The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1877-08-16

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slant surveillance, and it is almost exclu'
sively from institutions of this kind that
planters, factors and agents obtain theil
funds by which the crops are cultivated
and produce moved. The united taxes
levied on these institutions, l am credi-
bly, informed, together with the expenses
of management and working, will aggre-
gate 81 per cent. on their capital. A
| law, therefore, limiting interest would
either close these banks or force them to
resort to evasions, which would compli-
cate business, and be morally wrong,
even when beyond the reach of legal
remedies.
Re-enact this law and the transactions
of ordinary business would be hampered
by numberless subterfuges; agents, brok-
ers and middlemen, would reap rich
reward from the necessities Of borrowers,
and in place of a fair and open trade in
money, by which all loans would be gov
erned, and known market rate of in
terest established, a complicated system
of commissions, exchanges and over
charges would be devised, and result
only in increased expense and annoyance
to the unfortunate borrower. The old
usury law formerly in force in this State
was, as is we'll known, dead letter be.
fore its repeal by the Legislature, so
universal had become the practice of
evading it. The temptation to do so
would be greater now than before the
war, as the moral tone in business circles
is infinitely lower and practices recog-
nized as legitimate that would not then
have been permitted.
have heard the argument used by the
advocates of usury law, that one of
their chief objects was to hamper the
farmer, prevent his borrowing money,
and in that way confne his operation to
the narrow limits of his own labor and
the labor of his immediate family
What progress or improvement can come
from scheme so narrow and contracted
as this? These legislators would tie the
hands of the man of energy to the plow
tail and hoe handle, give him no chance
to hire help to till additional acres, to
fertilize his fields or improve his stock,
by restricting his undeniable right to go
into a free market, and make his free
contracts for what money he needs, and
pay for his cash, just as he pays for his
labor or supplies, that is to say, no more
or no less than what it is worth. Besides,
all men in South Carolina are not farm
ers, or even remotely connected with ag-
ricultural pursuits. 1t is the manifest
duty of the Legislature to make laws for
the government of the merchant, the
manufacturer, the mechanic and the pro-
fessional man, as we'll as for the land
owner and farmer, and it should also
foster and care for the material interests
of every class. To move the crops and
supply the multifarious wants of society,
the merchant must have either from his
own stores large supplies of ready cash
or be perforce constant borrower. The
manufacturer has to meet daily his ex-
penses for labor, raw material and re-
pairs. So, too, with the mechanic, who
contracts for work, and to whom the
iourneyman looks for daily bread
Banks were originally designed to meet
the wants of such as these, and without
exception every member of the classes
enumerated above will tell you, "Pass
no usury laws, leave us free to make such
contracts for money as seems best to us. /"
They know that the rate per cent. for
loans is fixed by the laws of trade, and
regulated by causes beyond the reach OF
general laws.
In former years in the State of South
Carolina money was not worth more than
or 7 per cent. because capital was abun-
dant, and greater portion of the labor
necessary for conducting agricultural and
mechanical operations being performed
by. slaves, ready money was but little
needed, and few dollars went a long
way in those halcyon days. The bank
ing capital alone amounted to fifteen
millions, and the banks were also allowed
to issue bills to the amount of five mil
lions more. They were also restricted to
6 per cent interest for discounting notes,
but could buy and sell foreign and do
mcstic exchange. Now mark the work
ings of these institutions. With all the
advantages derived from issuing bills
upon which they paid themselves no in
terest, but upon which they received 6
per cent, they found it still more profit
able to transfer large part Of their cap
ital to the great money centres of this
country and Europe, and employ their
money in trading in exchange, untram-
melled by usury laws.
A. T. Stewart, the great dry goods
! millionier of New York city, bought a
large part of his foreign exchange from
the agents of the Bank of Charleston.
What Immediate benefit was this large
capital employed in New York to the
agricultural community in South Carroll
ma? Did it make money cheaper? No
farmer or planter, as a rule, had bank
credit in those days in any ordinary 1..y
or country bank, for they all did .eir
business more in New York than at their
local Offices; the presidents carried the
banks in their pockets. The planter re-
quiring advances was forced by the above
system into the hands of the commission
men who knew the ropes, and although
T per cent. was the rate of interest that
appeared on the face Of the bonds, moth
ing was said of the commissions charged
for finding the cash. The effect of the
re-enactment of a usury law at the pres
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struct the whole financial machinery BY
which the agricultural and mechanical
industries of the State are carried on
confidence in the integrity of the people
of South Carolina is being established
and also in their ability to meet their
liabilities, and the dictates of wisdom
would be to interfere by legislative enact.
ments as little as possible with the recog-
nized modes of transacting business. Nc
law which could be enacted would OF
could annul existing contracts. These
must expire by their own limitation
The signs of the times indicate that from
natural causes interest here in S0utl
Carolina, as elsewhere, must decrease
Already has money fallen from II pei
cent. per annum to I or s. With an in
crease in our material resources, a further
reduction is certain: confidence vii