Essex County herald. [volume] (Guildhall, Vt.) 1873-1964, 1873-01-11
The Usury Law.

lentlon or the last Legislature, Tor
considerable time, and the law was
continued by vote of 107 in its favor,
against 1O4 for its repeal, in the
House of Representatives, the Sen
ate voting for its repeal by about
two-thirds vote. The question is one
of practical Importance, and deserves
candid consideration by all. While
if strictly followed and obeycd, it
might work well, it is objected THAT
with the many means of evading it
resortcd to by money-lenders, and the
very great amount Of litigation it
causes, it is on the whole an injury
rather than benefit, to all parties.
That the law of supply and dem and
heretofore has, and forever will, regu-
late the price for the use of money,
as it does for the manual labor OF
mankind, and for the general necessa-
ries of life, the experience Of past
years shows. That legislation in at
tempting to regulate this matter is ex-
cecding its natural jurisdiction and un-
dertaking the government of matters
under the control Of laws of higher
nature and greater force than laws
any Legislature can enact, is the gen.
eral opinion Of the thinking men of
the day. 1t is the belief of the OPP
ponents of the law, that it is Of
fering premium for bad faith and
dishonesty upon the part OF borrow
ers, who, when they can, do take adj
vantage of its provisions, since a pro-
vision to pay a higher rate than six
per cent ID morally binding, and
though not good in law, still ought
to be as sacredIy kept as any other
promise or agreement whatever.
1t is further said that the tendency
of the law is to lock up the capital OF
the country, and impede business en-
terprises for want Of the means to
carry business on; that the money
which ought to be employed in devel
oping the resources of the State No
in carrying ON such manufactures as
would offer profitable employment to
our population at home, by force o.
this law, is sent to foreign markets
for investment, and we thus rendered
! unable to compete with other States
in the establishment and continuance
of large manufactures; that upor
the whole the tendency Of the law is
to make the actual rate per cent. of III
tercst higher than it otherwise would
be, as the more conscientious class o.
, money lenders not wishing to violate
: the law, either invest their surplus
j. money in stocks or Government sc
curities, or send it out of this State
and into States where 4 higher rat
, of interest is allowed by law, leaving
\ the borrower at the mercy of sharpers
5 who, knowing their liability to loos'
3 the promised extra interest, charge ant
? collect their pay for that risk that tn
: tendency Of the law is to give the Ma
r tional Banks the monopoly Of money
lending and at higher rate of inter
est than is allowed to private individ
s ais, and this at the expense 0
t the borrower; that the expert
| ence Of the business men, o
D those States where q highe
I rate, when specified in any agree
: ment, is made legal, has bee
such as to lead them to seek for q con
!. tinuance of the law making it so
|. that each individual, knowing hi
l- own wants and circumstances far BET
g ter than the State can know them, i
y in his own case best qualified to judg
Il of the amount of benefit he can dc
= rive from the use of money for lin
tied time, a,.d of how much he ca
/. afford to pay therefor, and that frol
g principle or reason there is no bette
y cause for making arbitrary rules t
l. govern his conduct in this particular
Y than there is to state the sum he ma
. pay for his board, or for the rent o
, his house, or for any other nccessar
. or luxury he may choose to buy.
+ 1t may be further urged against til
e present established rate that it ha
a not kept pace in its advancement G
VI price with other articles of use tina
~ though perhaps fair and just rate 9
- the time Of tho first enactment of til
y. laws fixing the rate of interest; "
O with the advanced cost of all I'll
is necesaries Of life it is not propo
@ tionate, and that if any fixed rate
u established by law it should be S
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