The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1871-01-24
sThssvsaasor Money.


everywhere. In Ohio, where the conven-
aonal rate is eight per cent, the. people are
moving for the repeal Of all usury laws, AT
recent meeting Of the Cincinnati Board OF
Trade memorial to the Ohio Legislature
was adopted From this we make the fol-
lowing extract
"Your memoriallsts respectfully represent
that the material interests of the State will be
greatly enhanced and encouraged by the re-
peal of all laws and the removal OF all o5sta-
cles to free trade in money, and therefore re-
commend the passage of such laws as will re-
cognIze It as medium of exchange or CON-
modify of commerce, to be regulated and gov
erned like other commodities.
notwithstanding the restrictions that have
always been imposed by the laws, the price OF
nancy has continued to be regulated by the
supply and demand in the market; and those
communities that have invited the investment
of money by the removal of usury restrictions,
and BY inducements similar to those offered
for safe and profitable investment of other per-
sonsl property, invariably have supply OF
money equal to the demand. and at cheap and
reasonable rates. The price and freedom IN
the exchange of money thus self.regulated
under the SANCTION and protection OF the law
naturally attract large supply, and conse-
uuently produce cheaper market.
eUsury laws Of the State have never been OF
practical benefit to borrowers, because their
evasion is a matter of no difficulty and involves
neither loss nor punishment The fact that they
are dead letter on the statute books, and are
being constantly infringed and disregarded,
has tendency not only to weaken the moral
force of other laws, but also convinces US that
there is something radically wrong In the spirit
and constitution of the present usury laws
which calls for speedy reformation"
Commenting on the foregoing, the Chicago
Tribune, which is an authority in financial
matters, says:
1.-THE movement of the Cincinnati Chamber
of Commerce In favor of the abolition OF all
nsury laws In that State, and asking the Leg
islature to legalize all rates Of interest that
may be specified in written contracts between
borrower aud lender, leaving six per cent. as
the legal rate Of interest only In cases
where no written contract specifies different
rate, is an important step In financial progress
which oil representative commercial assocla-
tIons must follow sooner or Later Usury laws
are relics of the halfbarbaric civilization OF
Europe about three hundred years ago, when
trade was looked upon with contempt by the
robber lords who composed the government
when Jews were the only bankers, and, In
connection with the other contempt and odium
that was heaped upon them, 1t was popularly
believed that It was necessary to restrain them
by law from ever re-enacting Shakespeare's
exaggerated picture in Shylock. The influence
OF these ideas has been continued into the
present age, In the usury laws made to
restrain money-lenders particularly, and has
been the means Of attaching to the charge
Of. 'usury' sort of disgrace which is
not warranted. This has also been en-
couraged, perhaps, BY mistaken notion
with some that the Scriptures condemn
usury. But all the sophisms which are used
as arguments TO maintain q legal limit to the
price for the use of money could be applied
with much greater force for limitation OF the
price of wheat or corn, because high price
for articles of food and clothing strikes at once
at the very existence of the largest class of the
worlds population, class whom the tempo.
rary rise or fall OF the rate of Interest on money
affects only remotely and Indirectly, and yet
no sensible person would recommend the reg
u!ation of the prices Of silcl commodities by
law All right-thlnking peope who under
stand the commercial machinery of the coun-
try recognize that money Is a merchantablc
commodity, and that Its price ought to be
regulated by supply and demand, and not by
enactment. England abolished all her 'usury
laws in 1854, and yet there has been no COM
plant OF extortion, and the States here can
we'll afford to follow her example. Usury laws
besides being Intellectual to keep down the
price of money, are demoralzlng TO the busl-
ness community, because, being founded on
palpable error, people who practice morality
in everything else eVade them Systematically,
thus bringing the law at large into contempt.
One of the latest lodges to evade the usury
laws Is now practlced largely by banks of a
good many cities, as follows: A customer, in
good standing with his banker, comes in to
borrow, say $4,000, at time when money Is
worth from two to three per cent. per month
in the street. A loan of $40, 900 is made, with
the understanding that the borrower shall
leave one-halG of it on deposit. The rate of
interest on the loan is, of course, doubled, and
by this process the bank is enabled to get
some portion of the advance of prices
in the open market. We do not know that
this Is practiced by any of the banks of this
city, but it Is well known that this and dozen
other methods are practiced in the market of
New York and other Eastern cities. The pro-
gress of public opinion Is lD 'Ne direction that
usury laws are not only Intellectual for the pur-
pose for which they were intended, but that
they are demoralizing and o hindrance to
trade"
South Carolina is the only State in the
Union which seriously proposes to re-estab
lish usury laws, which are declared on all
sides to be wrong in spirit; difficult, if not
impossible, of enforcement; demoralzng to
the lender; injurious to the borrower; harm
less to the capitalist who will, under all cir
cumstances, obtain the market rate for the
use of money; hurtful to the business man