Page:California Inter Pocula.djvu/355



cannot make  it  profitable  at  that  rate  he  will  not borrow it. No greater  absurdity  stands  upon  the statute books  of  civilized  nations  than  laws  compell- ing men to  loan  their  money  for  less  than  it  is  worth. They might  as  well  pass  laws  compelling  merchants to sell  their  wares  for  less  than  their  value.

On the  statute-books  of  all  enlightened  countries, from the  days  of  Shylock  to  the  present  time,  the usury law  has  been  obsolete,  and  the  idea  of  foisting such a  piece  of  antiquated  nonsense  upon  the  people of California  was  not  to  be  thought  of. They wanted ' no laws  regulating  the  price  of  the  use  of  money, they said,  any  more  than  laws  regulating  the  price  of flour  or  city  lots. Men are  supposed  to  know  their own business  best;  one,  what  he  can  afford  to  pay for the  use  of  money,  and  another  what  rate  of  inter- est he can  afford  to  loan  it  at. There is  no  more reason for  a  legislature  to  pass  laws  regulating  the interest of  money,  than  that  it  should  frame  sumptu- ary laws which  we  all  admit  would  be  a  step  back- ward. At that  time  particularly,  the  chief  staple  of California  was  the  metal  of  which  money  was  made, and her  business  men  of  all  others  should  know  that this as  well  as  any  other  product  is  liable  to  fluctua- tions according to  the  supply  and  demand.

If the  merchant,  manufacturer,  or  miner,  can  afford to pay  high  wages  and  high  interest,  it  shows  that the country  is  so  prosperous  and  his  enterprise  so profitable  that  he  is  justified  in  paying  high  for  capi- tal and labor. In times  of  panic  or  stringency  aris- ing from overtrading  or  extravagance  the  case  is different;  but  it  is  not  against  such  contingencies that a  usury  law  aims  to  provide. The object  is  to invade  a  man's  private  affairs  when  laissez  faire  is better. Besides, admitting  the  existence  of  an  evil, usury laws  instead  of  curing  it  only  aggravate  it. In the place  of  securing  the  lender  a  return  of  his  money with the  interest  agreed  on  by  law,  it  only  forces  him to resort  to  fraud  in  loaning  his  money,  and  by  weak-