rat,
no OF interest, any more than would justify =
rs in the establishment of two rates of tax,
re tion. Money 10 subject 10 taxation, lih
property. and il 10 intended by the law, th
oil moneys shall be taxed alike. This 10
makes the capital Of one man more valu,
Bile than. that OF another; hence, there is
rk necessity, if this law is to remain in fore
for an amendment to our tax Iaw-excep
-, iRg all moneys loaned at ten per cent. il
'" terest; for. as the matter now stands wi
"a y 10, it 10 not put upon the duplicate "accor
eS sS ing TO its ue value.''
=; IL 10 not expected that the Lsp;slatu
IA will t,or can, make b law that will cove
~, fully the financial business of the Sta,
." knowing that usury laws hive ever failed
ensure all the ends sought to be accomplis
;" cd. But so With any law thut was ever e
ltl' acted. Ihe law Furnishing murder and re
ind berry. hos not altogether stopped the co
ck. miss.ca Of these crimes. The question
-, been asked, why seek more legislation
- the law we now have. cannot always be {
ely forced! In answer, we desire simply
nd. state that, It 10 not additional law or 10,
pl. but q decrease Of just half the number
force. that the people desire, and earnes
hope for. II 10 well known, that the