The Express.
London, England, 1859-01-20 00:00:00

MR. COMMISSIONER PANE ON BANIRUPTC7

BIFO.BM.

Mr. Commissioner Fins ham published the follow-
ing observations on proposed reforms in the bankruptcy and
insolvency laws

" 1. I do not think that any legislative assistance should
be given to enable any majority of creditor,,' seeking what is
called liquidation' (which, however, is nothing but a plau-
sible word for' secrecy') to control any minority of creditors
however small. I would not allow even ninety-nine cre-
ditors to control the hundredth creditor. The ninety-nine
who advocate secrecy are public enemies. The hundredth
man, who insist' on publicity, is the friend of the public.
" There is nothing so agreeable to an insolvent and his
creditor' as serrecy—nothing so disagreeable as publicity.

The debtor is only too oftena tine.; the creditors are almost
all victims of their own readiness to give oredlit without in-
quiry. The debtor hater to have his knavery, the creditor
hates to have his folly exposed. They are in a conspiracy
against honest men, and their engine is' secrecy.
" The (meal °ours. te this. When the debtor cannot
longer delay the evil day, he calls his creditors together to
hear his statement of debts and use* sad he submits a
preposition, which is always to pay so many ehillhigs in the
pound. Oenerally he offers about as much as he can pay.
The creditors consider his proposition, and almost always
stipulate for something more. The debtor is so anxious for
secrecy that he generally undertaken to pay the something
more, but he proposes to pay it by acceptanoes, at three,
ix, nine, and twelve month,. Having thus bought secrecy,
he obtains during the twelve months, of tradesmen who have
not heard of his insolvency, the means of paying his existing
creditors; end thus Peter is robbed to pay Paul, ani the
result is that a knave is turned loose on the world unexposed.
The existing creditors do not trust him during the twelve
months, because they know him ; new creditors do trust him,
Wean= they do not know him. Is this a system which the
law should =course ?

If I *mkt make the law, 1 would not only not eve
the smallest power to the majority of creditors to bind the
minority; I would go farther, and would even enact that the
creditor w►o established the bankruptcy should receive
some advenisp le a reward for having been the first to de•
mance the insolvent, and so stop his mischievous career.
In a bankruptcy bate me a short time ago, two eminent
banking houses in the city lost—one 6,0001., the other

1,6001., by not hewing that a person who pot hie name to
a hall as a mewl swarity had privately arranged with bib
creditors a year bdent.
I, for ow, will saws lift a bap, to artist private
arraageniant The Wes poilcy Y publialty.

" 2. I think there ought nosh to be two leare—s, law of
bankruptcy and a law of irolveacy.
.4 I think that there should be but one law, and that law
should be the existing law of bankruptcy. The principle
of the law of bankruptcy is right. It is this—take pommies
of the bankrupt's property; realm It, end after min ex-
penses distribute it among the creditors. Inquire into the con-
duct of the bankrupt before and pending his bankruptcy,
and treat him accordingly, so far em puniahment goes; but
In any event, return him sooner or later to the world of In-
dustry, entirely free from all former debts. Let him re-
commence the struggle to maintain himself and his family ;
do not impede, or, it might be said, neutrallre his exertions
by weighing him down with old debts. Creditors are
ri as much to blame as the debtors, and ought not to be
teed to oppress those wham they have themselves mis-
bJ the 011.41111140111 with which they have given credit.
smmm that there ought not to be two laws, a law of
beakrsploy and a law of insolvency, and assumieg that the
mein prinapies of the law of bankruptcy are right, it fol-
lows that the Insolvent law should be dropped, and the bank-
rupt law sebstinted, with such amendment as should be
approved of.
It Is proposed to coesolidate the Bankrupt and Tirol-
Teeny Courts, and have only one court, the judges of which
shall be ogled judges, not commissionets. This seems
right. I think that the word bankruptcy should be dropped.
The proper word is insolvency. The consolidated court
should, therefore, be called the Court of Insolvency. But
it would be inexpedient to have all eases of insolvency
managed by the gems court, as there is great it:merman*,
In mixing the lowest of the low with persons who have
always moved is a higher sphere. The proposal, there-
fore, to Math the court-house and establishment in Par-
tegel-etnet, as well as the building and eetablishrmat in
Besinghallutrest, end use the former for the lower edam
of thadveale mad the creditors, and the latter to, the higher
clues@ mem. judicious. It lea gnat-advantage that they
are a mils and more from each other. Insolvents should
be divided into two clasese—my
_edam A and clam B.
Clear A should consist of those biselveats whale available
meets would probably exceed 2001.• clam B should con-
sist of those whose available mein would probably not
exceed that sum. Clam A should be dealt with by the
Jeeps sitting in Basinghaff-strest and the Bankruptcy
CoureiC la the country, dem B by the judges sitting in
Portapl-strest and the inseiveney judges in the country.
3. The law which now ambles a creditor who has got
judgment te take the propeety of his debtor In execution for
his own private use should he abolished. lie ought to have
110 s in the pound on the cost he has incurred, but should
come in with the other creditors for a dividend on hie debt.
Under the existing system, the debtor is constantly in league
with the execution creditor, end the two contrive to cheat
all the other creditors. Even If the demand of the creditor
is an honest demand, it is most unjust that he should get
20e. in the pound upon his debt, when the other creditors get
little or nothing; but if it in not an honest demand (and it is
very difficult to Cad out whether it is or is not) it is a most!
revolting piece of knavery, became it is tuning the law,
which ought to be a protection to honest men, into an in-
strument to cheat them.
444. The law should declare that It is the duly of every
person when tumble to meet his engagements, to record
the feet is the Court of Insolvency. The mode of pro-
ceedlag should be for the debtor to go before the regis-
trar of the day, accompanied by en attorney of the court
to identify hire, and declare himself unable to meet lie en-
gagements The court upon this ought to cause the Meet-
vtacy to be pzetted, and the usual proceedings should take
place. If the insolvent did not originate proceedings against
himself, any unpaid creditor should be at liberty to go
before the proper court, and mate upon oath a prima font
case of debt due. There should not be any specific amount
required. The smaller the debt due and unpaid, the stranger
would be the proof it afforded of the insolvency of the
debtor. lie who cannot pay 61. mend pay 601. Tim judge
should immediately issue his summons to tile alleged debtor.
calling upon him to attend the court on a Ind day and
show came why he should not be adjudged leaolvent. Whew
the insolvent attended, the court would deal with the cue
Ns Julies required. lithe insolvency was declared, war
thing would proceed as now till the insolvent had paged his
Int examinants. U. would then ask for his ortileste,
which wool& he granted as of course, unless opposed, the
court greeting a era second, or third claw, accordiog to
the eircurestaness of the case; but I think that no offal-
CPAS but a third-class certificate should be given, miler
the court should be of opinion that the insolvent bad produced
meets which, II they had been sold according to the usual
course of business, would have amounted to 20 per mat.
upon his debts.
"There ought to be a code of commercial mimeses offences
and punishment. The punishment should en on the side of
teeny, not severity. A law constructed on these prieciples
would, I think, win public favour. lam very apprehensive
this the bill, if passed KS proposed, will throw us all into con-
him, from which we shall not recover for a gnat length of
Ymsa
"Jane 26, 1666."

"The preparations for the marriage of Prince
Napoleon," stye a Paris War. la the inelipmertasre of
are Ogg ea Naively. The menials of the
young bride mere pertlealsrly excites curiosity. A dress
and shawl of ,Uslipia bee of peat value ; three India duel'
of entreerdhrey twenty; sad the diamonds of the Princess
Canssreso of Wartemberg, Which were stoles la 1816, but
sitairmis hod or repurchased by the family, will form
*me of the 'Weeks composing the marriage offering of the
prince. • megaidoent diamond necklace is spoken of as a
preen" drew the Empress, and some blue fox and other
valuable fate tram the Prince's Matt:nide."

A letter from Berlin of the 17th, says :—'The'
festival of the coronation of the Prussian chivalry, which
was =speeded last year, was yesterday celebrated at Berlin
with unusual splendour; and orders and decorations ti-
numerable ware then dispensed to all who could advance
any claim for such distinctions. An the royal family, with
the exception of the Princess Frederick William, took part
in the proceedings of the day, and though—(fres bin met
highenis having taken an airing through a great sorties of
the city on the previous day, when the meet hearty =clause-
liooll greeted her on every side)—the health of the princess
le known to be excellent, the arrival of Sir James Clerk
shows that it has become pendent that her royal We
should not be exposed to unnecessary fatigue or excitement.
sod 'anciently accounts for her absence on that grist
01:0101011."

General and Mdme. McMahon gave their first
ban for the wagon at Algiers last week. The jottrnals of
that city eve a glowing des:rip:lon of the entertainment,
. .

sad otaiothof a camber of Roilish, Boodlok, Iluosioo, soi
Bowie. officers Imo prewar.