Constitutional Whig. [volume] (Richmond, Va.) 1824-1832, 1826-06-06

Charleston, aud New Orleans-the great cotton mafe
kes OF the United Statc and have recently received
Information that, consequence of the state of things
have noticed the foreign creditors and the Bank of
United States viii get the whole estates of those who
have failed III New Orleans One of the Judges of the
Supreme Court OF that State, auson this subject
writes, hc conflict between the judicial powers OF the
United States and the individual State courts in rela-
ION to Bankruptcy demands the prompt interference Of
Congress 10 pass general bankrupt law.n
Under the existing laws this subject: the banks
generally aud especially the Ban of the United States
have most decided advantages over all credtors-ad
vantages, o. whchl think they ought 10 be dyested so
far at least To secure To all creditors whether private
individuals or corporations equal portion of the
tates OF insolvents. arm enemy bans-I believe
that banking on sound principles emnenty scrvicca-
bile TO every counry-but specie payments must be
cured, and issues prevented. They should be
confined to their legitimate uses the enlargement of the
commercial capital of the country, to enable the
merchant, by anticipating his resources TO go into the
market and buy the produce of the farmer, without wait
ing for slow returns of his adventures. But as credit
III great measure, now depends the banks, it is
obvious that the privilege of giving preferences will
always be used TO them, Tor, what amounts to
the same thing, TO the endosers on notes dis
counted the banks in preference all other creditors
And thus the banks made the instruments of wing
fictitious credit to nsolrent men, and thereby enabling
them 10 ruin those who deceived by false Appearances
lend money sell goods TO such men. The preyent-
ing preferences would destroy this fictitious credit and
bring back the trade OF the country TO a sound and
wholesome state. Nothing is wanted hut 4 wse and
uniform bankrupt law
There appears 10 me, 10 be two defects in all our
State insoven systems, which must forever render them
worse than nugatory The first is, that they are not
granted at the instance of the CREDITOR but ONLY on the
application OF the debtor. The second that the relief
docs not, and cannot, extend under the Constitution
10 the entire discharge of the particular debt much less
OF all existing demands. The creditor is thus left en-
trcy at the mercy of the debtor until the whole estate
is dsspaed, and then the debtor remains forever after
at the mercy of the creditor. Thus all mutual conf
dcnce is DESTROYED. The one is tempted to practise
frauI ardC oltnant 1,lfI n,,tl,o.
There naturally grows up between them spirit of dis
trust and hostility, which banishes all common
sympathy Debtors are thus tempted 10 become cheats
and creditors, Shy locks.
But let us take closer view of This subject LOT me-
now examine, little more mTnutcly the situation of
debtor, under these nsolyent laws When merchop,
lnds himself no matter from what cause in embarrass-
ed crcumstances-when casting up his accounts be
makes the unwclcomc discovery that his debts cxceod
lis creds-in what situation is he placedo He knows
that The laws have put him beyond the reach of his Gre
ditor--they cannot levy his goods-tlev cannot i'm
prison his All they can do is to commence On
action, which will not be determined in one perhans in
two or three years In the mean time he carry on
ms trade as before. Should he under the Influences or
some compunctons ysitings of nature" feel dsposed
to o? short in his AMI deliver up TO his creditors
the wreck OF hIs estate lie is checked by the consicra
ton that IN so doing, TIC throws himself entirely on the
mercy o ms creditors, who if they should NOT rcceivc
their whole demands t. the last farthiuo thcv hoI b,
m bondage for the remainder of his DAYS; and thourh
nlne tens o the creditors should 10 his DISCHARGE
tne OlheTS, not beng bound refuse O him
any indulgence Having, therefore, nothing TO gain
and much 10 lose, by bringing his business TO a close
he is naturally tempted TO go onto engage in danger
Gus enterprHes-o put every thing TO the hazard and
10 FISK lbs fortune and his future hopes on sinrle ar
venture II he should succeed ne is sayedanl r. h,
fails he can only perish; which rain ALREADY stares
lm in the face, will not render his condition much worse
than it's icing driven by the force of circumstances
20 inns determination, the means of executing il are NJ
hand lie has frcnds-the banks are open 10 tlen,
loans are obtained, by of the endorsements off
men IN good credit, under solemn pledge that come
what may there shall be departure from the modern
code OF honor which makes it the most sacred of du
tcS TO secure tic friendly enorser no matter at whose
expense or at what sacrifice Of feeling of principle
NIh hct'ous credit, thus created, and thus supports
ed, the debtor engages boldly species of CONNER
cIai gambling. The luck is against him, and his doom
is sealed.
But though he must perish, resolves 10 fall with no.
nor lie goes INTO the market and on the strength of
the credit obtained by the countenance nf h;e f;onds
possesses himself of the goods of others-thep fails and
assigns ls whole estate, including the goods thus OBJ
famed TO these very friends and leaves all others IN
Their fate Perhaps it is too severe nunishnont
Tor such men, that they should drag out the remnant Of
theIr days IN poverty and wrctcbedness-that they
should become vagabonds and oucasts on the face Of
tue earth And yet is under strong termination tat
they fall. You have, by your inefficient laws eeducod
them to their ruin and perhaps it not quite Is-not
"''oge'her CONSISTENT with misunderstanding not with
Puoc poIcy--to leave them in this wretched condition
without any incentive TO industry, Or any tie IN hind
them 10 society But the evil stops not here. ono fail
ue makes many, and single such case involves per-
laps twenty others, of innocent persons too who have
fallen victims TO the frauds permitted if not sanctioned
by the laws. Sir this whole country is filed with I'M
fortunate debtors who their failure to such causes
nave no hesitation in declaring it TO be my firm belief
ana settled conviction, founded some personal know
LEDGE and information, derived fro those well ac
gnaIn'ed WIZ The subject and worthy of entire conf
dence-at, from these causes there is mass of talent
'"u9" "!e' slr' a''d virtue toO-in country idle
ana useless and that their number is daily and rapidly
increasing Thousands of individuals, who in the com
come bankrupt; sometimes from fraud oftner from inn
prudence ou' most frequently from misfortune are now
suogghg out miserable existence burthen to their
,rIenu' ana TO their country. They live without
nope ana vii! die without regret And is it no object
10 young country, like to restore to society the
,%oor wren is no" palayzed-the enterprise which
huinoers--he talent which ctushed-tbe virtue ,v;cL
IS aDPed IN the dusi: No gentleman who now hears
me- VIII say So Permit me to add Mr. President that
mere never was crisis in the affairs of This conntr
which more iinperlousiy demanded a wise and bneG
Gent Poy than The present The last and the present