The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1872-02-13
Usury Laws


Usury Laws.
Tho reasons pivcn in the following aruc'e
fro,n thc Bristol News for striking out OF the
State Constitution the section concerning tac
,,,to or interest upon money arc such as VIII
,,o donbt influence many persons to vote III
the affirmative. Let us examine them:
RrprcrSc THE RATE OF 1STEREsT.-At tho
Nav election the people vii, be called upon
to vote upon the question whether the f'ue
OF interest shall be lowered to six per cent.
in all cases. Many forcible arguments are
,,Scd to sustain the assertion that none! j"
worth what it will bring in the Market ING
property. The basis Of all argument on thl>
subject seems little understood. The arS,l-
ment can only apply upon the hypotiirm,> .iS
that money is the equal of properly. l"s
cannot be assumed. Money is allowed vas,
privileges which are denied TO property, ala
while succiai powers are conferred upon
money il must be 4 Legitimate supc't 'o'
nroncr restraint. Money Is legal erae'.
pro,rrty is not. Take two hieh %
,s;,,al wealth, the one Owning pi"P%lE
only. the other exclusively money, anu place
them in the market. Are they eq'al,! PRIV
tcctody To-day in Virginia and in Tcnnes-
symbol TO some extent of impotence. Money
can crush property. 1t can command and
acquire large values forvcry little. Property
can nsrcr command more money than it l.
worth. The man who has money has power,
and he should be duly restrained in its Use.
1t is idle TO propose that SO powerfully armed
n man as he who has money shall be turned
loose among the tender values OF property
wholly unprotected. 1t is patent to even Il
careless view that while we have advanced
the price of money, VIC have witnessed Ter
rible decline in the price Of real estate. me
rcpcal of the twelve per cent. rate Will W"fk
some inconvenience, but it is hardly to be
doubted that the movement Will carry.
Money is allowed no privileges not allowed
to all other kinds of property. fla man pro-
misses to pay money, the law makes him pay
money. If he promises to pay wheat, the
law makes him pay wheat. IL he borrows
100 bushels of wheat one year and promises
to return 1l2 the next year, the law compcls
him to comply with his contract. If he gives
title bond promising to make deed TO land
next year, the law requires specific perform
ance: he must deliver the land ltsClf-not
its value in money. So that the argument
drawn from the fact that paper money is in
common parlancc 4 legal tcndcris founded i'll
INSTRUMENTATION. "Moncy,' says the AeTS,
lis a legal tender" So it is; but we do not
eipvo,c the Netrs meant to say this, since
the assertion is simply equivalent to saying
that "moncy is money" The Nc'cS was
thinking Of the fact thtt grecnbacks and bank
notes are legal tender. But these are
illegal tender" only wher the contract is to
1ay "money." If the contract is to pay any
other article, the contract must be fulfilled.
The Meas says cit is idle to propose
"tilat so powerfully armed Il man as he who
"has money shall be turned loose among the
"trndcr values Of property wholly lnpro-
elected" II this language has amy meaning
il means that a man who has money must not
lie allowed to purchase property unless at
prices to be fixed by law, or approved ny
some officer. Those who advocate usury laws
ought to advocate just such laws rs ths would
be; but We have never before known any ono
TO be consistent enough to propose such 4
law. People will see whittier such reasoning
leads them. Logically it leads to the conclu-
sion that the law must intcrposc to prevent
all sorts Of improbable contracts between
man and man.
There is one more point in the article from
the NcUs. IL il that "whlat we have adj
"vanccd the price of money we have wit
Guessed terrible decline in the price OF real
estate" Such is not the truth as TO this
city. There has been more money lent out
here at twelve per cent interest than i'll all
the rest Of the State, perhaps, yet here real
estate has advanced in price under the opera
ton of the constitutional provision on the
subject of interest. That provision does not
produce one effect in Richmond and another
in Bristol. Like causes produce like effects.
There must, therefore, be some other cause
for the terrible decline in the price of real
estate in Bristol.
We think it is pretty evident that not one
of the reasons given in the above article why
the interest laws should be changed is 4 fact.
1t is not true that money is many sense more
truly legal tender" than wheat or flour,
or any other article. 1t il q illegal tender"
where the promise is to pay money. So wheat
is a illegal tender" where the promise is to
pay wheat. 1t is not true that "real estate"
has declined in value in consequence Of the
present interest laws. Yet these are fair
specimens of the best reasons that can be
given for striking out of the Constitution the
provision in reference to the rate of i'll
tcrest.