Daily Richmond Whig. [volume] (Richmond, Va.) 1865-1869, 1866-01-11
RICHMOND WING.
THURSDAY MoRNING....JAN. IL, 1866
The Canal and the Uusury Laws


sentials to life and vgor. Figuratiyely speak
ing, she has no back bone, and very Httl,
blood. The completion Of the Coyington and
Ohio railroad and the James River and Ia
nawha Canal, will give her the bone, aud the
amendment Of the usury laws will supply the
circulation. These are the two most impor.
tant measures dependent on the legislation OF
the present session Of the General Assembly
As to the canal, the result appears to depend
upon the movements OF the French company
While they write constantly and earnestly,
through their agent, Of their ability and par
pose to pursue their scheme for its completion,
the arrangements towards that end do not APP
pear to make any progress. II their agent
were present here in person, urging distinct
and reasonable notifications of past lcgiSh-
tiOn, ready to deposit the 81 900, 900 in State
stock required by the eNecutOry agreement rs
security, and prepared to proceed to the or
ganiZation of the Virginia Canal Company, as
provided in that agreement, it is altogether
probable that the work ON tho backbone would
DC speedily begun.
pendent on others it lies wholly within our
own control. If the usury laws are SO amended
as to invite aud encourage capital, instead OF
absolutely excluding it, the effect will be- to
instll new life and energy into every branch vi
industry which makes the wealth and power OF
a State.
There are great many hne-spun theories on
this subject, pro and con-, which we do not
propose to disturb, but will be as plain and
practical as possible.
The effect Of the law as il stands is within
the vision and comprehension Of everybody
Does it furnish anybody with money for the
prosecution Of any enterprise at six per cent. >
Does it prevent the most ruinOus rates of iu-
terest from being demanded and paid Does
it prevent frequent and frightful sacrifices OF
property to raise money 2 Is there an owner
of mining or mineral wealth, or manufacturing
power, or an originator OF any numerical en-
terprise, who can borrow money for his pur-
poses on decenttermS-whO is not forced TO sell
out part in order that the whole may be de-
veloped If this is the daily course Of things,
how does the present law protect the borrowers,
and what is the use of retaining it as a check
on the lender 1t is sufficient to appeal to the
experience Of every man engaged in any bust
ness pursuit, that money could not be made
any dearer, or more difficult to obtain than it
is now, under any conceivable form of legis-
lation. In the commercial centres, beyond tue
little that bank discounts furnish, two to five
-
and the whole control of the real rate of III
Ierest is in the hands of the comparative few
who don't regard the law as affecting the CON
science, and who charge for the risk Of the
plea of usury. The statute fixes taRcy rate
altogether, and, by its own terms, prevents the
possibility OF realizing the end it has in view
1t would seem that the bare knowledge Of
the actual dearth of capital in Virginia. and a
true idea Of the poverty Of the State in consc-
quence, ought of itself to suggest the necessity
OF change in the uSury laws, il only As al
experiment.
The idea OF regulating the value money in
this day by legislation is entirely flllacious.
Money is as much an article of trade As am
other commodity. Ifthe holder is not allowed
to get the general and current value for his
capital in this State Of course he will not in
vest it here at all. While "seven-thirty " is |
States are opcu to loans at seven TO eight per |
cent, the large lenders oftl4 country will not |
bring dollar here to aid in reducing the pres
,nt actual rate of interest, or developing the |
resources and employing the enerSies and IN |
lustry OF the people OF Virginia. Fix the price |
Of dOuE in Virginia at six dollars, with = heavy !
penalty for 4 higher charge, and see whatthe re-
suit will be. None, OF course, will be i'm
ported, and what is made here will he eX-
ported, except such rs may be sold, in evasion
Of law, at enormous prices TO cover the risk of
the penalty. Ii we were alone in the world,
the ease would bo different. But there are
host of competitors for the use of capital, and
We must do as others do, or go without il.
It's u great thing for the people of any couu-
try to get the use OF abundant capital, aud to
get it as chcaply rs possible. National wealth
and power and prosperity depend upon 1t. But
it can't be done 10y ,u.ierbiddu,y all other COM
munities. To get the fullest and lreeSt use OF
II. the s,sOphi must be stimulated and an active
competition among lenders excited. When
there is no protection or prohibition, money
will find its natural level and bring only its
real value, like every other commodity and
below that it is idle to try to force it. Legs
late to reduce its value lOWeC, and it will only
take wings to itsclfand lly away.
The important problem to be solved now in
Virginia is, how To get capital to reconstruct
What has been broken down, and develop what
has been discovered, and employ labor, and
raise crops, and move them TO their proper
markets and at the same time pay no more for
the use OF it than its real value. Like other
articles, its value depends on Incorporation be
tween its supply aud the demand. Sometimes
it is worth more, sometimes less. But in the
ratio in which the supply is increased, is the
tendency to a reduction Of the rate charged for
the use. Interpose by law to cut OF the sup
PLY, and this rate at once advances. Let tue
field be open without restriction, and lhe com
petition among lenders will keep the rate TO its
proper level, while the community has, at the
same time, the use of what it needs.
Whether limitation of ten per cent. shall
be adopted is comparatively immaterial. The
large corporate and individual capitalists who
are now waiting upon the action of the Legs
lsture 10 invest in loans in Virginia, all except
10 lend within that limit, and at rates similar
To those current in other States. OF course
there must be 4 rate fixed by law TO govern
cases where there is no contract, and that may
as well be six per cent. as any other. Indeed
it would be very desirable 10 retain this As s
standard. The great desideratnm is speed,
change of the law SO as to legalize contracts a
rates that will command the money.
The Monroe DoctTine-Executive Action
The correspondence Of the Secretary q
State with the French Minister, in relation t
Mexican affairs, which was transmitted by III
President to the House Of Representatives .
Tuesday last-a telegraphic summary Of whle
was published in THE WIG OF yesterday