Staunton spectator. [volume] (Staunton, Va.) 1849-1896, 1873-05-13
The Practical Workings of Relief, Home
stead and Bankrupt Laws

gy of the people to the highest degree that
may be practicable. Every facility should be
given, alike to the rich and the poor, to en-
ter into every branch of business which affords
a reasonable prospect of profit. There should
be no privileged class among US. The avenues
to prosperity should be open to all These are
obvious truths which commend themselves to
universal approval.
But, unfortunately, from the want of fore
sight in our Legislators, State and Federal,
the practical working of our present laws, is
in the opposite direction. Its tendency Is ad-
verse to the interests of persons In moderate
circumstances and to give monopoly OF those
branches of business, (which require consider
able amount Of capital, to the rich.
Credit is the poor mans capital. If he has
no actual capital, he is obliged to use his credit
as substitute for capital. If you destroy his
credit, you take from him his only means of
carrying on his business.
A poor shoemaker, or blacksmith or other
tradesman, who engages in business, not hav-
ing money, must rely on his credit to get his
leather and his iron to be worked up into arti-
cles for SALE Without credit he can do moth
ing, because he cannot get the raw material to
work upon. Credit. therefore, is of the high
est importance to him, and everything that d.
minishes or destroys his credit is serious in
jury not only to him, but through him to the
community.
Before the passage of the laws on which We
are commenting. any young man of industry and
good character could get reasonable amount
of credit. This credit was extended to him,
not merely On the faith Of his character, but
of the future earnings of bis industry.
And SO Of enterprising young men who were
disposed to go into trade. They could always
get credit to reasonable extent, and if they
had aptitude for business could so use it as to
advance their fortunes. If they had property
to the amount Of two or three thousand dollars,
they could virtually double it by getting credit
to near the amount of that property, because
the lender of money could look to the property
as security for the debt. A man who had a
house to live in, worth three thousand dollars,
could borrow on the faith of his house $4,000
or So 500 of active capital, to be used in his
business.
But all this is now changed. The homestead
and bankrupt laws admonish those who have
| money not to lend it to such parties, because,
if they DO, they may lose it under the opera
ton of those laws. This at once destroys the
credit Of the man who is worth no more than
| $4,000. A man owning that amount Of prop
erty is put on level, as to credit, with the man
who does not own cent in the world. We
hear daily complaints of scarcity of money
People say that there is no money in the
never was time when there was more
money in Staunton and Augusta county than
there is SOW. The official returns Of the Banks
| In Staunton will show an average amount OF
half million Of dollars on deposit in those in
stitutions. 1t is not money that is scarce. 1t
is credit that is SCARCE. Unwise legislation has
destroyed confidence between man and man, by
diminishing the means of enforcing obligations.
| Rich men can borrow as much money as they
want The money that is In the Banks is all
seeking investment. Let any of our wealthy
| men make it known that they want money, and
|
the two or three thousand dollar men want it
ever SO much aud every pocket book is her.
meticaly sealed against him. Confidence is
| uprooted. These homestead and bankrupt
laws, in effect, give monopoly Of all the cred
| it Of this country to the rich Ii there Is mo-
ney for loan, the rich can get it. If there be
| q branch Of business which requires large
amount of capital, bat which promises large
returns, the rich only can enter into 1t. The
homestead and bansrapt laws shut out the
poor as effectualIy, as it they contained dl-
rect prohibition. The rich therefore, are ele-
waited into privileged class in the community
This condition of things is unfortunate, mol
only for individuals, but for the general vel
fare 1t prevents competition. 1t limits bust
ness within narrow bounds It closes the ave-
nues to wealth and prosperity to some of the
most valuable classes Of our people. 1t checks
enterprise, paralyzes Industry and retards the
growth Of the country.
And yet ali these laws were professedly pass
ed for the benefit Of the poor! Verify, our
Legislators have given to our suffering people
a stoue instead of bread-a serpent in place Of
fish
We have no doubt that the lawmakers
thought they we're doing, if not wise, at least
a popular thing in passing those laws They
thought they would be regarded as the friends
Of the people and the champions of the poor
Well may the constituent body exclaim, 'Save
us from such friends
All such laws as we have been speaking Of
are wrong. in principle and wrong 10 practice -
Whenever the legislature interferes with the
obligation Of contracts, or impairs the reno
dies for enforcing them it overthrows that con-
fde1ca which is the cement OF society.
1t is time that our Legislators should learn
that there is no wisdom IN seeking to legislate
people out of their debts Il will be far better,
, by wise enactments, to stimulate industry and
enterprise, and thereby enable debtors to ac
quire the means of honestly paying their debts
in money, instead of by certificates in Bank
ruptcy.
A very large majority of the members Of the
last Congress, it is said, will take and hold the
Congressional Grab" They think that af
ter awhile, the affair will ''blow over will
not be thought of much, when contrasted with
thousand other doings of the National Legis-
lature 10 Washington.