Year: 1868

Nearly every individual has either by his
own exertions on the gift of fortune what


is called property. The ownership OF proper
ty implies the absolute dominion over 1t, re-
stricted only by two limitations, one of which
is that the owner shall not use it to deprive
others of their rights, the other that he shall
contribute fair proportion to the public as
a compensation for the protection he rAnA;.---.
Aside from these nauIGaIions there IS no hu-
man power that can claim any right to con-
erol the exercise of the owners viii in the
disposal OF his property.--s.e he's right to
destroy it, to give it away, or to keep it. -l..


If he has the right to keep it absolutely he
must also be admitted to have The right to
do less than that, and to keep 1t till he can
part with 1t on terms satisfactory to himself
If the lender or seller demand an uureason-
able price, that Is unkindness not injustice.
for he does not deprive the buyer or borrow
er of the right of refusing his offer or of any
other right. To borrow or buy is not right,
but matter of favor or accommodation be-
tween the parties. If they can come to a
voluntary agreement they have an undoubted
right to do SO, and no third party has right
to interfere. If they cannot agree, no trade
is made and no one Is wronged. .ai-la


To lend or sell at low price when It is
possible to exact more, is an act of benevo-
lence. But this must be left to the dscre-
ton of individuals. 1t requires no interposi-
tion Of government. 1t Is the province of
the state to enforce Justice not benevolence


Prices are regulated by natural laws more
perfect than any which legislation can devise.
The necessity of exchange to both buyers
and sellers is constantly urging them to an
accommodation. Selling is as much a neces-
sity to the one as buying to the other. In
pursuits equally attractive natural law
compels men to accept such remuenration
as capacity equal to their own will command
on an average. If any succeed for time in
making more, competitions spring up all
around them, and the competitions restore
the natural equilibrium. a


The disturbances In the natural prices o.
commodities resulting from fluctuations in
supply and demand counteract themselves.
Scarcity raises the prices, but with the in
crease in prices customers fall off while pro-
ducers are stimulated to increase the supply
until demand and supply are equalized. The
same laws apply also to loans; for loaning is
but selling the use of a thing. E aaga1
In respect to everything except money the
correctness of these principles is acknowL
edged. The farmer and the merchant are al.
| lowed to charge for their commodities what
the state of the market enables them to get


No statesman in this enlightened age thinks
it necessary to dictate what rent man. shall


ask for his house, though rents are often very
high and very oppressive. And why should
government attempt to fix limit to the rate
demanded for the use ofmoney? There is no
exception to the general laws of trade in the
case of money. 1t is controlled by the same
natural self-adjusting laws that control other
commodities. 1t moves in obedience to sup
ply and demand as water seeks level. No
monopoly now prevents free competition
among lenders ifit ever did, and the power
of borrowers to refuse the terms that are Of
ierred them, sets a limit beyond which the
rate Of interest cannot so. 1t is therefore
difficult to see what considerations of pub lie
good can JUSTLY such an Infringement upon
natural liberty as is implied in the attempt
to regulate the rate Of. interest by law. No
practical benefit is derived from the ATTEMPT
for the laws are habitually disregarded. On
the other hand positive Inconvenience to
commerce is the result; for either lenders are
deferred from parting with their money when
the law prohibits them from receiving the
market rate, so that borro Hers themselves
for whose benefit the laws were made are in.
jured; or some inconvenient subterfuge mus,
be resorted to for the purpose of concealinp
the real natnre of the transaction while the
rate is sufficiently increased to cover risk


Even fthe law operates to deter scrupulous


lenders from demanding as much as the


state of the market entities them to, it unfair.
ly depriveS them OF what is their due, and iu-


lures those who least deserve injury.


In order to prevent misunderstanding IL is
perfectly proper to declare BY law what rate


shall be understood when none Is specified
Such law would be attended with all the
good effects of our present ones, without their
! Inconvenience. But TO infict penalties up


on those who see fit to agree upon different


rate savors too much Of tyranny to be toler


ated. -