The Daily state journal. [volume] (Alexandria, Va.) 1868-1874, 1873-01-27


brokers should deslreit. Make money free
commodity, or put up the legal rate as high as
the market value, thus making it both safe
and reputable to lend money at current
rates, and capital will flow to our state.
But your stringent usury laws will confine
the lending to the "sharpels and brokers'
who will not only charge interest, but will
add a corresponding rate as an insurance
against risk of loss, and then double these
rates, in consequence Of the illegal and dis
reputable character Of his business.
Experience in my own city has demon
strated the truth of these statements.
Before the adoption of the constitution,
you could not obtain money in Peters
burg at less than from one and half to
three per cent. per month. AS soon as
parties were allowea to contract as high as
one per cent. per month, the current rates
Immediately fell to that, and it is now as
low as nine per cent. per annum.
Another theory is put forth by some
senators from farming communities, that |
conceive to be fallacious; and that is the
idea, prevailing in some parts of the state,
that the twelve per cent. clause in the con-
stitution was the cause of the decline in
the price of land.
Mr.. Thomas of Fairfax-I would like to
inform the senator from Petersburg that the
price of lands in my section of the state
went down Immediately after the adoption
of the constitution, and that they have
since continued to decline until now we
hear Of but very little sale for them. will
the senator inform US how he accounts
fer that if it was not caused by the higher
rate of interest which has diverted capital
from investments in lands?
Mr.. Greene-I will answer the senator.
1t is true that the price of lands have been
going down In rearly all parts of the state,
and | doubt not the decline commenced
Immediately after the adoption of the con-
stitution. But the senator will not agree
that it is necessarily true because one event
.folloWs another the one must be the effect
Of the other. We can find other causes
that produced this effect. AT the close of
the war, there were large number of
northern men in the state, brought here by
the military operations, many of whom
had been here long enough to learn some
thing of Virginia's lnnumerable natural
advantages. They enjoyed its delightful
climate, and conceived high estimate of
its soil and its immense mineral wealth.
They went back to the northern states,
giving glowing accounts of Virginia.
Returning, they brought their families
and their money here. Many OF their
neighbors came and invested in Virginia
lands. The excitement and interest on the
subject of emigration to Virginia became
as great as the California fever several
years ago. But those who came made
serious mistake, thinking this tide of emil
grafton would produce an extraordinary
rise in lands, they bought too much, thus
putting all their money into farms, and
leaving none to spare to stock and properly
fsrtilize them. In MANY instances they were
deceived as to the fertility of the soil or rather
they did not understand the exhaustion pro-
duced by the wretched slave system. By
the time they discovered their mistakes,
they could not resell or dispose of any
portion of their lands and they became dis
couraged. Added to this | am compelled
to say that these northern settlers did not
receive the right treatment at the bands of
the old residents. They and their families
were not as kindly and cordially received
as they should have been. They were
made to understand that they might come,
and bring their money and invest it here,
but they must ledue their souls behind
Here they must have no political opinions
differing from the former lords of the
soil. If they engaged in political dis
cussions or took any part in the affairs of
the country or state, they must receive
the vile epithets carpet-baggers and
" adventurers," used few moments ago
by the senator from Botetourt language
never expected to hear dragged into debate
in this senate chamber! But few people
have the nerve and pluck to stand against
continual abuse of this sort. Most men
like to live in quietude and peace, where
they and their families can be treated as
friends and equals. The northern settlers
thus surrounded by these disheartening
circumstances determined to 60 back, sac
rifcing-in many instances-a large part
of their investments. They met the tide
of emigrants still flowing toward Vir-
ginia and turned it back, saying to
those who were on the way here,
as we'll as those who contemplated
coming, Don't 90 to Virginia.
emigration to our state ceased, and
this is why our lands find no market, the
people here being unable to cultivate the
large quantity of surplus land, and very
few foreigners ever coming. think | have
answered the senator from Fairfax, and /
am sure his own observation has con-
WINGED him of the truth of my statements.
have friends who settled in his own dis
trict, and they can testify to their sorrow
that these things are so. beseech sena-
tors to pause before they take step that
is fraught with so much evil to the state as
the proposed usury law and low rate of
interest.
Do you wish to drive out of the state the
millions of capital which have been attract
ed here by the liberal interest rates hereto
fore prevailing? Do you wish to cripple
our banks and embarrass our merchants ?
II you do, those of you who represent
rural districts will not find the capital
flowing back to the country as you fondly
anticipated. When you desire the aid Of
the merchants, through the banks, to move
your crops, you will find them unable to
help, except at exhorbitant usurious rates
of interest. You will find that city
and country will suffer alike. | rep
resent district embracing both commercial
and agricultural interests, and am salts
fed that am advocating the best interest
of both classes when | urge the adoption
of the largest liberty possible in the rate Of
interest on money. My idea of our duty
as legislators is to put no restrictions what
ever on either capital or enterprise,
Let both regulate themselves according to
natural laws and we shall Drofnote the