Daily Democrat and news. [volume] (Davenport, Iowa) 1859-1864, 1859-12-07

1E A writer III the LIE Claire Regis
ter, signing himself &c. E. H. and dating his
letter from Davenport, is very severe on that
class of our business men who loan money at
just such rates of interest the borrower will
pay. The writer is correct in some Of his DO
silions, but in others he is entirely wrong We
transfer some portions of the article to our
colu'ans:
The plea Of usury is one of class created
from the just necessities Of society, and in &C.
cordance with sound public policy. The plea
of infancy BY minors. Of the prohibitory liquor
law by venders OF intoxicating drinks, OF cover.
turs by married women, of t e statute of limi
tations by debtors, discharge by the general
bankrupt law by insolvents of illegal consider
alton by parties to prohibited contracts, the
want of protest by indorsers to notes,-all of
these, and more, are especially encouraged by
the law, from motives Of q sound public policy
And Why is it more reprehensible to plead
usury than any Of the above pleas? What
effect upon society results from . general en-
couragement and protection to the usurer p
Certainly the most disastrous. Moneyed men,
brokers. and ehasers have it in their power.
under the evils of the credit system, by eudden
expansions and contrsctions, to throw the bu.
siness community into the worst possible dis
may and disorder. After . season Of liberal
lending, they can suddenly unite and stop loans
and discounts, and advance the rates of inter
est enormously, 20 that ruin stares the borrow
er in the face, whether he borrow at the rates
demanded or refuse. Ruin il before him in
either event-whether by sudden bankruptcy,
or by slow process Of sucking his capital inio
the phrse Of the usurer in heavy installments
by way of interest. Thus men Who had rather
die than fail, protract their business existence
by . slow process Of torture, and iail at last
victims to the iDeatiable demands Of usurera
The different pleas enumerated above are oil
sanctioned BY Law but the person taking advsn.
tsge of them breaks . contract made 10 good
faith. He is protected by the lar, but he has
sacrificed his honor. If the merchant, to save
himself from ruin, sees ft to bUrrow money at
ruinous rates Of interest, he should do 90 with
the full expectation Of paying the principal and
interest, let it be ever 90 much He is in honor
bound to fulfil his contract if he has the means
GO to do, and entering the plea of usury will
not assist him il he has not the meana The
writer further says:
The only mistake made by our legislature 10
that the Law 10 not more stringent. There
should be forfeiture Of all the rate Of interest
contracted, snd further assessment upon the
lesdsv Of ten per cent upon the principal for the
school fund, instead of the present wav of %
sessiog ten per cent of the amount against the
borrower.
Nov, We think there il . much better way
to cheaper the price Of money. Do away
With all lave that stand betveen the creditor
and debtor. and We will very soon have int.
rest brought down to low rate. Experience
has satisfastosily demonstrated that all laws
made for the benefit Of the debtor to the iniu.
| ~ Of the creditor, viii b sure to work to tie
dissdvantsgs Of the former. Repeal our usury
lave md aoesy veald naturally aow to thi,
country for investmmt; - our people a.,
always wiling 70 pay ten re seat. aad aivl