The Cecil Whig. [volume] (Elkton, Md.) 1841-current, 1875-05-29
SURETIES.

thoughtfully examined, stands out as one
of the most sturerdous Of the fraudulent
tricks of trade in modern civilization. The
germ out of which this leading business
rule grew may have been proper enough,
but the abuse of the custom, by sharp and
rapacious money changers, has produced
more misery and ruined more defenseieSs
people than any other sharp practice known
in the avenues of trade. Let us go into
little critical examination, or analyses of
the custom of requiring security
capitalist or banking Institution has sur
plus of cash which he or it proposes to loan
in consideration of a good remuneration in
the shape of interest, or discount-the lat
ter is taking interest before it has been
earned. An abuse of every principle of
fair dealing and sound business, has estab-
lished as an unaterable law of trade, that
the borrower must procure some friend to
ego his security" viz: assign his property
to the individual or institution that pro-
poses to furnish the money for profitable
consideration. This rule is sometimes re-
can be in dealing with banks. 1t matters
not how much the principal borrower is
worth, he is required to furnish friend
who pledges his property for the payment
of the loan if the original borrower fails to
keep his contract. The fact that the lender
is the party who is to reap an immediate
profit, and the borrower prospective profit
at least the latter receives all there is of
value in the transaction except the discount
should make the contract, when tried by
strict laws of morality and on common-Sense
business principles, transaction confined
exclusively to the parties receiving the ell
tire benefit. In place of this being the
case, however, third party who has not
the remotest interest in the affairs of the
contracting parties is asked to pledge his
property for the payment of money he does
not want, and does not receive or expect to
receive single cent of advantage from.
And yet he places his property in jeopardy
and risks ruin or hardship to all depending
on him for support, and for simply moth
ing at all. This custom is an abuse of true
business principles. The two parties inter
ested in making the profit should bear all
the risks and annoyances incident to Dor
rowing and lending. When the marrow of
the subject of "going security is looked
into, the folly and absurdty, as well as the
positive dishonesty of the practice becomes
more and more apparent the closer it is
scrutinized. 1t is the avaricious grasping
of capital that would be safe even though
the innocent and defenselcss suffer This
fixed principle of modern trade is a thou
sand times more ruineus and demoralizing
than "usury," which is so outlawed in
every quarter. A usurious loan is confined
to the parties interested, who, as men ac-
knowledged by law to be capable of manag-
ing their own business, have right to make
what bargain they please. In the case of
security" however, through cunning
device of avarice, the sacred ties of friend
ship are taken advantage of in order that
capital may reap large profit. And at
what fearful sacrifice to homes and peace
full fire sides is that vicious rule sustained,
the list of failures which every man is
familiar with, is melancholy answer. 1t
bankrupts more honest men, and ruins
more profitable and self-sustaining bust
ness enterprises, than all the advantages it
affords, multiplied by a thousand; and yet
the pernicious custom passes as a matter of
course, and capital, which is always eau
tious and greedy, will continue to claim it
as right, till at some future time, perhaps
very remote, the moral sense of the public
will rise up in the light of justice and put
it down. We have barely touched few
of the most salient points of this subject
which deserves the most earnest reflection of
every man who does any business requir-
ing capital to conduct it. 1t is fruitful of
more dishonesty and more misery than any
other abuse of trade laws. The borrowers
property is all the security that the lender
should be allowed to take; and a transcript
of the property of the borrower could be
produced by him which would constitute
bond of security that could be executed in
moment. A few simple changes in the
law could be readily made to meet such a
condition of business.