The Daily state journal. [volume] (Alexandria, Va.) 1868-1874, 1872-05-16
now TO VOTE

On the question submitted to the people
Of this State in the election now near at
hand, whether the constitutional provision
in regard to interest shall remain as it is, or
the clause which provides that any rate Of
interests, not exceeding twelve per cent,
may be taken for the use of money, if
specifically agreed upon in writing, shall be
stricken out, it is desirable that the people
should vote intelligently, and with reference
to the best interests Of the State. With
the provision referred to stricken out of the
Constitution, six per cent. interest will be
all that can be taken on any contract,
special or implied; and the inquiry which
should be made is, What effect will this
have upon the financial interests of Vir-
ginia ?'' a.c.t..... .. aes..gsh...5 .
Everybody knows that money seeks in
vestment precisely the same as surplus
production seeks market. 1t goes where
it can find the best and most remunerative
markets. AT the present time, no money
will come to Virginia for six per cent. in
vestment; nor would it come here if six
per cent. were all it would command else
where. Our laws Of collection are such,
and the practice in our courts is such, that
every known dilatory plea can be inter-
posed to stay collection and the uncer-
tainty of collecting loans when due, is one
| of the great drawbacks to investments in
any state. What the people most want
here is money-that which may be pro-
fitably expended in thousand and one in
diyidual enterprises that promise to be
handsomely remunerative when entered
upon with the requisite working capital.
How are they to command the money, if
the law interdicts their borrowing it at the
rates given elsewhere? No answer but a
negative one can be given to this. inquiry.
To say that six per cent. interest shall on
ly be given, when money readily COM
mands seven per cent. elsewhere, is prac-
tically to shut it out of investment in all
parts of the State. !,
Money is an instrument To facilitate THE
exchange of values, precisely the same as
IA threshing-machine is an instrument to
facilitate the work of harvest field; and
why should the law fix absolutely the
price of the loan of one instrument and not
the other? We believe that, ordinarily !
six per cent. is as high rate of interest as
most individual industries will warrant the
borrower in paying. But why not let the
commercial value Of money regulate itself,
sprecisely the same as other commercial
values regulate themselves? This question:
1--WE have never seen satisfactorily answered.
9The ordinary answer is, that money is the
measure of value, as yardstick is the
measure of length, and that law to
lengthen or shorten yardsticks, at the
pleasure of the merchant, would be just as
sensible as law to increase or tighten ND
the price of money. But the office oil
money is not to measure yalue-it nevet
does measure it except as to itself-but
simply to facilitate the exchange
Of other values. AS money,
it has no intrinsic value to measure any,
thing; as gold and silver, it may have an
intrinsic value that measures itself, that is
all. Why then, we repeat, should we
have law absolutely fixing the price il
and not apply the principle
equally to all other instruments of value (
We answer, there is no reason why we
should have such law d; and, consequent
ly, there is no reason why the people,
should vote in favor Of the proposed
amendment to the State constitution. 1t is
a safe rule ''to let well enough aloneo /; for
the more we tamper with constitutions be$