The Hillsborough recorder. [volume] (Hillsborough, N.C.) 1820-1879, 1859-04-06
ENDORSEMENTS.

on slip Of paper cfoss-wise. does not seem
20 amount 10 much. and il It were not for
other writings on the same slip OF paper, the
result wauld only be an exhibition ol good or
bad pelmanship. But if the other side Ct
the paper happens to contain another mans
bromise to paw a certain amount at a certain
time, our signature makes the promise and
the responsibility for its fulfilment ours. 10
tsa thousand cases this endorsement is a mat
Tar of form, required, perhaps. IN accordance
With the rule of some house or corporation |;
brit sometimes il is troublesome reality,
A Young man commencing business has for
his capital certain experience, tact, business
aeapaintances and rich father. This amia-
BILE relative may lend his son ten thousand dol
lars. and promise facilities /" for ten thou
sand more. The facilities means his endorse
,neuts. So long as Young Hopeful confines
his business within assigned limits he can
get along with this much aid. and if lie is
thrifty and fortunate, the time will come when
he can return the borrowed capital and dis
penss with the facilities. But thrifty and
fortunate Young men, with rich fathers, are
scarce nov days. and in most instances the
ability TO obtain money and endorsements is
a constant invitation to the young merchant
III spread himself over more territory than
lie can probably cover The laboriously
earned and carefully saved money Of many a
father has been carelessly squandered BY the
son, whose greatest misfortune was his east
" obtained capital. The true meaning Of
the endorsement, however. is here exempli-
fed. The father promises to pay if the son
should fail to do so, and the only calamity is,
that the latter, like the Prodigai Son Of old,
gets and spends his inheritance too soon.
There is another kind of endorsing which
Is very common, and which is not so free from
objectionable features. Sometimes, and very
frequently of late years, the buyer agrees to
furnish the name Of an established house, in
undoubted credit. OF course, this additional
name is only given when demanded. There
is a settled arrangement beforehand, between
the maker Of the note and his endorser, that
In any event the latter shall be protected
from loss. Usually, there is commission
paid also, in the form Of a certain percentage
On the account Tor which he makes himself
liable. Now the defence which the friends
of this system urge, Is the known fact that
all merchants who require this second name
from their customers, understands perfectly
that the endorser will be secured if the draw
er fails; and although there has been no mort
gage given, or contract recorded, BY which
the endorser is held harmless, still the every
where recognized tacit understanding be-
tween the parties Is as good as regular exc
cuted instruments. Admitting all this to be
true-it does not appear that there IS the
Iemotest chance for general creditors" If
the drawer is compelled to suspend payment ;
aud this is the most obvious defect IN the
system. We have taken occasion TO express
our objections to preferred debts OF every
sort, and even If we admit bankrupt's right
20 provide for the payment Of borrowed money
(shich BY the way we do not admit we COR
elally disapproye Of preference shown to
tie facility makers, especially when they
Rave already received bonus or guarantees
commission for the use OF their names.
These a facilities are getting to be per-
feet nuisance, and the evil is probably work
Tug its own cure. Ii is . common thing for
merchants TO suspect the ingenuOusness oI
each other in the matter Of recommendations
II A tells b that c is 4" safe man TO sell to
5 immediately takes il for granted that i
partisuIarly interested in c. success, because
tie latter il heavily in debt TO him, and ID
tlle majority Of cases, B is not mistaken IN 81
,h.nking. The older and more experienced
merchants annually set aside large portion
q! heir nominal profits to provide for losset
and the larger their experience, The large
rer Centage do they set aside. There arr
men in Iii, city, Of large means, whose blsi
ness Is 10 endorse for weaker houses. y
long az they add their names to the paper o
ti,eir protege, all gees on swlmmlngly-b
after i time thev cease to endorse but con
.laue 10 recommend the buye-; but the credi
5. gone With the bolstering name. and, aite
/. short period, the weakling breaks. II Z
Laen revealed that the friendly endorser
- comfortable possession Of all the bankrupt
assets, aud the creditor is formally and lie
eally invited either 10 sign paper releasing
the debtor upon the payment Of rldieulousl
ANAL dividend, or to whistle" for his ina
rey. The average offer 10 such eases is abuu
one-hiih Of the debt. aud sometimes the pc
eeutage preferred Is 50 eontempubly sna
that il il more agreeable to whistle, thong
We he.e never heard that the music produce
snythine.
Oae word more 10 regard to the duties {
srdorssrs. IL Is not proper TO ask such a "a
20, a friend TO Nhun one j. not wiling
Grant similar favor 10 return aud, ther'
fore. men Usually seek such accommodation
from those 10 whose solsency they have 81
tire conf lenee. But endorsements are new
mere iormality. ard i quite possible y
the writer Of the second name !" may
required 10 pay the money f'r which he b
comes responsible. And i i " thi. view
The case tat tie improperly 81 lhdiscrin
rate endorsements brcnmss must appsrer
So man has right % make himself respo
sibie beyond bis ability. 4 he lsin bgsine
lis assets belpbg II III. creditors, and he y
10 right 70 place these 10 jeopardy 70 obs
trend. The man who !. weak enough
do il NAV render himself liable 70 the "a
dollar Of his oUa means, but 70 90 beyoi
this amount is 70 perpgtrate a virtual ifau
BY promising that which he cannot possib
perform. baltimore Ah''''ea"
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