Year: 1859




Ns- Mr. DeLong has introduced bill
into the Legislature, concerning interest and
to prevent usury. 1t provides that interest
upon the loan or forbearance Of money, dc, ,
shall be at the rate of fifteen dollars year
upon one hundred dollars. Interest on a
judgment shall be from the date Of signing
until the Judgment is ratified elf a great
er rate of interest than is hereinbefore al
lowed, shall be contracted for or received, or
reserved, the contract shall not therefore be
void; but if in any action on such contract,
directly, or indirectly, contracted for or ta-
keI, or reserved, the defendant thall recover
costs, and the plaintiff shall recover only his
principal without interest; and, if interest
shall have been paid thereon, judgment shall
60 for the principal, deducting interest paid"
If illegal interest be charged the payer shall
recover Is per cent. damages thereon, by
suit, if commenced within one year after the
payment.


ANY person charged with taking illegal
interest may be required to answer on oath
respecting the matter.


Relief to a complainant, in case of a usuri.
Gus loan, may be given without payment or
tender by him of the principal sum.


The following are the further provisions
on the subject:


SEC. s. Any officer, or agent of person, or
/ 4.
summoned as a witness, in action for usury,
against such person or corporation, and required
to disclose all the facts of the case but the tes
timony Of such witness, or the answer of par
Iy as required in section six Of this act shall not
be used against such witness party, in any
criminal prosecution for usury.


SEC. Q. When in any law, or in any instru-
ment of writing, specifying a rate of interest,
where no period of time is mentioned, for which
such rate is to be calculated, it shall be deemed
to be by the year.


SEC. 10. The rate of interest fixed by this act
shall not affect loans of public funds nor any con-
tract heretofore made, before the taking of effect
of this act


SEC. H. Any person. or persons, who shall
directly, or indirectly bargain for, receive or re-
serve on any contract agreement whatever, a
greater rate of interest than at the time allowed
by law, shall be fined, by any court having jurs'
diction, in ten times the interest so unawfully
bargained for, taken or reserved, and, in any
prosecution under this section, it shall not be nee
essary to set forth the contract instrument by
which such interest may have been barganed for,
received or reserved.


That some such law rs this should be
passed, we have not the least shadow Of
doubt We are not of those who believe
that money is tie same as merchandise. We
consider it as originally worth no more than |
what the Government stamp puts on it, and,
secondarily, worth no more than its use in
business will legitimately bring. Who is
there that believes that any man, in any or
dinary business in the country, at this time,
can make one dollar pay him one fraction
over one and a half or two cents month ?
1t may pay him just enough to enable him
to pay that amount of interest to the lender,
but it ought to pay him profit on his busi-
ness otherwise, it is of no value to him. The
Government, which is the sole authorized |
coiner, puts forth piece of gold worth IS.
The lender allows the borrower the use of
that piece for two cents on the dollar. That
is no more than what the piece invested in
business by the borrower will bring. Is
that then, the real value of the piece? BY |
no means, for, the borrower is no better off
than he was before. He pays all that he
makes out of his business to the lender, and, |
really, engages in business for the benefit of
the capitalist and not for himself In the
meantime, he loses all his time and labor, and !
has nothing to live on.


Capitalists talk about competition reduc
ing the rate of interest. There are not so
many capitalists in the country that they
cannot combine and fix the rates OF interest
at such standard as they like. Nothing
but O positive statute will reduce the rate of
Interest at a reasonable guage.


1t is not necessary for us to enter into the
full argument of the question, neither did we
set out in this article with that purpose. But
the reasons, and the urgent ones, for the pas
sage of this bill, OF a similar one, are cogent
and at hand, and will doubtless be urged in
full force when the bill comes up for consid-
Grafton. We hope, sincerely, that usury
law NAV be passed at this session.