Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1862-01-04
For the Reporter.
Our Usury Laws:

~oti HdHS'
/ propose to discuss the system Of
regulating the rate OF interest byslegis-
aatITe enactment-not in the hope or
for The purpose Of displaying any orig
lnality Or rhetoric, but because the sub
beet is very apt for our consideration at
this particular period of our history. I
shall treat the question 1mrler the two
heads which most naturally suggest
themselves, viz: the propriety eff legis-
iatiye interference, and it's effect.
First, then, as TO the propriety. +
it properly within the sphere Of govern,
mcnt to make this restriction
" hen money is lent, the lender is to
be recompensed for its use. and for the
risk which he incurs. Now, the rate
per centunl paid for the use of money,
or its price, such it is in fact,
though that term is not commonly used
ito express it,--wi!l vary if not inter-
tered with, with the ratio of the supply
to the demand. No one will deny that
money is more plenty at some tines
than at others; that it is subject to va
ration. Let us.suppose that wheat is
now scarcer than it was two months
ago, but that the demand remains the
same rs then. No one complains with
the farmer because the price is higher
now than it was then, Oh seeks. by law.
to- protect the consumer against this
variation Supply the same conditions
with regard to money, and the owner
finds himself prohibited from getting
what his commodity is worth, the
price dictated By the natural law, the
ratio between the supply and the de-
mand. This is certainly injustice.
There is no more propriety in reg'l-
iating by law the price of money than
in interposing legal restrictions to the
price Of money. Indeed, I express my
deep and honest conviction when say
that there is ten times less proprictv
for speculation nayrun up the latter to
so high though fictitious vau. that
the poor may suffer, which cannot be
tie case with money.
Suppose, again, that rs may often be
the case a man by having certain
sum BY Il certain time can make a large
profit or save himself from a great loss;
but that the capital of the community
in which he resides Is we'll employcd
that 1t cannot be afforded to loan it
fer less than Is per cent. This, he is
restricted from paying, and in conse-
quence is debarred from those adyan-
tages which would result to him If he
had the money. Here, again, is GER
tainly injustice.
The lender must receive rate per
cent. for his risk. Now, it is only rea-
sonabIc that this should be greater or
less according as the business in which
the money is to be invested is more or
less hazardous. It would be greater il
1t VAS to be used III supplying ljldings
or machinery for the manufacture OF
+ matches or gunpowdcr than if il was
to be used in agriculture or NUMBERING.
1t IS on this account that the Southern
Confedcracy is obliged to pay higher
Interest to obtain loans than the United
States, (tor treason is very like a pow.
der magazine.)
There is, then, good reason thattherc
should be variation in the amount to
be paid, both for the use and risk Of
money lent, that is, that interest should
be greater ct certain times and under
certain circumstances than at other
times and under other circumstances.
There may be, of course, such union
Of these two as will make this variation
very great. But our law entirely 10
nores this fact.
Next week | shall have more to saw
upon this subject.
fHILLIPInEs.
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WASHINGTON. Dee 90