The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1870-02-03
For the Valley Virginiap,
A Mode of Rel;eiyne. Dehtars.

A Mode Of Relieving Debtors,
MEssRs. EDIToRs The Stay Law will ex-
pirc by constitutions! provision, in few.
weeks Creditors will then begin to press for
payment of debts, and much distress must en-
sue. Every measure that will tend to give
relief and facilitate the settlement of bal
ances between neighbors will be welcomed by
the community. Money which is the ordi-
nary measure Of value and medium of adjust
ments, is now nnprecedontly scarce. All the
lawful currency Of the country is required to
pay State, Municipal, and Federal taxes and
foreign debts, and but little is left to settle
balances between neighbors at homo.
1t becomes then, matter Of interest to
consider whether some substitute for money
cannot be devised, which will answer the pur-
pose of settling local balances, by becoming
medium of exchange.
Almost every man in the community occu-
pies the double relation of debtor and credi-
tor. Many have quite as mnch due to them
as they owe to others. But by reason of their
inability to collect what is due to them, they
are unable to pay what is due from them, and
are liable to be subjected to great loss and
Inconvenience.
In thinking of this matter it has occurred
to the writer of this article that if system Of
exchange of evidences of debt could be insti-
tuted, Thus, if A owes B 800 and B owes C
500 and G owes D 500 and Doves E 800,
and SO on through the alphabet, it is obvious
that if x at the lower end of the list, would
take the note of for 800, and pass it to Y,
in payment of his debt Of 800, and Y in turn,
would pass 1t to W, who would pass it on to
Y, and so on backward, to A, the one note Of
500, would extinguish rs debts of 500 each,
without the ntelmission Of a dollar.
The great difficulty in giving practical eff
feet to such an arrangement is the fact that
debts are Of different amounts, and therefore,
you cannot make the exchange, because the
debts will not fit.
But this difficulty is by no means insupe-
rable. Let US, by way of illustration, sup
pose case.
A owes B 900 for which he gives him
his negotiable note, payable at 30 or 100 days
Under ordinary circumstances B will either
hold this note until maturity, or have it dis
counted at Bank where it will remain, dead
capital, until its maturity, rendering no ser
vice to anybody.
But now let us suppose that B instead of
giving one note of S., 0S0 gives 20 notes Of
800 each and so notes of $50 each, making
the same aggregate Of SIS 900, what would be
the consequence. B probably owes the greater
part Of the $4,000 in small sums, to his mer
chant, his grocer, his shoe maker, his tailor
his school teacher, his blacksmith, &c. How
easy would it be for B to go to these various
creditors and say, ri wish to pay you, but I
have no money. Here are notes which are
unquestionably solyent-take as many of
them as will satisfy youf demand and we will
square our, accounts" We venture to say
that there is scarcely 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 before the notes matured,
they would 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 unquestionable solvency. They should be
endorsed in blank so as to pass by delivery
like Bank notes. Our ordinary Bank curren-
cy is but the negotiable note of Bank secu-
ICu Wy COIdtcIdlS Auu why ellOulu uOt JIG
note of an individual OR individuals Of unaues-
tionable solvcncy be just as current as the
notes of Bank?
The great advantages Of this kind of paper
would be that while it would perform the
functions 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 endorscrs of the notes were known.
We venture to say that if $40 900 or $780,
900 Of large debts were cut up into small
notes of $50 and 800 each, they might be
made available in less than one year to settle
the larger part Of the indebtedness of the
county
Z A land bond for $1,000 is really the repre-
sentative of $1,000 of Capital. But in the
shape of land bond, it is dormant capital
1t does nobody any good. Cut it up into me-
gotiable notes of $50 or 800, and at once, it
becomes active capital, available for most of
the uses of money-passing from hand to
handspring debts-stimulating industry
giving life to business starting new enter
prises, 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.
From Our Special Correspondent.
WASHINGTON D. G.,