The Cape Girardeau Democrat. (Cape Girardeau, Mo.) 1876-1909, 1891-08-15

| III merCltnts Win Shall capital IN your
territory will favor the passage of this bill,
because under It, in the event OF misfortune,
their rights will be protected according to
the rules of equity, and IL they can not Sc
cure a compromise, they will, II honest men,
be discharged aud given an opportunity to
start a financial career anew.
Equity has from time inmemor.ai pro-
vided that claimants to trust funds, In the
event the amount was not sufficient to liqui.
date the entire amount, be distributed pro
tata tInot the creditors wouil not this
same tule tedotind to the best Interests Of
the honest business III nj and the Honest
banker? We think so, and so do the great
bulk of the honest poor and rich men OF this
country.
Every man must die. As a result there arc
probate laws for the distribution of estates
Of deceased persons in every civilized COM
munity on earth. Every one of those laws
provide for a pro rata paynen of claims of
the same class. Statistics show that over
30 per cehtum Of business men fail Ought
we not, therefore, to have an equitable COM
mercial probate law, such as We propose?
thank you very much for your statement
and Illustration of the comparative per-
centages received by Uankers and jobbers
on money loaned and merchandise sold to
retail merchants. Ii seems from your stand
point that because the wholesale house
makes a larger percentage on its risks than
you do. that It il right and proper In the
event Of the failure of the mutual debtor, he
should pay tile principal of ybtir claim in
full before he pays any part of the principal
of the claim of the wholesale merchant:
Suppose we concede your proposition for a
moment, which we do not, and proceed upon
that theory: Some articles of mcrch Indise
are sold on a very close margin; some with
out any margin at all, and some at a very
large profit. Some merchants borrow
money from their relatives without the pay
ment of interest. OF course, you would have
this rule which you invoke dpplied to all of
the creditors of the retail merchant. There
fore, you would consent that the iobbers
who sell goods at a profit of Il less pcrcentum
than you receive as interest, and the rela-
tivcs should be paid in full before you re-
ceirc a=y sum. This result would not be
just to you nor to the seller of articles which
realize Il large profit. II your views meet
with the approval of the bankers of salt
Lake City, ] apprchend that this law Of
equity and equality will be enthusiastically
supported by til. wholesale dealers in your
territory.
There is no objection under our proposed
law to your making a loan and taking col
lateral ut the time in good faith but you
VIII not be permitted to take all of the
PROPERTY IF an insUl~cDt debtor to pay your
claim after having made d loan without
SECURITY, anu after OF iers nave eNsc1Iel
credit upon the faith of the debtor having
such property unincumbcred. II you, in
common with others, extend credit without
security, you and they will be paid pro rata
in the event of the failure of the debtor.
Respectfully submit that it is not just that
debts should be paid in the order deter
mined by the perccnta &c of profits realized
by the various classes of credi ors. The
priority OF payments never has been pro-
viicd for on that basis in any law, 50 far as
I know and I do not believe the bankers and
business men of this country would favor
any such law.
A bank Is = trustee for the deDositors. he
cause of the low rate o. interest Received OH
loans, It is in duty bound to take ample Sc
curity. II it does not do 50. or il securities
taken become worthless, il does not stand
on any better footing than other persons
who have loaned money without security
or sold goods, which are moneys worth, on
the same terms.
The bill provides for the enforcement of
valid liens, and for the setting aside Of
fraudulent ones. II it shall become n law,
every man who has given you u piece of
commercial paper will he financially
strengthened. Every mai who has indorscd
Il piece u commercial paper held by You
will he strengthened. and as a result your
financial standing will he strengthened.
Ilf' " "a INV hhht w 'Nsll Nlt
truth of your statement. which W. do not.
that TIT eastern and q tine western j"Ebrrs
Will be benefited hy the passage of this bill:
which originate in the west The effect
will necessarily be hat II the eastern whole
sale dealers Ontsell tdc local whOlcsI'c deal
ers, there will he a ~dimIuution of the price
of the necessities Of life to the people, and
while the local Wholesale dealers will he dc-
privcd of Il part of their trade. the great body
of the people will he financially benefited
in large mounts Your statement. however.
is not true, but the prices of commodities
consumed by the people Will he reduced, be-
cause the passage of the bill will reduce the
hazird Of business.
The question of the extent Of the territory
in which the local wholc-ale dealers en-
operate, il simply and purely n question Of
the cost of transportation; if the whoIes sale
dealers In your city could control the cost of
transportation, they could soil in the suburbs
ofthc competing iobbin. c%enters, with whom
they now vie. for the trade of common terri:
tory.
We anticipate, as one of the most bcncfi-
cial results of the passage Of the proposed
bill, that it will extend aud strengthen
credit, but since il is a uniform measure,
the benefits will be extended alike to hole
salcrs in all parts of the country.
There are certain articles npOn which the
cost of transportation IS very slight. and. ~
a result, the whole country is a comnnon
territory to them. As matters nov stand the
sellers of these articles who live at dis
lance enforce innumcrablc harlShipI upon
local wholesale dealers. For example, M
article in question is sod by a New York, st.
Louis or Chicago man to the customers of
one of the wholes tie dealers of salt Lake
Lake CITY. When pay day comes the debtor
asks for time; lie Is told that time will not
be given, and that he must pay OF cornpu.-
sorry processes will be re>orted to, or that he
must give a preference; the former would
ruin him and the latter would be against
tile best interests of the local whole
sale dealer and the banker, IL he
has one: the result will he that If he gives
the preference lie " i'll be financially ruined,
and If he does not the same result will fol-
low. What he ought to do would be tho
square thing by NIL his creditors; now it
is practically impossible for him to do IL:
under the proposed law he will not he able
to help doing it. Or, as Is frequently the
case. the HAN in trouble cOnfides in his
friend, the wholesaler, and borrows from |
him the money to pay the debt, in order to
prevent his being ruined. On other Occa-
sions the man in trouble appeals to tho
local banker, promises, il Il loan is gr-n;cd
to him, that he will repay IL with the goods
purchased of your local wholesaler. but not
paid for. in the event of trouble, and when
the calamity comes the New York, st. Louis
or Chicago merchant has not been directly, |
but indirectly, paid. through the instrument
tally Of the banker. and a. a result the
local wholesaler has been made to pay the
of the present imperfect laws.
The men who take the most preferences. and
work the greatest hardships by so doing,arc
big eastern jDbbers. and not the western |
joJbers in whose behalf you speak.
The conditions would be ent rely different
from fine abnye IL nur hanEruntcy law wer. |