Year: 1867

We publish in another column defence of


the law in this State limiting the price ofmon-


ey to six per cent. per annum. One Of tbe


principal reasons assigned for maintaining the


law at present is, that the money lenders and


persons living on fixed salaries are the only


two classes who have not as yet succeeded in
adapting their business to their present con


ditiOn of the general markets, and that the
hope ofa return to a sounder state of things
depends largely il not wholly upon the discon-
tent OF these two classes. Ii this were true,
would certainly be most important consider
alton. We had not supposed however that la
borers were satisfied with the present scale of
prices, that merchants were satisfied with the
uncertainty OF business prospects, that manu-
facturers, or builders, or farmers, or in fact,
any men engaged in Legitimate business were
anxious or willing, as a class, to postpone the
resumption of specie payments day longer
than is absolutely necessary. As to the mon
ey lenders, We do not believe they are restrict
ted to any such rate as six per cent. It is no.
torious that very few transactions between in
dividuals have been made of late on that basis.
While the government is offering seven and
thTee-tenths, no man who has money to lend
is likely to prefer six, and we believe ten has
been quite as often asked and received Men
who have money to lend, do not refuse a
present" from the borrower, freely offered
and given, which makes up the price of their
money to or above the market rate. The repeal
OF the law is demanded, not to change the
practice but to legalze it. il fi1at


The first objection then to any usury law
is, that it is imperative 1t is an attempt to
do what no Law can do. The price of money
like all other prices is regulated by the supply.
1t is also affected by risks which do not to so
great an extent influence prices OF other COM
modities. Ii business is active aud profits are
reasonably sure at twenty per cent, the price
OF money to carry on this business win
surely rise to ten per cent. II profits decline
to six per cent nobody will borrow money at
over three Legislation in such cases is i'm
potent as well as impertinent. F th'HI


In the second place, if such law could be
made effective, it is an invasion of the rights
of property. A man has as clear right to
let money, at the full market rate as he has
to let house for what he can get. The
rights of both buyer and seller, lender and
borrower,sre not impaired by leaving parties to
make their own bargain, and they are restrict
ed by declaring that they shall only trade at
certain fixed price. Fair and free competi-
ton in an open market is the best protection
which can be given to any class of BUYERS
Cduedt emptor, let the borrower take care;
the bungling law which tries to help him,
simply drives him into back office where he
gets accommodation at enhanced rates on ac-
count of the risk of an operation not cor,nte-
nanced by the law.


The regulation of fees, salaries, tolls and
postages by law does not appear, on examna-
tion, to resemble very closely the limitation of
the price of money. Fees and salaries are
proposed by the legislature as compensation
for certain services; if suitable officers cannot
be obtained on the proposed terms, the legis-
lature makes better offer, as any EMPLOYER
would do. The Post Office Department up-
dertakes to carry the letters and newspapers
OF the country as cheaply as possible, and fix
es the rate per ounce of mailable matter SO as
to distribute the tax fairly among the people
who are benefited by the service. In both
these instances the government is partyand
OF course must have voice in
making the bargain. Legislation fixing
tolls over bridges, at grist mills. &c,
more nearly resembles the usury law, and is
open to some OF the same objections. The
legislature in this case conlers privilege up-
on an individual or corporation and attaches
to the privilege certain restrictions. In the
same way it may be said the legislature con-
fers certain privileges Upon banking corpora
tions, and has a right to impose at the same
time certain restrictions. This subject is too
large to be treated in paragraph. We are
not now talking of banks, but of private cit
liens, and we believe the law which un-
dertakes to say that the people of Maine are
incapable of making their own bargains is an
impertinence and deserves to be what it is, a
dead letter.