The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1871-09-13
.nnnrsrnInr Interest and USaEY.

Concerning Interest and USuTy'
The ClArksburg Telegraph, which want
TO make it usuIy to lend money at NOR
than six per cent, punishable by for
feIture of principal and interest, seem
irritated because we won't engage In
controversy with it We don't proles
TO have studied this question SO profound
ly as our financial contemporary, but thG'
are a few propositions which eyerybod!
but himself understands that may b.
briefly stated for his information.
A mans money is his own, and yoI
can't by any trick Of legislation compe
him TO lend it to you if no don't choose.
The man who has money'to lend IS hi
own Judge about what Is a remuneFatiV'
interest for it, and will get that II he can
The man who borrows is his own Judge
about what rate Of interest he can Afford 10
pay. -
II you say man shall not lend money
In this State for more than six per cent,
he will, II an intelligent business man.
send It where it will command ten
TO twelve. You do not therefore sue
coed In ohliging him to lend 1t to you at
six per cent. You only drive the money
into other markets where II commands u
better price, ..rI
Either that or men will make contracts
for q greater rate in violation Of tho law
the lender trusting 10 the honor OF the
borrower not 10 take ahVantageoE him
But there Is risk in this and the capitalist
who can get ten per cent on the west side
of the Ohio without this risk Is not going
TO incur it for the same rate on this side
OF the Ohio, unless in cases of excep'
tlonal confidence,
So that the operation OF a usury law,
30 long as greater rates than II allows are
allowed Ii other States, Is to prohibit the
lending or borrowing of money altogether,
TO the equal injury of lender and Dor.
rover, and to drive capital to seek invest
ment In States where no such senSeless
and pernicious restrictions are imposed,
The evils of borrowing are very graph.
ically aud truthfully described by our co
temporary, Borrowing and paying inter,
est Is a bad business unless the borrower
has very advantageous use for capital.
Very lew get along with II successfully,
But that Is no fault of the lender and no
reason Tor abusing him, Every COmmod'
Ity Ia worth It's market price; and 1t 10
just as unreasonable when money Is worth
10 per cent to expect capitalist To lend
II for six as to expect the farmer 10 sell
bis corn for 80 cents when the market
price Is 90. As no man Is compelled to
loan money nj u low rate OF interest when
the rate IL limited by statute, 80 ls no one
compelled 10 borrow 1t nj n high rate
when there IL no statutory limitation.
Both borrower and lender arc equally free
to do rs they please.
Tho value Of money will be regulated
by laws Of supply and demand, which
cannot he controlled by statute or bent to
suit individual interests, and every al.
tempt SO to control II must always prove,
as such attempts always have proved, a
failure. 1t spite Of statutory restric.
tIOns, which exist III all tho States,
money Is everywhere rented out for
the highest prices that the state
Oi the market or the individual ex.
igenCies of borrowers drive men to pay,
those prices being usually fur above the
limits which the law undertakes to fix.
The interest laws are therefore worthless
for any good, and so Far as they have any
effect at all only interfere with the natural
operations of the money market, and by
increasing the difficulties OF lending and
borrowing actually make the Use of
money cost moro than 1t would without
any interest laws at all
We have yet to SEQ the first good rea.
Son why the use Of money more than ofany
other species Of property should be ham.
pcred by legislative restrictions. II Is
governed at last, in reality, by the laws Of
supply and demand, just as all other values
arc. Why not leave It to these, as we
leave the renting Of lands and houses and
the price of all commercial commoditieSs
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