Delaware tribune. [volume] (Wilmington, Del.) 1867-1877, 1875-03-18
The Use OF Money.

TO AEABkRaOF THE LEG STATURE.
During the recent visit Of Mr.. Lewis Thomp-
son aud Joseph G. Grubb, Of Philadelphia, to
Dover, In behalf Of the Centennial commission,
the usury laws Of the State became a subject OF
conversation in which several Of the members OF
the Legislature joined.
| In alluding to the laws of Pennsylvania Mr.
Grubb said With us, the only penalty now is .
forfeit Of the amount Of interest in Of six
per cent. He had, he said never heard Of a case
In which the excesB WAS demanded People
were willing to pay for money, moneys worth.
No estimate of the good secured by tie change
| in the old law could Be made. Its benefits pene-
trated all parts Of the State and pervade every
condition OF society. Money was bought and
sold the samo As lime or seed whest in the
Peninsula.
He had learned since coming to Dover
that at six per cent per Annum, money
was not to be had In regular supply.
At that rate 1t was said it vas hmi.
ted almost entirely to purchase. monies, being
liens OH real estate, and to interest on renewals
OF loans. In numberless cases. interest could
not be collected at all, aud was allowed to &C.
crue, or was added to obligation At maturity, and
It was seldom that anything was gained by
foreclosure mortgages and notes could not, II
forced to sale, be realized at anything near their
face value. Ihings,it was conceded, were grow
ing worse. The small land owners suffered
most. Land was passing ont Of their hands, It
ferred to, notes and mortgages made up large
part Of the assets Of the State banks and but 3
meager part Of their capital WAS active,-in
ready moDey-at command, to meet the needs
Of the people. 1t WAS asked, Is there remedy
for this and il 30, what is it2
Mr.. drubb in answer said I am certain the fault
cannot be with the people. am very sure there
is ample means to pay all debts contracted with
ordinary good Judgment. The evil lies in che
fact, that the money, current in the State under
ita raofriNt{va hANOnnes frat
ductive and then immovable. Thus when loan
is called in, it cannot be replaced from floating
capital. That already has left for other parts
for . more copgeuAl climate and outside capital
border; the reason being assigned, merchants
may, but farmers cannot, pay more than six per
cent and the state should. - it does, at this
point stop in and take charge Of their private
affairs.
Mr.. Grubb remarked wise legislation would
see to it by timely enactment that credit be not
bereft thus Of q supporting power. Material
wealth is self existent aud it 10 solely to the
notifications representative Of its value, that
we must look for fulfllment Of our proper
destiny. Material wealth does not exist for
itself. Why retain then law that Ia both local
and arbitrary, and why deny to the farming in.
terest, facilities for conducting their business,
which IL the very life Of trade. Yon have lands
may bring with them all they possess, and all
their laws except one
Now, tho truth is and it has occurred in every
case wherever the yigor Of the Usury Laws has
been relaxed there money has fallen in ioanable
price, that where entire free trade in money ex-
lists it may be had at the lowest cost to the
borrower. certain class OF needy persons are
certainly driven from the market. or rather GER
tain questionable securitics-but it is class that
can well be spared.
OF all security. 1t is OF all the most favored.
"Lend not thy money to a merchant, 1t will
learn an estate how to swim were words of
advice OF great man to his son. MIR. Grubb
further said lam convinced good would fol
low the introduction OF the customs of trade in
to the usages Of farmers. Now, with them pay
day-almost,-is no day. Everything ia slip
shod. This is the condition OF the prodigal-
the capitalist scents it from afar of. II farm
ers we're held strictly to, the bond
from tnat moment things would be better,
they would know themselves better Their
ventures would be Judged Of by results previous
ly obtsined-not by hopes. Pay day would take
the place Of good intentions and prove them.
The coming crop would be held as reserve. not
isiis SilsS 610Ils1 vrs: be colIduotsi s1sny hsx
ard and at all risks the usury laws in this As in
| all other Btates are . dead letter,-practically
obsolete. You have only to allow the simple
LAWS Of supply and demand to take their place
aud-after some delay for proper Adjustments
it would be seen that money will sock invest
ments instead Of Investments be seeking for
money. There would be common ground for
lender and borrower to meet upon without . re-
sort to either subterfuges or evasions.
Farming as an occupation is said to be regared
here as q hard life and young men shun it, this
must not be il it can be prevented. The day
laborer also should be employed andwell reward
money ls surs way to retain him. In answer
to the question what would you propose in place
of the present law. Mr.. Grubb replied II you
are not prepared for full freedom OF trade in
| Al.
let it be "The legal interest for q loan of money
ia the rate agreed upon by the parties to the
contract. subject to the following conditions viz:
lst. When there Is no agreement as to rate,
six per cent per &nnum shall be the Interest"
2nd. When the interest is more than six and
not above nine per cent per annum, the excess
shall be forfeit"
3rd. When the interest is in OK sess of nine per
cent per annum the forfeit shall be the whole
amount OF interest charged, in either case, the
appeal to be taken within sixty days from pay
ment"
Glands in custody, under cultivation as farms,
nay be mortgaged for term not longer in one
| period than three years at rate Of interest not
| the aforesaid conditions, and it shall be lawful
to negotiate the sum upon Judgment
bond, having half yearly coupons attached in
the usual form"
A reason will always exist under the present
law for special legislation. The State 10 now
paying of at par, loans contracted at fifteen
| per cent discount. Concessions are constantly
made to corporation which virtually repeats the
usury law. Building association laws enacted in
violation Of the simpler laws Of trade. give ad-
vantages in q roundabout way which directness
would confer 1t no risk and at far less cost. In
fac. an open market for money as for any other
commodity is the only true market. since 1t is
the scsles in which profit and risk, gain and
loss, cost and security can be openly balanced
face to face between the lender and borrower.
such discussion would be incomplete with.
out resume OF the laws Of some Of the adj jaceni
States. In brief:
Pennsylvania-Legal rate per cent any sun
in excess is forfeit il demanded within sixty
days.
New Jersey-Legsl rate seven per cont the III
terest in excess forfeit il appealed from.
New York-Legal rate seven per cent il more
is paid both principal and interest is a forfeit
Delaware-Legal rate six per cent, II more ii
received directly or indirectly, it forfeits sun
equal to the money lent, one half to the person
suing and half to the State. To this may be nd
ded the manner Chief Justice Gilpin purposes
"to go for it,'--in q recent decision he said
wherever there has been usury in the loaning O.
money the ingenuity Of man cannot bury it e,
deep that this court will not unearth it.
Finally, it may be affirmed restrictions agains
FREQ trade in the use of money are a!rdys retail
iato,y ldtcs aimed, it may be. at some person
or evil imaginary or real, but which they neve
remedy and that those they are intended to ben
eft invariably suffer most by their operation.
How ne Knew II.
, The Danbury man visited "baronial hall" il
: Norfolk, England, md had his fret view Of
tapes;Iied wall
On one portion OF the wall at the head OF tn
STARE, was piece OF tapestry. think the wor
I tapestry is suggestive Of luxury, taste, refine
/ ment aud wealth. "Wa!ls hanging with tapes
!, try" suppose have read that sentence
: thors md times during a life actively devoted I