Richmond daily Whig. [volume] (Richmond, Va.) 1842-1861, 1856-02-21
RIG MOND WIG.


Of the which attempt regulate the rate of inter
e-t bctsccn borrower aud lender. there Is nothing
which laws bear pjuhousy on the interests o
trad. than the encouragement they give TO an uncqua
distribution OF the OF bankrupt We are not no~
abiding the proposed release OF the debtor upon th'
surrender his property Although Ne have never bee
very partial 90 I-gate interference Ia this matter,
there be- pon, between the perpetual scrvitnde Z,
the debtor aud h. tots, and unconditional release from H.
obligations where equity aud humanity alike require thu
he shall 90 free This however, in any form OF leei,lr
lion hitherto adopted has worked 1.-THE OF the mi
,iec that has come from the isyoritism which the laws
this state sanction In the distribution of bankrupts Pc
erv There few in which the creditors of an =
solvent debtor would be satisfied to give him
in in upon jus, and pro-rata division OF his means
the cases are stll where such equal Distribution
actually takes place.
merchant fails in business having unsecured obiga
tons 10 the extent Of $50O,uon To meet which, he Ia,
$3.50 O,a OF available assets. This would PAY 80 per
Of the liabilities dividend which would bc gladly accci
ted cases. Tor ia disehargc But the isolvc,
owes his father, brother some particular friend
about 200 900 which Le calls confidential and which
therefore be paid full Taking this sum from the
there is lett 1000 divide among all the remain
ing creditors. The ct bankruptcy which have
CURED M tins city during the last three year,
have seldom shown fair settlement this,-thc con
hdentia which paid in iul, having generally absorb
ed large proportion OF the debtors assets, tbs
the general creditors have realized but $50 % per ccu
OF their claims and ia few instances no dividend at al
has been lett Tor them.
We do not condemn the action OF these ins olvents j.
detail; all of them may have acted conscici
iiousiy according to the system in vogue but
denim the whole system %, toto cUntiihuivc 10 a.,
rankest Injustice. As long man can meet hi engage
ments his properly may be said to be his own, TO be
managed according to his judgment or caprice; but
moment lac becomes insOlven his entire are ~
longer his aud should not be subject TO his control Th,
belong o his creditors and { the Law is to interfere
ALL it should be compel him To divide the property
qunlV One creditor may have made greater pror,
thai another ot the debt incurred, aud eevery
cumsance connected with each transaction could be- m
known a wise arbiter might possibly make equitable
distinction the claims presented but no human gment
would be sufficient TO pFe'ir at such d'tn1uuoD,
we ca, see no rule rust that which would make
pro rata distinction among all the unsecured creditors VIII
could prove their claims.
such system OF distribution would work no uiustc,
IN the conhd.ntinl friends of the usovent. They
,,npo-ed 10 know more OF his affairs than the creditor,
outside circle and have better opportunities to pre-
tcct themselves through such Information II any dis
elimination Is due therefore, II should be against hO
most convcrslnt with the debtors claims TO credit,
not against those Who have such opportunities 1t
uni,equenty happens that friends who have stood a.
cheers for the credit OF debtor being referred in
sx,r To All injuries and through whose direct indirect
instrucntay ne has been enabled to incur heavy haO
ties ate the very ones BE- secured through the opera
ton OF this vicious iayOtism their claims being cckoy
n con6iftl in the day of disaster, while those whom
they have led the relation 10 the in>ulycnt
left the pittance which remains Tor the general
Creditors.
sIcb A system as We propose would not cripple IL.
re-ource vi debtor Many have argued that the favor
iti,u ~, have denounced is essential the credit oi
merchant nho has small capital; aud that help obtainc
on promise expressed OF Implied of such preference,
ia case of failure has often postponed the evil day Til
argument loses its force unless admit that 1t Ia WI
for A merchant with slender means To launch into lag
business with the aid Of such confidential loans best
for him to struggle alter lac i tsOet Iu dc>pc,
hope OF reganius his lost position suppose We gran
that the borrowed capital does help 10 swell the merchant
.fDnff zfHI
positive bcnctg l. there not already too great tcmp
DO large business on smd. capital: And ougi
not the tendency such expansion be couuteracted
instead of UucOu1keE but tue cohueitii deot lucica'
most rapidly IN the days of ublc, and every such o.
ol, helps sink the debtor deeper in the mi G.
from which he is struggling 10 escape II the debit
hud, himself embarrassed, let him advise freely with DO
Creditors If they willing he should 20 OF, TIE
vii .ut be w.utiug :! joe l. ~ stop, the Coo,
bette both himself aud them 1t J. precisely this point
where otcilus friends under the pretencc of rendering
their assistance but in reality their own deb
often lead the debtor astuy. 1t would be kindness
10 the nsolvem to take a~ay from him the means OF
prOtractcd struggle when the chances icaTiuy
against him.
The adoption OF the principle OF distribyon which W.
propose would remove source of temptation dis
hone,ty the path oil the bankrupt The first rcsol,,
of the ,nsOlycn when he can ungeF maintain hi credit
j. in great majority Of cases, thar lac viii give up
dollar of his property his creditors of whose WRONG
he thinks than OF his destituiiOu. But Iii
confidential friends around him. aud begin to parcel
h among themselves to the absolute prejudice
OF all creditors not entitled 60 such distinction aud who
shall how ftr this Of injustice may blunt the mui
of the debtor. aud urge him 90 m farther
Ii the he had intended to apart sacred toward
canceng all his debts be diverted into unequal chan.
nel- Tor benefit Of his friends, Why may be- pro-
vide little something from them for his want,
His confidential advisers determined lose nothing
though smother creditor should receive cent
then why should h. strip himself OF everything win s
nice sense usicc And If lie NAV reserve something
from the wreck how mucIy Why keep all whic, l.
wrung from his reluctant grasp. We have doubt
chat this custom Of unequal distribution is directly char &C.
able with having prompted most OF she fraudulent settle
made by in-oycnt debtors
The adoption Of the proposed system would strengthen
the general credit Of al business who have a small
capital. but good character. The evil OF large conf
dental debt has been growing so rapidly during the h-t
few years that shrcNiest merchants now afraid
TO taEc the risk. when would otherwise appear reason
able IL the unly legal settlement oi baukrupts affair
pro rata division among all the unsecured cI,.-
toTs, the latter would 70 with confidence where tlcv
could put hiih in the debtors integrity, their los. Boo
Of q failure would p- necessarily limited But when
therc is great gulf Of C,nflcutI ready swallow up
all the any moment the confidence j. liable 10
be shaken ~ the first breath Of suspicion There i.
method Of changing business debt into confidential
obligation, which adds 10 this distrI-t No small port,
Of the "borrOYed money owed 10y the iusovInt is made
UP Of loans furnished by the shrewi creditor con.
versant With the debtors Affairs pay oil maturing bills
held by that creditor which would 0hcrwiseh Doe protested
He lends the in7oivent the money pay his note aud
thus changes h- debt from general to e special list
II the principle that at t.c OF insolvency the
his control, bc sound one IL application iI,i and
equal pro TGfG distribution Is practicable and easy of ar
rangeineni u ioio"s, OF course, that no payment OF
transfer % such assets 20 former Indebtedness
the insolvency discovered would be- legal and fiUf
the entire estate gould be LEFT in the hands creditors for
conversion and division il the MINORITY in interest attempt
ed any fnisappcation Of t,o means they could be reg
taincd but tc system would br simple that but
difficulties could occur. We a, % be distinctly under.
stool limiting he determination Of the debtor solely 10
the periol Of -oiveucy 4 long hc is solvent let lin
make such distinction between hs creditors I. uI G
meut or his fancy may dictate. Let him secure one ia
full, AMI leave tine other 90 the chances of busiuc- he
may agree with each fbe j. embarrassed and choose.
Gu risk desperate 'trugI and his creditors DO upl check
him, give him full Use Of Doc, assets % obtain
But when the struggle over aud 10. ci1rcs arc gone
then he mas not justly look around upon h. creditors an
decide how much each .hal have Of tp common fund
iavoru- ONE 700 hc expense oi another u le pledge
by actual delivery and security 90 tlr time debit WA
CONTRACTED. such pledge should stand but ho Gel.
seis reuiIr. boo h- ilni. tov nor bis % give aur
be cannot control them. &C. dos NOT own dollar lnt
how can Ns give away tutf which b. auYthpr-f