The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1889-05-15
HISTORY OF USURY LAWS.
THEIR NATURE, HISTORY AND oP-
GRAFTON.
A Valuable Contribution to the Discus
sion OF the Subject OF Conventional
Interest Rate by Prof Frederick
Scott.

spite the action oil the Legislature, the iol-
lowing address by Mr.. Frederick Scott, M.
A., IL. b., delivered TO the students Of
Leddin's Business College on "Usury
Laws, Their Nature, History and Opera.
ton, is published as embodying a re-
markably accurate and comprehensive his
torical treatment OF the subject
Professor Watson has done me the
honor OF asking that in connection with
the weekly lectures to the students of this
college, upon commercial and banking law,
should this afternoon talk TO you upon
the subject Of usury laws, their nature,
history and operation. The appropriate
ness and the importance of such n subject
10 such an audience are obvious ut once,
from the simple statement that IL refers 10
the use OF money. Money is n subject OF
universal interest. II is one upon which
the learned talk eloquently and even the
unlearned usually feel that they have n
few remarks to make. But to the bust
ness man il is all important. II is at once
the instrument and object Of all business
dealings. You will readily see that there
was practically little business and GER
tainly no commerce when there was no
"
men had TO be met by the interchange Of
actual commodities. Accordingly we find
coined money MS far back as the time when
Abraham purchased a piece OF real estate
from the sons OF lleth and paid for II 400
pieces of silver, current with the mer-
chant Money and trade starting into his.
toriCal view ut the same tune, money is,
therefore the native heath and vital
air Of all business, without which, either
with the individual or the community, il
would speedily collapse.
"To students, therefore, OF a business col.
lcge, to young ladies and gentlemen quail
tying themselves for business career IL
Is OF paramount Importance 20 acquaint
themselves with the nature and the opera
ZION Of those laws which affect either IA
rorably or uniiyorably the use, the circu.
laiion, the distribution OF money. hut
there is an additional reason why the stu
dents OF this college should, at this time.
Interest themselves in the subject There
is a movement initiated aud supported by
some OF tho most able and enlightened
men OF the State for the alteration OF tho
existing laws Of this State upol this sub
jeci. They believe, and think they be.
licyc rightly, that the existence OF these
laws tends 10 retard the prosperity OF The
State, and the development OF resources.
and therefore il Is the duty, rs it is the In.
terest OF the students oil business col
legc -lhoso who arc 10 ba the business and
professional men aud women OF the near
iuiurc-tO study this subject; To acquaint
themselves with is bearings, aud to rtngc
themselves on the side OF movement rs
wise aud patriotic as II is economically
sound.
"Wcll, then. the best way 10 study al
most any subject satisfactorily b. to pursue
the historical method Of inquy-to 60 I
back 10 the iirst point or period at which |
the institution presents itself % ascertain /
its primitive form and the circumstances |
out Of which it had is origin. and then 20
follow, step by step, III successive modi6-
cations and developments down To the /
present time, aud ia existing condition. |
In economic questions especially this Ii the |
only way To- get really intelligent grasp
on o subject
"What, then, is meant by 'usuryp By |
the word usury j. now meant any excess |
OF interest upon money lent 10 or duo by |
anyone over and above q certain limit |
drcscribed by Law. The laws OF the vai-
Gus countries and States in which usury |
laws prevail specify limit up to which |
n lender may charge borrower iur the /
use Of money All up TO and including |
that limit IL called Interest, aud all in |
excess Of II h called 'usury.' Usury Is.
Therefore. the excess OF interest upon
money beyond the legally prescribed limit
But this Is entirely modern meaning.
The original and literal significance OF the
word Is simply compensation or return
paid Tor the use Of money, irrespective
altogether Of rate or amount And this
was the only aud unvarying meaning Of
The word down 10 the reign Of Henry VIII,
when the iiral statute lcgaliking interest Ia
England was passed
such, then, being the meaning OF the
word, the question naturally occurs How
Il u that there are nj the present time
usury laws ut alR How h u that IN the
very evening OF the nineteenth century
aud In this, which IN In many respects. and
certainly IN ull business respects, the most
advanced country aud people on the face
oi the earth, thcrC are on the statute books
laws limiting the rate q capitalist NAV
charge Tor The use of his moncy2 How h
u that. while with Uycry other commodity
IN which business mcn deal, perfect free
dom oi contract b. allowed. while every.
thing else Is lett 90 the operation of the or.
diuary law Of supply and demand. in the
case Of money alone there Is legislative ne.
strct0n2 How b. ID that while, for your
time, your labor. your skill. your goods.
your lands, your houses, YOU arr ire 10
chnrsc the highest prev YOU can possibly
obtain, whom you come 10 deal with money
ih' law ai once sicps Ia with an arbitrary
limit and promptly says Hitherto shalt
thou come and no farther, and here shall
Thy demands be Faycdg
Vow, % answer that question inteni.
gently Involves what u unquostionably
one OF ihC most interesting and Instructive
Inquiries within the whole wide range of
historical study II YOU can answer II Won
WI have drank deeply al the fountain of
historic truth. Indeed, ono Of the chief
causes ior the retention OF usury laws In
The statute books u simply because so few
people have rllly studied the question al
all II would b, extremely difficult A.
mention another question and especially
nquesiion Of m0lcm interest which roe,
~ lar back into tho remote post which
bnng, you Ia contact with 30 many ppo.
pies, or which cuts s0 deeply into the very
heart OF 20 many Important events anl
cpochs. II eau b. tricrd clearly aud con.
unuously down through thirty.iour con.
turtles as distinct in its course and h. In.
nuenccs as one 81 the great rivers which
inicfHcci this mighty continent n Won
90 back 10 the dawn OF the question. AMI
trace he course and iis um.frttions d,wn
10 the present time, you will have aeon
Israel from her wandcnnps to he,
dispersion. You will hayo vitne..cj
land troubles and CONSEQUENT s,,i,l
revolution In Greece and Romc. I'M,
clay cylinders Of Babylon whore bartins