Keowee courier. [volume] (Pickens Court House, S.C.) 1849-current, 1879-07-24
The Usury Law.

Our views on this question have bcen long
known. We opposed Tho repeal of tho law In
1866 in face of tho golden harvest promised
from II by those who favored tho repeal. From
its repeal TO ills rc-enaotmont by the Legislature
in 1877, wc advocated its restoration and mndc
frequent efforts to this end before the Radical
Legislature. These met with opposition from
tho city press and to great extent from the
press of tho country; but tho first Democratic
Legislature passed q law fixing the legal rate of
interest at sovcn per cent. and imposed as
rcnalty ON all who cxactcd larger interest for
money tho forfeiture of The interests and costs.
In tho absence of money and tho impoverished
condition of tho South after the war q number
Of othcr Southern States cut loose from tho Wis.,
dom and experience of the past and repealed
their usury laws, looking 10 this for restoration
of capital and prosperity. In every case failure
and disappointment resulted and already several
have returned to the craftsmanship which led us
from u collection of poor colonsts to indcpond-
cncc and wealth.
In North Carolina, by lato law, the taking
above the legal rate Of interest is malc criminal
in addition 10 tho pccuniary forfeturcs imposed
by law. In Georgia bill lbs been introduced
into tho Legislature fixing tho rate of interest
at six per cent. md subjccting any person vio-
lating the law to o forfeiture of tho debt, inte.
rests and costs. This was tho law in South
Carolina in tho carly days Of its existence ns
State, but the penalty modified somo forty
years ago ~ limiting The forfeiture 10 Tho into
rest and costs.
We are now living in peculiar times. Our
people arc poor and heavily involved in debt.
a
misfortuncs, and ii over cause cxisted for limit
ing interest, IL exists now. The present law has
accomplished much good but its violations arc
too frequent and money holders have too much
opportunity to use their capital to tho injury of
the State and tho ruin Of its citizens. We favor
moro stringent usury law, ono which subjects
the lender Of money at a rate of interest above
the limit fixed by law TO tho forfeiture of both
the principal and interest of tho debt. This, as
wo have said, was onco the law, and in our
opinion it should again DO tho law. All must
admit that money invested in agriculture in this
country cannot pay moro than seven per cent
interest, and further that wo orc an agricultural
poople. All must admit that speculation should
be discouraged and honest industry encouraged.
All must admit that cvory State should by its
ducive industries, agricultural, mechanical,
mineral manufacturing, and that when its
citizens will not 80 employ their capital, they
should either permit others to do so at reason
able interest or keep il idlc. Every farming
failure Is drawback to young men entering
that ovocation, and every effort NJ farming on
capital at ten, twelve, fifteen and eighteen por
cent. must bc q failure. These failures not only
discourage othcrs, but they result in Tho i'm
poycrishmcnt Of tho State at largo and In the
adding to tho means Of capitalists moro power
TO create moro ruin.
In tho face Of the present usury low money is
still being loaned at twelve, fifteen and eighteen
per cent in this and other parts of tho State to
tho injury Of the true wealth and development Of
The country. This ought 10 bo put down by any
and every legal restriction within the bounds OF
thc constitution. Congress sometime baok had
before il bill to fix tho legal rate of interest
throughout tho United States at five or six per
cent, and while We think this matter belong
ing 10 tho States, still we think in view Of the
evils Of speculation, some positive steps should
be taken in tho matter.
Has the State the moral right to pass laws
limiting The rate of interest? All admit The
constitutional power of the State in this matter,
but very many say money is q commodity and
should bring what IL is worth in The community,
and any law limiting Its value is taking from
tho citizen what properly belongs to him. In
,l,o first place money is not commodity in the