The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1865-12-09
The Usury Laws.

Governor PEIRpOxT, in his annual message,
recommends the repeal Of the laws against
usury. If at any time the wisdom Of putting
a restriction upon the rate Of interest upon
das,hsfnlv nnsiaiaalss, "a-~ l."~-'
emit time,>it should be generally conceded as
entirely impoltic and productive of little els'!
than injury to the interests Of commerce and
the general business Of the country. Our pco-
pie are striving to "recons truct'' their trade
and rebuild their city; and one of the mosl
serious obstacles in their way is the difficulty
of obtaining money for their enterprises. They
have the best securities; but capitalists will
not lend money at the legal rate of interes.
when they can readily get from seven to ten
per cent. !; and they are unwilling to loan it ut
higher rates than the legal interest TO person 5
residing here, where heavy penalties are pre-
scribed for exacting more. This State canno7
isolate itself financially and commercially b.1
ignoring the circums tanceS and the usage s
which surround it, and which prevail in com
munities with which its intercourse is COM
slant and rapid Her true policy is 10 recoS-
Mise and conform to them by her legislation.
She will thus invite capital and untrammcl III f.
energies Of her people.
It is idle to say that our citizens cannot pay
the same for the use of money that other peo-
pie pay :; and it is equally idle 10 expect them
to get the use of money unless they do. Their =
are those who will predict the utter ruin of all
who pay more than that interest which this
State has decided by its laws to be proper.
Many Of those who entertain these views are
free t.ade men-lnen who contend that there
should he no restriction upon trade: that men
should buy where they can buy cheapest, and
sell where they can sell dearest, and that every
rnIng ercept money Is worth Whit TT Win
bring in the market. And why except money :?
Is not that as much the subject of the laws of
supply and demand rs anything else? There
is, indeed, nothing more so; nothing whose
value is so decidedly and suddenly affected by
these causes. Indeed, so inevitable is this,
that the most rigid laws cannot prevent il.
With all the vigilance and the rigor of onr
State in it's measures TO compel the rniue q
money tn ren.ia ,rithont 0eyut,on for if that be
not the object, there is neither wisdom nor
justice in usury laws it has changed just as
rapidly and as frequently as if no law existed
The effect has been to deprive its citizens Of
the use of money when it was worth more
than six per cent: or to throw them into the
power of a few capitalists, who did not scrupe
to violate the law, and who, besides the advan
tage which they had in having the field of
shaving to themselves put on additional
charges to indemnify themselves for mourning
! the perils of the laws against their usury.
| The State would be doing wise thing for
/ its citizens, and for the promotion of its own
| prosperity by leaving the transactions in mo-
ney to determine their own rate of interest. 1t
would increase the capital employed here, and
very much diminish the rate of interest which
some people, by stress of circums tances, have
to pay, by increasing the competition among
capitalists for the purchase Of good paper.