The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-04-05
NEW YORK HERALD MONDAY, APRIL g. Is7a-rRIPLE SHEET

throughout all or the towns and cities In North
Carolina, we are beginning TO feel the effects Of
an unwise Usury law passed by the present
Legislature before we nave mad time TO recover
from the Panic. This Usury law, which IS
just about to 20 into operation, fixes the rate OF
interest at six per cent, unless In instances where
the rate Is specified, wnen eight per cent Is the
maximum interest allowed. The sudden operation
OF this law is peculiarly distressing. wnen II Is un-
derstood that the rates for discount here nave
ranged from one 10 two per cent a month. and
occasionally still higher, Tor nearly ten years pasr,
or ever since the close Of the war. Much Of the
money loaned out by the banks has been received
by Them from private depositors to whom they
have paid six per cent per annum tor its use As
they cannot now charge more than eight per cent
1t win he seen at glance that this money must
be called in by the banks and returned TO their
deposltors, anu che ract OF the withdrawal, even
temporarily. OF sucn large amount or money
from circulation 10 business circles, Is sure 10 en-
tail much distress upon the people.
The Usury law. however, could not have gone
INTO effect at better season, as the larger part OF
last years. business has been settled aud but few
new ventures have yet Deen made Tor The present
year. The producer Will, therefore, be the one TO
leel the change most keenly. Heretofore not only
his supplies OF provisions, guano, &c, but money
Tor the payment or his hands, mas been drawn
largely from The merchants here, payment Tor the
same o be mace IN The iall, when his crop or COT
has lett some OF It's good effects behind. and the
merchants have been busy contracting their Dus-
ness and potttng ter houses IN oruer. they can
make but slight advances now ana sell Oh credit
only to the most reliable customers, and then only
for snort paper. BY Lnls means not only expenses
Will be reduced and many pai DEBTS avoided, out
mans business operations can DE neld wei IN
hand, so that ne can make himself ready 10 meet
any sudden storm tnat may ARISE.
The conclusion have arrived at from the inter-
views referred TO ABOVE. condensed aud equallzed
with as mucn mathematical precision as the car
cumstances Will admit OIL are as ionoWs:-
Fti'St-The banks nave already prepared 10 con-
tract their operations u very Rreat extent, and
they propose 10 limit the discount business
almost enLirelY TO their own customers or such
paper as may carry the Endorsement OF those GUS
TONER'S
Second-The business transacted by factors and
wholesale dealers much less reckonIng Irom
spring TO spring. this year than lI was the last;
but IL mas been OF more legitimate and OF q
much less speculative nature and consequently,
as a rule, factors ana merchants are In better
condition as regards available assets, ana are
making the most strenuous EFFORTS 10 collect the
debfs already due them.
Tntra-lhe past year mas been without profit 10
producers and man u actuie rs OF naval stores aud
such specu atoms as have oeen entered Into have,
as rule, resulted in loss.
Fot3th-Tne unw llllngness OF the merchants to
make advances Tor any purpose, Tor the reason
that even u the Usury law can be evaded, when Is
very doubtful, they must pay twelve per cent or
more money and thu IacJ that unQer the
operation OF the law they cannot secure advances
at over eish per cent must result IN greater or
less loss OF business during the present year.
FJtt--To tue usury law VIII DE attributed any
distress that may ensne and It's operation must
result IN neavy loss TO tue farming interest unless
tile planters can dnd lunds with when TO operate
OF course tnls Will ne felt by tine class Vi me chants
nanny engaged III the country business and must
affect incidentally all classes.
Sirth-- mere nave been only very few failures
in the city during the past year, and ali OF these
except III one instance, were new houses and
known TO be weak IL IS safe TO assert that me
mercantile houses here, as rule, now stand on q
nrmer Iooung tnan mas been the case at any time
since tue pane first struck US.
Seuentll-ihe above observations have been in
tended 70 apply more generally 20 the commission
clude retail houses. rue dry goods dealers Will
ali be III the Northern markets IN a ew days. they
have done lImi ed but Il sale business during tue
past year, anu VIII buy very Cautiously In laying
IN their spring stocks.