Litchfield enquirer., 1867-06-27
DEBATE ON THE USURY LAW.

Comdnt:
 Mir. Coe of Meriden, House chairman of the fr- ance committee, called up the order of the day the question of usury. The majority reported the following bill:-
 SEC. 1. Whenever there is no agreement for a different rate of interest money, the same shall continue to be at the rate of six dollars upon one hundred dollars, for year, and at the same rate for greater or less sum; and for longer or shor- ter time.
 SEC. g. It shall be lawful to contract, or pay, or reserve discount at any rate, and to contract for payment and receipt of any rate of interest; pro vided, however, that no greater rate of interest than six per centum per annum shall be recover ed in any action, except when the agreement to pay such greater rate of interest is in writing.
 SEC. 3. Nothing in the charter articles of associ- ation, bylaws of any corporation incorporated un- der the laws of this state, or the United States, shall be construed to exclude it from the pro- visions of this act.
 SEo 4. Title LXvI of the revised statutes, and all acts and parts of acts inconsistent herewith are' hereby repealed
 SEc 5. This act shall not affect any existing contract action pending, or existing 11ght or ac tion.
 [The minority reported in favor of per cent, as the highest rate.
 Mr. Coe explained that the committee had dltf, cred in regard to proper blll but majority had decided to report bill similar to the Massachu- setts law abolishing the laws against usury, ana in the absence of contracts leaving the rate at six per cent. They had resolved that usury laws were always pernicious to business. They are tyrannica1 invasion of the right of mine and thine, and especially offensive to the genius of republl- can government Why should man be prohibit ed from selling his money for what he can get, as he would any other property? It should all be left to the law of supply and demand. The plea of usury is always considered infamous. The law re- sricting interest to six per cent IS not supported by the moral sense of any community All polti- cal economists, from John Stuart Mill downward,
 i 1 pcI1, ..~s..c of usury laws. England repealed it's usury laws fifteen years ago, and no injury has resulted, but great good. Rhode Island abolished hers last year, and Massachusetts has followed. Connecti- cut must not be left in the rear. Mir. Coe cOmpar- ed the effect of placing restriction on the price to be paid for the of money with that of restrict ing the price of any other Srtlcle-for instance, that of houses, or that of flour. It would be as wise to regulate the rent of houses by law-pre- scribing that all should rent at equal yearly There is as much difference in the value of money as anything else. It needs no argument to show that the same rule should apply to money as any nym for lands, buildings, tools, live stock, every thing which furnishes human industry with the conditions of profitable employment. There is no commodity of which the market value is subject to so great and sudden fluctuations money. There is nothing of which the value is more affected by more combining elements, What propriety is there i'll charging man who can give ample secu- rity, the same rate as man who gives more, but takes it subject to the risk of life health, and the chances of business? The permanency of invest ments IS another element Besides, statute law is utterly unable to control the law of trade The at tempt to keep down the price of gold was a start ling commentary such an attempt.
 MT. Gates, of Windham said the only question seemed to be whether the big fish should eat up the little fish by law or without law [Laughter.] He spoke at some length against the ma jorlty re- port and hoped the legislature would hesitate long before legalizing this innovation.
 Mir. Carroll, of Woodstock, member of the mi nority of the committee, explained the report say ing that every capitalist who appeared before the committee was in favor of an abolition of the usury laws.
 [Mr. Woodward, of Norwall, in the chair.
 MT. Stevens, of Hartford read the law now in istence on the subject of interest and declared it decidedly dead letter. None of our corporations, banks or capitalists pretend to obey it's spirit; they all evade it, and take directly indirectly all the interest they can get. He advocated the majority report warmly insisting that money would find it's level ln the market the as any other arti- cle.
 Mir. Potter, of Woodstock, opposed both reports saying that the farmer could not afford to pay than six per cent. anyhow.
 MT. Hill of New Milford, favored the abolition of the usury law, on the ground that it was a dead letter, and was outgrown by the spirit of the age and the requirements of commerce.
 Mr. Hammersley, of Hartford, spoke at length and with great variety of explanation in favor of the majority bill He contended that large amounts of money would have been loaned and Borrowed in
 
 both parties, had it not been for the injurious law in relation to usury. The tendency of this law is to make every man who borrows, pay an immense premium for doing indirectly, If the market is opened again to the influx of the money which has been driven from the State by our legislation, it would be an advantage to all our people,. If Con- necticut does not take steps in the direction of abolshing the usury laws he feared it would be damaging to the prosperity of the State.
 MT. Waller, of New London opposed the majori- ty bill, and contended that the adoption of that port would tend to increase the rate of interest. He assumed to speak for poor men, and said they now pay all the interest they can afford to pay. While listening to the gentleman from Hartford, (Hamersley, his opinions had been for a moment shaken but he forgot that fallacious argument
 "When seasoned by his gracious voice,
 Obscures the show of wrong in it."
 tLaughter.] He contended that the arguments for the repeal of usury laws all unsound. There is no law on the statute books that is not constant ly violated and evaded, and it is no why they should be repealed. Moreover, the men who evade this law are disgraced by the fact of charg- ing more than legal rate, and they gre known as shylocks and usurers, and their memory is tarnish ed by that fact.
 MT. DooGttle of New Haven, favored the bill for the same reason that caused the last speaker (Wal er) to oppose it, because it would benefit the poor man., He believed in free trade between all the people, and was surprised that the gentleman from New London, opposing law restricting the sale of liquor, should favor law restricting the sale of money. He contended that it demoralizing lO nave d ldW Ou tu0 SIdIuI6 DOOhS, uOI SuppOTleu by public opinion. The English were conservative but even they long since repealed their usury laws The rate of interest there is two to two and half per cent.-regulated only by the law of supply and demand All the farmers and poor men of Eng land opposed to any restoration of legal inter est for they pay less for money than they did when it was regulated by law. The speaker referred to Wayland, Stuart Mi and Golden, as opposed to usury laws.
 Mir. Deming, of Sharon, said he had not examin- ed scripture in connection with this matter but he contended that all human legislation ought to be founded on the Word of God. Without being able to quote divine authority for the law he should vote against the majority bl
 MT. Doolttle, of New Haven said the gentleman was perhaps trying to recall the parable of the talents, where the faithful servant put out his mon ey at interest and when it was required returned it increased while the unfaithful servant buried his talent in the earth, and was rebuked by his mas ter in the words of the Savior as fol1owse ssThou oughtest to have put my money to the eXchaneers and then at my coming, 1 should have received mine own with usury." Laughter
 MT. Coe called the attention of the member from New london (Waller) to the fact that the word usury originally meant the taking of any interest whatever for moneys, and it was deemed in Shy locks time as dsreputable to take one per cent as 1t now is to take less than six more than seven
 Mir. Waller made an eloquent speech against the majority bill, contending that it made every man who owns money pawnbroker, and that it would tend to panics and commercial distress. After further debate by Messrs. Ensign, of Harwinton in favor of the majority bill) Coe of Meriden, Gin favor,) Deming of Sharon, (against,) Munson of Seymour, Gin favor) Mallory of Bridgeport, Gin fa