Year: 1878

|
CAPITAL.


When your are applied 10 for loan oi


money, never omit TO ascertain the character


OF the applicant. Sometimes 1t will happen


that you would not be Wiling 10 have even a


business contact with him. IN the next place.


ascertain Whist the borrower intends to do with


the money. for that NAV reveal something


quite Objectionable and repulsive to you. Be


careful Of letting money go for building mp and


carrying ON busJness projects. Such loans


should be made only by such as have knowledge
OF such things and can watch their progress


The peculiarly of such loans is that having
made one loan, another is pretty sure to be
solicited. Perhaps a second loan will be urged
as o necessity to cave what you have already
invested, and having complied, it will not un
likely all go together. The writer was once in
duced to pay s1OO for what, in such cases, is
called preferred stock, to save $500 already
paid in, and then lost it all. scarcely need
say that euch loans should be wholely avoided.


Never promise a loan until you have slept
upon it and taken time for inquiry and the ex-
ercise of your deliberate Judgment. II the
urgency OF the case will not admit OF such de-
liberation, If you are so important to it, it lm-
nobody else wants it, and 1t is very clear that
You should have nothing to do with it, Some
times borrower may urge his request by the
plea that he wants money but for a short time.
perhaps, at most, ten days, or until tomorrow,
when he is positively sure of receiving money
and OF repaying you. But remember that if
single day without adequate security, it is gone
and your risk is scrrcely less than il the period
named were longer. Yet it will sometimes oc-
cur that persons, financially we'll known to each
other to be perfectly safe, will make mutual
loans for convenience.


FRIENDSHIP LOANS.


BY friendship loans we do not mean the oc-
casional temporary assistance which one is
called upon to render to friend or relative in
time of need, but rather loans OF larger amount
and longer time, and without security, or such
security as would not be taken in purely bus
mess transaction. We would not discourage
acts of kindness, which, though they be many.
are quite too few but they are not in the line
Of this treatise. Suggestions on this subject
are delicate and difficult, because it involves
the duty we owe to ourselves set over against
our duty to our kith and kin. Our chief danger
lies in the biassing OF the judgment through
sympathy or importantly. For while willing to
risk something, one is liable to risk more than
she can afford TO lose.


The following rule will be found useful:
when there is no security or an inadequate Sc
cuIty offered, loan no more than you are able
and willing, if it comes to that, to lose. 1t is
to a son or brother, but it is also hard for hIn
and them to see it lost. and a whole family
brought to grief and desituton. II the money
80 wanted is for business purposes, though 1t
be legitimate and promising. the risk is too
great for such fund az yours, ~ tens Of
can testify. A wi-e young mar viii
never desire such an exposure, though he might
seek some slight assistance. Young men who
enter into business with an abundant paternal |
capital are apt TO begin too grandly, and conse
quently fail, while young man who works his
way up by his native force, and feels the ground |
he goes over. Is far more likely 70 succeed. In
al such cases remember the rule: risk no more
than you are able and willing under the cir
cumstances to lose.


LOANS TO A NEAR RELATIVE.


1t Is very delicate position for woman OF
property to occupy who is married to one who
has nothing unless her property is sufficient
for their united wants; especially il the man
has not the independence aud energy to work
his own way in business. Too often she has
confidence in his business capacity,
aud too often she is disappointed A man OF
spirit would scorn to subject the patrimony OF
his wife to the hazards OF business. In some
Of the States the personal property of woman
becomes, by marriage, the property OF her hus
band. In such cases it we're we'll il the womans
we're first firmly anchored in her own
right.


1t may be asked If the husband proffers all
that he has to the support of the family, which
in the case supposed is nothing at all, why
should not the wife? We answer: 1. Because
the wife's property Is an inheritance gwen to
her for her own use and behoof. 2. In case
OF her husbands death or disability, it her
patrimony has been exposed and lost, she, IN
educated to business, with her family, comes to
want. 3. In case of her death, the husband is /
supposed to be capable of taking care of the
family. Much might be written under this !
head but it IS not expedient. since the laws OF /
the several states concerning the property /
rights of married women are undergoing /
changes which will give them ample protection.
We shall subjoin the new law of one Of the /
States as specimen. But whatever the law /
may provide, the caution remains apropos-that
the wife's property should never be exposed to
the hazards OF businese