The native American. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1840, 1839-02-09
WISHING

it be large business, to not more than twice his
capital. do not say that this is the rule though
have the greatest respect for the judgment that
laid it down. do not say that it is the rule, be-
cause am advised on the other hand, by very
competent judges, that the rule must vary ex-
ceedingy with the different kinds of business
which man may pursue.
do not undertake, then, 10 lay down any par
ticular rule, but urge the claims of general pru-
dence. | wish to call attention to this point. |
am persuaded that it is for want of reflection and
not from want Of principle, that many have adven-
tured out upon an ocean Of credit, where they
have not only suffered shipwreck themselves, but
carried down many goodly vessel with them.
1t is said, that the Government have spread temp
tation before the people. by adopting measures
which lead to extraordinary issues of bank paper
1t may be so; | believe that il is so; though this
can scarcely be supposed by the most jealous, to
have been matter Of design. Bntgrant that it be
so; what maintain is, that the people ought not
to have yielded to the temptation, to the extent
that many nave done. The borrower, hold, is
specially and solemnly bound to be prudent. He
mems property, than his own. A man should
be more cautious in taking credit, than in using
capital But | fear that the very reverse of this
is commonly the fact. fear that most men are
more reckless when they use the means which
credit gives them, than they would be in using
their own absolute and fixed property. In small
matters, we know that immediate payment is
check to expenditure. Why is it, but for this,
that every petty dealer is anxious to open credit
with your family? He knows that your expen-
ditures will be freer, your purchases larger, and
that more considerable amount will be made up
at the end of the year, because you'll buy credit.
But to look at the subject in a wider view; know
that some men do plunge more recklessly into the
great game Of business, because the game is play
ed with credit; with counters, and not with coins.
have heard it observed, and / confess, that it
was with GOODNESS and nonchalance that amazed
me, that man may as well take good strong
hold Of business while he is about it, since he
has nothing to lose by it. The sentiment is mon
strous. 1t ought to shake The very foundations of
every warehouse where it is uttered There
ought to be sacred caution in the use Of credit.
And although cannot pretend to define the pre-
else law of its extension, yet this will say, that
never till see man adventuring his own proper
ty more freely than he adventures that which he
borrows Of his neighbor, can | think he is right.
Let this great, and undeniaby just moral principle
be established; and am persuaded that we shall
at once see wholesome restraint laid upon the use
of credit.
There is one further point to which wish to
invite your attention; and that is the practice, in
cases of bankruptcy, of giving preference to GER
tain creditors, who have made loans that con-
dition. Now, | maintain, that man ought to
offer credit and that no man ought to accept it,
on that condition. The practice is abolished in
England and know that there it is regarded as
bringing a stain upon the commercial morality
this country.
The principle is dishonest. 1t is treachery t
the body of mans creditors. He appeared befor
them with certain amount of means; and upo!
the strength of those means, they were willingt
give him credit. Those means were the implie,
condition, the very basis Of the loan; without then
they would not have made it, They saw that h
had large stock Of goods; that he was doing
large business; and they thought there was no dan
ger. They depended, in fact, upon that visbl
property, in case Of difficulties. But difficult
arises, failure comes; and then they find that niue
or all of that property is preoccupied and wreste
from their hands, by certain confidential pledges.
IF they had known this, they would have stoo
aloof and therefore, say, that there is essenti
deception in the case.
Again, lending on such principle loses all il,
generosity, and borrowing is liable to lose all tn
prudence and virtue that properly belong to it. t
a man lends to his young friend relative,
wards him, it is a transaction which bestows
grace upon mercantile life. But if he lends as
preference creditor, he takes no risk. and show 5
no confidence. For he knows, that the borrowr
upon the strength of his loan, can easily get pr
perry enough into his hands, to make him pc
fec,y secure. Andlet it be observed, that in pr
portion as the acquisition of confidence is loss n
cessary; in proportion, that is to say, as virtue
and ability are less necessary to set up man in
business, are they less likely to be cultivated; ard
SO far as this principle goes, therefore, it tends -
sap and undermine the whole business charact'
of country. Nay. it is easy to see, that und'
the cloak Of these confidential transactions, Il
entire business between the borrower and lend
may be the grossest and most Ubiquitous gamblin :.
Of course, / do not say that this iscommon B t
say that the principle ought not to be tolerate /,
which is capable Of such abuses.
This principle, I think, moreover, is the very
keystone of the arch that supports many an ove-
grown fabric Of credit And this observation s
two-fold bearing. Much Of the credit that $
ostained could not exist without this prncipl :.
That is one thing; but furthermore, hold, tn t
all the extension Of credit which depends on this
principle, ought not to exist at all. ought NJ t.
because the principle is dishonest and treache r
o,s And II xvould not because the first cree it