The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1877-08-16
ESSAY ON USURY.
Read Before the Joint Meeting of the
State Grange and State Agricultu-
raj Fair Association in Ander.
son, on the Sth of August,
by Mr.. E. L. Roche, OF
Charleston.

by Mr.. E. L. Roche, of
Charleston.
The Position of Those Who Oppose thu
Enactment Of Usury Laws Defineds
The laws regulating interest are among
the earliest found in the statute books
In Greece, as far back as five hundred
years before Christ, money lending was 6
recognized occupation, and is per cent
was the legal rate; but 36 per cent. wa;
charged for mercantile loans, and az
much as 16 per cent. per day was paid by
doubtful borrowers. The Roman law
called the laws of the Twelve Tables, al
sowed interest at the rate of l per cent
per month, or II per cent. per annum
but the Roman laws on this subject were
frequently modified and altered to pre-
vent evasions, but apparently without
success. In the year 40S the legal rate
of interest was reduced to 5 per cent
Justinian made further reduction to 4
per cent, but exempted merchants, who
were allowed to pay and receive s pei
cent. The usurers, however, under this
reign are known to have taken as much
as so per cent. where the risks Of the
loss was great. Stringent laws against
usury were passed in subsequent years by
other rulers of the Roman Empire; but
the money-lenders continued to evade
and render them nugatory. In the year
740 the Roman Senate again ratified a
law making II per cent. the legal rate OF
Interest, and forbade Senators to engage
in the business of money-lending.-
Again, later we find, under the Emperor
Theodosius, "a per cent. as lawful inter
est in Rome. By the laws of Moses, the
Jews were prohibited from taking inter
est from each other; but were expressly
permitted to do so from strangers. The
canonical laws governing the early Chris
tians also forbid the taking of interest
from their brethren. This idea was taken
no doubt from the Jewish laws on this
subject, as we do not find in the New
Testament the practice of taking usury
condemned, but rather commended, notd-
6iy in the parable of the talents, where
the sIothful and Improbable servant who
hid his lords money in the ground and
failed to put it at interest is punished,
but the servant who traded with the tai
ents committed to his care, and gained
other talents, is rewarded by having
given to him not only what he before
possessed, but also the talent which the
first had failed to proftably use. Evi-
IDENTIFY the prohibition of the canonical
law of the early Christians was intended
to regulate the intercourse among "the
BRETHREN" that is among those who were
to be the conspicuous leaders, just as the
apostles were sent out without money to
pay board, and the brethren were expec.
ted to provide for them in their journey
ings; all their goods were in common
Of course society generally cannot be
regulated upon such basis, and it would
be as absurd to pass laws now against
people charging board as it is against
their charging hire for the loan of money
After the fall of the Roman Empire, and
during what is called the dark ayes, nc
interest was permitted, but system
called rents was practiced whereby Dor
rowed money was returned yearly in
small sums. AS we approach nearer tc
our own times the rates of interest are
found to huctuate, but still, upon the
whole, becoming steadily lower. During
the reign of Henry VIII in England, II
per cent. was the lawful rate under Jane;
/, s per cent; under Anne, 5 per cent
William and Mary borrowed at S pei
cent. from the Bank of England, lat thai
time new institution recently estab'
lished. Money can now be borrowed In
England at from 2 to 5 per cent, the
current rate being regulated entirely by
the abundance or scarcity of the article
in the hands of lenders. From the briei
review of the history of interest laws
which I have given above, one fact is
clearly defined, namely, that no law
heretofore enacted, has been stringent
enough to prevent what has been desig
mated as usury Nay, even in the laws
themselves we find a recognition of the
adage, Necessity knows no law" ano
that an increase or decrease in the inter
est obtained on loans must be governed
10y the individual wants of the parties tt
tile contract. In one instance merchant:
are allowed to pay and receive Sper cent
but borrowers engaged in other pursuits
pay but i under one ruler; 81 per cent
is named as the legal rate under success
sion of others; the ranges OF lawful In
tcrest run all the way from "a to , pei
cent. This proves that when the people
were prosperous and money plentiful
and the risk to the lenders reduced to 6
minimum, they were willing to accep
small returns for the use of their capital
But in times of difficulty and danger
either from internal discussions or for
cign war, when the tenure by which
property was held became impaired, ano
the productive energies of the people
crippled, money, like corn, clothing o.
any other valuable thing necessary to the
comfort or convenience of domestic life
advanced in price; in fact it was worth
more, and those who had it to lend re
quired to be paid according to the risl
run and the demand growing out of thu
necessities of the situation. The people
of South Carolina are to-day in a posi-
ton similar to this they are, so to say
in transition state, and have been 81
for ten long years, nor have they We
solved the problem or settled what the.
will do with it. Trained in the manage
mcnt of one kind of labor, namely, slav'
labor, the landed proprietors were, with
out preparation, called upon to organic
Il new system, and make the former slav,
profitable in his new relations as a FREE
man. What was possible or impossible
in this direction no man knew, and OK
pcriencc could be the only teacher. Th
landowner was driven by the necessitie
of his position to accept the situation an,
take the risks, be they great or small
l;ut the capitalist, who was called upo1
to advance the cash with which the nee
e~Sary stock, tools, fixtures and labor wa
bought, could have no induccment t
embark in this business but the hope o
gain, nor could he have been expected t
do 50 for rate of interest of 6 or 7 PC
cent. per annum.
The abnormal political condition 0
South Carolina also intensified the diff