The day book. [volume] (Norfolk, Va.) 1857-1867, 1866-01-25
OUR MONEY DIFFICULTIES.

OUR MONEY DIFFICULTIES.
We, yesterday, urged upon our legislators at
Richmond, the passage of an uniform Stay Law
as palliative for the stringent evil OF the
times-the want of ready money. We recur
to the subject to-day, for the sake OF propo-
sing another important palliation-a revision
of the Usury Laws.
While we are not of those who think that
repeal Of these laws, and an authorization of
larger percentage of interest than the laws now
allow, will prove an efectual cure for our
money disease we are yet decidedly of opinions
that much relief may be obtained by legali-
zing higher rate Of interest, upon contract,
than six per cent. To modify the Usury
Laws, is not only to request those among us
who have money to invest, to loan it for
highly profitable return but it is to invite
capital from outside quarters to come into our
lap, and make itself fully at home.
That some results, and those highly bene-
fetal, would follow the proposed legislation
cannot be doubted but the times must still
continue stringent. People abroad can find
very good use for their money and unless
they could gain decided advantages by trans
ferring capital to this market, they would fail
to "see the point" and would go on using
their cash elsewhere Therefore, we say we
regard modification of the Usury Laws as
merely palliation for the epidelnc-not an
effectual cure.
But let us try the remedy, by all means. If
it will not entirely cure us, it cannot fail to
prove serviceable.
The laws now are severe against charging
more than six per cent. for the loan of money,
either directly or indirectly. They are framed
with the express purpose Of preventing people
from lodging their provisions. The lender
may be brought up upon oath to show the
true amount Of interest charged by him. and
if more than six per cent, be shall lose the
interest and pay costs. The borrower, where
he has paid excessive interest, may recover
back the excess by lawsuit within one year.
Another section imposes upon the lender, the
forfeiture of double the amount of his loan if
lie takes more than six per cent interest-one-
half to go to the intormer.
Notwithstanding the stringency of the laws
in regard to interest, they have become virtu-
ally dead-letter. The honor of the debtor
land Of all concerned) is relied on and the
lender openly charges as high rate of inter-
est as he can get. 1t is only the timid land
those who have large sums to lend) who are
deferred from casting out into the sea of af-
fairs and taking all they can catch.
The laws, as they now stand, are produc-
tive of evil, rather than good, and the sooner
radical change is made, the better. They
operate to produce hardships upon the bor-
rover for whose benefit they were really in
tended. If men take risks upon themselves
they insure against loss by charging higl
profits. Hence five per cent. month is nc
uncommon demand for the use of stipulated
sum. That rate is paid daily by some of the
anxious or enterprising ones among us.
Were the Usury Laws properly modified
we might hope to see two per cent. month
referred to as the ultimatum between borrow
ers and lenders. An allowance pot to exceed
that rate, would, we conceive, bring consid
cradle amount of capitol into the market, and
render the times somewhat easier.
Some money would probably be lent at {
less rate; and many could afford to pay more
than six per cent. for considerable period
as they might thereby tighten their present
difficulties, and could use the resource to ad
vantage.
But the Legislature should not rely upon 9
modification of the Usury Laws as the soil
duty devolving upon them in this crisis. 1t
should go hand in hand with other Legisla-
ton, such as wholesome and uniform Sta,
Law, sanctioning of the past action of tn
Courts of Justice, and provisions for supply
ing the gaps of evidence which have beer
made among legal records by the ravages o
war; Then the members may hope, on theil
return to their respective constituencies, to bt
greeted with the proud welcome for each
"Wen done, thou good and faithful servant !
We have such confidence in the intelligenc,
and uprightness of our own immediate repre-
sentativ es, as to prognosticate that they vii
earn and obtain this reward for themselves.
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WHAT'S THE MATTER9
The people of Petersburg recently got up q
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