Keowee courier. [volume] (Pickens Court House, S.C.) 1849-current, 1882-12-21
The Usury Law.

auOW paTtieS u cODtTaoL IOr tnc loan OF
money at ten per cent interest. The effect
Z of this change will be to fix tho lowest rate
of Interest OF ton per cent, with no protec-
tion against higher rates more effective than
the former law gave. 1t is true the, for
feiture of three times tho interest paid,
when over ten per cent is charged, gives
higher penalty than tho forfeiture of all the
interest and costs under tho former law,
but poraons who will risk ono forfeiture will
risk the other. Tho law as it is changed
will bo as liable to evasion and violation os
it was before and its violation will be no
less frequent.
The strongest opponents Of tho usury
law based their opposition on tho principle
that money is q commodity and should, like
other commodities, briug what it will COM
niand on the rule of supply and demand.
Wo deny and havc always denied that
money is commodity in the ordinary sense
of the term, as it has by legislative enact
ment and by common consent powers which
no other commodity has or ever hud Even
if it were an ordinary commodity hcn the
new law is unjust and those who hold such
an opinion could not consistently support
this or any other Act which places limit
on the amount of interest chargcuble.
Money is a medium Of exchange with
purchasing and paying power which nothing
else possesses. 1t is common standard Of
values to which all articles must be applied
and its value should bo fixed This was
done by tho law which limited interest to
sevon per cent, the highest amount turner's
con pay aod live and fair profit on its
loan.
Other persons opposed tho law because
it was dead letter, being violated every
day Upon this limo Of argument the pre-
sent law is equally dead, since it is open to
violation as easily as the seven per cont law
was. money lender who would risk for
feiting the whole interest charged and all |
costs of collection would risk threo times |
tho interest and cost The fact is violations
OF the law we're confined to towns and cities
and to loans to spectators on short time.
While they existed and were frequent, they
did not interfere with the great bulk of the
people nor with loans on long time with
good security. Ten days ago money could
have been borrowed readily at seven per
cent. interest, which could not be had now
nt 81 per cent. All mon want the 10 per
cent. and they find money loaned at such
rates on good security more profitable to
them than its Investment in lands or manu-
features or other productive industries The
fact is not one in ten farmers realize per
cent. profit on the capital employed in farm,.
ing and not one in thirty can hope to realize
10 per ceut. Why then repeal or modify
tho law! Who will it benefit? Spectators
alone can afford to pay it and the tendency
of the law will bc 10 invite speculation to
the injury of tho industries Tho poorer
tho people the more need of usury law, as
it protects tie poor and unfortunate from
the oppression of capitalists. 1t is useless
to refer to Massachusetts where they have
no usury law and where money is Ioaued at
a to per cent. This was the case in |
South Caroipa before tho war, when money
could be had at S per cent often, but now
that tho people arc poor they need protcc-
ton from capitalists Formerly the abun-
dance of capital gave partial protection, now
its scarcity requires legal protection. If |
farmers could prosper and grow rich on
money at 10 per cent. then no great injury
would result, but if experience shows they
cant realize 10 per cent. by farming, then
to borrow and farm leads to certain ruin.
Some say English capitalists want to lend
to our people million dollars on real estate
security at 10 per cent, and hence want
the usury law repealed and to give them u
land loan charter under which they can
operate and bring money into the country.
We do not want or need their money at
that interest. We can't make it in farms
ing and it is only question of time when
the lands of the State will pass into their
hands for interest in default. Foreign
capital brought here and invested legti-
mately among us is desirable, but foreign
capital brought hero and loaned to our pco-
pie at interest greater than they can make
will provo our ruin. We would rather it
wn{s fprbidden, to como hero on such terms
Others say the people in giving liens for
supplies on credit pay moro than 10 nor
cent. II true this proves nothing 10 favor
of unrestrictod ;nto,os, e. Al,