The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1867-02-02
The Usury Law.

The Committee Of Finance Of the House
of Delegates unanimously reported on yes.
terday bill for the modification Of the
law with regard to usury. It declares siz
per cent. to be the legal interest, and au
thorires the payment Of any interest moi
exceeding ten per cent. on losrs TO person.
actually engaged In commercial, mercan
tile, and manufacturing operations. and II
prohibits the banks from charging interest
exceeding six per cent.
What favor this bill will meet at the
hands Of the Legislature We are unaoio "
say. The unanimous approval OF .he oo". =.
mittee Is encouraging. But 'he i,o''0 "
DELEGATES at least has shown sucn oppo-
s;,;on n a change of the law that we
.bonId not be very sanguine Of favorable
reception. We believe thatin all countries
where usury laws have been partially or
wholly abolished, the process by which il
was done was slow and by piecemeal. The
law belongs to that class Of statutory pro-
visions which enters so intimately into the
relations and transactions Of men that
there have been always great hesitation
about altering it, and very strong preju.
dices to overcome before changes could be
effected.
With these examples before us we can
not we'll expect to make wholesale re.
form Of the law of Virginia on the subject
Such a bill, however, as that introduced
yesterday may be passed without more
rapid invasion of the prejudices in behalf
of the law against usury than has occurred
in the war upon them in other countries
and we trust the Legislature may enter
tain the proposition as conservative and
safe. The limitation placed upon the
banks cannot be well justified on any other
ground but that it is necessary TO pass the
bill.
Though such law would be very much
short Of the reform needed with reference
to interest on money loaned, it would be o
step in the right direction, and would show
q considerable relaxation of the anti-com.
mercial policy Of the representatives Of
the heretofore exclusively agricultural
constituencies Of Virginia. All Of the legis
lators admit the hardship Of combining oul
people to per cent, especially our com.
mercial communities, when the Government
We live under pays about nine per cent
But they were afraid to trouble the ques
ton at this time. Money was never more
needed here than now; and this is the
very time when the borrower ought
to be allowed to pay what the Co.
vernment and what the people Of
other States pay. When money is abun.
dant the reasons for the modification are
not so pressing. Men do not suffer for
the want of the privilege to pay for money
what il is worth when its market value is
down to, or belo,c, the legal rate ofinterest.
II is only when it rises above that rate, as
il has done now, that the demand for the
abolition of the restriction becomes ur-
gent. In refusing to grant the prayer fol-
the modification at the time when 1t ismost
needed, the legislators initiate, with beau
tiful fidelity, the logic Of the Arkansas lid
Ter, who would not mend the roof of his
house while it rained, because 1t rdined!
and did not mend it when it did not rain,
because then lie could get along with 1t as
IL was,