The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1860-08-28
Rapaal of tho Usury Laws.

This subject is now eliciting some discussion in
business circles. There are those who favor re-
peal of these laws, because they say that the mon
ey holder ought to be allowed to make the most OF
it, as he would other possessions. We think this
argument, if argument it can be called more
.specious than solid. Let US inquire, in the first
place, why interest is demanded at all, "since
money is naturally barren" Suppose that there
are ten millions of dollars in the District of An
derson, and it is put at interest within Its limits,
how much money will there be- in the District
twelve months hence, supposing at the same time
that all communication is prohibited with any 9TH
or portion of the country? There cannot by any
nossibility be more than the amount put at inter-
est. Then by loans the amount Of money is not
increased The NIosaical law proceeded upon this
principle The Jews did not exact interest of
their countrymen, but of strangers. The former
could not make the country richer the latter poll
CIV did, There are two reasons why moderate
rate of interest should be allowed: "First, the
Inconvenience Of parting with it for the present.
and secondly, the hazard of losing it entirely"
Experience proves that our rate of interest an
swers these reasons. Very few hold their money
when they can get it into good hands at seven per
cent They guard against the hazard OF losing it
entirely by demanding good security, and thereby
get seven per cent. for the Inconvenience OF part
ing with it for the present If he choose to lend
it for less than per cent. no one mas right to
complaia-sfre law does not prohibit it; but on the
contrary will not enforce contract for more than
the legal rate Of interest, because 1t sayors OF op
pression, making those who rich, richer-those
who are poor, poorer 1t is argued by some that
the amount Of money in circulation would be
greatly increased if the law would increase or
protect greater rate of interest-that it would
he diverted from agricultural and manufacturing
purposes-that money holders would convert
these interests into money and lend it. The law
has wisely provided against such change. Eve
~ State knows it TO be her interest to encourage
these pursuits, because they are the foundation OF
every interest. Another argument is, that 1t
would prevent our Banks trom carrying their
money into other States where they can get more
for il. We contend that this is the Jewish policy,
and the only policy by which our State can be en-
riched by lending money. If you abolish our
usury laws, those who have money will hold it to
get the very largest pricc-it will remain in their
Golfers, not yielding them any proit-thc coun-
try will be deprived of tire benefits OF its circuia
ton. Suppose the contrary-that it is borrowed
by merchants or any other spectators, it will have
the effect to increase the value of the articles
speculated upon, thereby not redounding to the
seller or the consumer or the lender, should he
happen to be the consumer. We think the inter-
ests of majority of our citizens would be injured
by o repeal Of the usury laws; therefore, we op-
pose it. At another time we will discuss the sub
ject more at length.