Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1857-11-13
The Use and Abuse Of cr.,,.

There are many persons who, in ordinary time;
not be brought 70 oeleye that there any moral wrong
In speculation. Times like these assist ereatI :; e
ing the eyes of the creditors at least Not of III C
ors Let wholesale merchant hold note fo a. GU
for goods delivered, due to him by country mpSo
and 1t goes to protest If he inquire into the cans to
chances to one the country merchant has sold most Of
the goods and invested the proceeds first INSTANCES
In western lands or railway shares Everything has S
en and lands and railway shares have sunk all tba
investment The debtor thinks that he is to be n;taS
but the creditor feels that he is to be blamed Wbni
right? The creditor if he utters what is in his b,l
says You Spectator, which is about the Same ~
a swinder.'' But the debtor asks, PRAY, what Is
Spectator? intended to pay every man the last cent
expected to pay. If have sunk $4,000 of your mon
ey, have lost $4,000 of my own. Where lies the d.;
tncon been speculation and any other kinds of tradn
on credit p
The difference lies here. Speculation consists in NAL
ing of credit to traffic in other than mans repn
and avOwed business. If any has capital over and
above the payments of all his debts on the day they %
due he is at liberty to invest the surplus as he peaQ
and believes most profitable. If he gamble with it Omen
y and put it all to hazard the rafting of the dca
box the turn of card, however wrong it NAV be- in
some points of view, he has swnded one if he lose
all. But if a man pretend to be doing regular and
honest business and asks for credit his goods till he
can get them into the market and then takes the pr
cees as they in, and before meeting his note bo
ards the whole sum at faro bank he is not only psm
bier, but dishonest man, and this equally whether he
win lose because he risks that which was not his and
in manner that was not contemplated by the merchant
who trusted him.
Every man has right to invest his own money IN
western lands or railroad stocks or gunpowder or in
surance, anything else he peases provided that ha
does not make use of his credit obtained in other walks
of business or involve that.
We not here discussing the credit system SO far ~
it is used simply in conducting an open and legitimate
business That indeed, needs far more checks and safe
guards thrown around it than it has for wears received
And the long credit system has, we know to answer for
much of the recent speculative movement If a man
has turned his goods into cash at four months and has
not got to pay for them under eight he does not want
the money to lie idle Hence he invests it in all sort Of
things of which he knows nothing. A few fortunate
hits of this kind will make the conscientious mer
chant Spectator of the worst kind in year. without
5 knowing that he is doing wrong.
But We are not speaking of long credit. The
point wish to press is that, whatever man NAV
make Of credit in his legitimate business he has no
right to transfer the risk which must always attend it.
without the creditors consent to any other line of bust
ness not because he has capital enough to pay for what
he is trusted with. A man out of business would not
be thus credited But his character is reported good
and he being in business regularly to sell such goods
d can in due time pay for them and get a profit. If il
were conectured that he would purchase lottery tickets
with the money he would not be trusted. But where
can we draw the line? No man has any more right SC
make use OF his credit regular Pennsylvania country
merchant to 60 into the land speculation in Iowa. thai
to buy lottery tickets in Maryland The creditor wa
willing to take the risk from losses in the regular cOus
of his business, but not willing of course to run int
T. extra and unnecessary danger
Yet many say all business has its risks and that from
which we by this rule should be prohibited those who's
regular business it is, may 60 into egtmately and
make of the usual facilities of credit carry on
without its being considered speculation. This is
actly The man who has all his life dealt in sugar
will know about that trade than the specuato
e who goes into purchase bnd-fold. A shoemaker o.
manufacturer may be safely trusted to make and sci
Shoes but not, therefore, to judge of Western lands
g is the misfortune of many man to be jack of al
trades but master of none. But such, if known ar
not trusted For any man. then, to transfer the credi
he receives in business to any other is speculation
in the worst of the term. 1t is just this which
the of all the present revulsOn 1t is this whc
has parayzed credit suspended the banks ruined hun
dreds of the rich and is starving thousands Of the poor
PhllndelDhd LEDGER