Spirit of Jefferson. [volume] (Charles Town, Va. [W. Va.]) 1844-1948, 1869-01-26

of others who had confidence in stringent
usury laws, were fullyIverifed. Interest ranged
from two to ten per ent per month, and loans
were executed for Bng periods of time, on
speculation, as high as forty per cent per
annum. Although the experiment lasted but
feo months it is tie deliberate opinion of
some of the most intelligent and respectable
citizens of Wisconsin that the enterprise of
the State received check from which it can
not recover for twenty years.
CATER the experiment had been tried, and
usury laws re-enacted, we addressed letter of
enquiry to R. w. Wright, Esq, of Waukesha.
Wisconsin, in regard to the practical results.
The following is an extract from his interest
ing reply, dated Dec 18th 1851"
s'The results of the law (of repeaD were so
disastrous to the best interests of the State and
so contrary to the expectations of its friends,
in Increasing instead,of diminishing the rates
of interest, thats experiment was very
readily abandoned Its bitter fruits were left
behind The high rates of interest paid by
borrowers had destroyed the confidence of
lenders, and the consequence was that money
became scarcer than ever. Instead of beget>
ting a spirit of industry and frugality, the
borrowing of large sums Of money at these
high rates of interest increased the prodigality
anu expenditures VI IuJoO :" uO hSlS AAS0N0
involved in debt,aud brought ruin upon others
who sought to traffic in money as an article
of commerce. Men got passion for borrow
ing, and as the demand for money increased,
and with the demand the hazard or danger
of losing it, the rate of interest advanced, the
rate being always in ratio compounded OF
the Inconvenience and the hazard. As the
result of all this, we find nearly one third Of
the entire improved real estate in Wisconsin
under mortgage, 4 greater part OF which Will
have to be sold, sooner or later, at the end OF
a decree. Men are now paying the most ex-
orbitant rates of interest to rescue their farms
from destruction, when, had it not been for
the law of 1919, and the spirit of recklessness
and extravaganza which it inspired, not
dollars incumbrance would ever have been
put upon them: Hundreds of persons are now
iaboring in the mines of California to keep
down the interest on the bonds and mortgages
hanging over their property in this State
Such, in my judgement, has been the result
of this great experiment to divert money from
It's Legitimate purposes-the purposes of ex>
change in Wisconsin.
Having, now, referred to the history of the
repeal Of the usury laws in Indiana and Wis
consin, come to New York, where the same
experiment was made; and to show what the
result was will again quote briefly from the
message of Governor Wise. He says:
"Before 1887, the State of New York
trusted to the falociOus policy, SO often de-
nanded by money lenders, and found out by
sad experience that it was fatal to the indus
try of the people. At that time the Assem-
bly, applied remedy, which continues to be
the law OF the State, and is the most severe
of any in the United States against usury.
The usurer is made liable to lose his whole
debt, to be fined thousand dollars, and to
be imprisoned six months"
| will, now, in conclusion only add, that
wise is the man who takes warning from the
experiments Of others, and if we, with these
facts and experiments SO plainly brought
home to US, are resolved to try the thing
over, we shall do SO with our eyes open, and
will deserve no pity. Not only in these in
stances, but in all others throughout the
world wherever this experiment has been
tried, the same sad results and worse have
followed and, invariably the evils resulting
have compelled their re>enactment.
Very respectfully,
OBSERVER.