Evening star. [volume] (Washington, D.C.) 1854-1972, 1869-02-17
THE UsURyLAws OF THE DISTRICT

At the special meeting of the Senate on Mon
DAY night to consider District matters, the DILL
wac called up to repeal the usuIy laws of the
District. when the following took place:
MI Davis was opposed TO legaI,zing any
rate nlehsr tnan six per cent There were but
Jew people able 70 pay more than that and A
higher rate than six per cent. was operous and
oppressive on the industry of the country As
pad stood up for the interests Of this District
LOT tnirty years, be would resist the passage o.,
ne Dill BY all means in his power
mr Harlan said higher rates Of interest were
permissible in New York and Baltimore In
moIe, De understood, a contract could be
mace Tor eight per cent, and the consequence
as those who had money here sent IL to New
hork and Baltimore for in yestment and citl.
zens OF TINS District who wanted to borrow
money mad to go TO Baltimore to get II. The
committee thought this was hardship, and
the Object Of the bill was 10 keep the capital of
this District at home.
Mr.. Davis said no excuse could iu stlfy the
imposition Of a usurious rate of interest and
insisted upon the bill being laid over So or
dered."
Tine bill IN question places the legal rate of
Interest at six per cent, but allows special
written contracts to he made for higher rates
MI Garrett Davis sticks faithfully to The
anuGuated notions prevailing as long ago as
I7Vs. when the present usury law of Maryland,
under which the District now suffers, was
adopted. The world has moved some since
i'N, but Mr.. Davis has not. MARYLAND has
modified this "relic of barbarism," but Mr.
DAVIS wants to maintain the dust-sanctified
law for the benefit Of this District The idea
has long since been exploded that the purchaser
OF money can BE- benefited by attempting To
regulate its price, any more than by undertak
ing 10 nj the price OF any other commodity
beef. bread, shoes, or hardware.
Money. like any other article, is worth lust
what Il Will fetch. and any attempt to fix the
Prlce Tor the borrower simply causes it to seek
other channels and other localities where there
Is no law to prevent Its bringing its market
value. And whatever might have been the
'siue of money in 1904 or 1850, it Is pretty GER
tam that with the imitation of prices by the
war, SIX per cent does not represent that value
COW should Congress decline to repeal the
usury law, it will commit the absurdity of al
lowing Government creditors TO receive seven
ara three-tenths per cent, (and more on gold
interest bcnds,) and of refusing to permit other
Creditors TO take over six per cent.
Those who understand the workings of the
District usury law VIII be apt TO smile at the
reasonlng OF Mr. Davis; but with the necessi-
tous borrowers the grin will be gI I'M one. IL is
iuSt ;hIs class OF borrowers who are ground
DOWN by the usury law. Why the very par
ties who are now labOring to get Congressional
action for The repeal of this law citizens OF
limited means. who find II almost impossible
under the usury law, 10 raise the money need.
I'd 20 carry on their business. Men of char
scter, who have money 20 invest, would
gladly IeId TO them at the price money
y :aIrIy worth. but of course are not
Inclined 70 let II At six per cent, when
they can. without the slightest risk get
$40 N Government bonds convertible into
money Al am moment. The result Is that the
Eecessitous borrower Is thrown into The clutch
81 y ~ 49, -.
tn law, and who bleed him TO the extent OF
from thirty 10 sixty per cent. No business
man can pay such interest and stand; and
hundreds can date their ruin from the moment
they were sent to the sharkish money-shayers
by his very usury law, upheld by Mr. Davis
n working for the benefit of the borrower
Millions Of dollars are locked up in this city
a Government bonds, and IN stocks of various
kinds, hat would, Were the usury laws re-
peaied, come into circulation to be used in
building up the city. Large sums of money
are sent sway from here for investment where
there l. Tade in money, taking lust so nucb
sway from the working capital of this CITY.
Money that would come here for in yestment is
hIndered by our usury law. Recently "solid
uaI' Of Baltimore, who lets a large amount of
rHorey on real estate was applied to for loan,
20 Or secured on real estate here He was
wiilIg 10 do II at the same rate he could get in
Ba!tinore-o per cent-but on learning that the
DID Maryland usury law was still In force
here. ne declined. Recently, too, a party in
this city who come in possession Of some SsO.OOO
;aiher UNEXPECTEDLY, was disposed TO Let il az
isIT rate OF interest but not per cent, en- real
estate security IL this city; but he too come
upon The snsg of the usury law, and sent his
money elsewhere for investment. These are
si0gie examples OF hundreds that might be
named, showing how the usury law works to
'ae disadvantage sf borrowers, and of business