256 BANKING AND THE TRADE IN MONEY. 



either speculate himself, or aid in the speculations of 

 others, on bad securities, he may involve himself and 

 lose all. But, in this case, the public who hold his bank 

 notes are safe ; the comptroller retains the means of pay 

 ing for them in full ; and if a crash come, he realises 

 the securities in his possession, as it can be prudently 

 done, and calls in the notes. Such banking is simple, is 

 safe to the public, and may be profitable to the bankers 

 when bad debts are avoided. But, as I have said, these 

 banks offer no security for deposits beyond the known 

 honour and good character of the parties by whom the 

 business of any particular bank is carried on, and the 

 responsibility of each shareholder or partner in propor 

 tion to his share. 



The trade in money is not yet free in any of the States, 

 but usury laws exist, and a maximum of interest is fixed, 

 which is the same for all transactions, whatever the 

 security may be. The following table shows the legal 

 rate of interest, and the penalty for usury, in the several 

 States of the Union : 



State. Legal Interest. Penalty for Usury. 



Maine, . . 6 per cent. Forfeit of claim. 



, . f Forfeit thrice amount unlaw- 



New Hampshire, 6 ... -J r , , 



| fully taken. 



Vermont, . 6 ... Recoveryby action, with costs. 



Massachusetts, . 6 ... Forfeit thrice the usury. 



Connecticut, . 6 .. Forfeit whole debt. 



IS T \ York 7 / Forfeit whole debt ; contracts 



( void. 



New Jersey, . 7 ... Forfeit whole debt. 



Pennsylvania, . 6 ... Do. do. 



Delaware, . 6 ... Do. do. 



Maryland, . 5 ... ) 



Tobacco contracts, 8 ... j Contract Y01(L 



Virginia, . 6 ... Forfeit twice the usury. 



North Carolina, 6 ... j Fo / fei f t twi . c ? the IISU T c0 &quot;- 



( tracts void. 



South Carolina, 7 ... / Forfeit interest and usury, 



with costs. 



