Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1893-11-06


deed. even if laws allowing the prefermenf
Of credits do not exist, the fact of non-resi-
denee makes il probable that they will come
in last in race of attachments Oh the es-
tate Of a failed debtor. Every outside
creditor wants only TO share equally with
other creditors 10 cases where debtors be-
come insoivent. Why should he not?
lBot it is in cases where there frAudu-
len, acts on the part Of the debtor that the
outside creditor suffers most. For in such
cases the chances are that inside creditors
are mixed up with the fraudulent trxnsae-
tons of the debtors-transaetions which can
rarely ever be reached except by = court
OF bankruptcy.
Ii is for these reasons that a national
bankruptcy act not only protects and sus-
,ains the honest debtor, but also at the
same time secures the just rights, and only
the jnst rights, of the creditor to y proper
Tomato share in the property of the insol-
vent debtor.
Much has been said in the progress of
this debate in derogation of the creditors Of
this country. We might get the idea from
the frequent reference to what has been
styled the creditor clsss, that there is dis
tinct body of men in this country who are
perpetual and irrevocabla debtors, and an
other distinct class who are perpetual and
irrevocable creditors Now, there is 10
such state of thing in this country.
The creditor of today is also the debtor
of today in almost every instance, and the
debtor Of today is likely to be the creditor
of tomorrow, and vice versa. There is no
fixed class of debtors and creditors in
country like this. There 10 no class of me n
who, on the same day or within the same
series Of months are simply debtors and not
creditors.
We have heard a great deal said about
the so-called poor men Of this country, the
workiDgmen who are held up A. debtors,
and to whom this bill is said to be inimicsl.
Why, Mr.. Chairman, are you not aware
that the largest body Of creditors in this
country are the workingmen? They have
today over 81 ZOO, 900, 900 deposited in the
savings banks of this country, placed there
to their credit, and loaned to the debtors of
this country and it is through the loans
out of the savings of these workingmen,
whom you are pretending to care for as
debtors who want to avoid payment of their
debts, that the business of this country is
being largely carried on today. My ex-
perience as business man is that the larg-
est debtors are men of means, the men who
are engaged in large business operations,
and who are obliged to constantly hire
money to do their business. :"'. .-.+
have had some opportunity to observe
to whom loans were being extended by
banking institutions, and | want to say to
you, Mr.. Chairman and gentlemen, what
many of you know, that the debtors of this
country are not TO great extent the poor
men, but they are the men of means.
| repeat, there is no distinct class of
debtors in this country. All are at the same
time or at different times both creditors and
debtors. What is for the interest of the
creditor is for the interest of the debtor
also, and justice to each secures the highest
welfare of each | am tired of sitting in
this House and hearing from day to day
gentlemen CLAIM to be the special friends of
the poor man and of the workingman, and,
under the guise of championing their inter
est ,declaimin9 against legislation that is for
their interest rs much as it is for the inter
est of any other people in this country.
Let us have done with this class talk.
Whatever legislation commends itself as in
the interest of all should be supported be
cause it is wise, not detained against on
the assumption, false in most cases, that it
is for the interest of the money power
and against the interest of the poor man.
When the laws of the state do equal justice
to both creditor and debtor, they subserye
the interests of both in the highest degree.
Is it necessarily misfortune to be a
debtor? Is it a crime to be a creditor:
Why, sir, a large portion of the existing
debts in this country mean simply that those
who have contracted them are the active,
earnest, pushing men in every community,
and it is because they are able to make such
loans that they are doing the best for them
selves and for the communities in which
they live.
This leads me to speak of fourth rea-
son why | am in favor of national bank
r1ptcy legislation. That reason is that it
tends to strengthen the great credit system
of this country. Ninety per cent. of the
business of this country is conducted on
credit In every community there are push
ing Young men and men of middle age who.
having lttla capital of their own, are Oh
tanning loans and are thus enabled to enter
upon active business and bring prosperity
to Themselves. TO their employees, and to the
communities 10 which they reside. Do you
want to break down or weaken the credit
81 stem or do you prefer to strengthen II?
I should Judge from hat has been said by
many gentlemen in the course of this de-
bate that tn would consider it a misfor-
tune to have the credit of the people of their
tate ur communi les strengthened.
WHY, sir, | have heard not only now,
hut in the past complaints from the southern
portion of this Union, that they have not
capital sufficient 10 develop their resources
and that because of this lack of capital their
prosperity is hampered. That part of our
country is among the fsirest on Gods earth,
filled with resources awaiting development;
and you are inviting capital and energy to
come in and develop it. But capital and
energy will not go there ulless there is
confidence in your states, confidence in
your Justice and laws, confidence that when
loans are extended to you they will be re-
paid. And gentlemen who legislate or fail
10 legislate in any direction that serves to
weaken this confidence are doing their own
states an injury that can not be overes-
timated.
Gentlemen who think that in their own
states they can enact laws that make it diff
fcult to collect debts, or who enact or with
hold legislation which will enable the debt
preferred creditors, as against outside cred
itors, and who think they are gaining
through such process are making great
mistake. For rest assured that whatever
weskens your credit increases the cost OF
Whist you have to buy and raises the rate of
interest on your loans.
The one thing that the South needs today
is the confidence of the men who have cap
ital-the very men whom some of you stig-
Matte as the money power" 1.-THE gold
bugs--and any legislation which tends
in that direction, which gives the credi-
tor in one state confidence that the debtor
in the other state viii treat him Just
q. we'll a. he will treat the creditor In
the stste in wt,ch h resides, any legislation
" hich will tend To secure such confidence,
a. a national bankruptcy law does, will give
that portion of our ceun'ry What il wants,
more capital ~ develop its great resources
and greater prosperity
Mr.. Chsirman. for these and other reasons
| am earnestly in favor of wise and we'll
adjusted national bankruptcy legislation. 1t
/. enjoined by the Constitution. 1t lie neces-
sary to conserve the best interests Of debt
ors. 1t 10 es.en,isl to do justice TO creditors.
II is called for TO strengthen credit and pro-
mote business and industrial prosperity.
Ard it will contribute {, further cement the
union formed To advance the e. numerical as
we'll as political interests of this great ns-
t on. CArplause
The Republican Journal says that Sears
port is noted for raising kind-hearted and
men. An Instance recently
came under our notice y hich proved this