Litchfield enquirer., 1867-06-27
Usury.

a crime to take more than six per cent interest for the use of money In another column will be found the debate that question which shows, if proof needed, how completely the laws against treating money like any other marketable commoG- ity rest on predjudice. Almost every man of any prominence in the house. and every business man favored the repeal. In fact advanced what in the extremest courtesy we could term an argu- ment, except Mir. Waller of New London who in- clines to distinguish himself or the wrong side of question rather than not distinguish himself at all.
 Mir. Deming respectable old gentleman from Sharon, seemed to have some sort of muddy no- ton that it laid down in Leviticus that six per cent was lawfulSnterest and eight per cent sin. He couldn't remember the exact text naturally enough but intended voting against the repeal till some could convince him there was none We expect soon to hear that he has voted against bridging the Connecticut on suspicion that the celebrated passage on the impossibility of 'sdam- ming the Nile with burushes' is to be found some where in the prophet Ezekiel.
 The arguments advanced by Mr. Waller were these:
 1st Poor men are now paying all the interest they can afford to pay.
 2d. Men who take more than six per cent are now considered as Shylocks &c.
 3d. That the right to demand extraordinary in terest ill extraordinary times tended to oppression pancs and commercial distress.
 To the gentlemans s first argument reply that t because poor men are now paying more inter- est than they can afford to pay that We wish the Usury laws repealed. They are made to pay exorbtant rates on account of the additional risk of plea of usury.
 The gentleman s statement that men whe take more than six per cents considered extortion- CTS is untrue. All banks do it. indirectly; eve " one who is in the habit of letting money does it. Occasionally an old Copperhead farmer who has little hoard stored away in the foot of old stock ing, from lingering distrust of Government se- curties, loans it at six per cent the personal se curity of some smarter neighbor who usually re- loans at eight or ten.
 Mr. Walters third position that Usury laws tend to prevent commercial pancs is equally false: their tendency is directly the opposite There are sharp times when perfectly solvent traders must have ready money or fail At such times they can afford to pay most exorbitant rates of interest to save themselves from destruction. The law then undertakes to say, most unwisely, that they are not the best judges of their own circumstances that unless they can borrow that money at six per cent which is worth to them perhaps fifty per cent they shall not borrow it at all! Was that the way our national government managed to save itself in it's time of necessity? Money and supplies were ab- solutely necessary-Dd it refuse to give more than the old six per cent for money and tie old market price for supplies? Certainly not By paying from to 12 per cent interest it obtained money by pay ing from fifty to hundred per cent advance it ob- tained supplies, and conquered the rebellion. costly experiment We admit, but one which saved the country. By our Usury laws undertake to say to say that individual similarly situated shall not by similar means save himself from bank ruptcy.
 Let us briefly examine the reasons in favor of repeal of our usury laws. The facts are these. The country is full of capital, yet man offering unimpeachabe security finds it extremely difficult to raise money at six per cent; poor man cannot raise it at all The reason for this is obvious the government, the safest and most punctual of bor- rowers, pays eight. Blackstone sufficiently care full and conservative guide, maintains that private individuals must always pay at least two per cent more interest than the government; yet tbe Waller type of political economists would reverse the rule and compel lenders to loan their money to indi- vidual borrowers at two per cent less than to the government!
 Furthermore, it is unjust to monied capital to undertake to legislate it's income down to six per cent in currency. We do not here refer especially to loans made at time when dollar in paper was worth dollar in gold: the iniustica of payino six per cent interest in paper currency, or about four and half per cent in god on such loans is obvious We assert that just the income derived from all other property has increased by the imitation of the currency, so capital loaned earns and deserves a higher interest than formerly Mr. Potter of Wood- stock vooed against the repeal of the usury laws be- cause ''the farmer could not afford to pay more than six per cent anyhow Does not MT. Potter know that S1O,0O0 will buy nearly as good farm now it would have done before the war; that the rent or income of that farm would be much higher now than before the war, and yet does he expect to pay no larger interest for the money with which he buys it
 The only practical effect of usury laws is to in- crease interest by adding slightly to the ordinary risks of loan. The Connecticut Legislature may just as well undertake to legislate the multplica- tion table out of existence to enact that capital which, if invested in land merchandise, manufac- lures, government stocks, is expected to bring larger returns than formerly shall if loaned only bring six per cent in currency.
 July Monthlies
 The Gn7o7u for Ju1v contains. Rituo1