Smyrna times., 1874-12-23

THE USURY LAwS.-The discussion now
going on ia some of our State exchanges
about laws regulating money lending is a
shadow OF coming events for Legislature 1t
Is quite certain, We think, that our General
Assembly will be called upon to tinker our
nsury system, and it is also quite evident that
there Is a sentiment strongly looking towards
more liberal policy in financial transactions.
Money is said to be tight" here because those
who have it to loan can do better with it out.
side of the State. Any of the States around
US offer better market for capital and hence
1t, like every other article, seeks the market
that pays best, or. if it remain at home, does
so only at the violation Of our usury law. There
fore say the libeTalistS-who are not all money
lenderS-givs us a system that will place us on
q par with the commonweaths around-one
that will stop the drain upon our surplus eapi-
tai and check the hagrant violations of our
law, which makes rapacious lenders charge a
higher rate by reason of the very risks they
take 10 this violation. In our great CONNER
cial centres there seems to be no law in the
matter Tor if so it is disr&garded) aud money is
sold upon only the one great law of trade viz /:
supply and demand, which is higher than any
legal enactment. If the demand DO great, some
roundabout evasion Of tho law is resorted to,
and the extra expense attending such evasion
is always heaped upon the borrower The law
IN cases of extreme necessity, is too often an
expensive obstacle to be overcome rather than
safe protection against the rapacieus Shylocks
A rate OF interst is therefore often demanded
and paid which money never could command
but for the law. The "bouus' is the law
defyer.
The drift of argument is strong on this side
of the question: particularly in Wilmington
but there is also another and large class WhC
insist on holding to the present law, as the on
best suited to our wants as an agricultural com
munity. 1t is insisted By this class that tn
farmers, who do not require an active capital
like manufacturers, cannot afford to pay NOR
than per cent. for money, if they can eve
pay that, ard the rate if not restricted to thi
figure, would be ruinous to our greatest sourc
of industry. Our lands cannot stand NOR
than this, many earnestly assert.
Another class, who wish to compromis
between the manufacturers and the farmer,
propose that the legal rate remain as at present
when no specified sum is named, but that
may be lawful to charge different rate prov
ded it be stipulated in writing This we bC
lieve is the law in both Maryland and Penn
sylvania.
Another suggestion is the following, by
correspondsi of the Delduarean.
That where non resident loans his none
to a resident of this State for term not lei
than five years, he shall be allowed to stipula
and take for such loan the standard rate
interest in the State where he resides; aud
contract to that effect shall be enforceable
the courts of this State
Parties in other States, who have loanc
money in this State have several times lost Il
debt in this way. They loaned the mont
according to the laws of the State in whic
they lived, at more than six per cent and h;
to collect the debt according to the laws
this State, which allows only per cent
trying to collect by law we believe that Of
courts have invariably decided in favor Of Il
borrower, as against the foreign credtC
To claim more than per cent. is uSury al
the foreign creditor forfeits the whole debt