Lynchburg daily Virginian. [volume] (Lynchburg [Va.]) 1852-1861, 1855-11-21
Al Misohief to be Remedied


second and all others in the third, except Y and
Y. who are the fourth" why are they post
ponedi" .Wellthey saw how the thing was go
ing and brought suit that was the Of the
deeds being made, and they have suffered for
their folly--the assets are not over so per cent
of the debts. and will barely make good the Dor
rnwed mouey--the endorsements and the family
debts" THAT'S pretty bad-but stall better
than c. DIS arrangement. He contriyed to dis
charge about 500. 900 of debt with less than
$4,000, BY requiring all the creditors Ia accept
tho deed within given time. in order to get any
thing-and upon the condition that whatever
they did get should be 10 satisfaction of their
whole claims. Specimen Of conversation at the
street corners.
What. we ask. are the reasons---in point OF
morals, or public policy, under the influence ct
which the state of'hings illustrated above has
grownup, In times of general prosperity when
money is plenty and credit good, when every
man can at will get in enough of his means to
serve his purposes, without pushing his debtor,
there is little opportunity for observing the
practica effects Of our credit system, in its rea-
tions to our Virginia law of debtor and creditor
A little structure, however, in commercial af-
fairs. still more the approach Of world wide Fl
nancial crisis. though IT'S advance be gradual
seals 10 ~ the mischief which nrks in false sys-
tam Of - lit, whose evils are intensified tenfold,
by the practical working of the law. Those
mischefs and some of the aggravatons alluded
to may be briefly stated as, First: Overriding
that is tendency to push credit beyond its
legitimate and healthy inits. which isgreatly
countenanced and facilitated. by the power Of
giving preferences among creditors. Secondly:
Protecting debtors who have become embarrass-
81. saa enabling them TO keep their creditors at
bav; by threats Of exelusion,-by inserting ciau
ses requiring n release of all balances not paid
by the assets conveyed and enabling them indi.
rectly TO enjoy the property conveyed Thnd-
IN: The dcmoraxing influence which this license
exerts,i in weakening the moral sanction of the ob
legation Of debt,--and tho temptations to fraud
nlently covering up Of property and Fourth
ly: The delays which are interposed, after insol-
vencs, before the creditors can obtain any fruit
of the conveyance.
In respect 10 tn first of TIA $50 results, viz an
undue extension of credit-,he influences which
contribute to produce it are many and very com
pcated. but Fictitious credit, the product Of
our present law of debtor and creditor, may be
shown, with the cearness of demonstration to be
one chief cause. Every trader has his accom-
mediation endorser. As long as the endorscr is in
good eiii and will continue To lend his name
the Banks will make loans. The trader contin-
ues his operations, all the more rccklcssly nf-
ter his debts have reached equality with his es-
tate. lie has then no longer anything to lose
So long his endorsers liabilities ure less than
he mn lcf ynlu tlfb tn,o nh
(Which is The criterion with thc public) continues
coed. and the Banks continue their accommoda-
tions because both Of these parties know, TINT
the law permit, n man 10 give preferences in
deeds of trust aud by the custom of trade, tone
which may be shown 10 be f.. Sc in morality, and
bad in poloy,l the first party secured is the on
dorser.and through him the Banks.
The consequences "bvoas. No matter
what extravagance of disproporiion mans debts
may bear to his means-it may DC as two or
three to one--if his liabilities in Bank, upon
W lch his accommodation endorser is bound, are
less than his whole estate by difference suf-
eient to make him safe. baseless and Fictitious
credit is maintained, which enables the debtor to
work himself deeper into debt with other per-
sons. Presently when the endorscr's liabilities
have reached that limit when the out side cred
itors. no longer kept off by false appearances
begin to sue and acquire liens, deed is mado
conveying everything estate real and personal,
bonds, notes books debts to the minutes vn-
ne, to secure from loss the very parties who
have enabled the maker to impose upon II hun
dred others, while they are tho victims of tho
confidence delusively produced by the combina-
hn H.a al; II
stock which was Purchased on credit month
before, and the seller suffers a total loss Every
mechanic every small dealer, who has trusted
the bankrupt, upon the faith of what seemed to
them to be good iae camille credit loses the
.hard-earned price Of his labor his little bill,
while those who have been deliberate and well
advised parties to the deception are the only
creditors who lose nothing. Can this be right
Can It be justified In morals or policy No prin-
ciple is better settled in law than the RICH, of
debtor,in the absence of bankrupt lawt mako
preferences in paying his debts. When he has a
hundred dollars to pay, nothing can prevent him
from choosing whether it shall go to A or to b
and that is very well. long as he affects to
keep his estate under his own control and the
door is left open for others who are less favored
70 assert their demands by legal redress.
But when the law arms man who is nsolvent
with the power of putting every copper of his
means beyond the reach Of legal process, and
enables him to say, "Sue me at your peril" what
before was wholesome liberty, is converted into
acleaying mischief. Judges of the highest abil-
ity have again apd again regretted that an unlim-
tied power of preference had beeome too deeply
imbedded in the law to be judcally shaken or