The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1873-01-22
Pending Legislation-The Usury an
Lien Laws.

Legislature which propose, the one
to amend the Act Of 1866, which
repealed the Usury Laws Of the
lState, and the other to repeal the
Lien Law. passed in the same year
We arc disposed 10 regard the pas
sage of these measures as perhaps
equally injurious to the best interests
of the State.
The bill before the Legislature,
proposes to amend the "Act to repeal
Usury Laws" so as to make Section
3, which is the repeating clause, read
as follows: "That all Acts, or parts
Of Acts, limiting the rate of interest
recoverable upon contracts for the
hiring and use Of money to seven 20
per cent per annum, are hereby re-
pealed: Provided, That nothing here
in contained shall be construed to
permit the recovery Of more than
ten per cent. per annum, upon any
contracts for the lending or use OF
money hereafter entered into and
this bill has received the favorable
report # tho Judiciary Committee of
the House.
The great objection to measure OF
this kind is, that it violates the true
principles of commerce, by seeking
to apply to money, a rule which is
conceded to be inapplicabIe to other
articles of trade Why should mon
ey not like everything else be LETT to
regulate itself, according to the law
of supply and dcmand2 That law if
more potent than Legislative enact
ments, which whenever they come in
conflict with it, must prove either q
dead letter, or force capital to seek
other and more favored locations fol
investment. The natural effect of q
Usury Law is to drive capital away
by interfering with legitimate invest
mcnts, aud hence put the borrower
more in the power Of the unscrupu
lous money lender. Such was The
effect in Massachusetts, and o shor1
experience Of its injurious operation
led to its speedy repeal. In Ne"
York and Geoigia where such law:
are still in operation, their provisions
are uniformly evaded by charges fol
! commission, brokerage, &C., which
added to the legal interest, make VI
the market value Of the money. Tbs
repeal of the Usury Laws Of this
State in 1866 has been constantly
t, lowed by an increase in the bank
ing capital here, and hence redue
ton in the rate Of interest; SO that
; now money is said to be cheaper in
South Carolina than any other South
ern State; and as cheap as it can be
obtained in New York on the same
securities. The natural effect Of the
repeal of the Usuy Laws will be to
drive some capital away, and TO in,
crease the rate Of interest upon the
remainder.
lhe repeal Of the present Lien
Law, we think, would prove disas-
trous, especially TO the interests OF
the laborcr. II is his interests which
seem to be solely regarded in the
proposed repeal, but that which is
designed as blessing will more likely
prove q curse. The planter, upon the
faith of his LANDS, may obtain some
credit, but where IS the laborer to gel
his supplies, if the c"!y guarantee
which he can give is taken away
The Governor propoxesa modification
Of the present law, so as te give the
landlord a lien for rent to the amount
of one-fourth of the crop, and to re-
strict the lien for supplies to one'half
of the crop; and whatever difference
of opinion there may exist as to the
propriety of change in the prrsent
sw, there can be no doubt that its
n will work great injury to all
Just now our true policy is
Apital, and encourage in
jtal is what we need
sp our untold re,