The Morning herald., 1876-03-20

and indt Fial !, "a mol nth u
6irest portion sfl Fope I'D ia, h .|
sepl> are gn and thous d hs l|
died stary hon III thre kears ~
Asia Minor. The necessities Of the En-
pire forced the saltan and his Dlvaa, to
abrogate in this respect, the letter ;Yf<.bf
Koran. When the Turkish loan was pat
upon the European market N 1s7e; grey,
bearded Ulemas discovered, that the NO
ran did not prohibit tie payment Of inter.
est by True Believer, it enly prohibited
him from taking interest! The Turbansd
money lenders ofAdrianople, and SMYRNA
since that decision no longer hesitate 10 DO
openly, what previously they had, done
secretely. A.. 80. ,''..... -. .... ,,f,5s ~.
1t is said that the rate of interest for
money has fallen.,in Turkey, fully one halt
since the paying Of interest haa become le-
gal. Forty and fifty per cent per lannum
was no uncommon charge in Constantine
ple before 1870. !, Frae trade in money, it
will be seen has cheapened it, because the
natural law Of supply regulates it. ..,,
It is fact well werth considering that
the most prosperous and splendid State Of
the ancient world, Athens, whose CONNER
cial activity laid deep the foundations Of
her power, and garnered the wealth which
gave leisure for her culture, as early as the
age of Solon made the trade in money free.
Has the example no lesson for the thinker?
,Grote l., his history Of Greece, says, lin
most other nations laws have been made
to linit the rate Of interest, ana at Rome
especially the legal rate was regulated by
law. II seems as might have been expect
ed that the restrictive ordinances we're con-
stsntly and almost openly eluded. All
such restrictions have been intended
for the benefit of debtors-an ef-
feet which large experience proves them
never to produce, unless it be cc.lled pro-
lection, to render the obtaining Of money
on loan impracticable for the most deserv-
ing borrowers. n Il n
"At Athens, throughout all the histori-
cal times, no restriction, legal or other
wise, was ever imposed upon the loan-or
for the use of money, and the rate Of in
terest being expressly declared free by a
law ascribed to Scion himself, money was
VIGOROUSLY cheaper than in other Grccian
States. Boeckh Public Economy Of
| Athens gives the rate of interest in Greece
about the third century before Christ at
Athens. when money was free at from 5
to 10 per cent. per annum, according to
the credit of the borrower. At Korkyra,
where the rate of interest was fixed by
law, a sum of money given to the State
for Dionysiar festivals, was placed in the
hands of trustees and hired at "a per cent.
per annum, the language Of the trust be-
ing, "2 per cent. per month, neither more
aer less" In the other Grecian cities where
,sury laws prevailed, money commanded
as rule ab..ut 80 per cent. per annum,
or three times the legal rate Of in
terest.
Mommsea in his truly erudite and phil
osophical history Of Rome, without ex-
pressing an opinion upon the usury laws
of the Rsman Commonwealth: portrays a
development of economic life, which ef.
fectually ruined the State. In the second
century before Christ, the Roman Tri.
bunes passed successive laws regulating
the use of money-constantly restricting
it, until it was practically prohibited tc
take interest.
One Of the consequences was the grad
ual destruction Of both the free rural, and
urban population, who were no longer able
to obtain capi'al--at fair rates Of interest
either to farm their lard, or carry on the
retail trade of the cities.--
In the face Of a prohibitory law, the
money lenders raised their rates OF usance
to 80 and 40 per cent per annum-a rate &C
destructive as to paralyze all industry in 9
free people. The law abiding capitalists
purchased slaves, enlarged their estates
gave permission to their slaves to trade ir
Rome, upon capital furnished them, anf
by these means, the free born Roman cit
izens, whose swords made Rome the mis-.
tress ofthe world, were reduced to poverty
and the great gulf between the rich ane
the poor, yawned still wider apart.