The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1873-01-11
The sSary F.nJys.

LorpOUE COUNTY, Va, january G, 1878.
To the Editors Of The Dispatch:
The purpose Of the Legislature to change
or reduce tic present rate Of interest is re-
gardcd generally by the people rs matter
of very doubtful cXpediency. The very few
votes cast at the last election iii favor of a
modification of said law show very coEclu
syclv that the people were not well per-
suaded that such change, at this particular
time would be conducive to the public in
tcrcst; and upon further reflection they are
now convinced that any material moditica-
ton of the present rate Of interest would
operate mfavnmbly uron tie business inter
cSts of the State. 1t is Il remarkable fact,
that while nearly all the northern and north
western States have repealed, or arc repeal
ing, these usllry laws, the State Of Virginia.
with her usual devotion to old customs and
l!SageS, is now about rccnactin@ or re.
storing law which has proved any thing
but beneficial to the general interests OF
the State. The restoration of the old law
rcstrictin. the percentage to six per cent.
will have the effect not only to exclude for
eign capital from the state. but will compel
citizens of this State to invest their surplus
funds in other States, where higher per-
ccntagc is offered. For no man in his sober
senses will loan money out in Virginia when
he can realize eight to ten Per cent. in other
States where the laws arc more liberal and
less restrictive. 1t is 4 wcll-knOWn fact that
all articles of prime necessity are at least
one-third higher now than they were before
the war. Why, then, should money, which
is the standard OF all values, not have a cor
| responding increase of value? The bill re-
ported by the majority of the committee,
discriminating in favor Of commercial paper,
meets with no favor from any quarter. The
minority report is by far preferable. II
the interest is TO be reduced, let all
| fare alike otherwise no relief will be afford
e to those whom this law is designed to len
eft. Any partial legislation or discrimina-
| ton in favor of banks or other noneyed in
stitutions is always regarded with dstruSt
| By the people, and they are apt 10 consider
such exclusive legislation as the result of cor
rupt influences. In the most States uSury
laws are regarded as demoralizing, and
therefore have been abolished. individuals
have been known to borrow money ut usll-
rious rates merely for the purpose Of plead
ing usury, expecting thus to derive pecuni-
airy gain by the sacrifice of honor aud prin-
ciple. If this law is to be changed, it seems
to Inc that the most acceptable law that could
pc Ildultu VII tiilS suiJtCt Houlu NC w IL.
strict the interest TO eight per cent. by con-
tract, with the forfeit Of the excess over the
legal rate in case of uSury. Such is the law
generally prevailing in other States. The
Legislature of Virginia should be extremely
cautious how it legi>ates upon this subject
ut this particular juncture OF affairs, when it
is almost impossible to procure money at any
rate of interest to carry on the legitimate
lusinpsS of tho country
The Object Of the Legislature should be at
this financial crisis to devise every means TO
attract capital to the State, aud not to eX-
rludc it by illiberaI end iDjudicious restric-
tons. - One OF THE PEOPLE.