Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1872-10-30
For the Journal
The Usury Question.


to your article upon " Usury," which appearc
( in your issue Of the 18th inst. Allow me yer
briefly 10 present the positions there taken. d
they appear to one who views this question fror
the opposite standpoint, from that which YOU ey
IDENTIFY occupy.
And will admit in the outset, that the law /
question may, as you have illustrated, sometime
be used by dishonest creditors, to wrong the capi
talist ont Of three or four per cent. Of interest
Justly due upon bis capital And this is yaIi
argument, so far as it goes but one which per
tains to the theory Of the law, rather than tb,
practice under IT,
Practically, it is seldom so used, for those yer,
obvious reasons lst, None but riHqins as yot
admit will ever thus abuse the law, or thos,
honest benelactors who aid them with their capi
tai, and capitalists DO not loan their money tc
this class Of men aud 81, The margin between
The legal rate Of interest and the actual value Of
capital, when used for any Legitimate purpose, in
Vermont, is 80 slight that il affords, practically.
little temptation Tor wrong doing in this direc-
tion.
The 81 proposition which ! offer under this
head, is this When the rate claimed hy the can
italist is unjust and extoriionary. 10 trrOag Il
perpetnted by the execution Of the law, even
though through the cunning villainy Of the capi-
talist, and the incompctoncy, or distress of the
borrower, the consent Of the latter may have
been obtained 10 the transaction.
II these positions are correct, ean we lustiy de.
maud the repeal Of the law, bccnuse Of tA.an
merely theoretical dclects2
Let us now inquire 10 whose interest This law
81 l. -
only an instrument in the hands Of scoundres.
70 aid them in their designs against the property
of honest capitalists2 Most certainly not This
class are practically never injured BY it, and have
no reason to fear its execution Il was enacted
wholly in the interest Of the honest and upright.
and only opposed 10 the dishonest and fraudulent
The improper use Of capital is practically the
most powerful instrumentality by which personal
wrongs are perpotrated, and public prosperity
blghted, with which we have 10 contend. Noise
less and undcm0nstratiye in its operation. the
Ylest rohberios may be perpetrated by il. without
scarcely attracting public attention, while if pre-
cisely the same results were reached by the appl-
cation OF physical force the moral sense Of the
community would be shocked by its enOrmity
and loud and earnest would be the demands for
the interposition of law, and the execution Of
justice Yet the physical giant, who by bis SUI
periOr strength wrenches my money from me, or
compels me to consent to surrender it tl him
wrongs mo no more, provided he does not inlct
bodily injury, than lie who in times Of financial
disaster, takes advantage Of my incompetency
and distress, 10 compel me to consent 10 surrcn-
der the same amount, even though the robbery
be nerpetrated under the disguise of interest due
Tor money loaned. That such rObberies are con-
stantly perpetrated in Vermont, no obsery
man will deny. They are matters Of fact, and
not OF mere suppostion painful realities which
every upright business man must have Observed
and depl0red
In one instance, which has come under my per-
sonal observation, thirty per cent. was thus ex-
tortcd from an inexperienced young man. when
shrewd business men could procure capital at less
than one third that rate, with no better security
The result was, the sharper took the young man :
farm, and he became a bankrupt
In another instance Of this nature, one hundrcd
and fourteen per cent would have been dis
gorged by capitalist in my own county, had the
law been enforced. In this instance. one hundred
and twenty per cent. was extOrted from n blind
man, for the use Of fifty dollars for a few months
In another transaction Of SIX thousand dollars.
two thousand dollars was extorted, over and
above the legal rate. In this instance like near
ly ell Others Of this nature the result was newt.
able. Once in the lands of this class Of sharpers
the young mans doom was sealed The first took
his money. the second his farm at mere nominal
value, and the young man, once in good crcum-
stances pecuniarily, though possessing an ire
proachable moral character, left the state bank
rupt.
While crimes like these have been perpetrated,
and are liable at any time to be repeated among
US shall we repeal the law expressly designed -
prevent them? Shall we afford no protection II
the weak and distressed against the strong? Shall
We BY 81 doing act in the interest OF honesty aud
justice Let those who would repeal this law
he consistent, and advocate the repeal Of all laws
Of the same nature. let the miller take the
urle ha tItn f.-f flt,s l,t
the wrecker dictate his own terms to the ownsr.
whose property he has saved from fire or food
the sharper ply all his hellish arts 70 cheat de
celye, and wrong the innocent and upwary
You claim that our legal rate is too low. Ought
not the profits Of business to be the standard by
which we should determine this question? Does
legitimate business pay a profit of moro than
twelve per cent upon capital employed in Yer.
mont? If so, our legal rate should be advanced,
hut not otherwise Upon what principle would
you divide the profits Shall the capitalists be
allowed to grasp the whole2 Shall he with leach
like voracity lasten his fangs upon the vitals of
the business community, and gorge himself at
that fountain until it Is dried up? Ought he not
to divide the profits with him who takes the risks
Of the business in which his capital is employed,
and lntellgenty deyotes his time and powers OF
mind and body to its prosecution
Again, it is claimed that this law drives capi-
tai from the State. II the profits Of business in
the neighboring States of New York or New
Hampshire would warrant the payment Of twelve
per cent. by the employers of capital in those
States, while the same class in our own could ai-
ford to pay but half that rate, capital would leave
us 10 some extent Ii would be the unavoidable
result Of our unfortunate circumstances TOem-
plOy that capital at rate which would cause il
10 remain here would work our ruin, and, like
the drinking of salt water to quench thirst il
would only aggrayate the evil. Capital is only a
blessing to any community when it can be profit
ably used for business purposes. 1t is blight
ing curse when il can only be used 20 the iney-
table ruin Of those who employ it. If it must
hang like deadly incubus upon all business en-
terpfise, it should be driven from the State, or
shut up like ielOn in his cell to prevent our
ruin.
But this is only supposable case, and does not
exist in fact The difference between our bust
ness profits and those of business in neighboring
States is but slight, while our legal rate permits
the capitalist to accept of as high rate of in
terost as money commands in most Of the great
money markets of the world
| hold that the law in question should not be
repealed, while Justice expediency and the ex-
perience Of the past, all demand that it should
interpose its regulating power to foster our in
dustres, protect our business men--the pro-
ducers of our capital-from the ruin in which the
dishonesty and ayarice of selfish, heartess capi-
talists may involve them, and with them the in
teresis of communities and the State.
The tooth of usury,' says Bacon, " should
be ground that it bite not too sharply Did
that philosopher ever utter truer saying?
FARMER.
The Vermont Pharmaceutical Association.
The Vermont Pharmaceutical Association held