Dios sabe? In the majority of cases, it is, only tended to smooth down some of the differindeed, Heaven alone who knows what becomes ences on either side between debtor and creditor of unfortunates in a country where law is-policies of conciliation always, whereby each directed through the agency of military has been required to relinquish a portion of his despotism, and where the disposal of a man's logical rights, to the general dissatisfaction of life and liberty is intrusted to the mercy of a vain and capricious commandant.

both parties, but more especially of the creditor, who knows very well that if the law recognizes his claim at all, it robs him by withholding any thing short of an absolute right over the money, goods, and person of his debtor.

CREDIT, OR READY MONEY? Now, what if, instead of recognizing the credThe first occasion on which we hear of an itor's claim merely in part, the state were to organized system of credit is when Joseph take the far more logical course of refusing to mortgaged the cattle, lands, and even the per- recognize it at all? What would be the effect sons of all the Egyptian people, in order to pay of passing a law enacting that no debt whatever, for the corn he supplied them from the state contracted on and after a certain date (giving, granaries. The end of the seven years' famine say, six months' notice), should be recoverable found the Egyptians not only paupers, but at law? bondsmen, sowing Pharoah's corn on Pharaoh's There can be no doubt that, practically, no land, and compelled to pay for the privilege of one would give credit, and we should have to doing it twenty per cent. of the crop to Pharoah's revert to ready-money transactions. The questreasury for ever without equity of redemption. tion is, whether there is anything so inherently The Egyptians had had no previous experience good about our system of credit-taking and of Jews. Excepting Abraham, a quiet inoffen- credit-giving as to make us loth to exchange it sive old patriarch, who came to Egypt because for a ready-money system. It is so very ancient, he was hungry-and he got Pharoah into there is a strong presumption that credit is trouble-they had never even seen a Jew before. good. It is certainly convenient and plausible. It is therefore highly probable that a remem- It enables the farmer to eat of his harvest as brance of Joseph's fiscal policy whilst chancel- soon as it is sown, the merchant to feast on his lor of their exchequer, contributed in no small argosy before it leaves a foreign shore; it teaches degree to the severity with which they after- us not only to reckon, but to eat, our chickens wards ground down and oppressed the children before they are hatched-to live, all of us, three of Israel. But the fact especially noticeable or four months in advance of the present-to about the introduction of credit is this-bank- have peas, and new potatoes, and spring lamb at ruptcy and credit came in together: Joseph left Christmas. But we have to pay for all this. Egypt a nation of bankrupts. And ever since The farmer receives so much less of his crop, that time, bound together by an indissoluble and the merchant of his argosy, for anticipating bond of union (bonds, in fact, of bills and them by so many months. We have to content promissory-notes), those Siamese twins, Bank- ourselves with a smaller chick, if we want ruptcy and Credit, have gone on thriving together, and will go on to thrive, until one of the twain gets his death-blow, it matters not which; then the other will immediately die a natural death.

chicken before our own are hatched; with a pint of peas and potatoes instead of a peck; and with a tiny lamb for the price of a sheep. In other words, we pay interest, directly or indirectly, for all the credit we take and for all the Bankruptcy laws have been the stumbling- bills we discount on the future. But, it may stone of every succeeding legislator, from Moses justly be retorted, if we all take credit, we all and Solon downwards. The difficulty lies in give credit in turn, and consequently it is likely this if a creditor has any legal rights at all that we receive as much interest as we give, and against a debtor, there can be no logical limit to so lose nothing in the long run. Probably, we those rights. If the debtor has no money, the do not lose directly through adopting a univercreditor must be entitled to his goods; and if sal system of credit, because it is not to be prehe has no goods, to his services-that is, to his tended that the character of a payment made power of making goods and money. But pos- can influence the cost of production of an article. session of his services implies possession of But, indirectly, through the waste and impruthe debtor's person, which brings to the per-dence which credit engenders, we are very confectly logical Mosaic practice of taking bodily siderable losers, and should gain greatly by the possession of a debtor, his wife, his children, adoption of a ready-money system. his ox, his ass, and all that is his, and selling them into slavery.

Once abolish credit, by refusing the creditor a remedy against his debtor, and bankruptcy goes All subsequent legislation on the question has too. Surely the creditor would be the last mar

in the world to complain that there was no doing a trade; but he has to give credit, and longer a Bankruptcy Court to which to take a can not enlarge his business as he would. debtor. He never takes a debtor there now, if When all his capital is out in debts owed to he can get any reasonable composition without: him, we can't do very wrong in filling his shop he would rather now take a composition of full of goods for him. So that, in point of fact, fourteen shillings from a man whose estate he it very frequently happens that the manufacwas positive could pay twenty shillings in the turer is the real owner of the tradesman's stock pound, than drive him to bankruptcy, with the in trade, expecting the tradesman to pay for it chance of only recovering ten or twelve. Ready-out of the debts owing to him. The effect on money payments, and deliverance from bad the tradesman is highly demoralizing. The debts, would be a far greater boon to the creditor knowledge that the debts due to him will only than any legal recognition of a portion of his pay for a stock that is not his, at once hampers logical rights, in consideration of a very heavy him, and makes him reckless. So long as the percentage. If ready-money dealing were the two items about balance there is little trouble; rule, commercial courtesy would still extend so but when bad debts and family expenses begin far as this" Cash on receipt of invoice." But to make a deficit, he reflects that, the manufacin that case the creditor risks only one parcel turer being really a partner in the concern, the of goods instead of an account; and he would best thing he can do is to let things get worse, be the more careful for the knowledge that it and then obtain a composition deed on such was done entirely at his own hazard. Morally favorable terms as will enable him to undersell speaking, the creditor can not be said even to his rivals. The manufacturer seldom objects— have a right to recover against a man who owes creditors rarely force a man to the Bankruptcy him money or goods. If he trusts or credits a Court. Bankruptcy is used, on the other hand, man, it should be on his own responsibility, in by the debtor as the most potent threat to make order to insure prudent dealing; and it is too his creditors accept a composition. much to ask the law to step in and redress his own individual errors of judgment. If all need for trust were legally taken away by making debts irrecoverable, and ready-money payments common, it is most unlikely that the creditor would feel disposed to object on the grounds either of justice or equity.

With the very strict limitation of credit which would result from making debts irrecoverable, no man could trade beyond his means, because he could not get credit. When tradesmen risk their own money, and no one else's, and sell only what they have paid for, their business faculties and perceptions will be wonOf course it will be urged that the mere doing derfully sharpened, and their business placed away with bankruptcy by name would not neces-on a firm basis. Nor would they be subject to sarily do away with the thing itself, which is be undersold by rogues offering articles at twenreally impecuniosity. But it would do away ty-five per cent. below cost price at their with an immense proportion of it, by striking creditor's expense, because there could be no at the two great causes of impecuniosity, besides composition deeds in a system which necessipreventing the impecunious from involving the tated every tradesman's stock being his own. rest of the community in their own misfortunes. The prudence and caution which would overThe two great causes of bankruptcy, at the spread the commercial world would be no unpresent time, are, undoubtedly-1. Overtrading; wholesome discipline. 2. Living beyond one's means, or, as the bank- It would limit trading? Yes, but only within rupt is taught to say in the Basinghall Street safe and natural bounds. It could never interCatechism, Insufficient capital," and, "My fere with the operations of legitimate trade. income was insufficient to meet my expendi- which, it must be Borne in mind, do not at all ture." Let us see how a ready-money system would affect these. To take the last class first, since they can be disposed of in a sentence: it is quite clear that no one would be able to live beyond his means, for the very obvious reason, that he would be obliged to pay for everything as he got it; wherefore his expenditure could not possibly exceed his income, whatever his desires might do.

depend on the nature of the payment made, but solely on the relation between demand and supply, and are independent of all other considerations.

But it would abolish bills? Undoubtedly (and bill-discounters too); but not checks, notes, or other convenient forms of paying money to bearer at sight. With a general system of ready-money dealing, all necessity for "paper" would be gone. All the bills at present in the country only represent that three or four months' credit which we have agreed to give one

Overtrading is rather the rule than the exception at present. Any tradesman can get credit from wholesale houses to at least double the amount of his capital. Wholesale dealers regard another all round-merchants giving it to each it somewhat in this light: the man is certainly other because tradespeople are obliged to give it

to their customers. If the retail buyer paid stock of railways, bills of lading of cargo, bonds cash for everything, the tradesman would pay on shipping, etc. I say, in nearly all instances, cash to the manufacturer and the merchant, and for the most remarkable exception is in the case bills would not be required. The fact is, such of government securities. A holder in our gova change in the law would simply necessitate ernment three-per-cents has no tangible secuour giving up these five or six months' credit rity whatever for his money, neither would his we all take of each other, and starting afresh. money be recoverable at law, if the government chose to repudiate the entire national debt to

of us, which maintain a high scale of prices in spite of them. The only effect on the poor would be to give them the benefit of the system they have practised long without deriving any.

Then, says the objector, the retail buyer will be the poor victim, since, under such a state of morrow! Yet capitalists are not wanting to things, he would be the first to be called upon lend us their money at a cheaper rate of interest to pay up in cash, not only for the goods for than to any other government in the world, which he already owes, and has been accus- knowing it to be part of the glory of our land tomed to get credit for, but for all fresh goods that we never did and never could repudiate an he requires from day to day, for which he would engagement. not otherwise be called on to pay for some It can scarcely be urged that such a system months. But a six months' notice before the would press hardly upon the poor. They neither operation of such a law, would go far to break take nor give credit now. Indeed, their great the immediate pressure on the retail buyer; hardship is, that, being the only class who do while the knowledge that he it is who will ulti- pay ready money, they are nevertheless deprived mately derive the greatest benefit from the of the benefit which should accrue therefrom, change, ought to reconcile him to the balance owing to the credit-taking habits of all the rest of inconvenience remaining. The retail buyer (the consumer, in fact) would obtain his articles cheaper, and get the handsomest discount for his ready money. If he pays cash to his tradesman, his tradesman can pay cash to the merThere is no doubt we should hear a good deal chant or factor, and the merchant to the manu- of grumbling for the first six months. The facturer. The consumer would therefore save list of bankrupts would no doubt increase wonthe interest which these three gentlemen have derfully until the new system was in thorongh hitherto always charged on his goods for giving working-so many gentlemen would like to him credit, as well as the percentage for bad compromise their old liabilities, in order to debts, which has at present to be considered in start fair in the new race. Money, too, would fixing prices. be very dear for perhaps a twelvemonth; after The amount to be saved, in account-keeping that, people would awake to the blessings of a alone, amounts to at least two per cent. on the cheapened market; to the independence provalue of an article. It is not too much to say duced by consciously living within their inthat a general recurrence to a ready-money sys- comes; and to the pride and delight of knowing tem would reduce the price of articles in daily nothing about debt and its curses, save as an consumption as much as fifteen per cent. Indi- old memory. A whole nation of men and rectly, the saving would be more than this, for women clean free from debt would be richer, it would certainly reduce our taxation in the and know themselves richer, than they had expensive item of law. A comparatively small ever dreamed of before. site would then suffice for the new law-courts, since that immense proportion of the litigation of the country (which is about debt and borrowed money) would be abolished.

INSECT APPETITE.-The man who wished he had a throat a mile long, and a palate all the Lawyers would suffer? As some one recently way, might envy the feats performed in the observed, supposing the elixir of life were sud- world of insignificance. Some insects are endenly to be discovered, what would become of dowed with an appetite so keen, and a digestion the undertakers? Lawyers, however, as a class, so rapid, that they eat incessantly throughout are so well able to take care of themselves, that the whole of their lives. They begin as soon as little anxiety need be expressed on their behalf. they are born, and go steadily on till they die. But what is to become of the capitalists? Their existence is a feast, without a change of Would anybody lend money unless debts were plates, or a pause between courses, Morning, recoverable by law? Most certainly. Capital-noon, and night, their mouths are full, and an ists do not lend their money now because debts endless procession of favourite food gratifies are recoverable by law, but because in nearly all the unwearied palate. They know not the names instances they hold tangible security, which of meals. Breakfast commences with infancy, they can sell if their money is not repaid-title- and their only after-dinner nap is a passage to deeds, mortgage bonds on plant and rolling-another state of existence.

marks, were in several places clotted with blood. IN THE FIELD WITH THE PRUSSIANS. Such was the village on the road to Etain at

A CONVOY CAPTURED, AND HOW HE ESCAPED.

which we had stopped, and, now that we had set out again, the country opened before our Now, then, are you ready?" called out view in all the glory of summer sunshine. Far Baumstein, a dashing Uhlan officer, to a man and near was one immense space of open who was trying to improvise some harness for a ground, interspersed by villages and broad horse which had broken the traces of a provision magnificent roads.

wagon.

66

Not yet, sir," was the man's answer. "The traces have had a deal of wear and tear, and want looking to in a great many places."

"Well, I know you would not keep the column of wagons waiting if you had not good reason for it; but you must really be quick, for you know orders are to be at Etain (half way between Metz and Verdun) at twelve, and it only wants an hour to it now."

Any one who has seen France can scarcely have failed to have noticed that it is a country wonderfully appropriate for the purposes of war. Its broad plateaux and open spaces court the evolutions of an army, while its straight, broad, endless chaussees seem built for the purpose of hosts marching to one or other of its frontiers. In England we have our narrow lanes, our endless hedges; but France abjures such cumberers of the ground, and, in an eminently scientific The vehicles were regular army provision manner, sets to work to build a straight, broad wagons for the most part, but there were also road, and let it cost what it may, or whatever several "required" French carts. The official difficulties may be in the course indicated for wagons were all marked in the following way on it to take, they are surmounted with a celerity their canvas coverings : "Proviant Wagen, and adroitness that does the French infinite Numbers One, Two, Three, &c., Brandenburg credit.

Infantrie Division." The two drivers to each The chaussee by which we approached Etain wagon were soldier postilions, each of whom was just such a road as seemed to have been had his loaded musket at his side, so that, if built on the foregoing principle; it was some occasion required it, they had but to cut the fifty yards wide, and as straight as a line. On rope traces of the cart, and there was at once a either side beautiful lime-trees, planted at regusmall squadron of horse ready for more military lar intervals, cast their broad cool shadows duties. The wagons were each drawn by two pairs of horses, which were remarkably fine, strong beasts, and, if it were necessary, they were fully capable of dragging the heavy loaded wagons at the rate of six miles an hour the whole day through. The provisions carried were for the most part countless loaves of black bread, and ham salted and dried, which is all the Germans require. Several of the wagons, however, were full of grain.

Ah!

66

across the glaring white of the chalky road. Here and there single carrion crows, and magpies in flocks, were busily at work on the open ground to the right and left of the road. what an awful feast they had as they dug their long beaks into the ground, and then cawed and chattered over their meal. It was a strange thing, but I certainly noticed that all innocent birds seemed to have entirely disappeared, while these vultures of temperate climes At last the trace was mended to the soldier's swarmed for many a mile over the open ground. satisfaction, and the young lieutenant sent an The column now came to the little village of under-officer to the front to say that wagon Jarny, and here some Prussian officers renumber one might proceed. There was a quired" a wagon with a pair of horses, and I cracking of whips, mingled with each soldier's was given a seat in it. We had previously been particular noise for urging on his beasts, and sitting on one of the provision wagons. The the whole column started, the horses hoofs Frenchman from whom the cart and horses striking sparks from the stones in the little were "required" was told to send a boy with village as they passed, and the heavy wagon them to drive, and as he was a long time in wheels crunching many a hard flint to powder. finding one, the provision column had got on The village was one of those dreary, desolate- some way before we started again. On reaching looking places which one finds too often near a Conflans we found the convoy had not stopped, newly-fought battle-field. Window-frames, but had trotted through the town. with portions of glass still sticking in them, Conflans was not an interesting-looking town, flapped listlessly to and fro; doors, partially but it bore no appearance of desolation, as the battered down, lay transversely across the villages that we had just passed had done. Its apertures they were intended to cover; large inhabitants seemed quietly to have submitted to patches of blue sky showed through the roofs the Prussian yoke, and were busied at their of many of the houses, while the yellow-plas-daily occupations. The shops were open, and, tered walls, speckled with bullet and shell although trade could not be said to be flourish