Saint Paul weekly Minnesotian., 1859-12-10

fSynopsis of Lecture delivered by Hon. W. A.
Gorman, before the Students of Davis,s CONNER
cial College, Rogers Block, on Saturday evening
-'7..5p a ra5'tas 7itsfs - t1s' u T!sgUss
1.-The speaker in commencing, said that IN
Iecturing upon Interest on Money it affects
the commercial trade of the country, be should
distinguish between Interest for thesnse q
doneyii'and Usdfy. He then gave a:histori.
cal account Of the Laws Of interest. BY the
laws of Moses, the Jews were prohibited from
taking any interest whatever for the loan or
use Of money among their brethren, but could
demandmoderats usury ofastranger. Among
the Romans it was once allowable to take a
small percent, which was subsequently In
creased to per cent q month. Justinian re-
duced it to4 per cent per year, and made the
party who took more suffer heavy penalty,
but allowedla hisherrate to be demanded Of
merchants on account of the supposed risk.
Under the lowrates commerce fiourished and
the people reached the height Of prosperity.
In Holland, as early Is t g time Of Grotius,
per cent was allowed on common loans, and
- per cent to merchants. llor aal ,ci...b
&c England, tooe found that high rate Of inter-
est crippled commerce. Henry VIII enacted
10 per cent as the legal uniform rate. Then,
as commerce, throye under low rates in Eliza
beth'sreignb her successor games !, reduced
it to 8 per cent, land ,as acemmsrce grew il
came down. still lower. y Charles Ii reduced
it to 6 per cent, and when wealth came to
alb classes, and trade fourished, in Queen An
MES reign it was reduced to 5 per cent, where
it has remained ever since, until England has
been called the Mepied Monarch of the world.
q lItis observable that as Interest has in
creased, Commerce has decreased, and oice
uersa. Il, Also that the legal rate of Interest,
though fuctnating, has steadily decreased for f
sO9, years, ,y-and7 ss the quantity of gold and
silver has increased or decreased, interest
rates have followed in like ratio, and commerce
ebbed and flowed. Therefore, it may be said
that cheap money makes wealth flow to the
many, while dear money keeps it in the hands
Of the few.l 60 ls. ssSgE's''EE~'e -
The speaker then gave sketch of the Usu-
~ Laws in thirty one States of the Union, the
legal rates Of interest, the penalty for breach
Of the law, &c. These States had found it
to their welfare to limit the rate of
Interest between six and eight per cent, with
oower in six or seven of them to take 10 and
i2 per cent by written agreement. -"" .-.4
' High rates of Interest paid by the merchant
or manufacturer increases the price Of his
goods to the consumer, or ruins the trader in
The end. The Divine Law first pronounced
the prohibition against Usury, but if unrestnc-
ted Usury conduces to commercial welfare,
what mistake Moses made! What q blum
der the civilized world has made in model
lag after the law--what an error English Ju-
has been making for three centu-
ries And what stupid statesmen our own
land has had for 70 years. The uniformity
with which commercial nations have restrict
cd Interest rates show the blighting effects of
rates. In some of our own
States the Usurer who attempts to 60 above
legal rates is indicted by the Grand Jury as
asy other criminal All historical facts in our
show that the principle and policy OF
limited interest is settled in most of the States
of Europe and America. ~.
The Merchant, Manufacturer and Artisan
feels the effects of Usury first, ten, all 9th
er trades and professions. Tho higher the
Interest on borrowed Capital the higher the
price on the article produced must be, or the
loss falls on the borrower, and finally des-
,roys him, and Injuries the lender too. The
chance of loaning money at enormous rates
keeps just SO much Capital from investmen,
in the channels of Commerce and produc-
tive industry. And as the permanent inter-
est Of the people demand that Capital shall
not control the wants of Commerce, but that
it shall control Capital, fixed moderate in
terest should be established by law. And i
is our Mercantile policy to say to Capitalists
You must not ask or receive more for the
use of your money than productive labor en-
gagged in the various branches of trade and
Commerce can usually realise GENERALLY
about to - per cent. .,.,,...s, .,... f,s ..''
1t is usually urged He who has Capital
has the same right to use it as he pleases, as
he who has merchandise or other property to
SELL" The Lecturer would reply to this
The Constitution of the United States says
that no State shall make anything but Gold
or Silver coin q tender in payment Of debts,
because it alone has standard value. The
price Of all merchandise will huctuate. All
the productions of industry must depend on
the quantity of money in the Country to buy
1t, but the value Of money need not depend
on the value Of production in any business.
The real soealA of a. country depends sole
ly on the people Of that country producing
something for consumption, or use by others,
that never existed before. Everything each
one produces or creates, adds SO much to the
soeatth of his Country. ..
If merchant could use money so as to
make 20 per cent per annum, it enriches him,
but does not change moneys standard value,
Money therefore effects the value Of proper.
ty, but property does not effect the Standard
value of money. IT,, g. a.no1
Interest may be high or low from different
causes, aud indicate either prosperity or ad.
versity. Hence, If we could foresee the chan
ges in the fluctuating causes, we could dis
pense with usury laws entirely. But humane
wisdom has no such prescience. ~
The Lecturer advocated through the whole
discourse restriction on the rates Of inter
est as necessary to the safety and welfare O
oil productive industry. 1t should fix xas I
penalty for evasion, the loss of both principa
and interest. In conclusion. the iGoverno1
Ir -.I .,,,t Ft,;taI 20 bo ,6,,F -, t;.t