The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-04-25
USURY IN WALL STREET.

What the Brokers Think Of tho Proba.
BILE Repeal of the Old Usury Laws
The Pro and Con-The Effect or the
Proposed Change ON the Market-IIow
Bank Cashiers Lend Money.
The passage of the bill in the Senate repeating
the Usury laws had a slight effect on Wednesday
afternoon, when the news OF the event came to
town, in giving stocks temporary infation which,
however, lasted but a short time. Shortly after
they resumed their usual level, and have not di-
verged from 1t since, regardless Of any movement
attributable to these Usury laws. The commit
tee from the bankers and brokers still remain in
Albany, apparently determined to see the bill
through the Assembly, though 1t was said yester-
day in the street that they expected harder fight
in the Lower House than had been made in the Up
per House. 1t was perhaps owing to this uncer-
anty as to what would be the ultimate fate OF the
bill that there was no change whatever in the tone
Of the money market from what it had been the
day previous, or, for that matter, Tor the whole
month past.
MONEY YESTERDAY WAS BORROWED FREELY
at 1-32, and in some cases transactions reached
though the Albany bill was generally discussed in
the street by those most interested. There APP
Ped hean IN re0ard ~ rho Sid m Ihan mere
many spoke very openly against it.
One prominent broker In the street said to q
HERALD reporter:-"I am firmly convinced that
when this bill becomes law, allowing any amount
OF interest to be charged for money, people who
have money will stand OF to lend il at a higher
rate than that now obtainable. This will ALWAYS
cause a stringency, which will send II up.u
The reporter saw another gentleman who had
an entirely different view OF the question. lie
said:-
"You see, in such community as Wall street
USURY Is A NECESSITY.
We must have money or bust II we can't
get II legally then we must get IL otherwise.
Then, why not legaZe the matter? do not mean
10 say you must give way to every bad thing
simply because it exists; but l. personally can
see the greatest amount OF benefits accruing from
such repeal It would, am sure make money
plenty by bringing down great many people who
are now scared to operate. Under the present
system the greatest frauds exist, particularly
among bank cashiers. The instances are numerous
where cashiers OF banks operate with out
side parties. These latter 20 down and
lend money at Illegal rates OF inter.
est, and give their checks on the bank
which the cashiers, OF course certify No money
actually passes between the parties and the out
slider and cashiers whack up next morning. The
settlements are made in the morning early and In
time for the Clearing House. But Surprising the
bank which certified these fraudulent checks should
burst. Such thing IL very possible. Then see the
fraud which Is perpetrated. This Is no uncommon
example OF the way things are DONE Now tell me
II IT were not better to repeal the Usury laws II
only to put stop TO such transactions as these9',
Thus, Wall street opinions are dvided-some
think the Usury laws keep money up, others be-
lleve they send 1t down. There Is general conf
dence among men who usually know such things
tnat Inc Dill Will be passed without dificulty.