, 1875-10-23

Inc nrSC OF these SUBJECTS, VIZ. the
question of mutual responsibility has been
misunderstood to a degree, which can only
be explained on the ground of a total me-
elect to examine the contents of the Ordi-
nance of 21st December 1874 concerning
the establishment of Credit Association
in st. Croix. There are people who have
fancied and perhaps still fancy, that the
responsibility demanded is the same as that
existing between partners of an ordinary
commercial firm, that is to say, that each
member should render himself personally
responsible for the whole $4,000 900, for
which the Association issues bonds.
Others, without taking such an extraya-
giant view, and while aware, that the liabil-
ity is limited to the individual properties,
with. which a person enters the Associa-
ton, are still under an exaggerated impress
sion as to the practical effects, which
might result from that limited response
bility.
1t is quite natural, when a man is told,
that in order to obtain a loan of money, he
must not only give security in a property
of double the value of the amount Of the
loan, but also make himself responsible
for money, which is not lent to him but to
others, he should think this rather strange.
Now although the simple fact, that so
many Independent and intelligent men
of orr Community have not been frighten-
ed by this bugbear Of joint responsibility
sufficiently proves, that the true meaning
is not SO very obscure, there still exists
q good deal of misunderstanding on the
subject, and it may not be superhuous
to try as well as possible to give a further
explanation of the true nature Of the res
possibility in question.
The party entering the Association
stands ia reality in a two-fold position,
namely, partly as debtor for the amount
he has borrowed, partly as a guarantee
for others. His position in the first quail
ity is indicated in the ordinance of 1874 81
b. las ''participant for an amount which
must not exceed fve-tenths of the value Of
the Estate, for which he %enters) lis relation
in the second capacity is based on the
said : ltr. d. which enacts, that for all the
bonds issued by the Association, all those
who have joined as participants, are Joint
ly and separately responsible with the full
(ten,tenths) appraisement value of the
property in question, if they have receiv-
ed five tenths of the said value as loan, and
in the same proportion to the amount of
their loan, if said loan be less than five
tenths of their appraisement value.
That by agreeing to the last mentioned
terms the participant (borrower) renders
his property legally liable for a larger
amount than he receives as loan, is UNI
doubtedIy the case, and better would it be,
if he could borrow on giving simply q
first priority mortgage for the money he
gets, but the trouble is, that he cannot
get the money anywhere on this condition,
and this difficulty, which is common to
all, is just the cause why they have to
resort to a common expedient. But the
soul and essence of this common expedient
(the Credit Association) consist ia this
very clause of Joint responsibility, and
without it the Association would be
simply a farce. 1t would amount to
nothing more, than that q num-
Der Of persons, who all wish to borrow
money, each for himself and on the securi-
ty of his property, but who cannot find
any one to furnish the money, apply in q
body to the monied public for the same
purpose. How this address to the public,
in a body, instead of by separate advertise.
ments, should have any effect whatsoever,
1t is impossible to comprehend. But the
whole affair alters it's nature when these.