Dueling was a common practice in the Southern United States from the 17th century until the end of the American Civil War in 1865. Although the duel largely disappeared in the early nineteenth century in the North, it remained a common practice in the South (as well as the West) until the battlefield experience of the American Civil War changed public opinion and resulted in an irreversible decline for dueling. [1] The markets and governance of the South were not as institutionalized during the 19th century compared to the North. Thus, duels presented what seemed like a quicker way of settling disputes outside of the courts. Although many duels were fought to settle disputes over tangible items such as land, unpaid debts, money, or women, more were over intangible ones.
The act of dueling was often condemned by public figures throughout early United States history and seen as unnecessarily violent and instigated by trivial matters. For example, to pinch someone's nose was an insult grave enough to challenge to a duel for it symbolized the unmasking of a liar. Contrary to the perception that the act of dueling occurred at the "drop of a hat", there were real economic forces that drove one to challenge another or accept a duel. However, the concept of "defending one's honor" was not quite as abstract and idealistic as often imagined – losing "honor" often had pecuniary disadvantages that made defending one's honor a somewhat rational decision, even at risk of being physically harmed or even killed. Dueling to protect one's credit or honor was partly a response to the underdeveloped credit markets of this region and time period.
In the Southern US, whose economy was mostly agricultural (including plantations) and production cycles were longer-term than those of their manufacturing-oriented Northern counterparts, planters were often highly leveraged and heavily dependent on personal credit to carry them through to the harvesting and sale of their crops. The assets of plantation owners were largely illiquid, their estates holding value in the form of real estate and slaves. Thus, preserving personal credit was highly important to the livelihoods of planters.
Given that Southern credit markets were rather opaque until the early 20th century – lenders could not readily view an applicant's financial statement—having a reputation as "honorable" was almost essential to obtaining approval for loans. In addition, transaction costs were very high during this period; therefore, perceived personal integrity or character was important to being viewed as likely to honor one's contracts and debts. Thus, the word honor was nearly culturally synonymous with creditworthiness. The long-term economic penalties for having one's reputation ruined included limited access to capital and diminished political influence.
Lending institutions did not punish debtors for participating in duels. A planter might risk a devaluation of his assets as a result of turning down a duel - with the loss of his honor - which would harm the lender as well. In the case that a debtor accepted a duel challenge and lost, the lender could expect an honorable man to honor his debts posthumously by paying back the owed amount with interest as his estate was liquidated.
According to a 2020 study, dueling behavior in the US declined as state capacity (measured by the density of post offices) increased. [2]
Dueling in the US virtually disappeared by the start of the 20th century with the rise of modern banking institutions and commercialized lending in the South, which were characterized by greater transparency and lower transaction costs. The larger, commercialized financial institutions that slowly took market share in the South took a quicker, more impersonal approach to screening that placed less importance on personal character.
The Southern culture of honor is often tied to the relative persistence of dueling in the South, a cultural phenomenon in which special caution is taken to not offend others and misconduct is not taken lightly (dealt with swift and firm retribution). A high premium is placed on toughness in this culture of honor, because one is expected to defend one's resources and deter predators.[ citation needed ]
In a relatively recent study on Southern attitudes toward violence (Nisbett & Cohen, 1996), it was shown that employers in the South were more likely to be sympathetic than employers in the North toward a fictional applicant who explained in a letter with his job application that he had been charged with manslaughter for responding to an insult, accepting a challenge to a fight, and accidentally killing his challenger.
Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor.
A code duello is a set of rules for a one-on-one combat, or duel. Codes duello regulate dueling and thus help prevent vendettas between families and other social factions. They ensure that non-violent means of reaching agreement are exhausted and that harm is reduced, both by limiting the terms of engagement and by providing medical care. Finally, they ensure that the proceedings have a number of witnesses. The witnesses could assure grieving members of factions of the fairness of the duel, and could help provide testimony if legal authorities become involved.
Debt is an obligation that requires one party, the debtor, to pay money borrowed or otherwise withheld from another party, the creditor. Debt may be owed by a sovereign state or country, local government, company, or an individual. Commercial debt is generally subject to contractual terms regarding the amount and timing of repayments of principal and interest. Loans, bonds, notes, and mortgages are all types of debt. In financial accounting, debt is a type of financial transaction, as distinct from equity.
A duel is an arranged engagement in combat between two people with matched weapons.
Honour or honor is a quality of a person that is of both social teaching and personal ethos, that manifests itself as a code of conduct, and has various elements such as valour, chivalry, honesty, and compassion. It is an abstract concept entailing a perceived quality of worthiness and respectability that affects both the social standing and the self-evaluation of an individual or of institutions such as a family, school, regiment, or nation. Accordingly, individuals are assigned worth and stature based on the harmony of their actions with a specific code of honour, and with the moral code of the society at large.
In finance, a loan is the tender of money by one party to another with an agreement to pay it back. The recipient, or borrower, incurs a debt and is usually required to pay interest for the use of the money.
Foreclosure is a legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by forcing the sale of the asset used as the collateral for the loan.
A loan shark is a person who offers loans at extremely high or illegal interest rates, has strict terms of collection, and generally operates outside the law, often using the threat of violence or other illegal, aggressive, and extortionate actions when seeking to enforce the satisfaction of the debt. As a consistent or repeated illegal business operation or "racket", loansharking is generally associated with organized crime and certain criminal organizations.
Predatory lending refers to unethical practices conducted by lending organizations during a loan origination process that are unfair, deceptive, or fraudulent. While there are no internationally agreed legal definitions for predatory lending, a 2006 audit report from the office of inspector general of the US Federal Deposit Insurance Corporation (FDIC) broadly defines predatory lending as "imposing unfair and abusive loan terms on borrowers", though "unfair" and "abusive" were not specifically defined. Though there are laws against some of the specific practices commonly identified as predatory, various federal agencies use the phrase as a catch-all term for many specific illegal activities in the loan industry. Predatory lending should not be confused with predatory mortgage servicing which is mortgage practices described by critics as unfair, deceptive, or fraudulent practices during the loan or mortgage servicing process, post loan origination.
Geographically, the U.S. states known as the Old South are those in the Southern United States that were among the original Thirteen Colonies. The region term is differentiated from the Deep South and Upper South.
In the United States, bankruptcy is largely governed by federal law, commonly referred to as the "Bankruptcy Code" ("Code"). The United States Constitution authorizes Congress to enact "uniform Laws on the subject of Bankruptcies throughout the United States". Congress has exercised this authority several times since 1801, including through adoption of the Bankruptcy Reform Act of 1978, as amended, codified in Title 11 of the United States Code and the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA).
In finance, unsecured debt refers to any type of debt or general obligation that is not protected by a guarantor, or collateralized by a lien on specific assets of the borrower in the case of a bankruptcy or liquidation or failure to meet the terms for repayment. Unsecured debts are sometimes called signature debt or personal loans. These differ from secured debt such as a mortgage, which is backed by a piece of real estate.
A syndicated loan is one that is provided by a group of lenders and is structured, arranged, and administered by one or several commercial banks or investment banks known as lead arrangers.
Debt collection or cash collection is the process of pursuing payments of money or other agreed-upon value owed to a creditor. The debtors may be individuals or businesses. An organization that specializes in debt collection is known as a collection agency or debt collector. Most collection agencies operate as agents of creditors and collect debts for a fee or percentage of the total amount owed. Historically, debtors could face debt slavery, debtor's prison, or coercive collection methods. In the 21st century in many countries, legislation regulates debt collectors, and limits harassment and practices deemed unfair.
A credit limit is the maximum amount of credit that a financial institution or other lender extends to a debtor on a particular credit card or line of credit. Lenders generally set limits based on specific information about credit-seeking applicants, including income and employment status. Credit limits play an influential role on a consumers' credit scores and their eligibility to obtain future credit
A credit score is a numerical expression based on a level analysis of a person's credit files, to represent the creditworthiness of an individual. A credit score is primarily based on a credit report, information typically sourced from credit bureaus.
A secured loan is a loan in which the borrower pledges some asset as collateral for the loan, which then becomes a secured debt owed to the creditor who gives the loan. The debt is thus secured against the collateral, and if the borrower defaults, the creditor takes possession of the asset used as collateral and may sell it to regain some or all of the amount originally loaned to the borrower. An example is the foreclosure of a home. From the creditor's perspective, that is a category of debt in which a lender has been granted a portion of the bundle of rights to specified property. If the sale of the collateral does not raise enough money to pay off the debt, the creditor can often obtain a deficiency judgment against the borrower for the remaining amount.
Mortgage discrimination or mortgage lending discrimination is the practice of banks, governments or other lending institutions denying loans to one or more groups of people primarily on the basis of race, ethnic origin, sex or religion.
Financial law is the law and regulation of the commercial banking, capital markets, insurance, derivatives and investment management sectors. Understanding financial law is crucial to appreciating the creation and formation of banking and financial regulation, as well as the legal framework for finance generally. Financial law forms a substantial portion of commercial law, and notably a substantial proportion of the global economy, and legal billables are dependent on sound and clear legal policy pertaining to financial transactions. Therefore financial law as the law for financial industries involves public and private law matters. Understanding the legal implications of transactions and structures such as an indemnity, or overdraft is crucial to appreciating their effect in financial transactions. This is the core of financial law. Thus, financial law draws a narrower distinction than commercial or corporate law by focusing primarily on financial transactions, the financial market, and its participants; for example, the sale of goods may be part of commercial law but is not financial law. Financial law may be understood as being formed of three overarching methods, or pillars of law formation and categorised into five transaction silos which form the various financial positions prevalent in finance.
Southern chivalry, or the Cavalier myth, was a popular concept describing the aristocratic honor culture of the Southern United States during the Antebellum, Civil War, and early Postbellum eras. The archetype of a Southern gentleman became popular as a chivalric ideal of the slaveowning planter class, emphasizing both familial and personal honor in addition to the ability to defend either by force if necessary. Southern chivalry is today seen as an attempt to justify the racist and patriarchal stratification of Southern society, with the goal of maintaining or legitimizing the human rights abuses of American slavery.