The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1858-02-22
FROM OUR LONDON c0RREspOyDEyT


rate OF interest at the bank has come down from ~
to per cent The country is now SUFFERING under
that stagnation of trade that is certain to follow
crisis. Those with little or no captal have rono
down, and those that have capital and are doiro
business, are sailing near the wind buyino snar
lngly, and using all due caution as t, credit oc
counts. Those who may have supposed that +rado
and credit between this country and America vopId
be permanently affected, or altered in CONSEQUENCE
OF the large amount OF American Indebtedness and
bankruptcy, will have to have to revise thair onin
ions. Still there are reasons for believing that
American merchants ard importers will not be able
to obtain large credits as easily as they have here
toore. There is one course that could be taken b,.
your national Legislature that would do more than
everything else to put American merchants on =
good standing with all he world and that is a inst
equitable, stringent and permanent national bank
rupt law. The system of making preferential as
slgnments, so common in the United States and
Canada puts the British and other foreign creditors
at great disadvantage, and the manifest Injustice
ana dishonesty OF those proceedings in many cases
must operate uniavorably in this country. A mer-
chant doing business in New York PHILADELPHIA or
Montreal, seeing that he must fail, goes and makes
an assignment to a relative, a near neighbOr or n
personal friend, and the British creditors have to
go whistle, and find themselves among non-preferred
creditors, with an offer of 15 cents on a dollar
Yesterday there meeting of the creditors of
Mr.. John Henderson, of Toronto, held in tbis citv
and this matter of assignments and preferred cred
itors underwent good deal of discussion. Some
strong resolutions were passed denouncing the sys-
TEN, and it was matter for consideration whether
merchants in this country would not do well to re-
md fbo
States, until the laws there were altered as to as
signments and bankruptcies 1t is. of course. 4
difficult thing to pass laws that shall prevent men
from swindling when they are inclined, but a good
and permanent national bankrupt law is essential in
all commercial countries. will not pretend to saw
what Is or is not constitutional in America, and
know your bankrupt law twenty wears aoo was
generally considered defective. Now. ask yourself
which is best: to have spasmodc effort for a bur
ried illdigested bankrupt law, every twenty wears
or after every general financial panic and allow all
to pass through, like porpoiscs and herring in
hole in fish net or to take time and get up care
fully worded law adapted to the wants of the whole
country, and make it permanent? There will be
loop-holes where unprincipled men will take advan
tage of law framed to relieve the unfortunate
and 1t is ever so;-but how stands it at present
with you? There is scarce a State in America
probably not one-where a man who owes money
cannot conceal and keep as much property as he
chooses, and defy his creditors
Now, look at the law in this country. A man
owes money, and can not meet his engagements. 1t
Is at once In the power Of two creditors to force him
to become bankrupt. He is obliged to give up all
his property, and while matters are pending, until
the close Of proceeding and he gets his certif-
he iS all a III,
which to subsist. He has an official assignee. his
books and papers 90 into the hands of an account
ant, and he is protected from arrest till the exam
nation day. He then surrenders and if evidence of
direct fraud and concealment of property is brought
he gets imprisoned and if it is proved that he has
property that he will not give up he is kept in con-
fnement indefinitely. The certificates are of three
classes-first, second and third course of hon
orabie trading, and bankrlpIc, following from
causes beyond his control, will entitle him to a
frst-class certificate. A bankrupt having such a
certificate is at in as good standing as it is
possible for man to be, after getting involved in
obligations beyond his means and control. If
merchant has shown a course of reckless trading or
extravagant living, beyond his means and income,
he will only be entitled to a second-class certificate.
When a man goes on trading, after he knows he is
lessness, conceament Of property, and presumptive
evidence of fraud, he only gets third-cass certif
cate, and that is sometimes denied him for six or
twelve months, and in the interim he NAV be left
without protection from arrest. Then, after a man
becomes bankrupt, and has got his discharge, he
can at once go into business, as he finds means.
gets assistance, or shows energy, prudence and
skill, and has the confidence of those who know
him.
Mr.. Buchanan's recommendation of a bankrupt
law for banks, is piece of short-sighted policy and
at once makes distinction between the corporation
and the individual Wherein hes the distinct differ
ence? A bank corporation an insurance company.
factory or manufacturing concern, a mercantile
house with several partners and single individual
do not present such marked difference in their cir
cumstances in cases of bankruptcy, as to require
that one or more should have privileges, immuni-
ties or laws that the others do not. The concern
owes money that is due; all creditors should have
an equal chance, and if there is no immediate pros
pect OF resumption, the creditors should have the
power to force it into bankruptcy. The lines Sc
paratng States occur with you at such frequent in
teryals that the advantages of a uniform bankrupt
law over the whole country are apparent to every
one. Your merchants and members of Congress
may rely upon 1t that there is step that could be
taken in the United States that would so immedi
ately put American trade and commerce on a good
footing In Europe as uniform, just and permanent
bankrupt law. No need fall back on the idea
that because the capital and manufacturing resour
ces OF Great Britain must find sales abroad that
credit must be given to foreign countries That
may be true to certain extent but there is capital
enough, and there are solvent and honorable mer-
chants enough to sell all European goods that are
needed in America and if that capital and those mer
chants cannot be found in the United States this
country send out a suficiencv of both. All is
II there are laws and regulations that will make it
safe and convenient to grant credits to numerous
houses, and firms in America, that will be done.
and if not, the business will be more concentrated
and will be done by fewer hands. l need not en-
large upon the advantage of having the trade in
foreign as well as in home manufactures in the
hands of a sufficient number of individuals as well
as in the hands of Americans generally rather than
having it done by few persons, and those princi-
pally foreigners. How do British manufacturers
and mercantile effect sales of their goods at
Rio, Bahia, Pernambuco, Buenos Ayrcs, Valparaiso.
Lima and other cities in the States of South
America? Certainly to great extent by sending
out to reside there, partners, brothers. sons. and
eiS iiO'' 'ii0 e''"'iioilhieh'o Ill tuls country.
The laws, the state of mercantile morality, the
capital and the political condition of things is such
in those countries that credits cannot be as safely
extended by Englishmen to natives of those coun-
tries as to the citizens Of their own when residing
there.
Shall the same be said of the United States?
The political condition of things seems tolerably
though grave doubts have arisen on that
subject during the last year two at the near ap-
'roach of anarchy in America, particularly in some
If the large cities. There is certainly capital
enough in the country, notwithstanding the late
lard times and the numerous failures. Now. shall
t be said that the laws are so imperfect in the
United States and the state of political morality
o low that there cannot be found sufficient num-
'er OF individuals in the country to whom can be /
ntrusted the husiness of snnr.l,.;no. IL. ..... -.