Star.
London, England, 1817-08-27 00:00:00

CERTIFICATES—Fen. 16.

F. B. Bland, Torkingto:t, callco-printer. J. Sh.mvin,
iron.foooder. li. ecurne, Lurdent, earths.nmart-nionu:,..tnrzr.
saamloroan, Act. 14.0 upon-the-Wats, 'arrne:.

FRAUDCrLENT EUTAW.

The practice exposed in thi.f.,l! nwinl Extinct from'
the Evidence given by s. IV. Stviati, E.g. be-
fore the Cummitiee of the House of Commons on
the Bankrupt Laws, is so deeply injurious to the in-
terests of the lai: trader, and at the same time so
extensively prevalent, and as things are pursaied with
so many chances ut success, that it cannot be niadn
too generally known :

se With respect to (rails that are practiced by tra-
ders. I can mention a case which came within my
own knowledge involving the most impitrtant conse-
lquences to the fair trader and the manufacturer, and
by which specks cf fraud, more mischief, I believe,
has been done to the ti Ade of the city of London tha-t
by any other; I speak partiettl arty of the Manchester
trade, in which I have had considerable experience.
What I allude to is, that traders and shippers, eiths.r
in failing circumstance; or with a fraudulent intent,
go into the market and perchase goods on credit for
the express purpose of selling them again immediately
afterwards at a great Ims, or consigning them abroad,
not with a view to profit, but with power of sale, and
for the mere purpose of raising money. This prac-
tice is continue:l until they can get credit no longer,
and then they become bankrupt, or compound with
their creditors. The loss is so great on the sales made
here and on the sales abroad, that tlsobe persons who
happen to be creditors at the time of the failure get
little or n:rthinzr, though the first cet of creditors may
have been paid. The parte.; contrive to make their
payments in the odtsct vei y by means of
forced sales, and thereby they gain a credit to a very
cousidnable extent, with fresh houses, urn the good
r. port of thrice who first trust them. Many persons,
I believe, are to hr. htin;,l t.. 11 m:ike those purchases
with a knowledge sal th.• iwolvent state of the trader,
and with a knowledge that the goods have just been
purchased front the ntahnfactiner at the market price.
this I conceive to t.e fr:tml, and we!: a fraud
h
[34 ought to e visi...,i some punishmletnhtinokri,tth(
return e,
bankrupt. Tile party tr,.:;:ing the punch ,se with a
knowledge oofo
tithes.
or
itein iri.:ltariiricvedsiu ought, .
.13y this fraudu-
lent conduct the goods bought at a haw rate are yen dud
in this country, and upon the continent, as 1 am in-
Wined, at 5..7h prices that it is almost impossible !or
the trader to sell hit goods. The manufacturer
is enc:luntered in the minket by the very go kis, at a
low it^, which he has just sold E the itharket price,
but seiads were immediately re vdd at a great loss,
and thz. fieriest retail shopkeeper aid his famile r.rir
often ruined by being undersold by cheap shops,
which are supplied with goods by tlioe who have
bought them Ito n the fraudulent trader. In theme
which came within my own knowledge, a trader sold,
in about 14 months, from 51) to Jet,o,oon v;oith of
goods, immediately after they were bought. to one
house in the same line of bus;ness, At a loss of £lO,OOO
and upwards, and their loss constituted a great
part of the trati;:e= dioie:recy at t!•..etirne of his batik.'
upte) ." •