The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1871-01-12
Bhs a'allty Visginiaa.
srAUNTON, VIRGINIA.
Thursday, - January IL. 11o7l.
- PER CENT,

1E1-sz-x-=ala-,.-


"onths, has satisfied every rejecting mind
hat the IL per ceut. interest clause in the
Constitution is a great public wrong. In
stead Of the ample Influx Of capital to the
State, from the adoption Of that clause, that
was predicted, and a consequent difu-
sion of the controlling agent of business,
throughout the State, money is absolutely
more difficult to be had, trade seems more
sttagnant, and the general face of all kinds
.of business wears more gloomy and forlorn
appearance. Indeed We may assume it as a
demonstrated fact that no farming commu-
unity can with impunity pay more than..6 per
.eeDt, if that. The operation Of the IL per
cent. law mast result in injury both to the
LENDER and the borrower. The money is let
out at II per cent on first mortgage on land
for five years. Of course it is utterly i'm
possible for the farmer, or land owner, to pay
s5hat rate Of interest from the proceeds of the
Tland. BY extraordinary shifts and sacrifices
of personal property, the annual interest may
Zoe paid up but when the lime arrives for
the liquidation oil the principal it will be
siaalud, in niue cases out Of ten, that the mort
cage Will have TO be foreclosed, the land sold at
sacrifice and the holder of the lien become
The purchaser Here the transaction becomes
disastrous to the borrower, and the lender
4gets piece of property for which he has no
use and upon which he cannot realize 3 per
cent, and his means tied up. A true fnan-
clal economist would rather have his money
out at six per cent, which might, by energy
and judgment, be met by the farmer out of
.lls land, than to let it out at II per cent.
where there is no possibility of it being made.
The operation of the law has been to pre-
vent desirable emigration to and Investments
in the Valley and the State The attractive,
high-sounding tune Of toel0e per cent, has
charmed the speculative elcmeut which ex.
'ssts In almost every man, OF those who had
funds to invest, and instead of putting their
ID means in lands, and coming among us to re-
side, they have preferred to let the money
out at this runous rate of interest, with
mortgage security. The injury has been
two-fold-depriving US of desirable citizens
and inhiatiag the final step to individual
bankruptcy. There are parties whose ope
rations outside Of their farming may enabl,
them to carry this enormous interest witt
impunity. But they are the exceptions.
Not one land owner out of hunaaed can d.
5e. it.
The II per cent. law not only induce
parties not to invest in lands in our State
but it is an cffectual bar to the operations O
every farmer whose necessities may reuuir
an occasional loan, but who does not wish t
invade or distrub his permanent real invest
ments lie cannot afford to pay this cxho,
bltant interest. If he borrows at this rate
5 his business will not allow it, and il he doe
81 not borrow, his personal property must b
sacrificed; for capitalists will enforce thei
SIX per cent. claims in order that they ma
realize from their surplus the II per cent
1t is natural that they should do so, for ever
-s man wishes to obtain as large revenue fro,
his capital as the utmost limits of the la
will justify.
In short, every observing business man mu.
y see and feel, that the result Of the IL pe
cent. interest law is working disastrously
the farming and laboring community, whicl
after all, is the sure and steadfast basis of a
our business operations. Some comnierci
communities may derive an ephemeral adval
tage from the operation of the law, but
cannot but be transitory, fer where the gre;
source of all legitimate business is oppresse
where the fountain Of all prosperous trad
is stagnated-the farming and laboring int
ests-lt follows as an memorable consequent
that no branch of business can be real
healthy and permanently prosperous.
The II per cent. may enable men to hol
at bay for time the wolf at the door, but
certain as effect follows causc-as the laws
trade govern the results of trade-the fin
wind up will be DISASTROUS to nipetv.nine q,
of every hundred who avail themselves
the expedient.
1t operates against investments in land
manufactures, and every brapcl, Of busine
that contributes to the substantial growth
0 the State Our mineral deposits must !
buried in the losom of the mountains. q,
vast water power remain unutilized I; our tin
- Der stand where nature placed it; our lane
become unproductive for want of means
apply stlmulants in short, the whole fnal
cal resource Of the country must be broue]
20 condition of stagnation and paralizatio
We earnestly hope that the resolution
Senator e. Roller, of Rockingham. "
~ DC promptly and afirmatively acted upon
1t expresses the sentiments Of vast maio,
ty OF the people of the Valley.
These are our honest convictions On II,
subject. We are aware that they conai
with the interest of some branches Of trad
out they are convictions which harmopi
with the true, substantial interest Of 4
country, and are shared by the great sustai