The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1872-05-04
Vhe VTsury E,ayy.

Az the time is approaching when the peo-
pie of Virginia will be called on to vote upon
the question Of repeating the uStry clause of
our Constitution, an expression Of our views
upon the wisdom and propriety Of its repeal
will not be inappropriate at this time.
We fear that this feature Of our ConStitll-
ton. although there is nothing i'll 1t that is
really hurtil,l to lis, has found little favor
with certain classes of OUR people, and cspc-
cially the agricultural class, under the mis-
taken impression that money-lendes were
availing themselves of this legal opportunity
TO demand eXtortionate interest. But this is
not the case. Interest would be higher to-
day than it is were there law restricting it
to four, FIVE, or six per cent. No conSUitrl-
ton nor law ever yet succeeded in fixing or
limiting the rate OF interest. That rate. other
things being equal, is always regulated by
the relations of supply and demand. II mo-
ney is scarce and the demand great, interest
will be high; and, on the contrary, if trade
is dull, or the amount OF money-seeking bor-
rowers is more than equal to the demand,
and there are no unusual risks, interest will
be low.
We believe that this question should be
allowed to adjust itself, and that any under
taking to reduce the rate below that Of mar
kets where there are no such restrictions
will be waging war against the bests interests
of the State; and this for obvious reasons.
we in this State are dependent upon foreign
capital for q very large proportion of our cir.
culating medium. Many of our largest and
most prosperous enterprises are carried on
by means of this capital 1t has i'll many
cases rebuilt our towns, which else had been
now but charred masses OF Wondering ruins,
and has thus and in various other ways con-
tributed to assist our people to tide the
gloomy and threatening sea which seven
years ago wrought chaotic ruin in our land.
Now, why is this capital here! Obviously
for no other reason than that hotter rate of
interest can be obtained for it here than in
it's home market. Now, suppose we make 1t
unlawful to receive more than six per cent.
for the use OF money. What will be the re-
suit: Most certainly the withdrawal from
our State of large proportion of our circll-
Iating medium--aready too scanty-or lend
ers will demand higher rate of interest than
they are now receiving because OF the FISK
they will run in receiving usury,
We do not see how any class of our people
are to be benefited by the repeal Of this
cluase of our Constitution, If it is done with
q view OF reducing the rate OF interest ana OF
making it lower than those OF other States.
Landowners are most egregiously mistaken
if they think that such measure would
force capitalists to invest their money in land,
and that thus the price of land would DC en-.
HANGED. We grant that this might result
were the rate Of interest reduced by natural
causes. such as q large local accumulation OF
capital from profitable industry, ana an
abatement in the activities of trade; but IL
can never be brought about by unnatural
ones. 10 say the least, it will not Drlng us
one single immigrant, but may keep many.
away. 1t will not benefit our agricultural lh'
terests, and will be exceedingly damaging 70
the interests of trade. Even under Inc au'
verse circumstances which have oppressed us
since the war, the rate Of interest has peeh,