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CIi; WILEV Editor. ?
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VOL.1.
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. jpor the Mercury..
: ' Sutim xii iqtie tribuitoJ?
- v MITCHEiIj St WRIGHT Prop's.
5
neighborhood for those of . another, I breadstuff's, oaconj beef, &c.!, in Jtotal
Mr. Editor: r ha ive been pleased J and this exchange can : most conren-i dwregardi of pvery principle jof politi-
toaee in the Mercury the very; inter-1 jently, and in general, only, be effect-leal ecoriomyLi;by Which .we" learn that
esung ariicies on , uie .usury, wj iea inrougn ine medium oi money, une value oi commoaiues aepenas up-
and regret that you have not had thelTese circunis
leisure or ino incuuauuu iu ptsug ineuse.oi money . as capital tin com-1 .: xui i maintain. uiai.usury laws.wave
the Subject further, - until a TecenLl mercial and manufacturing enterpriser the efiect of producing the very mis-
period oi me vroiiu s msiury , iw- nave given u a prooucuve agen- cniet wnicn tney are intended to sup-
practicabilityiof laws assuming to fix cy, which is not one of its Mtnbutes pressi'that so far'from'preenting ex
. L: Lii- Mt..A ! U--' uLL2L..2;v ;-'-t .-tilitVL ':U-L- y.V ill5
perman;uiijr himi u nuw uaiu.t, ,iui a uaruaruus nation. ii .vvouiu j loniou, iney aye ; ne -conirary, ien-
lf- ! fl...(ii.l.M marnAt iini AVJ ll r t. " ' It. It ! ' . tmt 11
riauioanu uuuiuauug uub uuucin Uereiore oe as , reasonable 10 require dency to cause exioruoa. ; i ne vai-
omer
rity he hast for the return j ?of, his mo- I bazzard ofthe lender in this country
npy; no human foresight pan lell us proceeds from a different course from
whether we are to )iave eenial rains ; that of theevv in France in' the four
stood even by : the most enlighlenedJ the landlord., to lease out his lands tie of money, like, that of j
It Remained for Dr. Adam m,li rent-free as i to require the money-commodities, depends upon the de
and David Hume to demonstrate ine holder to lend his money without in- m and and supply; .and; ivheh it is
futility'of every, attempt to - give a tereSt; "vyhat then, would be thought simply performing Its functions of a
permanent value :o money, ort to esft 0f the Leeislalure of North Caroliaa. medium ofilexchans-e, tthesia are .the
L" UhYCsW a uniform rate of interest:--- -hould it adont the laws of Moses on only circumstances whii
'lie great pnnc pie wnicn iney ui lhe sub ect of usury? The bare ?us.
covered--a principle wnicn ".now gestion of the idea presents such an
acquiesced in by all political econo. absurdity to the mind as to preclude
mists, and which has .received nejjr aU necessity for; argument. I take
illustrations ,by their subsequent in. it) that the Jewish laws upon this siib
yesligations,: is, that the exchangeable ject were merely political and pecul
value ormoney, like that of all other jar t0 Israel; that, there fs no obliga
commodities, depends upon the de- tiop resting upon christians to observe
mand and supply; and that the rate of them:an(j ihatthe snirit of wisdom
interest, when not interfered with b and benevolence )n which they were
legislative .enactments;! is regulate conceived, wouM, in qur widely tlif-
by tnedemano, ine amouiuui riunc- rerent circumstances, banish them
in the community, and the degree of frrtm ihft lflnf, - r--.-.
nront arismfffrom commerce. J u
from the land.
t I -:'-'-.
f I have oftea felt astonishment!
ly circumstances i which i affect- its
relations to other commodities- in
other words,4 the greater or less de-
mand and supply are tne omy circum-
stances that make it ! necessary that a
; I i ;V. !.- j . -K v . v, i.-. ,:;v i,, r
greater or less V amount' of mdney
should be paid for a given amount of
other commodities. - But it is import
tant to distinguish between the val
ue of money and the rate of interest
that "is paid for the Uoari? bf it the i
or , parching i drought--whelheri iwe teenth century- the effect is the same,
are lobe blessed CwiUv abundance,! or It-is the uncertainty ;of'cver -recover- v
starved jwithj famine Ithe pextjyear - ing the priheipar w
no experience cap- tell us what is tto fest higK This jsinciple:whiciw,
be the price: of J 'cotton r tobacco may be traced through . all the opera
twelve months from' to-day. l To'at-r tions of trade , and business. .: The
tempt therefore, rto ,fix; a permanent merchant! makes the consumer payi
vjjlueto the medium ot exchange, fbrthe fisk he- incurs in -importing
which is but-the creature- of these goods subject to bWdamaged or lost-- .
great elements ot wealth- to isayi that tne planter, makes the manuiacturer
me inieresi pi money snau i ue ine I puy ior ine uncenamiy ui me seaauus, .
same to-day, next year, ana lorever. land, oi i course tne v money . lender .
is unpardonable! jimbecility.i j It is an makes thd borrower pay for. the haz
attempt to- establish permanently, zard he runs in parting with his mo- .
whai is in its nature fluctuating with ney. This hazzard is-of course Very,
every breeze ;pnqt a sail, arrives at great ;whenever .unlawfuf interest is
Newrk from Jdqes- taken. he lender must not only be
riot in a greater or less j degree, affect paid the intnnsic2yalue of. his money, ,', -
the value of 2icommodUies, lirid the j which may be twd, ihjree; or fbuiper
rate of interesti It npw remains to cent, above the leial rate but he must
be shown that laws which are framed lbe indemnified fori '"Violating .the law.
a view
of ii
of keeoinc down the I He therefore demands fifteen, twen-
have the contrary, ef-1 ty,or tvyentyifivepcr cent, as acom-
I have already I pensatictt for thq risk; whereas,' if
take their.
glad to
hv IPo-UlativA intfirferonrP Thl ments, wiiicn cause a hieh of low take ei&rht or ten I 1 think it is there-
will be apparent by 'considering that rate of interest; and, among those J fore clear that usury laws,; however
of augmenting it.
twdthinWave?no things vvjere allowed" la;
on each otjler :"when left utrammeled indeperident-b enact-, natural cbiirse, he! would be
- o ... , ,. , jli 1 1 x nave oiicu- ieu asionisnmeni ioj uc "rrr"1' j - f' r j "o ; .
am avvare that much prejudice S ; ... ' r on wh0 nrofess to entertain (the interest is to be paidlin money bt aausesthe hazard which the lender in-severe, are notonly impotent for good, r ;
Mtnn this Snbiect. which has arisen . .1 1 . .1 ' U 4l, ; iV.:k '4l,.! rnr i nnt withnnt Jf tnHnon: Th; hilt llinfiiKpw araf fraitcrht tilh vit.l "
T ; 7 ' .- T i .. ;ii reugious scrupies on mis suoieci, ran j c :.a.e o-. inafiu-.nmwi.uiH
J ff Vinf 1 enrtrwaa nrntiihtti I I ' -M . ' . . . - - -' -: ! - ir?--.! 'i' J. JAt. t'i-i.;'-?2i..i.
i mm tne inci inai usurv was jiuuiuivt - ..li.?ii 1 ii: . ' 1
2 j ' "." j . v . v v M . . h 1 musi uncnariiaoiy againsi inose wno
cd by.tne laws 01 , gnoses ; uui u e pru uU seyen percent while ihtj them-
loan is contracted at least such is the
c al cut a tio n of th e j pa r ( i es j a th e t i m e,
I and consequently a given , rate pfin
: terest, say six per cent, bears the
iiibitibq of the divinelavv extendi as geiVCS 'with great complacency, will
welLto imeresi ai six per ceni. juuocket six. Can such persons be of
less, as to twenty; so tnat,).tnose wno
hate religious scruples, on! the sufef
ject cannot permit themselves to take Moses, in this behalf; shall we not
interest at an. 2 11 is saiu oy vnoe obey them to the letter.? Has the le
wbo profess (o understand these ma utbre of North Carohna the right
tcrs best, that this was ; only a politi- t0 amend them? And if so, why
cat ordinance, appncaoie 10 ine panic- may it not abrogate them altogether?
uhr circumstances' of the' Israelites, There can be no such thing'as, obey
and in nb degree obligatory .fponjUi ing God?slaws by halves, and though
This view of ; the question j reces lne legislature, as a avo to the con
countenance from the' fact that j the science, may revise and amend them.
Jews wefe, at the time of the instil I apprehend that at the final reckon
Mion of this ordinance i a pasjoraV jor those who are found to hve of
but partially agricultural people, j jtn fended in ' one particular .will be ad
such a country, Where iherejwas but judged guilty in all. V ! 2 l "
jittle wealth and no commerce, .there j take ground against . the iisury
would be but little use. for money; and laws as an unnecessary infringement
to demand a price for it where it was of natural' riiiht. There is no more
never used as capital, or in any other reason why the holder, of money
way with a view to realizing profit, should not lend it at the highest rate
wouiu naiurany enougn seem incun-0i interest it- will command, than
isteni wun inai spini ?i oromeruoyu there is why the owner of a horse or
.'which has ever been cherished by a waggon should not hirebr ell it
the ."chosen 'seed." ,But the circum- for the best price that is offered.--
stances" ot the :world ha v; greatly The cases re precisely similar,; and
changed in the course .of three thpuj- the natural right of individuals to dis-
'and years ; arjd what might jhen .hijje jpbse of their property -as 1 they please,
been iniquitous extorsion, may now, applies as well to the one case as the
owing to the ; different circumstances other. On the other hand, ihe same
in which we Jive, be an innocenii or reason which is given for prohibiting
even commendable exercise ,ot an un- a high rate of interest; the prevention
doubted right., heny as trade, com- of extortiop upon the necessitous bor
mcrccand manufactures, were almost rower, may; be urged with even great-
unknown, oioney was literally worth r, force in favor of the establishment
nolhiner as capital its circulation was of a uniform nrice for brpnft?L-mnnov
not continual and its. use indispenia- imay be dispensed withrbutl Wad
ble as now and to ( charge interest cannot. Therefore, I thfnk the in-
f - .t . t .t - ' ... tc t ,i!lr ''ir-r.t--. i.i... -..
lor.me' loan oi n wiiqn.a suuicicuic- lerence lair, inai ii wisdom would
curity was given for ' its 'return, was dictate the policy of making six per
rightly' cnbugh: consideredj jneonsts- jcehthe. highest ' rate" T of j interest7 at
tent with the duties of a neighboV ind jwhich money shall be loaned it would
friend. But we of jhe"; 19lvcentur ibee Hhere -is" more
have a thousand, wants and a thousand inecessity fbr thepassase of a law
means of gratifying them, that the fixing the maximum price of Sorn
children orisrael ' in theirl pristine at two and a'half or three.! dollars per
days neverj dreamed ioflhese divers- jbirrej. 2f In the same-; spirit Jof politi-
same proportion to the principal when
i r r "2 : ; A
money ;is scarce, as when it is ahund
ant.. Ifthepresentamount of money in
circulation were doubled,' its nominal
curs is not without its influence, s This but that.they . are! fraught with evil;
nazzaro aepenus in a great measure ano inaijsouno policy rwouia uiciaie
upon the stability of Governfc i ,
t$e6urity.,o An irJdirect effect of the' usury laws i
his treaties of -Political Economy in-- is to keep a large portion Of the capiUl
i"-,1 "V1?" ""VpS ol the country out of employ ment, or
John inj l 3 60, authorised :the Jews to to banish it to a clime where its valued
lend at the rate: of eighty per cent is .better apprecialedir All those cap-2
when the productive agency of j capi-1 italistsj tyho entertain conscientious
value would be diminished by one tal was probablj hot more than three scruple on the suhject of taking nn-
half, while the rate of intsrestyould . or four perjeent ; more j thai, the yal lawful IritetesVor who are . unwillirig
nf this n
or ten per ceut, upon the Joan
i i - . i- . i
uepreciaieo currency wouia o
eqcai to the same rate of interest upon from the ? prejudice ' which seems to either forego the interests altoeether
our present money. . : It is the in- have universally prevailed against or else seek ari investment of it in
crease wfaltti & the jJ tfWjji, ;Ji6Twef 'd iiH ng the dark banks') jwithin the jStats o elsewhere;.
uey, ; vyiuui
: ."
rait; ui imcicai aa us uiuiuiu- i
shi has thej efifect o( flower- ages, the only; dealers in money. and jasj itliere Js fbut a f erjr limited;
te bf interesVasjits diminu- jThey
tiobis altelnded withf a prbportibnal miliating : - oppression the ir '.rights olina, such persons are for the most'
increase of lib terest: i fWwhen a loan trampled on and disregarded ih eve- parti" driven beyond the limits of the
.-a-.; -4 ,, ? . n -i- l;.2-!2 22.1 2'V .4Hi2.4i;2.,f : 4-'.f ;J..i-Ju -;2-, -r
is eneciea, in is ine loan or weaun. ;ry lmaginauie way, even r wun . me oiaieiaran investment oi meic iunas.
value,-not simply of money ; and con countenance of Government. -iThus I Another unprofitable, channel - into
sequently the increase of wealth will it is related, of the same King John, I which capital is thrown by the opera- '
necessarily tend to lower the rate at that the next year after granting alU-ti5n bf the Usury lavVs, Is that of spec
out ip materials
i -. V.
rent
This principlei will become r eyident en6rmotis per ; cent, to awhTch I have 1 hindered by , the iriterveotion of the-
oy;. considering, inaimon0y when aoyeiieu, jnc causeaj.nequanuiy oi iaw,u seeics , empioyroeni in specuia-
borrowed to be used 'as capital or for pure metal contained: j in the coin- to tionj which ho wbveri profitable to int
the purpose of spendine, is to be laid ! be reduced, so that the lenders nb dividliails, can4ie of no service to the"
:J"tjJii3JiJ??i .22i22J2-l2iH222i.212i-.22;Ji4f
lenais or cooas ar ine cur-4 longer receivcu oacn a vaiue equal 10 communuy. rorwnaiis nia 10 me
;ire,;it isihe Lyalue j jwrhat thfeyf had Ient' ! 1 thisf cpuil- speculator js so milfeh, Jms to some
one eise.i.- uut . capiiai employed in.!
agriculture, s in matiufaclures, or m '
commerce is not bhly profitable to -the
Individuals 'employing It, but alsbr
in an equal degree to thef community j
at Jarge. v -4- sj-ojir,
I rbust now draw these remarks to f
a close, as they" have been; extended
kemyatlsetTroin miich beyond IhClimiisiivhich I Had f
of;each!indivfdual case-the; credit of j marked out tot ,tny self! ; It could po
the! borjrower and his sureties: But .injustice to the subject have com- f
the lawi against iisui, Which fix the j pressed them info a narrower com-1
rate ofl interest at six per cent.; and
aenouqee ijie seTeresi penalties against
those who violate them the forfeit-.
ified wants are supplied ,by
ing the products of one
nation
g- j cal forecast it would be proper to es
or tabiish uniform prices for all other
of the matf riaJs: or goods tb ; be em
ployed that is borrowed, not i par
ticular sum of money ; and that value
m igh t be pjnased atcmeUme aOthe
nominal sum of one thousand dollars,
at another, at fifteen hundred, owing
to the differencb in 4he amounts of
money in circulation at the respee-
djtive tinsHdeman for Jlef :
The. increase or diminution of Wealth,
however, , are pot the ; only ! circunm.
stances; wjhicti affect the rite of inter
est; The demand for bbrrb wTns, the
degree ofprofit,arisin from commer
cial and otheK industrial enterprises.
together,ilr4 the'; hazzird 2atteiidirtg
the Joan are to be taken into the ac
cbah'tl - iThrWghXof;tfi
erations can only be esttmated by the
lender himself, No qtherperspn
try iwhero the stability of governern-
menD s2 generated; by' enlightened
public bpinion-and ? where there is
the utmost siecUntyi for property,
these causes I have but ,a slight influx
ien(5upj5n;the i rate ofj Jnterest?The
onlyk ibsecurity that is felt I in i this
country,; iWiieu - icgai s interest is ia-
22J 1"2- ii.222: ff v-i r v-;p 1 ;2-
can be a judge of the degree of secu-
ure of double the sum loaned to any
one wlo will sue for ithavel all the
effect of producing a feeling of inset
cuntynn the lender," which the most
-Sf-2: ;" ;:'r-t4" j -f
wiCEeana., lyrannicai-government
could have.' i It is no m
at the
trass. I took Up the question about
the propriety of usury law. as one .-of
matfmpbrtancel and is difficult to
conceive of one better - fialculatedi toj
call forth the energies bfhe mind
but is One "at the sameiL time, upon1
wbich.all. candid enqufrers, I.think,".
must arrive at the same ibncIusion I.
repeat my gratification t seeing the
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