The Daily state journal. [volume] (Alexandria, Va.) 1868-1874, 1873-01-11
Grenit,g SMte spasrnaI.


LoUDoUN Co., VA, January 8, 1873.
To the Editor Of the State Journal:
The purpose of the Legislature to change
or reduce the present rate of interest, is
regarded by the people as matter of very
doubtful expediency. The very few votes
cast at the last election in favor of a
modification of said law show very conclu-
siyely that the people were not well per-
suaded that such change at this time would
be conducive to the public interest; and
upon further reflection, they are now con-
vinced that any material modification of
the present rate of interest would operate
unfavorably upon the business interest of
the State. 1t is a remarkable fact that
while nearly all the Northern and North
western states have repealed, or are repeal
ing, these usury laws, the State of Vir-
ginia, with her usual devotion to old GUS
toms and usages, is now re-enacting or re-
storing law which has proved anything
but beneficial to the general interests of the
State.
The restoration of the old law restricting
the sale of interest to per cent. will have
the effect, not only to exclude foreign capi-
tai, but will compel citizens of this State to
invest their surplus funds in other States
where higher percentage is offered. For
no man in his sober senses will loan money
out in Virginia when he can realize from s
to 10 per cent. in other States where the
laws are more liberal and less restrictive.
1t is well known fact, that all articles of
prime necessity are at least one-third higher
now than they were before the war why
then should money not have correspond
ing increase Of value?
The bill reported by the majority commit
tee, discriminating in favor of commercial pa
per, meets with no favor from any quarter
whatever. The minority report is by far
preferable. If the interest is to be reduced
at all, let all fare alike, otherwise no relief
will be afforded to those whom the law is
designed to benefit. Any practical legisla-
ton or discrimination in favor of banks or
monied institutions, is always regarded
with distrust by the people, and they are
apt to consider it the result of corrupt in
fuences. In most states, usury laws are
regarded as demoralizlng and, therefore,
have been abolished.
Individuals have been known frequently
to borrow money at usurious rates merely
for the purpose of pleading usury, expect
ing thus to derive pecuniary gain by this
sacrifice of honor and principle. If this
law is to be changed, it seems to me that
the most acceptable law that could be
framed upon the subject, would be to re-
strict the interest to eight per cent, with
the forfeit of the excess over the legal rate
in case of usury. Such is the law gen.
orally prevailing in the other states.
The Legislature of Virginia should be
extremely cautious how it legislates on this
subject at this particular juncture of affairs,
when it is almost impossible to procure
money, at any rate of interest, to carry on
the legitimate business of the country. The
object of the Legislature should be, at this
financial crisis, to devise every means to
attract capital in the State, and not to ex-
clude it by illiberal and lnjudicious restric-
tons. ONE OF THE PEOPLE.