The weekly democratic statesman. [volume] (Austin, Tex.) 1871-1883, 1874-10-29

decree that each greenback and treasury
note shall be redeemed dollar for dollar.
Our contemporary confounds the intrinsic
value Of the circulating mediums with money.
Il is true that gold and silver are pre-
ferred as money, and that modern CONNER
eial nations use coin made Of the precious
metals, which we believe should only be
used; but to say that paper is not money
when issued by authority Of law is to deny
that governments can issue representatives
Of value. Iron was used in ancient times
as money; and so are cowries, a species of
shell, used in some parts of Africa at the
present time.
In the concluding paragraph the TEE.
graph submits the following proposition:
"A and start out in life and are both sue
cessful. A invests all he makes in real es-
tate, and keeps his money as he accumu-
lates Is. A has house for which he paid
$4,000, for which he asks $500 rent per
year. There is no law TO prevent him from
making this more than legal interest on his
money, but 3 dare not loan his $15, 900 at
the same rate Of interest under penalty OF
the law. Where is the justicel A is dry
goods merchant, or engaged in any business
where he buys and sells for profit. On
his capital invested he may make twenty
I'VE, thirty, or fifty per cent, but his neigh
Dor b must be content with seven, ten, or
twelve per cent, as the usury law of his
particular State may dictate. And Why
Because, forsoOth, such reasoners as the
STATESMAN say, 'the circulating medium is
a representative Of values, and it may be
boarded by few, and an Hsury law is es-
sential to prevent its being loaned at exorbi-
tant rates"
The above is An unfortunate position for
our contemporary. Whyi Because he has
insisted all along that supply and demand
regulate, and should regulate, values. The
value Of the rental of house is governed
by the number of houses which can be
rented, and the cost Of the material. used
in their construction. So with the mer-
chants goods. But the interest of the
money will, to a certain extent, increase or
diminish the price Of the house and goods.
If A. borrows money at high rate to
build his house, he will ask more for the
rent, and so will the merchant for his
goods. The high rate of interest asked be-
ing at last paid by the user and consumer.
Having answered the objections, we will
now proceed to show that the Legislators
of the States have deemed usu-y laws essen
tial, and have enacted them, with certain
pains and penalties. We give some of the
States which have passed usury laws:
Alabama-Right per cent. The principal
Only can be collected on usurious contracts.
Arkansas-Six per cent. All contracts
for more than ten per centum per annum
shall be void as to principal and interest.
Delaware-six per cent. The borrower
may agree to pay amount of State tax.
Usury forfeits a sum equal to the amount
loaned.
District of Columbia per cent; but
by written contract as high as ten may be
collected. Higher rates forfeit all interest.
nlinois-six per cent. May agree on any
rate not exceeding ten per cent. Usury for
feits all interest.
Indiana-The same as Illinois, without
forfeiture of the interest, but not more than
ten per cent. can be recovered.
Kansas Seven per cent; but parties
may contract to pay as much as twelve per
cent.
Ksntucky-Six per cent, but on written
contract as much as ten.
New Jersey-Seven per cent. All con-
tracts for higher rate are void.
New York-SeVen per cent. is the legal
rate. All contracts in excess of that rate
are void, and the usurious lender forfeits
both principal and interest.
ohio-The legal rate is six per cent. but
contracts not exceeding eight per cent. may
be entered into.
PenAsylvania-Six per cent. A contract
for higher rate is not binding.
Tennessee-Six per cent, but by special
contracts ten may be charged.
Virginia-Legal rate, six per cent; but
special contracts may be made as high as
twelve per cent.
Some tSp of the States allow any rate
agreed upon; but the more wealthy, intelli-
gent and enterprising have deemed it essen
tial to their prosperity to fix the rate of in
terest within reasonable limits.