when the rate of interest was fixed at six per cent., and now all contracts on which a higher rate is reserved are utterly void, and the law declares a penalty against the party taking such higher rate, of forfeiture of the full value of the money or goods lent, sold or bargained for, one moiety to the use of the State, and the other to the prosecutor, to be recovered with costs of action.^ In 1852, a curious exception was made in favor of Jersey City and township of Hoboken, in the county ' See also R. S. of 1842, Tit. 22, ch. 190 j Com. Stat., p. 490, edit. 1853, p. 383.
' Elmer's Digest, 261. ^ Stat. ofN. J., p. 795, edit. 1847.
NEW YORK. 81 of Hudson, whereby seven per cent, is permitted to be reserved on all contracts made in said city and township by and between persons actually located therein, or not residing in the State.' And again in 1860, a similar exception was made in favor of the township of Acquackanonk, in Passaic county, and on all contracts made in that township, seven per cent, may be reserved, provided one of the parties to the contract resides therein, or out of the State.^ And in 1862, a similar exception was made in favor of Middlesex county.' The first law against usury, in the Colony of New York, was passed in the third year of the reign- of George I., A. D., 1717, and established interest at six per cent. It appears to have been intended only as an experiment, for it contained a clause limiting the term of its continuance in force to five years. It was amended, however, the following year, and increased the rate of interest to eight per cent. These acts contained clauses providing for forfeitures, for taking more, similar to the Statute of Queen Anne, above mentioned.'' In 1737, interest was reduced to seven 'Acts IQth Legis. N. J., 1852, p. 447. ^Acts Uth Legis. N. J., 1860, p. 111. ''Ads mih Legis. N. J., 1862, p. 314. The sale of a note or bond of another, at any rate of discount, is not usurious ; but if the note or bond was made for the express pur- pose of being sold at a greater discount than legal interest, it is usurious and void. And a note void from usury when made, is void in the hands of an innocent holder. — ( Chan. Williamson, July T.. 1825.)