Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1858-09-10
From the Raleigh Standard.
The TSnrv Law.

dent is thoroughly acquainted with his subject and dis
cusses it with force and ability His views worthy
of attention and consideration and will be concurred in
we doubt not, by many of our readers
BY the bye cannot something be done to modify our
present oppressive old foge and barbariOus law du-
ring the session of next Legislature? 1t would be
great triumph for the Democratic party to initiate in
State the free trade in money, which has been
found so beneficial elsewhere Or if not free trade at
least more just policy. 1t should be the duty of gov
ernment to make money easy Of obtainment and as
plentiful Within her borders possible. Our State
by retaining the old English law Of usury and ad
ding to it pains and penalties, have driven off from
her limits millions of dollars which, if retained and cir
cuated among her own people, would, like the " life
blood as it is, add activity and energy and enterprise
to her citizens Whereas by her present SYSTEM and
especially by her law taxing interest, by which she per-
mts in one law per cent to be akenby another pre-
vents more than 531 to be made she drives off very
large sums to other States more wise and liberal in their
policy. States that, knowing how much industry and
enterprise are forwarded by free circulation of money
and its abundance in their borders inve capital from
every point whence it can be attracted.
That we have men of large capital in our State, is
well known, and also that very large portion OF this
capital is invested elsewhere-much of it at the North
thus deprivng of its benefit, and "giving aid and
comfort to those who little deserve it at our hands,
This should not be-
1t would be invdious to mention instances of those
who have invested elsewhere; but so extraordinary
came to my knowledge short time since, that cannot
refrain from stating it. was informed, by good au-
thUrty, that nearly onehaf of the capital stock of the
Bank of Commerce of New York, was, had been,
owned by North Carolina farmer! My Commission
Merchant in the city, told few years ago. that
he had in his hands, and had had for MONTHS $685.
coo belonging to another in Pitt county, drawing no
interest, but waiting a good investment" Another
citizen of our State pays tax on just one million How
much of this, think yOu is used in North Carolina p?
Scarce any but few state bonds Now is it not obvi-
Gus that if an additional million only were thrown into
the circulation of State that comparative would
soon result to her suffering people? Manifesty so.
In considering this question: viz the policy Of mOdl-
flying the present usury law at least far to permit
to make contracts Tor the of money f made in
writing high or 10 per cent and not to cOnsti-
tutc the Sate-as is now the case-a guardian for
grOW men, in the transaction of their business virtu-
ally saving to her citizens 7 GU may manage all
your other business matters your own way, but you
have not enough to know whether you ought to
borrow money at o Per cent or not You may buy a
horse at ST 50 not worth $780, but you shant buy
the of $l0O though it be to your property
till you get in your CROP at any higher rate than Sc p
How contradictory! How preposterous! And yet we
cling to law made in England generations past, when
gold and silver only used for circulation, and these
almost exclusively in the hands OF the Jewish
against whom the law was passed. And now, when all
this has changed and when money, trade and commerce
are distributed among all classes of her citizens England
|
from to per cent, according to its value like any
other commodity, and is generally worth only to pei
cent We retain the old law which was enacted agans
state of things that ercr erlsted among us But tt
revert.
In considering this matter there arc two or three pail
questions to be answered ls Does the present usur
law fulfill its objects? ID Does it operate to the dis
advantage Of the State? 3d. What would be the rcsul
Of more liberal policy?
In answering these questions, Mcssrs. Editors my lin
give NY authorities. / will only state that for two years
past have given much attention to this part Of ou
State policy have collected all the
practicaon the effect of the usury law and the result
of its abrogation, &c, &c. | am, you know Nortf
Carolina farmer, and borrower-never lender-o
money. This being presumed, [ 60 On to answer tht
queries above Does the present usury law effect its oh
ects? What these objects? Certainly to keep dow
the rate Of interest to the borrower at per cent and
make money reasonably procurable at per cent Does
the present law effect either of these? Certainly not
If any man is sc ignorant of what is passing around hin
as not to know that shaving buying notes, has
heen going during eUery pressure for money, at rates
of from 10 to l5, and even 20 per centthe poorer the
borrower and the greater his necessities the higher The
rate-let him ask the first sheriff constable he may
meet and he will be told it 1t is too notorious tC
dwell upon. The cautious capitalist will not rur
the risk of the violation of the law. The field s there
FORE lett without rivalry to the less scrupulous who
course make the poor and oft times ignorant borrower
pay heavily for the risk he runs. Would this be SO
all were alike freely to compete? No! The cautious
capitalist is forced to send his money out of the State
where more beraity attracts him. and oft times himse
follows his capital thus the State loses both capital anC
citizen. prominent example is that of Gen. NJ, o
EdgecOmbe county, who moved to the Southwest, anc
took oly $2750O0 with him, thus lost to the State for
ever Another case is that of DIR. A, of Nash, wht
moved to the Northwest with 100000, and who tOlC
me himself he would have preferred remaining and in
vestng nearer hOmc and at less rate than he
getting because he did not wish to move and he prefer
red the North Carolina securities to those of the North
west
Again Does the present law " make money reasona
bly, obtalnable at per cent?? An answer to this will
soon be ad should any doubt the negative, by hi
undertaking to borrow few thousands No. the none,
is not to bc had in any part OF the State at per cent
except in very instances, and these becoming rare
every day while in more favored States, an owner 0
paying real estate can always borrow from one halt t.
two thirds its value, by mortgage on his property TIN
best of all securities to the capitalist and certainly tn
best for the borrower to offer Who among u.s. wit
good interest paying real estate any other kind,
both combined, worth $4,000, could borrow $1,000
at per cent? The truth is, borrowing money nova
days in North Carolina, at per cent is unknown tn
time has passed-it is obsolete.
AS to the second question " Does the present lay
operate to the disadvantage of the State?' The af
native is shown in what precedes. An example is
be found in the fact that whereas prior to the lay
passed by the last Legislature, repeating in the partcua
favor of the n. G.. Railroad Company, its own la,
against usury and permitting that corporation to boz
row money at per cent. The President of that Coz
poration was only footing with other borrowers
the market, and bad to pay high II per cent.
soon as he was relieved from the ban of the usuy Law
he was able to borrow all he wanted at per cent. il
eres and had offers for or times the amount needed
Can any thing show plainly that similar benef
would follow to other borrowers if our Legislature woul
also relax in their favor, and put them on equal foo
ing with this preferred Corporation? But and in fu
ther reply to the third question, we find the argumeI
1.l,o Tho icolli toI IF