The Stourbridge Observer, Cradley Heath, Halesowen & District Chronicle.
Stourbridge, West Midlands, England, 1869-07-17 00:00:00

THE NEW BANKRUPTCY BILL.

The following synopsis (from The Times) of the new
Bankruptcy Bill, gives an outline of its principal fea-
tures, and contrasts the disadvantages of the present
Bankruptcy law, with the advantages of the Bill now
before Parliament :
It really looks as if the Bankruptcy Bill of 150 were
destined to become law. After past disappointments, and in
the face of unknown contingencies, it is, perhaps, rash even
now to speak with confidence. But the prospects of the bill
seem at last to be not unlike those cf the cable which, having
been securely laid in the deep and dangerous waters of he
Atlantic, is now, while we write, being paid out in the safe
shallows on the American shore, and will soon, we trust, be
a useful instrument in active operation.
If, Indeed, the urgent want of the country were a reason
for legalation, the Session could not he allowed to pass away
without an extensive reform In Bankruptcy. The object of
any Bankruptcy system is of Course ti provide a machinery
whereby, as soon as a man becomes unable to pay his debts
in full, his property may t,e taken from him, and, with as
moon expedition and as little expen=e as possible, be fairly
distributed among his creditors. Now, no one can say that
this object is fulfilled I 9 the present law, at least in any ade-
quate degree. To mention two points out of many. The
cost of realising the estates of insolvents has been and is
enormous, reaching at the very lowest computation to be-
tween 343 and 40 per cent.

Again, little, ludicrously little, is saved for the creditors.
We have the Lord Chancellor's authority for saying that out
of the 9,125 adjudications in the course of last year there
were no less than 0,489 in which no dividend whatever was
realised. How the • 459 nebrors managed to be so supremely
successful In deiraao,o ht.yore, rats. a mystery admitting
of divers explanations. The great majority of insolvents go
on spending and speculating until both cash and credit are
exhausted A few atop while yet something is left 14 their
estate, and that little disappears in couve of process through
the Court. Some by post-nuptial settlements secure to their
family what belongs to their creditors; and others manage
to conceal valuable assets which, after their discharge, they
enjoy without let or hindrance. But, account for it as we
may, by the fraud of debtors, by the folly of creditors, or by
the imperfection of the machinery, the result is disastrous,
and a scandal to our law and our trade.

It Is clear that Bankruptcy is for less of a protection to
creditors than a licence to dishonest traders to speculate with
other persons' property. This being the case, how, it may be
asked, does it happen that a system which works so ill has not
been altered long ago? Bankruptcy is no party question;
nor are the vested interests concerned strong enough to resist
• well- considered reform. What, then, is the reason of these
repeated failures? Chiefly, no doubt, the extraordinary
complexity of the subject. A special jurisdiction has to he
created. Every kind of property, liability, and claim has to be
provided for. Theclauses must be numerous, and a large pro-
portion of them must deal with conflicting proprietary rights,
which, in the natural course of events, are destined to be
the subject of desperate litigation. But, besides this, we
may say, without offence to the Constitution, that the con-
struction of this intricate legal machinery is not a work
especially suited for our Parliamentary system. To master
the details of Bankruptcy Law and to provide for them all is
a task requiring not only skill, but assiduous and prolonged
! attention. The Chancellor and Law Officers, of course,
I possess the requisite skill, but they are overworked. For
instance, we all know pretty well how the Chancellor's time
has been spent of late—his days in listening to long dis-
courses from Miss Shedden and her father, and his nights in
the great political contest of the Session There are thus
great difficulties in the outset In presenting to the Legisla-
ture a complete bilL
Again, as the bill passes through its numerous stages at
most every line offers opportunity for suggestion er discus-
Sion by the learned or the unlearned. But the hardest coii
dition of all is that the whole work must be begun and ended
within the limits of a single Session. There really is not
time to have such a measure thoroughly discussed in both
Houses. If the bill is introduced in the Upper House, the
merchants, solicitors, and banisters in the Lower are hurt at
not being sufficiently consulted. If, on the other hand, it is
first discussed in the Conimons, the Law Lords complain that
they are forced to choose between acceptii,g it as it stands or
refusing it altogether. In short, the only chance of passing a
bill of this kind is moderation from all concerned. The
draughtsman must be content that the bill should be im-
perfect in detail; legislators must abstain from all but
indispensable amendment,; Slid the House to which the hill
I. referred last most in minor matters be willing 1,, rely upon
the examination by the other House. Happily, these condi-
tions have been observed in the present case. The bill is one-
third the length of its predecessor, and so sparing of detail
as perhaps to invite, though not to Justify, the criticism of
lord Cairns, that it is not so much • complete Bankruptcy
Bill as a bill to empower the Lord Chancellor and the Chief
Judge to make. Bankruptcy Bill. Then the House of Com-
mons, while giving careful consideration to its contents,
were neither dilatory nor captions ; and, finally, the Lords,