The daily gazette., 1878-01-22
The AbsorbingyPow OF Usury.

The AbsorbingIP Power Of Usury.
By the term usury, In this connection,
We mean any rate OF interest or rental for
money SO far beyond the power Of pro-
duction Or commsrce 70 earn that II WIN
property the borrower may possess; In
other words, the usurious intsrest that
would not only absorb all the gain which
would probably accrue from the active
use Of the borrowed money, but the
earnings Of the capital logitimately be-
longing to the borrower, and too often
his capital itself, and the earnings OF his
skill and labor in addition.
Startling computations have from time
to time been made which demonstrate
the cumulative power of interest. For
example, we are told that IL Captain
John Smith, on his landing at James,
town, 1907, had loaned one thousand
dollars at six per cent.--the interest be-
ing added &C the end OF each year-his
clam the present year t1S77) would, in
round numbers aggregate $500, ,OO0, 900
(six thousand eight hundred millions of
dollars), or as much N the cost--on both
sides--of our late war; tFi iI'
Such figures, and they are unim-
Peachable, not only show the i'm psssibili-
ty of high rates being collectible for any
khSe&s hShkhA W hAhto VI buCu buLu8 ~ uA-
tions and even corporations are con-
stantlv borrowing, but they show that
no one. separate, individual dollar ever
earned. for n great length of time, even
the 80 called moderate rate OF six per
cent. True the loaner may have colIec-
ted it, but ie came from other earnings
than Its own. The continuous soc cietary
exhaustion which follows from high
Rates Of interest Is quantity illustrated by
Sydney Myers, who compares the re-
sources OF production and commerce TO
a reservoir Of water, with supply pipe
of three inches, and an exhaust pipe of
ten inches, and argues that its being
emptied Is simply a question of time.
This theme has been perhaps more
fully discussed, and through longer
periods, than any other now bafore the
people, and the true answer to the ques-
ton, what compensation is capital, as
contrasted with labor, fairly entitled TO
receive, seems as distant and obscure as
ever. mi.
To take one impressive example Of an.
cient dealing with this question: In the
Hebrew theocracy, when the church
was the state, Moses, as the direct
mouthpiece OF the Almighty, most an
equivocally prohibited the taking Of in.
terest from the Jews, but especially per.
mitted 1t TO beEtaken from all outsiders
This, from a national standpoint, was
shrewd statesman nship, though ,mathema-
ucally, It was not as clearly demonstra a
trated then mas now that the lender
whether as an individual or as a nation
with interest more cumulative than pro-
duction- was sure to absorb the borrow
or. Ngf
Ages after, when the work Of "recon-
struction" Of the ruined walls of Jeru-
salem was in progress, an earnest cry
OF distress fIom the people came to
Nehemiah (see Chapter W. Perhaps
their trouble. came from the ravages OF
war; perhaps from assessments for ''im
provments" they certainly had high
taxes 10 pay, and they complained tb al
they had been forced TO mortgage
their homes for food,or to pay their
tsxes,then termed "the kings tribute"
Another class (perhaps those who had
no houses or lands) complained that
they had been forced to send away
from home their sons and daughters
to earn the required means, and the
condition of things showed no pros
pect OF alleviation. As these oppres-
sions came from their own fellow -citi.
zens, in utter disregard of the spiril
and letter OF the Mosaic teachings, the
grand old patriarch was exasperated
as he says Chap. ", verse 9, II wal
very angry when heard their cry anC
these Words" But unlike many oi
cur present agitators, who would hav.
simply held mass meetings and 'curs
ed things generally" he went s,raigh
to the 'rulers and the nobles," as ht
called them, and, with scathing sar-
casm never surpassed, he showed t.
them the miserable Inconsistency o.
freeing their country-men from slave
ry to the foreigner. only to reinstituts
the same relation with their owl
neighbors by the the more iasidiou
but not less deadly means of usuriou.
interest.
And having pointed out to then
the ridiculous inconsistency OF thei
practices, as contrssted with their pre-
cepts-especially in the eyes of othe
nations, which was peculiarly q sensi
tive point with the Jews, who deemed
themselves (as we do oarselves) tn,
very pattern of excellence-he waited
for a response. AS no one "put in
rejoinder," he concisely put the ques
tion thus doth verse): 81 pray yo,
let us leave off this usury."
Apparently without dissentip,
voice, the motion was carried In tn
, affirmative, when Nehemiah exacte,
an oath from the priests, that the spiri
and letter Of the law should be observ
ed. And that no element of earnest
ness and solemnity should be want
ing, the grand old functionary tells u
(verse 13): Sand / shook my lap,
probably his apron), land said, s.
God shake gut ecery man from his hous
and from his labor that pe1Jormeth no
his promise; eUea thus be he shaken o.
and emptied."
The chronIcler records that tb
, obligations then entered into were a.
terwards faithfully complied with.