The day book. [volume] (Norfolk, Va.) 1857-1867, 1866-01-10
What ought to be the Legal Rate Of
INTEREST," ..'lf -fs mi 81

Many people, great many people-most
people in Virginia and in many other States of
this Republic now entertain and have long
entertained the idea that six per cent is the
rate of interest sanctioned by the Bible and
sound morality. 1t may seem a bold asser-
ton but we nevertheless make it--that this
idea is all delusion, and that the said rate of
linteres. is not prescribed either by the Bible
or the code of morals. .H5 Ha|s
If we go to the sacred volume we will find
that any rate of interest, even one per cent.
was declared usury-at least in all transac-
tons among the Israelites.
If we 20 to the code of morals we find there
in prescribed no fixed standard-one COM
munity adopting six per cent, another seven
and some eight, ten and twelve. as the just
and lawful rate of interest to be exacted
upon loans of money. England has changed
her rate ofinterest again and again. The first
law upon the subject passed by her Parlia-
ment authorized ten per cent Since then the
rate has been often changed. Sometimes 1t
has been fixed as low as three per cent, and
sometimes it has Appropriated to the original
rate of ten. ...... a. e
How then did the people of Virginia and
some other OF the old thirteen, get the idea
that it was sinful, or immoral, tc charge more
than six per cent, for the loan of money? Be-
cause Virginia and others of the old thirteen
happened to be settled by British colonists, at
a time when six per cent, was the legal rate
| ofinterest in the mother country! Had said
colonists come over hundred years sooner,
or later, they would have brought with them
different ideas in regard to the moral standard
of interest for the legal standard was cou-
stantly CHANGING in Great Britain .....s. 10
The sires happened to come over the ocean
at certain time-when certain rates of inter-
est happened to prevail in their mother coun-
try-and their descendants have inherited the
ideas upon the usury question, which happen
al to be imported by their forefathers.
The question Of the proper rate of interest
is now before the Virginia Legislature. 1t is
one of vast Importance to the future pros
perity ofour STATE. We wantmore currency.
Our people have abundance of lands, but they
need the ready money to make these lands,
productive. They must borrow large part
Of that much needed currency. Can they bor-
row it upon Virginia, landed security at six
per cent, when the best mercantile paper OF
Baltimore and other cities beyond the Potomac,
can be bought at eight, ten and twelve per
cent, discount?
New York was wise to raise many years ago
her rate of interest to seven per Cent; because
foreign capital was attracted to her great conn
mercial metropolis, in preference to cities where
lower rate Of interest prevailed. But would
not New York have shown more wisdom and
business sagaci'y, if she had passed law to
this effect: "Let all sane people of lawful age
have the right to make what bargains they
see proper about the fate of interest they are
willing to pay or receive, but in the absence
| Of any special rate agreed upon In ,oriing, the
legal rate shall be---per cent"