Wilmington daily gazette., 1873-03-05
The Erec. Of Repenl OF Usury Lawes

The Financial Chronicle has questioned th'
President Of the Boston Board Of Trade con-
leerning The effect of the repeal Of the usurY lawI
lin Massachusetts,, IN which State they have beer
long enough wiped Of The statute books for The
effect % be apparent. The following are hii
fepliess
81. Was your Law of March G, 1867, as OPc.
lar amor z borrowers o. among ltn 1ers
"Reply-PrObably it was not popular with
borrowers on mortgage who obtained money at
per cent, and with many ignorant IpefsoDs
who supposed ii possible TO make money cheap
BY legislation; but l think the great body Ol
intelligent merchants. and those borrowers
especially Who were shut out from ak per cent.
loans, heartily approved off
"2 Has that law worked any hardship OF
oppression to the borrowing class
"Repy-I am not aware that il has done so.
On the contrary, ] think it has essentially ben
fitted large class Of borrowers, ty enabling
them TO compete with the favored class who
formerly monopolized the six per cent. loans at
the banks and elsewhere, ,as well as by increasing
the amount Of available capital in the market.
"3. Did the rates Of interest show any general
disposition TO rise Immediately after the passage
Of the law?
"Reply = do not think they did, and for a
long time after the passage of the law l think its
effect was dly TO lie noticed But its ultimate
effect has been TO substitute per cent. for in
mortgages and bank loans
a so, have the free movements Of supply
and demand counteracied that temporary lice
and developed a subsequent decline?
"Reply--With the exception Of the above
named advance from 10 per cent, which
think was gradual, there has been, in my Opin-
ion, neither advance nor reaction, but a con-
slant tendency in the direction of ease and
steadiness.
IS. Are yonr present rates, on the average,
higher or lower than before the anti restriction
legislation of 1867?
"Reply-lt is my impression that rates now |
vary less than formerly; that changes are more
gradual and less extreme IN their character, and
hat rates are on the average rather lower than
higher, allowing, hewever, for exceptional cir I
,umstances.
&c. Is there as much tendency TO spasmOdic |
changes in the rate OF interest as formerly?
"Reply-I think spasmOdic changes in the
ate Of interest have. been absolutely unknown
ince the passage of the law.
~. What has been the general operation OF
he new law us affecting the facilities Of mercan-
lie business and the rates Of discount during
be ytaIN IS6S.1S73
"Repiy-Ine effect Of the law appears TO ME
o have been in every way satisfactory-so much
O that rhe advocates of an irredeemable paper
urrency have thought it necessary TO ascribe the
Improvement to that particular canse. l think
he full benefit of the abolition Of usI!Y laws
Iill not appear until our currency is restored 70
sound basis But even with our present
Experience believe il would be utterly. .impos-
ible eVerto restore usury laws in Massachusetts.
he amount of loanable capital has very greatly
increased, and borrowers in consequence are
1pplied with far more ease than formerly, and,
n the whole at lower rates.
J, S. ROPES,
"President Of the Boston Board Of Trade"