Daily Richmond Whig. [volume] (Richmond, Va.) 1865-1869, 1866-01-19
Virginia Legislature.
SENATE
THURSDAY, January is, 1866.

HOUSE BILLS READ AND REFERRED.
An act to amend the Code of Virginia in relation
TO the attac hment of steamboats, ana other vessels
ound within the jurisdiction OF this State an act to
incorporate the Whitehall Mining ana Mannae,
| turing Company; an act amending the charter OF
| the town Of Danvc an act to incorporate the
| Whitehall Manufacturing Company
BILLS PASSED.
Uousc hill TO incorporate the Richmond Home In
surance Company; House bill amending the Code
concerning officers fees for taking care OF criminals.
PENCE LAW.
House hill relating TO fences was taken up and
postponed, by consent until tomorrow, Friday.
THE THREE THOUSAND CODES.
Mr. MgRcIER Of Louduun, moved that the eXpe-
dirnry lie endured into nf distributing The Codes Of
1850 among the several counties OF the Common
wealth, which was agreed To.
The Joint resolution IN reference to the copies of
the Code of 1869 proposed TO be distributed among
the members of the General Assembly was then Ia
ken up, and after some debate rccommittcd To The
Library Committee.
PUBLIC PRINTING.
The bill TO regulate the Senate printing was re-
p1t.d back with substitute, which was adopted.
discussion ensued upon the question of the third
reading OF the bill, when the order OF the day WAS
called and further debate prevented.
TnE UsUEY LAWS.
The bill for the repeal of the usury laws was taken
IN as the order oil the day. Inc lOIoWllS Is the
important section:
ISEC. /. The LEGAL rate of interest where no con.
tract in writing is made for greater rate shall con-
Time To bc at the rate Of six dollars upon one nun
drrd dollars for year. and rroporIohatcly Tor
e1ctcr ar less sum- for longer or shorter time
But parties may contract in writing Tor Ite oil M
tc.cst 10 he paid subsequent To the contract not eN-
cce,ns ten dollars upon ONE hundred dollars Tor
year and pruporOnatcly for greater or less sum,
or for a Longer or shorter time; provided however,
that where debt or loan of money, bearing great
or rate OF interest than SIX pee ccntu per aiiliu IS
secured hy deed of trust or mortgage on real estate,
said deed o trust mortgage shall only ennre To Sc
ne the said debt or loan and interest above SIX per
g .ntpm Der annum for three years from the date OF
the said deed; and from the end OF The three years
the interest on the debt loan shall be but six per
rrntum per anuunl, and the deed shall enurc Ia Sc
cure the said debt and interest.
Mr.. BOLIISG Of Petersburg, then offered SnbSti-
tutc is follows;
Section t. Legal interest shall be at the rate of
six dollars upon hundred dollars for year, aud
prupurt0natcy for greater or less sum, or lnr
LONGER or shorter time, when Il higher rate shall
not Ice agreed between the parties as hereinafter
provided. But contracts hereafter made not with
Il bank, for higher rate OF interest not exceeding
ten dollars upuu one bundled dollars Tor year, ana
propartionalcly for greater or less sum, or Tor
longer or shorter time, shall he valid it miwriting,
and for the loan or forbcarance oil money Tor pc
Rod not longer than two years. Ana any BANK OF
discount, circulation and deposit may loan money
and discount bills of exchange pTOlnIsSoy notes, az
other negotiable paper, ut rate oil interest not en-
creling eight dollars on one hundred dollars for
year and ruportionacly for greater or less sum, or
for Il longer SHORTER time, and may receive pay
ment of such interest IN advance.
Mr. CAEELL said lac for the repeal oil
the present law, and allowing parties 10 con
tract us 10 what interest should bc paid; but where
no contract was made, continuing six per cent. ~
the legal rate. lie thought there was nothing IN the
argument that uSGry laws should not he changed
4 AZ Nom n1rp ~
age, have been disspated by the light OF modern
truth.
Dew McCulloch, Say, Ricardo, and Jeremy Ben
tiiam all opposed to the uSury laws In 1871,
in the House Of Lords Of Great Britain bill passed
uRaaiao.lSiy repeating them. On that occasion,
Lord Brougiam said, the usury laws were not
merely bad commercially, but also morally; no.
thing could be woisc than those laws The present
usury laws only apply To loans on the security OF
real estate.
MIR. CAGELL opposed usury laws.
l. Because government can't fix an interest
which, at all times and under all circumstances, AMI
between all parties shall he the same. hen we are
allowed t0 Judge of the value Oi everything else,
why not Of the rate of interest for money loaned
You are allowed 10 contract, without the interference
Of law, for the hire of Il horse, or the rent of 4
house why is il that boNOwcr and lender can't he
allowed to settle between themselves what interest
shall De paid for money loaned!
. l;rrllise there is :, great want oil capital, more
than ut any previous time, in the state OF
virginia. and we shOGd 50 lcgiSlaic us To draw
money into and no. OHt OF the STATE. Many States
both North and South, allow higher rate OF IN
lerest than is allowed in Virginia. The United
States Government is now paying on loans 40.
The devastation of war, and the destruction oil our
late currency has, in this state diminished capital
and increased the want for II. The repeal or essen
tal modification of the usury laws Is necessary Ia
attract capital to this State, aud TO prevent much al
what we have from leaving 1t.
3. While uSnry laws exist lenders Will charge Dor
roWers 0diiiDnd per cent. for rN, to cover losses
bv reason of some pleading uSnry. Besides, many
honest capitalists, not willing to violate the law ia
the State will hoard, send To other States Their
money, leaving the field to many lenders less Scrn-
puluus. The law Is now much violated because
many do not see any reason Tor 1t.
II usury laws are repealed men OF small capt.
tai can get money more easily. Poor men can an
tcipltc their labor and engage in new enterprises.
The unlrrrn@ of capital III loans will operate mnc
i'm favor of those in moderate circumstances than OF
the rich The wealthy capitalists can always pr
cure money. The poor man should lie allowed Il
fair chance To get money and anticipate hIs labor.
| see no necessity for liking maximum. 1t would
seem To me rather surcndcrng the principle upon
which NE irrnund nljartinnS To the usury laws;
but yet much prefer the substitute al Senator Bol-
ling to tile present ISury laws. | am afraid, II we
fix Il maximum the rate Ot interest would be- apt 10
90 mp 10 that. the Legislative opinion OF the proper
rate of interest; while if we liz no maximum, SUCH
would probably he the influx of capital now boarded
which would circulate in loans, that believe the
rate of interest would not he cXtorOnatc
Let us try this experiment (I you choose to call it
such) OF repeating the nSnry laws. II 1t does not
work we'll W. can return to the old law. liut feel
confident that the passage of this bill will he iu,ii-
fled by experience and ITS benefits be felt in the nj
coura.cinent of individual enterprise aud in the de-.
vclopmcnt OF the resources of the Stale.
Mr. BOILING, in support of his substitute, argued
against the advocates of an unlimited late oil inter-
est: hc stated that money was not u mere com
modify, like articles OF general produce. lequot"d
the opinions Of eminent juriSltS i'll support ol his
views and said they have been proven by the fact
that twenty three OF the United States have maxi
mum of SIX per cent while ONLY one (Minne>ota) has
no maximum at all. lie referred to the authority of
Governor Wise and leading statesmen in this country
and in England, aud maintained that maximum
rate was necessary To save the State from ruin
Mr. Meade, OF Frederick, was opposed 10 both the
original bill and the substitute, and proposed ~ an
amendment to the substitute, tn strike out ten and
insert eight dollars per cent. per annnm rs the
maximum lie thought that the passage OF an act
REVEALING the Ilsury laws would lower the price OF
land and that its result would be to cause all those
who now owe money, To have to pay the highest
rate allowed by law.
Mr. Keen, Of Pitisylyania, proceeded TO make
some remarks, when, on motion, the Senate adj
inurupl