Alexandria daily advertiser. [volume] (Alexandria [Va.]) 1803-1808, 1805-09-12


wait patlen:ly uatil, l0o0) IN cash IS paid
out Of the estate for duties as the bonds
fall due, and uatil twenty thousand more IS
paid for accommodations as It can be reali.
zed, with probably considerable addition
of interest and expences. Taen suppose no
sacrifice to be made on sales OF produce,
goods, &c. which my have been on hand,
10000 will remain, bl. containing OF course
whatever may be OF doubtful and bad debts
&c. &c. so that after paying ali expences 1t
will be placingit 90 the best probl5le loot
i.3 If at the enl OF three years, tor It will
probably take two TO provide tor what we
nave already accounted tori tn whole that
can be realized will amount to from 1000
10 $500, making dividend of from IS 60
% per cent. or probably tn, interest for
the three years. The effects then are, that
the barthens Of a false capital, and the risk
of deficiency of a whole business, is borne
by only portion of it, that one class of
creditors are paid the whole, another Class,
the fair Business creditors, iraudulently
made to lose the whole or nearly so. What
is also important to be understood by one
class of creditors, those who have been
p.id, the insolvent is called very honest
man, they say he has been unfortunate, but
he has gained in experience, and that they
consider him safer man than ever: by
the other class of creditors aud particular.
ly by any who may live abroad, who can
not comprehend nor believe In the exis-
tence Of system which makes an honest
man out as a rascal he is at once called &
believed consumkte scoundrel; whereas
he NAV be neither much Of the one nor the
other, he has merely gone forward in the
common track in watch it is natural for a
man to avail himself of the common aids
which it furnishes, who chen does not see
the faults of the system, and Of those who
afford it support It may be asked why
not lend money on accommodation notes,
when considered good security? What
more have bank directors 10 look to? 1t
has been auedged that accom- nodation
notes, from being considered debts of ho-
nor, between friends, in point of security
deserve preference. Should it be cor.
rect that bank directors give preference
TO paper, which owes It's proper security
10 mere fraud, it would be dishonor to
a body OF men who from their situation &
character, could be supposed to supply en-
lv the pure sources OF trade, and such it is
hoped are the wishes and intentions of the
greater part of them, to supply the impure
sources may even bring them into disgrace
for should the enlightened legislature
VIII ch cannot be inattentive to its duty, en-
act law setting forth all preferences or &C
comoda,on paper to be fraudulent and in
some cases swindling, should not back di-
rectors when found to be aiders and abet-
tors, incur and deserve public odium.
1t is admitted that in business unexoect.
e9 occurrences take place, and during the
commouons of nations such may frequent
ly occur, which render temporary assist
ance both necessary and commemorate
nor must this be blended with an accommo.
dation system; the one is handbag per-
son gently over seen and specific difficult
~, the other drags him through mud and
mlre, and though he may como to perceive
that his course is directed towards disgrace
he has no power to stop It. Thus then it
will be seen that the skilful man of business
in order to preserve his ability of being
both honorable and honest, will take care
to keep his creditors placed all on the same
footing and same risk.
lie knows that IN case of insolvency Sc
curity to one is fraud ON the other: and
hence it is evident, that no person trading
in accommodation capital has any right to
goods On credit without giving Endorsed
notes, or the like security he gives those
who sell him cash. Notes received for
actual sales are legitimate materials for dis
count they do not constitute new debt un-
less dishonored for non-payment; thenrhey
are business debt, not debt, of no nor.
The tepdency ccororo6..;on. have ~