The Rhode-Island Republican. [volume] (Newport, R.I.) 1809-1841, 1820-03-15

iISHl vi aStsoi aSSiuSti diW NhiSt ''NH
vigilance always enables them 10 .,scer-
tam the situation oitheir debtors, and 10
determine VIXEN IT Ii necessary to en-
lorce their demands, this ex,raoroii,ary
process gives To those dcma ,da perfect
security, together with The certainty oi a
speed, and an ample satisfaction. he
eA,eutto which private credit !, affected
by bank process, ma, be IN SOMA meas
ure estimated b, the amount oi' debts
due 10 those Institutions, according 20
their returns Ia October, 1917 he
anount OF dehis.tben due TO the backs,
and consequently the amount OF proper
ty virtually pledgcd ior the pa, m~t
thereof was between two and three nnk-
lions of dollars.
When we turn our attention from the
operation OF bank process upon palvgie
credit il general, to Its effects III pa1ncuh-
lar instances, It's perIcious consequent
ces becomes still more puipablt AID a.
farming. A person ind' bed to those
mstitu, ions To any considerable amount,
fiads himself under Tie tyranny @ most
absolute power; and whist the laws
have been ev,remeiy liberal in granting
extraordinary privileges to The banks,
they have grant,d.none to him; j, has
not th, means OF exercising similar
power over his debtors, III oder To ,na-
ble bln, to answer tht suddei' and iIrts-
slstable q, maltls oi the ba, AID Tic
consequence is, tha his property IS II
ten sacrificed al iorcrd sale and he Is
reduced to bankruptcy.
This point may be illustrated b, con-
sidcllng'll more indefinitely, The mer-
chan, indebted To Il bank sells his g,tds
on crcdl: to the retaller. he unal.er
disposes OF tho goods on credit to the
consumer. Observe now the operation
ot the process OF the bank, and thlt of
action against the merchant. and coll
verts his property into moneys IN The
course Vi thirty days. In 'hc.mtau line
The merchant calls upon The it,ahcr.
The retaIler IN turn ca!- upon IN, con-
sunler, and the consumes calls upon
those that are indebted To him. Nj
take on, their wrlts and patltnt, wait
for judgment. AI,er ,h, iap G oi Xix
months or a year, the cons,in, teaovcr
bis debts, and is enabl,d to pay the re-
! taller the retailer is enabled a., pay the
merchant; and thus, six months or a
year after the bank, by the aid oI It's
summary process, has swept II all the
visible properly OF the merchant, he, by
the aid Of ordinary process. recovers nc
mo,,cy with which he original, dssga-
cd u satisfy the demands OF the bark a.
gains, him e' ~
PunctuaIity is the lie Of credit srd
one oitl,e original objects of the 'egsla-
ture in establishing these institutions,
undoubtedly was 10 promote it; but so
far from producing tins effect, the pfece-
deuce given to bank process has direct
| tendency to lrustratc is fan ipdiyIdu-
| al largely indebted to- the banks enters
into pecun;ary contracts with others his
ability to perform those contracts de-
pends upon the will of bank directors.
II he be but threatened with this process,
he neglects the most solemn obligations
to preserve his property from its imme,
diat, grasp. II the process be enforced,
ne is deprived Of the means OF performs
ance, hi, property is sacrificed, and ne
| becomessa bsnkrups.
! Again. The property Of which .
debtor is the real or apparent owner ls
the foundation Of his credit, and wrhone
It his creditor is without confidence and
without security.
II therefore he becomes indebted Ia
Individuals to-day to the amount Of his
whole property, and Tomorrow ne be-
come, indebted to banks IL an equal
SUN, in consequence OF the precedence
given TO the process Of the banks, his
property ceases tobe the security OF in.
| di,iduals. and Incomes the security vt