The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1889-05-15

was based upon economic and juristic
principles, the wisdom Of which is with
out parallel in any other code, either OF
ancient or modern times.
''Such is necessarily rapid outline OF
the salient points in the history OF usury
laws. What has been their operationp
Singular though it may appear, the inva-
riable effect OF usury laws, whenever and
wherever they have existed, has been TO
defeat their own purpose, and TO render
money dearer than II otherwise would
have been. They have always aggravated
the condition Of the very class whom they
designed to benefit. This has been con-
clusively demonstrated both by argument
and illustration, by every respectable
writer on political economy, and by every
impartial historian. II cannot possibly be
otherwise. AS Buckle in his History of
Civilization, observes: No prohibition,
however stringent, can destroy the natural
relation OF supply and demand. Its only
elect is to interpose difficulties and create
dangers which have 10 DO compensated for
in the adjustment OF tho return. The
needy man must have money, and the
capitalist is ready to furnish it.
IL the two classes - the bor-
rowers and the lenders-were loft
untrammeled In their negotiations the rate
would DO adjusted according TO the cir
cumstanccs OF each particular case. The
purposes OF the loan, the circumstances OF
the borrower, the nature OF the security,
the amount OF risk involved, and the COM
petition OF funds for investment would all
be considered. and rate appropriate in
the individual transaction would be nd
justed. But tho law steps in with nothing
whatever but an element OF disturbance.
II aggravates the condition OF affairs. 1t
creates additional difficulties and dangers
the Transaction IL probably rendered
moro complex in form, tho risk OF loss is
augmented the dangers Of eyading a law
winch neither party consdersi II any wrong
TO evade are introduced. And all these
have to be provided for by loading the
rate which the borrower has TO pay for
the use OF the money. In addition, there
fore, to the natural aud fair rate which the
borrower ought to pay, he has TO pay
supplemental raie 10 cover the extra risks
created by the law. Usury laws, there.
fore, in every age, and in every country
IN which they have ever prevailed,
have invariably produced but one
result They have made money dcarer to
the borrower. Even when these laws were
most stringent and when their penalties
were supposed to follow the unhappy
shade OF the offender into the realms of
eternal woe, they were operative only for
evil 10 the borrower. The lender merely
exactod higher rate from the borrower,
and added TO the material gain tho
spiritual solaco that the Church might be
IN error on subject regarding which she
was promised no special illumination.
But usury laws are not merely an eco.
monte blunder, they are grave social
error. Their evil is moral as well rs mate
rial. As simple matter Of the commonest
fact they aro disrcgardcd aud violated
every day, and that. not as exceptional
acts by lawless persons, but by the
worthiest citizens in the regular transac-
ton OF their daily business Men OF the
highest honor and strictest integrity,
whose business journals might be- kept by
the Recording Angel, feel neither hesita-
ton nor compuncton in violating the
law every lawful day OF their lives.
Now law which the moral sense
OF the community does not sustain,
a law which the whole business and
banking OF the country systematically dis
regards; law which Is not enforced, and
practically cannot be enforced: law
which u never rosoried or appealed TO ex.
ccpt 10y unscruplous persons seeking To
cyado moral claim; such a law IL inhn-
itcly worse than no law at all. Its rcten.
ton on the statute book II ON oiTense
against every canon OF sound law aud good
Judgment. II fosters u spirit OF disrcspcct
Tor law II lowers the popular conception
OF ihc rccIiludc OF law; II wcnkons the
sentiment OF obedience 10 law; aud liz
whole tendencies are subyesive OF good
law aud order aud government Consli-
tutionally, therefore, ~ we'll ~ economic.
ally, the usury laws are unsound.
ii can only refer in brief concluding
sentence 10 tho probable effects upon the
prosperity Of this State Of tho repeal OF the
existing legislative restriction OF interest.
| do not profess To know q grrnt deal Oi
America, but ! believe know little Of
Iennesscc. And II there Is state in the
Union which enjoys moro favorable c0ndi.
tions Of situation aud climate aud soil, or
where resources aru richer or more varied.
u must, 10 my mind, be something like
Bunyan'e Detachable Land Within the
limits OF this state there IL coal aud iron OF
superior quality and almost limitlcss ex-
tent Timber Is abundant Agriculture
hourishcs, aud its Commercial CAPT.
tai u already the greatest cotton
mart In the world. Providence. seems.
In fact 10 have endowed the
state with every essential element OF
material prosperity. Tho rcpcal Of the
statutory restrictions upon interest would
call the attention Of capitalists 10 the State
as a field for investment. It, resources
would become known. It's advantage.
Il. al.
uinly ~ rivers How to the sea aud the sea
10 tho mighty ocean, would capital flow
into state whore there II material basis
at once Tor is secure aud ila profitable in
vcsimcnt, aud the result would bo an cx.
pansion of the trade aud commerce and
manufactures OF the state, IN comparison
with which past progress shall appear 10
have been comparative s'nrun'ion.'
BlrruAMs Pills act $3.50 Iult.s ON weak
stomach.