The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1872-12-04
Interest:-usury.

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raj Government cit is this matter OF the
interest paid FOR money The report Of
the Controller Of the National treasury
nyonosaS that this shall be- done. lie
very jSSt.y grounds the right to Interfere
upou Che constitutional clause giving Con-
cress the right to regulate commerce.
amongst the scyefal States. There Is no
noias tin the transactions of the people
which bears more directly upon the
commerce among the States than this
very one Of interest paid for the use OF
money. Tt IS the indicator of the value OF
money, and when nelghboring States dllier
IN their standard of its value the intercourse
between them must be inconyenientiy dis
turbcd.
We copy below, from tho Controllers re-
port, an important extract upon thls sub
iect. Itbcgius with paragraph On the in
terest charged by the national banks and the
question Of their exacting usurious interest.
We present. /. along with the rest as inter
estins and as showing the intention OF Con-
grcss On the subject. The national banks are
REQUIRED to respect the State laws In their
charges for the use Of money, and these
charges are declared usurious when higher
than the legal interest in the States IN "hlcn
they arc located. go
Our forefathers recognized the absolute
necessity of uniformity In laws and reguA-
tons relating to commerce amongst the
States. The representatives of oil the States
coucurred In cases the most palpable wherein
the Federal Government, "for the general
welfare" should assume the control. But
there has been always q hitch upon tho mat
ter of banking, making and issu-
ing bank notes, and SO on. Early in this
century the fight was upon the National
Bank. Mr.. CALHOUN, who, in the third and
fourth decade, was considered the leader OF
the States Rights party, was in the commence
,nent Of his career as national statesman q
warm advocate of the National Bank, as he
was the supporter OF protective tariff. On
the latter point Massachusetts was his bitter
opponent. Later in life-in bis midcareer-
he changed his base, and opposed with all
his might both the bank and the protective
tariff. On the latter he led his own State
into open rebellion against the Federal Gov.
crnment, and the clash Of arms was only
prevented 10y compromise.
On the delicate questions Of banks OF cir
culation and the power of the States over
them there has been singular division Of
opinion amoug the parties. The Federal
lists entertained the opinion that the States,
under the Constitution, had not the clear
authority to grant any such power as that
OF banking as it existed before the war.
The States Rights mon denied the power Of
the Federal Government to authorize paper
money banks. The war settled the question
BE- the establishment Of tue national banks,
based on the credit of the nation, and by
abolishing all State banks Of issue. There is
now not one within the broad limits of the
Union.
Now, then, the Government having as
sumed this control over the matter Of the
making and uttering of bank notes as the
medium of exchange for the people, it seems
that it should establish the valuo of money,
SO that the equality Of its distribution may
not be disturbed for the want Of uniformity
Of valuation. 1t is important that the inter-
course amongst the States should be iacili-
tatcd by this equality. 1t would greatly pro-
mote the case and simplicity Of transactions
between people of different States, and thus
become one Of the most valuable means OF
Regulating commerce among the several
States" The power to coin money and re-
eulatc the value thereof, which exclusively
belongs to the Federal Government, and the
power to authorize the making and uttering
of paper money, now exclusively exercised
by that Government, should, upon all practi-
cal grounds, carry with it the powerto regu-
late the rate OF interest for the use of money.
The extract from the Controllers report
is as follows:
"Charges have been made against several
national banks during the past year for re-
ceiying usurious rates OF interest. These
complaints have been made, not only against
banks in the South and West, where high
rates of interest prevail, but also against
banks organized in other States, where the
usurious rate charged was but slightlyin eX
cess OF the rate of six per cent. allowed by
law. Section 80 of the act provides that
when the amount of interest charged Is greater
than the rate authorized by the State law
twice the interest paid may be recovered by
the person paying the same; while section
SO provides that the franchises Of an aSso-
CATION may be forfeited if the directors
Of bank knowingly violate the pro.
Visions of the act. The original Ma
tional Currency act of February II,
1863, provided as penalty for usury the
forfeiture of the debt, aud Section SO Of the
same act also subjected the rights, privileges,
and franchises of an association to forfeiture
for wilful violations of the act. 1t may be
doubted, therefore, whether Congress In
tended to impose specific penalty involving
the loss OF the whole debt, ind then, In addi-
ton, subject the same bank to a forfeiture Of
charter in subsequent section, which is ap-
picable TO other violations of law. am in
formed by gentlemen who participated In
the framing OF the present National Currency
act that the forfeiture Of twice the amount of
interest was regarded Us q sufficient penalty
for such violations of law and, ut the same
time, q sufficient protection to borrowers.
"These statements are confirmed by the
- act of April -, 1870, AN act to amend the
Tsnry Laws of the District Of Columbia,
q which provides THAT if any person or cor
y pcration in this District shall contract to re-
ceiye g greater rate Of interest than ten per
cent. upon any contract in writing, or six
per cent. upon any verbal contract, such per-
son or corporation shall forfeit the whole of
said interest SO contracted to be received, and
shall he entitled only to recover the principal
sum due to such person or corporation 1t
IN phc hat he IF {nt