Part 16 (1/2)
CHAPTER XIV
OF THE UNFORTUNATE TRADESMAN COMPOUNDING WITH HIS CREDITORS
This is what in the last chapter I called an alternative to that of the fortunate tradesman yielding to accept the composition of his insolvent debtor.
The poor unhappy tradesman, having long laboured in the fire, and finding it is in vain to struggle, but that whether he strives or not strives, he must break; that he does but go backward more and more, and that the longer he holds out, he shall have the less to offer, and be the harder thought of, as well as the harder dealt with--resolves to call his creditors together in time, while there is something considerable to offer them, and while he may have some just account to give of himself, and of his conduct, and that he may not be reproached with having lived on the spoil, and consumed their estates; and thus, being satisfied that the longer he puts the evil day from him, the heavier it will fall when it comes; I say, he resolves to go no farther, and so gets a friend to discourse with and prepare them, and then draws up a state of his case to lay before them.
First, He a.s.sures them that he has not wasted his estate, either by vice and immorality, or by expensive and riotous living, luxury, extravagance, and the like.
Secondly, He makes it appear that he has met with great losses, such as he could not avoid; and yet such and so many, that he has not been able to support the weight of them.
Thirdly, That he could have stood it out longer, but that he was sensible if he did, he should but diminish the stock, which, considering his debts, was properly not his own; and that he was resolved not to spend one part of their debts, as he had lost the other.
Fourthly, That he is willing to show them his books, and give up every farthing into their hands, that they might see he acted the part of an honest man to them. And,
Fifthly, That upon his doing so, they will find, that there is in goods and good debts sufficient to pay them fifteen s.h.i.+llings in the pound; after which, and when he has made appear that they have a faithful and just account of every thing laid before them, he hopes they will give him his liberty, that he may try to get his bread, and to maintain his family in the best manner he can; and, if possible, to pay the remainder of the debt.
You see I go all the way upon the suggestion of the poor unfortunate tradesman being critically honest, and showing himself so to the full satisfaction of his creditors; that he shows them distinctly a true state of his case, and offers his books and vouchers to confirm every part of his account.
Upon the suggestion of his being thus sincerely honest, and allowing that the state of his account comes out so well as to pay fifteen s.h.i.+llings in the pound, what and who but a parcel of outrageous hot-headed men would reject such a man? What would they be called, nay, what would they say of themselves, if they should reject such a composition, and should go and take out a commission of bankrupt against such a man? I never knew but one of the like circ.u.mstances, that was refused by his creditors; and that one held them out, till they were all glad to accept of half what they said should be first paid them: so may all those be served, who reject such wholesome advice, and the season for accepting a good offer, when it was made them. But I return to the debtor.
When he looks into his books, he finds himself declined, his own fortune lost, and his creditors' stock in his hands wasted in part, and still wasting, his trade being for want of stock much fallen off, and his family expense and house-rent great; so he draws up the general articles thus:--
STOCK DEBTOR
To cash of my father (being my stock) to begin with in trade 800 0 0 To Cash of my father-in-law, being my wife's portion 600 0 0 To household-goods, plate, &c. of both 100 0 0 To profits in trade for ten years, as by the yearly balance in the journal appears 2469 10 0 To debts abroad esteemed good, as by the ledger appears 1357 8 0 To goods in the warehouse at the prime cost 672 12 0 Plate and some small jewels of my wife's left, and old household-goods altogether 103 0 0 ------------ 6102 10 0 Estate deficient to balance 1006 2 0 ------------ 7108 12 0 STOCK CREDITOR
By losses by bad debts in trade, in the year 1715 50 0 0 By do. 1716 66 10 0 By do. 1717 234 15 0 By do. 1718 43 0 0 By do. 1719 25 0 0 By do. by the South Sea stock, 1720 1280 0 0 By do. in trade, 1721 42 0 0 By do. 1722 106 0 0 By do. 1723 302 0 0 By do. 1724 86 15 0 By house-keeping and expenses, taxes included, as by the cash-book appears, for ten years 1836 12 0 By house-rents at 50 per annum 500 0 0 By credits now owing to sundry persons, as by the ledger appears 2536 0 0 ---------------- 7108 12 0 ================
This account is drawn out to satisfy himself how his condition stands, and what it is he ought to do: upon the stating which account he sees to his affliction that he has sunk all his own fortune and his wife's, and is a thousand pounds worse than nothing in the world; and that, being obliged to live in the same house for the sake of his business and warehouse, though the rent is too great for him, his trade being declined, his credit sunk, and his family being large, he sees evidently he cannot go on, and that it will only be bringing things from bad to worse; and, above all the rest, being greatly perplexed in his mind that he is spending other people's estates, and that the bread he eats is not his own, he resolves to call his creditors all together, lay before them the true state of his case, and lie at their mercy for the rest.
The account of his present and past fortune standing as it did, and as appears above, the result is as follows, namely, that he has not sufficient to pay all his creditors, though his debts should prove to be all good, and the goods in his warehouse should be fully worth the price they cost, which, being liable to daily contingencies, add to the reasons which pressed him before to make an offer of surrender to his creditors both of his goods and debts, and to give up all into their hands.
The state of his case, as to his debts and credits, stands as follows:--
His debts esteemed good, as by the ledger, are 1357 8 0 His goods in the warehouse 672 12 0 --------------- 2030 0 0
His creditors demands, as by the same ledger appears, are 3036 0 0
This amounts to fifteen s.h.i.+llings in the pound upon all his debts, which, if the creditors please to appoint an a.s.signee or trustee to sell the goods, and collect the debts, he is willing to surrender wholly into their hands, hoping they will, as a favour, give him his household goods, as in the account, for his family use, and his liberty, that he may seek out for some employment to get his bread.
The account being thus clear, the books exactly agreeing, and the man appearing to have acted openly and fairly, the creditors meet, and, after a few consultations, agree to accept his proposals, and the man is a free man immediately, gets fresh credit, opens his shop again, and, doubling his vigilance and application in business, he recovers in a few years, grows rich; then, like an honest man still, he calls all his creditors together again, tells them he does not call them now to a second composition, but to tell them, that having, with G.o.d's blessing and his own industry, gotten enough to enable him, he was resolved to pay them the remainder of his old debt; and accordingly does so, to the great joy of his creditors, to his own very great honour, and to the encouragement of all honest men to take the same measures. It is true, this does not often happen, but there have been instances of it, and I could name several within my own knowledge.
But here comes an objection in the way, as follows: It is true this man did very honestly, and his creditors had a great deal of reason to be satisfied with his just dealing with them; but is every man bound thus to strip himself naked? Perhaps this man at the same time had a family to maintain, and had he no debt of justice to them, but to beg his household goods back of them for his poor family, and that as an alms?-and would he not have fared as well, if he had offered his creditors ten s.h.i.+llings in the pound, and took all the rest upon himself, and then he had reserved to himself sufficient to have supported himself in any new undertaking?
The answer to this is short and plain, and no debtor can be at a loss to know his way in it, for otherwise people may make difficulties where there are none; the observing the strict rules of justice and honesty will chalk out his way for him.
The man being deficient in stock, and his estate run out to a thousand pounds worse than nothing by his losses, &c, it is evident all he has left is the proper estate of his creditors, and he has no right to one s.h.i.+lling of it; he owes it them, it is a just debt to them, and he ought to discharge it fairly, by giving up all into their hands, or at least to offer to do so.