Oxford Democrat. [volume] (Paris, Me.) 1833-1933, 1870-02-04
The Esurv L0,cs.

mission, to state, very briefly, some OF
the reasons for which 1t appears To me,
that the present Usury lac limiting the
interest upon the use of money to SIX
per ccnmm, should be repealed or modi-
fled by the present Legislature. leaving
the rate subject TO agreement, except, oil
course, for rate to govern in the absence
Cf contract. and maximum rate to ac-
crue on deferred judgment after its rem
dition.
The law is almost universally diSre-
gardcd or evaded This tends to demon
alizatiou and a weakening of respect Tor
law. One inefficient law is worse than
no law.
Money is a commodity, and subject Ia
the memorable laws OF trade. Ii will
seek and find the most remuacrative
employment consistent with security.
If we unwisely restrict lis profitable use
at home, It will GO elsewhere, or seek
those forms of investment not effected by
suchlcgislatiou, as governments securities,
stocks. municipal and railroad bonds.
A large part Of the present surplus cap
iral of the State Is already withdrawn
from active business and invested in this
manner, to the gseat detrimcnt of public
enterprise. business men, and all needy
borrowers.
Tho restriction upon rates drives out of
the market honorable and conscientious
lenders. and gives the business into the
hands of eN,ortionate Shylocks. No cap
italis,. having regard for his good name,
carys TO be SiigmatiSed as n Insurer, rs
he i sure to be if he asks the borrower
rs much as he receives upon government
and other securities. The borrower is
thereby compelled to resort to sharpcrs.
The removal restrictions upon rates
will increase the supply for all legitimate
business purposes and thereby surely re-
duce the rate. not the nominal rates, but
the actual rates. II will bring in new
and better class OF lenders. who now have
their money otherwise employed. and
stimulate home business and home enter
prise. No case has ever occurred where
the remo,M ct restriction has caused
higher rates TO prevail aui never will in
a country like this, where the investor
can choose his own investments.
Borrowers Of money upon mortgages,
small mechanics. farmers and others
who wish small security temporarily. up
on their real property. are placed at
great disadvantage hy this restriction,
a. few will lend ut all, subject to fore
closure and redemption, unless paid a
large bonus in advance.
Bmk directors arc placed in the un-
pleasant dilemma officiating the law and
their oaths byttking the rates ofdiScount
they are all receiving Tie Saving
Banks are all taking more than legal
rates and dividing TO their numerous dc
po>i,1rs more than the legal six percent
It The directors Of our banks. who are
from our most worthy and substantial
elias, oc citizens. willuo; observe he law.
and even pc1urc themselves in it, viola
ton, who viii regard il?
The free and flexible flow Of currency
and unrestricted rates. tends TO produce
moderation and stability in monetary nj,
airs and !, q preventive Vi sudden financial
revulsiou> The ircrr The better. This
j. now well c,,abli,hed by eNprricn and
j. an juporian; fact No restriction is now
placed upon the rates ia those great none.
tarv ccu,yr> OF the worlds business
London and Amsterdam The bank or
England T., a sure thermometer OF the
fuguc!1l situation. the rise ami lIll OF
,heruc, Of interest being sure Indications.
which al commercial England regards
Ifrtt,S advance, business men take the
hin, and contract their engagements. uu-
III the inflow 81 capital the increased de-
mard brings ia, again cqualikc, rates, or
until bushes, j. trough, within healthy
lul safe limits. oar system admits of
40 such ncNjDi'i,y, legally.
W,a>pire to become a g-cI, manurac.
tory state. TO improve our waste water
powers and foster and encourage all the
diversified mechanical cmploymcn,s
Let Us then keep our capital NJ home and
allow tina, of Others 10 bc legally used
here ou a advantageous terms a. else
whore Let u, permit those who have
already accumulated capital 20 assis,
those who wish TO accumulate by engag-
inn in the activities of business, to their
mutual advantage.
In conclusion Your correspondent b"gs
TO udl be is now. always has been and
fears he always shall bee, money
BORROWER.
I0FicUiturot Meetings.