Wheeling daily intelligencer. [volume] (Wheeling, Va. [W. Va.]) 1852-1859, 1859-04-13

WINTER before last when our Legislature was
in session, we advocated a repeal of the usury
laws, and gave our reasons at length therefor.
We arc still of the same opinion-viz: that such
laws are pernicious to genuine commercial in
terests. We are glad to see that SO many pa
pcrs of the country are turning their attention
to the subject and advocating their repeal. The
New York Courier md Enquirer is clearly of
The opinion that they are a drawback upon
trade. In the course of an article upon the
subject it refers to the old English origin of the
usu,y laws, and of their repeal there says:
Nearly five years have elapsed since this great
reform was completed in England, and not a
single voice has been raised TO reScind it The
borrowers being in the minority, and having the
power, would reinstate the old law, If their in-
IerestS could be served but the experience Of
her mercantile classes is fully and uncQuTocay
in favor of the existing policy-virtual free
trade in money.
The price of money will always be higher
where excessive penalties incurred for
breaches of tho law. This is apparent even
from slight observation. The same rule applies
To marine or fire risks in hazardous cases. An
extra premium is charged of course for an extra
hazard.
i If n Loan is accompanied by no hazard, the
parties beIng of unqneStiOncd strength, simple
interest is demanded merely for the use OF the
Capital. But II the Loan be slightly risk,
extra rate is charged, invariably. where the Loan
is granted. lf to this risk is added another
from fear of the plea of Usury, rate of inter-
est will create an inducement for Loan. Thus
tile strong became stronger, and the weak,
weaker The strong mam cali borrow ut the
lowest rate because he is known to be amply
solvent and wealthy. But the man of moderate
means, the payment of whose note is contingent
upon two riSks-frst, his life, and, secondly his
success in busness-is compelled to pay more
than the large borrower
1t is this large class Of borrowers, people in
the middle circles of society, whose credit being
limited or unknown, who IRE compelled TO resort
10 the Insurer. II is this class that would be
benefited by change in the law.
We vi ell know that in this community, as in
nll large communities, there is class Of capital
lists who contine their loans within the legal rate
OF interest Nothing will induce them to charge
higher rate as long as the law creates restric-
tiuus. Hence when a tight time comes, when
distrust arises and confidence is lost these men
will not loan at all, only upon strictly prime
paper. The second-class paper which they
would readily take when money is abundant, is
rejected whenever the financial atmosphere is
dark
Thus the sources of aid are :essened when
money is scarce. The pockets of the capitalists
closed TO the hungry needy. a tight
time has the same effect upon him that lauda-
nun has upon the human system; it shuts up
the channels ofcirculatiOn.
Now remove these shactles upon commercial
intercourse, and let the borrower aud the lender
meet on common ground. Make the market
free to all capitalists, small aud large and the
result will be that when money is scarce, every
lender will be free TO use his money at such
rates as he may deem proper. At all events,
there viii be more lenders than there are now.
Money lending partakcs, to large extent, of
the character of "Insurauce.n The premium
on Insurance is measured by the risk, whether
common, hazardous, extra hazardous, &c So
fly notes are offered for discount to tho CAPT.
talis There win probably he iity different shades
among them as to strength. Some would be
desiruble at per cent, Others at %, u, 81, z,
u, s, down to 10 per cent or more. And the
poor borrower could better afford TO pay or 10
per cent on his small wants, than the rich could
OF on his large demands.
modification of the Usury Laws in this
State is eminently demanded FOR the sake Of the
borrowers. Lenders do not ask it, but it is par
ticularly small borrowers who have a claim up.
on the Legislature for relief.
TINS Eagle Of tie South Jackson, MiSs) de.
elares that not the Rev. H. 4. Lewis. nor vet