The Wheeling daily register. [volume] (Wheeling, W. Va.) 1864-1878, 1873-03-07

the Eject Of RsReei Of Usury Laws
The Financial Chronicle has question
ed President of the Boston Board OF
Trade concerning the eject Of the re-
PEAL Of the usury lawsin Aassachu-
sets, in which State they have been
long enough wiped OF the statute books
for the effect to be apparent. The fol-
lowing are his replies:
II. Was your law OF March 6. 1867,
as popular among borrowers as among
lenders2
"Reply-Probsbly it was not popular
with borrowers on mortgage who OBJ
tanned money at 9 per cent, and with
many ignorant persons who supposed II
possible to make money cheap by leg
islation; but think the great body OF
Intelligent merchants, and those Dor
rowers especially who were shut out
from six per cent. loans, heartily ap-
/ 49, = T't. ~ .'t.. I'd ~.
proved OF it. t.... as#I f., .aEra
"2 Has that Law worked any hard
ship or oppression to the borrowing
class? z7fE- '.H
"Reply-I am not aware that it has
done 30. On the contrary, | think II
has essentially benefited large clsss
OF borrowers, by enabling them to COM
pete with the favored class who former
" monopolized the six per cent. loans
at the banks and elsewhere, as well as
by increasing the amount OF available
capital in the market. ..g ..
"3. Did the rates Of interest show any
general disposition TO raise i'm mediate
" after the passage Of the lawf
"Reply-I do not think they did, and
for q long time after the passage OF the
law think it's effect was hardly to be
noticed. But its ultimate effect has
been TO substitute per cent. tor 3 IN
mortgages and bank loans. ..
a. Il 90, have the free movements Of
supply and demand counteracted tha'
temporary rise and developed subse-
quentdecline?
"Reply-With the exception of the
aboyenamed advance from g to per
cent, which think WAS gradual, there
has been, in my opinion, neither ad-
vance nor reaction, but a constant ten
dency in the direction OF ease and stead
mess.
IS. Are your present rates, on the
average, higher or lower than before
the an,i.restriction legislation of 1867
"Replv-It is my impression thai
rates now vary less than formerly; thai
changes are more gradual and less ex-
treme in their character, and that rates
are on the average rather lower than
higher, allowing, however, for excep'
tional circumstances,
Is Is there ss much tendency to
spssmodic changes in the rate OF inter
est as formerly2
"Reply-I think spasmodic changes
| in the rate of interest have been abso
lutely unknown since the passage OF the
law. ...
az. What has been the general ope'
ration o. the new law IS affecting the
facilities CT mercantile business and the
rates Of discount during the years
lS6s-lS731
"Reply-The effect ofthe law appears
| to me to have been IN every way sstls'
factory-so much 30 that the advocates
of an irredeemsble paper currency nave
thought it necessary to ascrlbe the I'M
provemeut to that particular cause.
think the full benefit Of the abolition o
usury laws will not appear until oul
currency is restored to sound basis
But even with our present experience
believe it would be utterly impossible
ever to restore usury laws in Massa'
chusetts. The amount OF loanable cap
ital has very greatly increased, anf
borrowers in consequence are supplied
with tar more ease than formerly, ano
on the whole at lower rates.
J. S. Ropes,
president OF the Boston Board o
} Trade"