dealers, in abundant business, would refuse credit, as many of them already do: but in the eager competition of a great town, or the dependent position of a village shopkeeper, what can be expected from the tradesman to whom a single customer is of importance, the beginner, perhaps, who is striving to get into business? He will take the risk, even if it were still greater; he is ruined if he cannot sell his goods, and he can but be ruined if he is defrauded. Nor does it avail to say, that he ought to make proper inquiries, and ascertain the character of those to whom he supplies goods on trust. In some of the most flagrant cases of profligate debtors which have come before the Bankruptcy Court, the swindler bad been able to give, and had given, excellent references.[1]
- ↑ The following extracts from the French Code de Commerce, (the transation is that of Mr. Fane,) show the great extent to which the just distinctions are made, and the proper investigations provided for, by French law. The word banqueroute, which can only be translated by bankruptcy, is, however, confined in France to culpable insolvency, which is distinguished into simple bankruptcy and fraudulent bankruptcy. The following are cases of simple bankruptcy:—
"Every insolvent who, in the investigation of his affairs, shall appear chargeable with one or more of the following offences, shall be proceeded against as a simple bankrupt.
"If his house expenses, which he is bound to enter regularly in a day-book, appear excessive.
"If he had spent considerable sums at play, or in operations of pure hazard.
"If it shall appear that he has borrowed largely, or resold merchandize at a loss, or below the current price, after it appeared by his last account-taking that bis debts exceeded his assets by one-half.
"If he has issued negotiable securities to three times the amount of his available assets, according to his last account-taking.
"The following may also be proceeded against as simple bankrupts:—
"He who has not declared his own insolvency in the manner prescribed by law:
"He who has not come in and surrendered within the time limited, having no legitimate excuse for his absence:
"He who either produces no books at all, or produces such as have been irregularly kept, and this although the irregularities may not indicate fraud."
