The gold leaf. [volume] (Henderson, N.C.) 1881-1911, 1908-08-06
Homestead Exemption.
AsLaw That Ought to be Re-
pealed in the Interest sof
Honest People---Movement
on Foot to Secure Its Amend
ment a Business Man s
Movement Resting Upon the
Two-fold Motive of Clear
Right, and Economy to the
General Public.
Asheville Gazette-News.

The fazette-News respectfully in
vites the consideration of all bust
ness organizations and all newspa-
pers in the State to the position it
has taken in regard to the home
stead law We take the position.
First, that a very plain principle OF
right and wrong is involved.
Second, that the operation of the
homestead exemption in bankruptcy
is uneconomic, in that it imposes a
burden, the excess the dealer must
charge for his risk, upon the entire
community.
The view of the Retail Merchants
Association of North Carolina, Of
the subject generally is furnished the
Gazefte-NeWs by a prominent official
af that organizations:
eve contend that this law has
served its day. The protection it af-
fOrded in days past was a necessity,
but the need for such law has long
since ceased to exist
''The exemption is a bulwark
against honest mems credit, making
it necessary for an honest man to
own above $4,000 to $4,000 before
he really has any credit ESTIMATED
by the way the homesteads ara laid
off by the average Jury to the
amount of 81 500
dishonest people use it us legal
shield for their protection against
paving their honest debts.
To-day where in one honest case
it is necessary to take advantage OF
the homestead law, as was originally
intended, there are 100, yes, 200 and
more, who take protection behind it
to avoid paying their legal obliga-
tions. Today it is easier and quicker
to make money by failing than it is
to nurse good business through its
infancy or panic to successful es-
tablisment of that business.
''FOr instance, four men go into
the grocery business; two men put in
$500 each, the other two put in 500
each. They secure credit and buy
merchandise to the amount of
$4,000. Two of them manage the
business, the four partners agree to
draw a salary OF 5000 monthly and
at the end of the year they have in
creased their stock to $4,000 They
have paid out over $4,000 in sala-
ries (twO-thirds of which is not
profit which they each put into real
estate. They find they cannot meet
their obligations; they assign; they
have their homestead laid off, 81 800
each; it leaves nothing with which
to pay the people who furnished them
with goods. then it is necessary for
the factory or wholesaler to tack this
percentage of loss on to his goods
honest merchants and honest con-
sumers are compelled topay for these
exemptions.
''lf 81 900 worth of merchandise is
furnished any man and he uses it to
buy property he has no honest
moral right to refuse to pay for the
merchandise because he has invested
in real estate If the honest man
pays for his groceries, meats, doc
tor bills, as well as notes and other
paper, why should the rascal be al
lowed to beat for his living because
he is mean enough to take advan-
tage of the homestead law?
"This makes it necessary for the
honest people to pay more for their
goods and accommodations to make
good for those who will not pay.
at is plain to the average man
that this percentage of loss must be
Id nI tNx-t I,n do - l. L.
mate profit. Then why continue to
encourage rascality and make it
harder to be honest? Is it not harm
ful to the honest business man as
well as the honest public?
The time is now at hand for the
business interests of the State to re-
quire the legislators to refer this mat
ter to a vote OF the people and let
them say whether our Commonwealth
shall retain a law that makes it hard
to be honest and easy to be a rascal"
The principle embodied in our
bankruptcy laws, like most good
things in our legal system, goes back
to the Mosaic statutes. There might
have been honest errors in Judgment
on the part of either debtor or credi-
tor, or both; if it is apparent the
debtor cannot pay his debts, take
what he has. and give a discharge of
the rest of his debt; do not hold it
over him and enslave him for life
But under our State constitution,
as amended just after the war, it is
possible for all enterprising young
man to get a start in life by securing
credit and then taking refuge be-
hind the homestead exemption. The
homestead exemption in real estate
may be laid off by kindl Y neighbors.
who care nothing about the interest
OF the wholesale dealers who sold the
goods, but have friendly and neigh
bOrly interest in the bankrupt
The wholesalers must do business.
They must take the risk. They
must sell their goods high enough to
cover that risk.
In the case of man who secures
credit, and by the operation of the
homestead exemption goes through
bankruptcy $500, 81 800 or 5000
to the good. where does that profit
come from? 1t comes out of the
pockets of the wholesalers, the other
merchants or the consumers. Most
of it comes out of the pockets of the
consumers, for the merchants know
how to figure out the chances
This movement for the amendment
OF the homestead law is a business
mans movement, resting upon the
twO-fOld motive of clear right and
economy to the general public
when | see what Barlow accom-
plished | am forced to admira-
ton" said Busting. ''He has great
physical endurance.
Yes" replied Gareoyle. That
man has the constitution of debu-
tante. London Telegraph.
Auo1fst time tells on tho naryes R,,t