Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1877-05-31
Address Of Senator Gary, ofEdge.
field, on the Bill to Regulate
the Interest on all Contracts
Arising in the State.

Mr.. PRESIDENT AND GENTLEMEN
OF THE SENATE desire to signalze
my first. act as legislator in this
State by introducing the bill l'that we
now have under consideration, for !
believe that the restoration Of what
has5been popularly called our usury
laws would greatly rebound to the
benefit of the people of this State.
l propose TO consider the following
propositions in the order in which |
shall state them:
L. The doctrine of free trade, as
applied to money.
D ThatEthe-ahnlition of thA--lams
restraining usury would reduce the
ratesiof interest.
3. That the abolition of the usury
laws would increase the amount OF
capital.
4. The effect of the experiment Of
repeating the usury laws.
In 1857, Mr.. Jeremy Bentham pre-
sented the world with a book which
he termed "a Defense of Usury !;
Showing the Impolicy of the Present
Legal Restraints Of the Terms Of
Pecuniary Bargains" This book con-
tanned the germinal ideas that has
served as basis upon which to build
the theory of free, trade, as applied
to money. In opposition to this
speculative system of Benthon was
the clear reasoning OF Adam Smith,
the great apostle of the science of
political economy.
Their argument is that, because the
principles Of free trade, as applied to
merchandise and all other articles
that are the subjects Of exchange.
result in benefit to the commercial
world and society in general, that,
therefore, it must follow that the ap-
plication to money of the same rule
wonld be attended with like results,
thereby confounding money with
merchandise. In order to show that
they are distinct and dissimilar, l
shall enumerate some of the many
marked differences that exist between
merchandise and money, and will try
to show that the effort to confound
1 money with merchandise, by the as
sertion that money is merchandise,
and thatit should De subject to the
4 same laws that govern the products
of industry and labor, is not only the
4 false assumption of wild theorists
blinded by error and cupldity. but
4 that it is a political absurdity.
Money is the creature Of govern
4 ment, and it exists onlyiby Legislation
q therefore its value is fictitious. A
great variety of commodities have
Seen legally adopted for money, il
= different countries, such as cattle
corn, wheat, tobacco, leather, salt
iron, copper, silver, brass, gold an
& hank bills. Whatever commodity Ii
selected to serve the purposes of ex
= Z 3lchauee is Immediately invested witt
pecali4r fpnct ons and special power
and it is the greatest power that cal
be conferred by government. None,
Is legal standard or measure Q
syalue, and it bears the same relation
to ali merchandise that the yart
stick does to cloth, that the gallo,
does to liquids, that weights do t.
sbeayy commodities, for. all kinds G
merchandise, and everything that be
!acomes the subject of exchange ar
measured byit. Money may have n
intrinsic value, but hundred dollars
worth Of merchandise has. None,
beyer dies, but lives SO long as tn,
Government that created il lasts
But, on the contrary, merchandise
! he result Of individual labor or pri
late enterprise it is perlshabls
5estructible, consumable, and oftel
kanescent in its nature. Money
bncentrative; it soon finds Its we
to the vaults of banks or the Golfer
capitalists; but, ou toe other hanc
eschandise is difpsive, and is 500
altered to the four ends Of tn
prld.
The value Of money is fxedw5tlha
merchandise is relative. a doils
bmpared with dollar is ABSOLUTE
nd cannot vary; a bushel of :whea
compared to a bushel of corn is rela
i've; sometimes worth more, some
lines less, comparatively. Money
legal certificate of value. and