The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1873-11-03
WHAT'S THE DIFFERENCEl

Great are the mysteries of finance, de-
vious are her paths, and few there are who
can find their way through them. The
Spragues of Rhode Island have failed, or
suspended, or whatever it may be called.
Case why?" as the western boy would
say. Because their paper was protested ?
Oh, no that, to be sure, was one of the
reasons, but if that was all there was of it,
there would have been no suspension or
failure. II. B. Claflin & Co., unless we
except A. r. Stewart & Co are the largest
commercial house in this country, but they
haven't failed or suspended. Not bit of
it. Here is where your labarynthine finan-
cial passages come in, and where the grand
a million dollars in government bonds and
may be, in mercantile parlance, "a No. l."
Perchance he may desire to use a few
thousand dollars, and, with the aid of a
friends endorsement, he procurcs note
discounted at the bank. The note natures,
and John Doe, unfortunately, has not the
currency with which to pay it. He is
worth as every one knows, dollars where
he owes cents, but it matters not. His
note, or notes, go to protest. Awful word.
If the endorser had but signed there would
have been no trouble. But law, usage and
custom require protest, and the financial
credit OF the maker of the note is, tenn
porarily, if not permanently, injured. Men
doing business in the country have not the
least idea of the damaging effect of pro-
test. And yet protest means nothing in
one sense. By provision of law, if n note
is endorsed, the endorscr is discharged from
liability unless the note is presented for
payment, and notice given to him of nom
payment. If Richard Roc had signed a
note with John Doe, without placing his
name on the back thereof, the non-payment
OF the note might, or might not, have had
something to do with Johns failure but
woe to Johns credit if Richard has en-
dorsed for him.
ii. b. Clailin IL Co. have not failed or
suspended, but A. & W. Sprague, of Pro.
violence are in this unfortunate situation.
One is probably as worth as much as the
other; certainly the Spragues have done as
much good with their money as Clanin &
Co. For all that is now known, the fnan-
cial embarrassments of the one is called
suspension or failure, while that of the
other is called-well it is gingerly treated
and no name given to ii. What's the diff
ference ? When the Spragues bought
goods articles that they were Obliged to
use, or desired to raise money to pay their
workmen-if they should happen to be
"short"-they gave their notes with good
endorsers. When the crash came, their
notes were protested and they were an
nounced as failed" or suspended. Olaf
lin " Co. were not in any such situation
Their notes were not in the market or held
by banks, 80 that by 'protest," they
could be reported as "failed" or suspend
ed" Their financial endorsements are
great, they cannot pay their debts, their
creditors must wait, but they have not
"failed" or suspended" and why? Simply
because they were shrewd enough to buy
gools upon "open account" that is with
out giving their notes therefor. They owe
the money just the same, but their paper
can not be protested. They have been for
tunate, too, in using their debtors paper
without mourning any liability therefor.
This was all right enough and in New
York city merchants would jump at the
chance of getting their country customers
notes cashed on the same terms, but, "some
how or other" they don't have the oppor-
tunity. The Spragues have failed, but
Clailin & Co. have not; but 1t will trouble
the great majority to understand the differ
cncc.