Evening star. [volume] (Washington, D.C.) 1854-1972, 1870-02-23
V9uRV La~a.

The Baltimore SUN of to-day has a thoughtful
article upon the general bearing Of usury laws,
az affecting and weakening public morality, and
also upon the injurious effects of such laws upon
business interests. In the latter connection
and it viii be noticed how exactly the case of
Maryland is paralleled by this District-the San
says:
:. The great need of borrowers and the princi-
pal material want of the State of MARYLAND at
this day Ia more capital. More capital means
more lenders. Plenty Of money means cheap
money. Now, the way to make money cheap
importation from abroad-is not to put fetters
ON II, to embarrass and hamper its use to re-
strict Its profitable employment within certain
mm,ts which It Is not permitted to Pass. The
price OF erything else 1t Is found best to leave
As lar as possible to be regulated by the ordi-
nary laws of trade, those which govern demand
and supply, and the circumstances which. from
ume 70 time, affect favorably or unfavorably
public and private credit, and tend to stimulate
or discourage the spirit of enterprise and specu-
lation. Why not the same with money?
An ADDITIONAL argument in favor of a modifi-
cation of our present laws on the subject of usu-
ny Is to be found in the practice of other States
We need more capital here, and yet we say to
loaned out for more than SIX per cent per AN
num-" New Ysrk offers seven. In the Month
ern States eight is the common rate. What in
ducement Is there for lenders to send money
here for investment What inducement is there
for home capital to seek employment at home
" MarylaDd would compete with other States
n Baltimore would rival other cities in the race
of material progress and advancement, and in
the development of trade and industry-we
must remove the barriers which hinder the free
flow and circulation of capital, the obsolete re-
quirements which compel money to earn here
under the ban OF the law what il earns under
the protection of the law elsewhere.
The whole subject is within the control of the
Legislature. The constitution provides (article
=, section 5.) that the legal rate of interest
Snau pe SIX per cent. per annum, unless other
wise provided by the General Assembly," In
the absence Of any contract between the parties
u may be as well TO let six per cent continue to
he the rule. But instead of the present law
winch declares IL to be usurious to exact more
than SIX per cent, and imposes as a penalty
the forfeiture of any excess above that rate
let US have a law which shall leave parties
iree 10 make their own contracts according
10 the circumstances of each particular case
Such a provision would probably have an the
benencial effects Of increase in the legal rate
OF interest, would be more in accordance with
The principles of sound political economy and
would he free from the objection which MAJ
possibly be urged against an increase of rates at
. unle when the country is approaching return
tospecie payments. The subject Is one which
eXctes general interest in the community and
which ought TO receive the serious consideration
VI the Legislature at its present session. The
alternative plan to the one we have suggested is
70 suosntute seven per cent. for six as the legal
rae Oh interest, Any fixed rate, however, which
Is 10 control the agreement of parties, and not
merely operate in the absence of any express
agreement, Is subject to this disadvantage-to
say that no more than seven per cent. shall be
charged Is equivalent to saying that less shall
be charged.