Staunton spectator. [volume] (Staunton, Va.) 1849-1896, 1870-02-01
~ For the Spectator.
A Mode of Relieving Debtors.

Mooe OF Reviewing UehfoTS
| MEssRs. EDITORS The Stay Law will ex-
pre- Dy constitutional provision, in a few weeks.
Creditors will then begin to press for payment
OF debts, and much distress must ensue. Ev-
| cry measure that will tend to give relief, and
| facilitate the settlement of balances between
neighbors will be welcomed by the community
Money which is the ordinary measure of value
and medium OF adjustments is now unnrece-
dentedly scarce. all the lawful currency of
the country is required to pay State, Munich
pal, and Federal taxes and foreign debts. and
but little is left to settle balances between neigh
bors at home.
1t becomes then, matter of interest to con
slder whether some substitute for money can
not be devised, which will answer the purpose
OF settling local Balances by becoming a me-
dunn of exchange.
| Almost every man in the community occu-
pies the double relation Of debtor aud creditor.
Many have quite as much due to them as they
| owe TO others. But by reason Of their inablll-
| ty to collect what Is due to them, they are una
BILE to pay what is due from them, and are La
BILE to be subjected to great loss and inconve-
nience.
La thinking of this matter it has occurred to
the writer of this article that if system Of ex-
change OF evidences of debt could be instituted.
It would afford great relief to the community.
Thus, if A owes B 500 and B owes 800
and owes d 800 and D owes E 800, and
SO m through the alphabet, it is obvious that
II \ at the lower end of the list, would take
the note OF u for 500, and pass it to Y, in
payment of his debt of 500, and Y in turn,
would pass it to w, who would pass it on to
V, and so on, backward, to A, the one note of
500, would extinguish 25 debts of 800 each,
without the Intervention of dollar
The great difficulty in giving practical effect
To crlah go ~ sloA III.
are OF different amounts, and therefore, you
cannot make the exchange, because the debts
will not fit
But this difficulty is by no means insuperable
Let US, by way of illustration, suppose case
owes $4,000 for which he gives him his
negotiable note payable at 90 or l2O days.
Under ordinary circumstances B will either hold
this note until maturity, or have it discounted
at Bank where it will remain, dead capital, un.
I'll its maturity, rendering no service to any,
body
But now let us suppose that B instead of
giving one note Of $4,000 gives 20 notes of
500 each and 60 notes of $50 each, making
the same aggregate of 5000, what would be
the consequence. B probably owes the greater
part OF the $1,000 in small sums. to his mer-
chant, his grocer, his shoe-m maker his tailor,
his school teacher, his blacksmith &C. How
easy would it be for B to go to these various
creditors and say, Il wish to pay you, but have
no money. Here are notes which are unques-
tionably solyent-take as many Of them as will
satisfy your demand and we will square our ac-
counts We venture to say that there is scarce
" creditor who would not consent to take
these notes, in satisfaction of his debt. He, In
turn, would take them to his creditor who would
use them In the same way, and thus, long be-
fore the notes matured, they would probably
discharge forty or fifty thousand dollars of debt.
All that is necessary to give currency to these
notes as medium Of settlement is that they
shall be drawn and endorsed by persons of un-
questionable solvency. They should be en-
| dorsed in blank SO as to pass by delivery like
Bank notes. Our ordinary Bank currency is
| but the negotiable note of Bank secured by
collaterals. And why should not the note of
an Individual or individuals of UNREASONABLE
sovency be just as current as the notes of a
Bank
The great advantages of this kind of paper
would be that while it would perform the func-
tions of money in settling local balances at
home it would not go abroad like money. 1t
| would remain here to be used in settling bal
ances among neighbors to whom the drawers
| and endorsers Of the notes were known.
We venture to say that if $4,000 or $780,
| 900 OF large debts were cut up into small notes
| of $50 and 500 each, they might be made
available in less than one year to settle the
larger part of the indebtedness of the county.
| A land bond for $1,000 is really the representa-
tive of $1,000 Of Capital. But in the shape of
land bond, it is dormant capital. 1t does no
| body any good. Cut it up into negotiable notes
of $50 or 500, and, at once, it becomes active
capital, available for most of the uses of mon
ey-passng from hand to hand paying debts
stimulating industry-giving life to business
starting new enterprises, and adding to the
general prosperity of the country.
| Let some OF our business men set this thing
on foot, and we are very much mistaken if it
does not afford great relief to the community
and impart new spirit to our people.
HAMILTON.