The Stourbridge Observer, Cradley Heath, Halesowen & District Chronicle.
Stourbridge, West Midlands, England, 1883-06-09 00:00:00

THE BANKRUPTCY BILL.

The Standing Committee of the House of Commons
on Trade, &c., reassembled on Monday, Mr. Goscnen
in the chair, and further proceeded with the Bank-
ruptcy Bill, resuming on Clause 68. The discussion
was continued of an amendment by Mr. Dixon-
Hartland, which proposes to leave out the sub-section
compelling the trustee to pay the bankrupt's assets
into the Bank of England, and gives the creditors the
right of selecting the bank into which they shall be
paid. On the last occasion Mr. Chamberlain strongly
opposed the amendment, on the ground that it would
imperil the efficient working of the measure, and
seriously interfere with the system of audit it was pro-
posed to establish.

Sir H. Vivian urged that instead of the Board cf
Trade opening an account in the Bank of England, it
should open accounts in the leading towns of the
kingdom with the local banks, these accounts not to
be in the names of the trustees, but in the name of the
department.

Mr. Baring supported the Government rpoposal
and, atter some discussion,
Mr. Chamberlain said he was sure that it was in
the mind if everybody to prevent a breakdown in this
matter. H 9 would point out that in proceeding with
this Bill they had interfered with many classes of
people who were making money. They had interfered
with solicitors, auctioneers, accountants, and others,
and had taken measures which would reduce their
profits and hand them over to benefit the creditors.
(Hear, hear.) They were doing the same thing in re-
gard to the bankers. The Board of Trade would return
every penny it obtained from the bankrupts to the
creditors. This was a creditors' question, and as such
they must deal with it. What did the clause propose to
do? He would take the town of Birmingham, where
the bankruptcies amounted to 10 per cent, of the
whole of the kingdom. On the average there would
be deposited £lOO,OOO in the eight large banks in Bir-
mingham—the money derived from bankrupts' estates.
That would be about £12,000 to each bank; and that
was the entire amount which the clause would take
away from each of those banks. The amount in other
towns would be smaller. It was said that this was a
step towards centralisation; but he would remind the
committee that centralisation was the principle of the
bill. He was a strong advocate of local self-govern-
ment, but he was also one of those who had come to the
conclusion that in this particular matter they must
have centralisation, If the amendment were adopted
they must give up all hope of the Government carry-
ing out the audit of trustees' accounts. (" No," and
"Hear, hear.") He denied that the Government
proposal meant delay, and contended that the local
system meant mush delay, and that it was very
cumbrous. This was a matter of detail, and it was
vital and essential to the proper working of the bill.
It the amendment were carried and the bill failed
the Government would be blamed. It was his belief
that, if the amendment were adopted, it would be
absolutely fatal to the success and the effectual
working of the measure and, in that case, he
should like to ask the committee what they
thought would be his duty. He could not urge
Parliament to accept a measure which he
believed in his heart would not be a sunless.
(Hear, hear.) He would suggest that the committee
should take the clause as it stood, but that they should
amend the provision 60 as to make it imperative upon
the Board of Trade, upon the request of the credi-
tors, to allow local accounts in all cases in which
either an advance was required or a business carried
on or transactions of such a nature as to make it
likely that there would be considerable balance, the
benefit of which would accrue to a particular estate.
(Hear) hear.)
The committee divided, and the clause was retained
as it stood by 41 to 27, subject to the modification pro-
posed by Mr. Chamberlain.
Mr. Chamberlain moved that Sub-section 4 should
read as follows :—"Provided that it appears to the
committee of inspection that for the purpose of
carrying on the debtor's business, or obtaining
advances, or because of the probable amount of the
cash balance, or if the committee shall satisfy the
Board of Trade that it is for the advantage of the
creditors that the trustee should open an account with
a local bank the Board of Trade shall, on the applica-
tion of a committee of inspection, authorise the trustee
to wake his payments into or out of such bank as the
committee may select."
The amendment was agreed to, and the clause vOtt
added to the bill,

Clause 69, dealing with the investment of surplus
funds, was also agreed to, as were the remaining clauses
up to 77, and the committee adjourned.

The Times, in a leader, says :—" The rather serious
obstacle to the progress of the Bankruptcy Bill inter-
posed by the reluctance of the Grand Committee to
pass the 68th clause has been happily overcome.
Great praise is due to Mr. Chamberlain for the tact
and dexterity with which he has met objections, con-
ciliated opposition, and won a triumph where some
good and friendly judges feared defeat."
The Daily News says: "What Mr. Chamberlain as
done has been to insist on the retention of the third sub-
section whose rejection Mr. Dixondlartland moved,
but to make the fourth sub-section imperative instead of
merely permissive. Formerly the Board of Traie
might have sanctioned the employmeut of a local
bank. Now it must, do so if applied to. In thus
meeting all that could poßsibly be described as reason-
able in theopposition to his scheme, Mr. Chambrlain
has exercised a very wise discretion. It would have
been imprudent and unstatesmanlike to risk the success
of a measure of the first class on the complete accep-
tance of even the most perfectly-devised plan. It is
impossible to deny that the opposition to the clause as
originally drawn was both powerful and respectable,
and Mr. Chamberlain has prudently considered, not
how much he could possibly demand, but how much
he could safely yield."