Saint Paul weekly Minnesotian., 1859-12-10
ty our oteHs <fkpoSfsS.'..ss ,.!st-s5 tzI'@ Is
Iaterese ana Usury.,

AoteEcsSFoD0 sOSUfysi f9Sfsef .
fSynopsis of q Lecture delivered by Hon. W. A.
Gorman, before the Students of Dayis's CONNER.
cial College, Rogers Block, on Saturday evening
'4i' - .''t..H l.. - - a. ~ TH-Ir.e.
The speaker in commencing, said that IN
lecturing upon Interest on Money as it affects
the commercial trade of the country, be should
distinguish between Interest for theanse ef
aoneyi, and Usaty 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
demand moderate usnry Of q stranger. Among
the Romans it was once allowable to take a
small percent, which was subsequently in
creased to per cent a month. Justinian re-
duced it to4 per cent per year, and made the
party who took more suffer heavy penalty,
but allowed higher rate to be demanded of
merchants on account of the supposed risk.
Under the low rates commerce fiourished and
the people reached the height of prosperity.
In Holland, as early as t time Of Grotius,
per cent was allowed on common loans, and
fl2 per cent to merchants. :..,g s. b..
,n England, too, found that high rate of inter-
est crippled commerce. Henry VIII enacted
10 per cent as the legal uniform rate. Then,
as commerce throve under low rates in Eliza
beth's reign, her successor James ]. reduced
it to s per cent, Iand as commerce grew it
came down still lower. p Charles Ii reduced
it to 6 per cent, and when wealth came to
all classes, and trade fourished, in Queen An
nie's reign it was reduced to per cent, where
it has remained ever since, until England has
been called the Monied Monarch of the world.
q 1t is observable that as Interest has in
creased, Commerce has decreased, and oice
uersa. Also that the legal rate of Interest,
though fluctuating, has steadily decreased for
800 years, --and as 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. 81. ~. .,. ,s.A.rr,-. . r.. Pc r.
The speaker then gave sketch Of the Usu-
ry Laws in thirty States of the Union, the
legal rates of interest, the penalty for breach
of the law, &c. These States had found it
conduced to their welfare to limit the rate of
Interest between six and eight per cent, with
power in six or seven of them to take 10 and
70 per cent by written agreement.
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 blum
der the civilized world has made in model
Jag after the law-what an error English Ju
risprudence has been making for three centu-
ries And whit stupid statesmen our own
Iand has had for 70 years. The uniformity
with which commercial nations have restrict
I'd Interest rates show the blghting effects OF
uncontrolled rates. In some of our own
States the Usurer who attempts to 60 above
lcgal rates is indicted by the Grand Jury as
,..,y other criminal. All historical facts in our
posse Son show that the principle and policy OF
limited interest is settled in most of the States
of Europe and America.
The Merchant, Manufacturer and Artisai.
feels the effects of Usury first, ten, all 9th
er trades and professions. The 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, a fixed moderate in
terest should be established by law. And #
is OUT 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 realise7-(generally
about to II per cent? , -.
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 tender in payment Of debts,
because it alone has a standard value. The
price of all merchandise will fuctuate. All
the productions of industry must depend on
the quantity of money in the Country to buy
it, but the value Of money need not depend
on the value Of production in any business.
The real aoealM 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
,oeath of his Country.
If a 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. ,...-
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 huctuating 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
all productive industry. 1t should fix as
penalty for evasion, the loss Of both principa
and interest. In conclusion the GoverDo
said -. -.. -.' .-' .'~'
'' If you want Capital to be put in circulation
/ through. the various channels of improve