The Cecil Whig. [volume] (Elkton, Md.) 1841-current, 1873-08-09
USURY.

USury recently mas become SupJecI VI
considerable discussion, and comes in as in
days of old, for large share Of denuncia-
ton. Among the Jews, and down even
later than our English translation of the
scriptures, the word only meant interest.
Since then, however, it has assumed bad
sense, and implies exorbitant rates of in
tsrest-an illegal interest. All interest
among the Jews was accounted usurious
and it was considered great wrong to
exact interest from a brother Jew; but
they were allowed to lend to the stranger
and exact interest or usury on the loan.
The Jews were anciently an agricultural
and pastoral people, among whom the
science of money was not brought to that
perfection which it has attained since they
have become entirely com mercial people.
The influence of former opinions on the
subject still retains some hold on our agri-
cultural classes, but has long ago been dis
carded by purely commercial peoples.
Nearly all christian nations have fixed
by law rates of interest, and these laws
still remain on the statute books, but are
virtually dead letter; and the opinion
that money is merchantable commodity,
subject to be bought and sold at any price
agreed upon between the buyer and seller,
or borrower and lender, has gained ground
in our time everywhere.
Extortionate rates for money las high
prices for any thing are standing subject
nf inf ha ri of tho horrOxpnr
at the present time, who finds himself una
BILE to pay back the loan he has contracted.
In nine cases out of ten where failures
occur, it is question whether the bor
rover would ever be able to pay back the
loan, even had he got it on the ancient jew
ish principle. Numbers of our farmers,
as we'll as other business men, find them
selves at the present time, unable to pay
their loans, and blame their misfortune
altogether on the usurious rates of interest
which they have assumed to pay. This
doubtless, in some cases, helps to wind up
those who 60 under the auctioneer's ham,
mer; but, could the same parties, who
ascribe all their woes to twelve per cent,
survive, if the rate paid was six per cent !?
The inevitable disaster might be postponed
little while perhaps, but would come at
last. 1t is bad for farmers to borrow mon
ey in these times of extravaganza. They
had better economic in every conceivable
way, or sell part Of their land and judi
ciously use the capital thus acquired to
enrich the balance. Flowing too much
poor land, is the cause of the farmers
distress, for that is what brought him a
borrower to the bank counter. Once en-
tered there as borrower, there is little
hope for him while he continues the sys-
tenn which drove him to that dernier re-
sort, even though the interest were nomi
nal. The agony might thereby be post
longed, but would, in nine cases out of
ten, come at last. All interest is usury,
and human wisdom is not capable of draw
ing the line to fix rate of interest that
will not be oppressive to some borrowers.
All money that is invested without proper
Judgment is lost to the investor, and will
yield him no return. How many tens of
thousands of dollars have our farmers in
vested in this way within the last fifteen
years? The sacrifice of their farms almost
daily, with no bidders but the mortgage
answers this question.
All laws that attempt to fix the rate of
interest that money shall be loaned at,
in this commercial age, is an absurdity SO
monstrous, that it is matter of astonish-
ment that Legislators insist on retaining
them on the statute books. If money,
like other merchandise was left to supply
and demand to regulate the price, it would
be better for the borrower in every instance.
The market would then be supplied when
scarcity existed, like it is with all other
kind of merchandise. Our statutes which
attempt to regulate rates of interests, do
nothing but interfere with the natural law
of supply and demand. Gold was our
standard money few years age, but now
it is merchandise exclusively-as much so
as wheat or dry goods, and no interest laws
are enforced to deter the lucky owner of
half eagle from asking and accepting Is
per cent interest or premium for it. Why
should any law say that you shall not ac-
cept the same price for greenback p
When tried by this test the absurdity of
interest laws are most apparent.
But there is a question which capitalists
should seriously consider, and especially
banks; namely; is the heavy interest taken
by country banks in the end, to their stock
holders, as profitable as a more moderate
rate? Business in the country will not
stand the heavy taxing that city business
and merchandising will, and we have been
led to believe that low rate of interest,
rate not exceeding six per cent, by coun-
try banks, would in the end be more profit
able than double that rate. The system
would enlarge business by giving their
customers greater facilities. At the pre-
vailing rates of twelve per cent, enterprise
is cramped, and the growth of business
checked, which reacts ON the institution
which demands a rate above the profit of
the business to return.
The laws of Maryland are all in the
interest of the dishonest debtor. And the
weary time and heavy expense necessary
TO recover just debt from slow or rogl-
ish creditor, 60 very far to aid in keeping
down all kind of active business which
requires the quick return of capital, prove
stumbling block to every branch of bust
ness, and source of much loss and vexa-
ton to every prompt business man in the
State.
THE PEOPLE OF TRIEsTE.-The people
of Trieste seem to live more at home than
those of Vienna. There is scarcely res
taurant in the whole city where good
meal can be had. Indeed, they are so few
that it is difficult to find any one of them
of any description. Beer houses are also
very scarce, and it is evident that beer
drinking is not much in vogue. There is
good demand for coffee, lemonade and
ices, the saloons beinc, very abundant, but
there is little drinking done here with the
exception of wines. 1t seems that Amer