The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1871-03-17
The U.ury Laws.
4 Fer the DIsratcb,1

AOUDUuN TO-, SA., mBfCu i, 1oi1s
Messrs. Editors We noticed some time
ago that Mr.. Mathews, Che representative
from 'Loutloun, had reported o billFto re.
store the old law making the legal rate oil
interest o per cent. throughout the State oil
Virginia. The above bill was no doubt
suggested by a certain class of individuals
muo ihakes business of trading upon Dor
loweu capital, to subserye their individual
put pose and not the general welfare of the
Puoitc. MIR. Mathews very much mistakes
Inc sentiment of'the people generally if he
supposes that any considerable number of
Inc cltlzens Of this State desire repeal of
tne law IN Its present form. The Lepisla-
.ure nad better fix the rate of Interest at is
pei cent. Than to exclude capital from en-
CeIlng tne State, as q reduction of the nres.
ent rate of interest would most certainlv
a;hect. beiore the present law was adoDted
~ was quite common for individuals to lend
.heir snrpins funds. out in MARYLAND, Ohio.
ulia osner western States where money corn.
lnanded higher rate of interest than & nor
cent; and OF course they will resort to the
same means II the present rate of interest
Is not allowed to prevail, thus depriying the
otate OF tnose facilities and means which are
SO needtul to- sustain and carry on her bust
ness concerns. The Legislature of Vir-
glnla has no more right to restrict the inter
est on money to 6 per cent. than, it has to
restrict the per centage of the merchant
grocer, butcher, DC, and other trades upon
their articles of traffic. The merchant.
grocer, &c, are allowed to charge Just what
per cent. they please upon their articles OF
trade, it matters not how exorbitant. Why
should then the per centage upon money
1.-THE basis of all trade) be restricted by law
to q certain Der cent, especially at time
when 1t requires double the amount of mo-
neg to purchase the accessories of life? A
merchant may borrow 800 from an indi.
yidual, and invest it at a profit Of 80 to 10t
per cent, yet that Individual is allowed to
receive but Sc for the loan; otherwise, he
forfeits both principal and interest. Is thi:
discrimination in favor of particular class
of individuals just and proper? Doe:
the Legislature of Virginia suppose
| that by reducing the rate OF interes
it will compel individuals to loan thell
money out at that rate, when they can cross
the Potomac or enter any of the neighbor.
! ing States and receive from Il to ID pei
! cent? Such a law is certainly the best lega
means that could be adopted for furnishing
capital from the State, and causing 1t tt
seek investment elsewhere. Besides, if the
present law is repealed, paper-Shaving viii
| take its place, and an individual, to obtain
money, will be compelled to have his paper
discounted at the ruinous rate OF % to ~
per cent, which would be infinitely worse
than paving the present rate of interest. /
an individual is convicted of usury under
the present law of Virginia, he forfeits boil
principal and interest in favor of him who
pleads usury. Now, such a law is both 40
Surd and denordlizing in the extreme. II
often tempts individuals to borrow money
at usurious rates merely to plead usury fol
| the sake of gain.
Several cases of this kind have really oc
Cured in this county. But if an individual
| is convicted of :rlsury under the laws o
Maryland he is only required to forfeit the
excess of interest over the legal rate. Nir
gnia would do well to modify some of hcl
laws after those of her sister State, Mary
land. Money, like other articles Of trade
will be governed by the laws of supply ant
demand. If it is plenty, it will command
low premium; if scarce, high premium
obeying the same laws of trade by which
| other articles are governed and regulated
1t is therefore very questionable whether
legislation OH this subject will conduce to the
general welfare of the public, but it j:
rather calculated to obstruct and embarras:
the natural laws Of trade. which cannot
and will not, be subjected to any particular
! legislation. COMMON SENSE.