New Orleans daily crescent. [volume] ([New Orleans, La.]) 1851-1866, 1860-10-26

We have from time to time heard much of the
English system in the case of failures, suspensions,
bankruptcies or otherwise insoyencies. IT. ex-
tremely doubtful if there were ever greater cases
of fraud and bamboozlng in the United States than
what appears in the examination OF the great
leather factors who failed, owing nearly five
millions of dollars. AT the first examination the
losses direct show over one million and a half
dollars but according to some estimates the estate
might pay about five or six shillings on the pound.
Cool comfort this, for creditors who hold about
fl50 900 or three fourths of million dollars;
though these very creditors have been highly rep
rehensibe in sustaining this as well as other bank
rupt concerns In fact the good old Quaker house
of Oyerend, Quincy & Co. conduct their gigantic
operations in very loose manner. Let us cite an
instance: When they or their man Friday receive
bills of exchange with documents attached, and,
perhaps thinking that they can make more by re-
tanning the exchange, not presenting itfor accept
ance SO as to have full control OF tie cotton, and
thereby make an extra commission, and SO conf
dent Of the cotton being ample to cover the ex-
change, they advise the actual and real owners OF
the exchange, bank in our good city, that the OK
change was all right, and place the amount at once
to the credit of the bank, say eS577 los. 3D., or
such sum as the bank had advanced on the ex-
change and bills of lading before the boulversment.
Lucky bank to have so liberal and heavy agents,
prepared to advance either with or without prop
erty Now, who would not desire to have as
agents the good old Quaker abolition house of
0verend Quincy 4 Go. Though they are great
detestors of the institutions of the South neverthe-
less they are very partial to the cent per cent &C.
cruing from the great exchange operations based
on cotton. But to return to what the London
Thunderers money article says. We publish the
following extract:
From the London Times, Sept. D.
The examinations in our courts of bankruptcy
are becoming almost scholastic for their extraor-
binary subleties and refnements. If a man wants
to sharpen the edge of his wits we can recommend
them to any aspiring lawyer or metaphyseian.
They will supply as good milestone as Duns
Scotus or Lord Eldons judgments. What kinds OF
debts have right to appear in bankrupt's bal
ance-sheet? What debts are debts? Are debts
debts which are contracted to prevent bad debts?
A. owes you 100000 for cargoes OF timber, slate,
taow, guano, or anything else you like. That is
debt, or something very like one, and it has a
right to appear in the balanee-sheet But if you
suspect that A. is tottering, and that you have q
very poor chance of your money unless You keep
him on his legs while this storm is blowing over,
and then lend him $4,000, Is that q real debt and a
debt that has a right to appear in the balance.
sheet? That is a question which is argued in the
case of streatfeild, Laurence 4 Mortimore's bank
ruptcy, and in answer to it Mr.. Linklater says
" No; that is not a real debt, but fictitious
shadow and ghost Of deht-an ocular delusion
and reflection simply Of the original substance
which has produced it and is altogether answera
BILE for it, bankrupt's accounts, at least the
creditors side Of them, are thus kind OF mixture
of terra ttraoa and mirage, in which one.half the
debts which meet us are only created to save the
other half. They are the second thoughts OF cred
itorship, mere humble companions to first transae-
tons; they are in spirit and intention dminutlsns
of preceding debts, which only unhappily fail OF
that desirable object, aud become augmentations
of them-good money thrown after bad, OF rather
bad money thrown after worse. Such is this am
biguons and nondeserpt class Of debts which OK
cites the natural dispeasure of some OF the credit
ors of Messrs. Laurence l. Mortimore, who accord
ingly represent to the court in Basnghall street,
with great care and discrimination, that these are
not real debts and that distinction Is to be drawn
between the genuine article and these spurious
| representations OF i.
with respect to the fact itself, we all know yer.
well that it is prevailing practice in the comm
cial world to send money after money in this way
So-andso is in difficulties and must be assisted
that is the system which comes ont in tie discIo