PROMISSORY NOTES.
It was announced by the Speaker that the special order for the hour was the Committee reports or the bill [H. R. 26] to repeal Section 6 of an act concerning promissory notes, etc.
Mr. WILSON, of Marion, said: The principal object of this bill seems to be to protect those who can not protect themselves against the patent-right and hay-fork sharpers. It comes with humble professions of good will to the people of this State and a benediction upon our business interests. It would have been better to have entitled the bill as one to strike down all business men working on credit, to paralyze business at home and excite ridicule abroad!
If a man of ordinary care is so stupid that he can not tell the difference between the promissory note payable in bank and one that is not, or a promissory note end a contract that is not a promissory note, he should have a guardian appointed, or he should interpose the defence, when sued, that he was non compos mentis, in which event he would escape liability. If he does not exercise ordinary care, then it ill becomes this Legislature to protect him against his own folly, and at the same time, while thus encouraging carelessness, break in upon a law, the practical value of which to the business world has been attested by the experience of centuries.
Under the law as it now stands a third party can not recover on a promissory note payable in bank, unless he gets it before maturity, bona fide, in the ordinary course of business, for a valuable consideration and without knowledge of defence to the same; even when so gotten he can not recover if it was forged, procured by duress, executed by one under disabilities, or for a consideration prohibited by statute. This is enough.
The repeal of the present law will do no good and must do infinite harm.
The stupid innocent who can not tell what he is doing will be induced to accept bills of exchange or indorse them, or to put his name on a blank paper, which will blossom into a bill of exchange; or he will sign a promissory note as heretofore, not payable in a bank in Indiana, but payable in Kentucky, Michigan, Ohio or Illinois; this will be governed by the law of the plea of payment. So you will not protect those you seek to protect.
But you will do harm. You repeal a law which had its origin from the inexorable demands of business; had its origin from the usages and customs of merchants; a law that is recognized in every civilized country on the face of the earth as of practical value in business. Without it you cannot issue and negotiate a single bond (for they are but promissory notes); without such negotiable bonds (unless payable out of the State) what building enterprise of any magnitude can be ventuted on? You will drive capital out of the State; what credit will be gives by a business man when he page: 173[View Page 173] knows he can not get a bank to discount the paper? What bank will be anxious to loan money directly when it can not dispose of the paper?
Mr. McMullen's report was rejected by yeas, 19; nays, 64.
The question recurring on Mr. Stewart's report, it was concurred in by yeas, 66; nays, 19.
Mr. JEWETT moved that the bill be ordered engrossed.
Mr. SHIVELEY moved to amend the bill by striking out all after the enacting clause and inserting in lieu new matter.
Pending which-
The House adjourned.
