The Carolina Spartan. [volume] (Spartanburg, S.C.) 1852-1896, 1857-12-17
The Use and Abuse of Credit.

~ times, cannot be brought 10 believe that
there is any moral wrong in speculation.
lines like these assist greatly in opening
the eyes OF the creditors at least, if not of
the debtors. Let wholesale merclian,
hold no;e for S5, 200 for goods delivered,
due TO him 10y county merchant, and il
goes TO protest. If he inquiries into the
cause ten chances TO one the country mer.
chant, has sold mos, of the goods, and in.
vested the proceeds rs n first nstalnent, in
Western lands or railway shares. Every.
thing has fallen, and lands and railway
shares have sunk all the investment The
debtor thinks he is to be pitied, but the
creditor feels that he is to be blamed. Who
is righn The creditor, If he utters what is
IN his heart, says, "You are a specula,or.
which Is about the same IA swindler"
But the debtor asks, "pray, what is a spec
ulatoH lintended to pay every man tue
last cent expected to pay. If have
sunk $4,000 OF your money, l have lost
$4,000 oi my own. Where lies the dis.
tinction between speculation and any other
kind of tading on credit"
The differences lies here. Speculation
consists in making use Of credit to traffic in
other than mans regular and avowed
business. II any one has capital over and
above the payment of all his debts on the
day they are due, he is at liberty to inves,
the surplus as he pleases and believes most
profitable II he gamble with it openly.
aud put 1t all to hazard on the rafting OF
the dice box or the turn Of a card. however
wrong 1t may be in some points OF view, he
has swindled no one if he lose it all. Blu,
II a man pretend 10 be doing regular aud
honest business, and asks for credit on his
goods I'LL he can get them into the market.
and then takes the proceeds, as they come
IN, and, before meeting his notes, hazards
the whole sum at a faro bank, he is not
only gambler, but a dishonest man, and
this equally whethe, he win or loose. be-
cause he risks that which was not his. and
IN "a manner that was not contemplated by
the merchant who trusted him.
Every man has right 10 invest his own
money in Western lands, or railroad stocks
or gunpowder, or insurance, or anything
else he pleases, provided that he does not
make use OF his credit obtained in other
walks OF business, or involve that.
We are not here discussing the credit
system so far as it is used simply in cou.
ductlng an open and legitimate business
That, indeed, needs far more checks and
safeguards thrown around it than il has for
years received. And the long credi. sys
TEN has, We know, TO answer for much of
tEp recent speculative increment. If a
man has turned his goods into cash a, four
months, and has not got TO pay for them
under eight, lie does not want the money
To lie idle. Hence, he invests it in all sorts
of things of which lie knows nothing. A
few fortunate hits of this kind will make
the most conscientious merchant a specua
tor of the worst kind in a year, wi,hou,
kno"ing That he is doing wrong.
Bat we are not now speaking Of long
credit. The point we wish 10 press Is thai
whatever use man may make Of credit
in his own legitimate business, he has no
right to transfer the risk which must al
ways attend II, without the creditors con
sent, to any other line OF business. He is
intrusted with good>, because he is known
TO be IN a certain line Of business, not he
cause he has capital enough to paw for what
he is trusted with. man out Of business
would not be thus credited. But his char.
acter i, reported good, and he, being in "a
business regularly to sell such goods, can
in due time pay for them and get profit.
II II were conJrctured that he would pur-
chase lottery tickets with the money, he
would not be trusted But where can we
draw the linel No man has any more
night 10 make use of his credit as regular
Pennsylvania country merchant To 90 into
the land speculation in Iowa, than to buy
Lottery tickets ia Maryland The creditor
was willing TO take the risk from losses in
the regular course of his business, but not
wiling, OF course, to run into extra aud un-
necessary danger.
Yet many say all business has It's risks
and that tom which we by this rule should
be prohibited, those whose regular business
1t Is, may 20 into legitimaiely. and make
use of the usual facilities of credit to carry
II on, without It's being considered specula
, tion. This is exactly so. The man who
has all his life dealt in sugar, will know
more about that trade than the sprculator
who goes into purchase hIindfold. \
+ shoemaker or manufacturer may be safely
trusted To make and sell shoes, but moi.
/ therefore, to Judge of Western lands. 1t i.
the misfortune OF many man TO be iacL
OF all trades, but master of none Bu
such. II known, are not trusted For an,
I man, then, To transfer tie credit he receive.
/ IN one business TO any other, is speculation
IN the worst sense of the term. Il is JUS
tins which is the cause of all the present re
vuI>ion. 1t is this which has paralyze,
credit, suspended the banks, ruined hun
dreds OF the rich, and is starving thousand,
Of the poor.-Phiiadciphja Ledger.
Al the reception, on TIE 10th Of Noyem
be-, of the Siamc>e Ambassadors by th,
Queen of Great Britain, the presents from
the two Kings OF Siam to the Queen wer,
nrLunnnl m ..ILhnr .i.l, II IL. --.--.-. -