The Sun.
London, England, 1861-02-12 00:00:00

COLONIAL.

TEl.—The market has been steady, and at public We
the finer descriptions of green have realised full prices.
SUClR.—Only a moderate business has been done, and
prices generally have shown no change of importance. in
the refined market dried goods remain at about previous
quotations.
COFFEE.—No important sales have; been entered into;
prices, however, are firm, particularly for the better quali-
ties of Plantation Ceylon. The stocks on hand compere d
with those of the game period of last year show a deficit of
about 500 tons.
RICE.—The market has been very quiet, no sales of any
public importance having been reported.
SALTPETRIL—There has been more inquiry for the
better qualities, and prices have slightly advanced.
TALLOW.—More activity has prevailed during the past
week, but the dealings have been chiefly of a speculative
character. P.Y.C. on the spot is now quoted 60s; Marc.h
delivery, 60s 6d; and 56s 6d for last three months delivery.

IMPERIAL PARLIAMENT.

HOUSE OF COMMONS.—(YESTERDAY.)
Mr. AYRTON gave notice that he intended to move for
select committee to inquire into the local government of
the:metropolis.
BANKRUPTCY AND INSOLVENCY BILL.
The ATTORNEY-GENERAL rose to move for leave to
bring in a bill to amend the law relating to bankruptcy and
insolvency. He said—l hope the bill which lam about to
.move for leave to introduce will be brought before you under
happier auspices than its predecessor of last year. At the
same time I must say that, while I regretted tho necessity
of abandoning the unfortunate bill of last session, I have
been very much consoled by the reflection that in preparing
the present measure I have had to direct my attention to a
number of topics to which I felt it necessary that greater
consideration should be given ; and I hope that I have suc-
ceeded in framing a measure which you will receive with
greater favour than you were disposed to show to that
which preceded it. You will recollect that one of the cir-
cumstances that accompanied the introduction of that bill
was its ponderous appearance. I have deferred to the opi-
nion then expressed, and surrendered my own judgment to
the feeling that prevailed ; and I am happy to say that the
bill which I now propose to introduce is less by one half
then the bill of last session. (A laugh.) But you will do me
the favour to recollect that the bill which I then introduced
was a consolidating, as well as an amending measure.
(Hear.) The law of bankruptcy is entirely lex scrlpta. It
is composed of statutory provisions, and those provisions
are to be found scattered over a great number of acts of
Parliament, all of which must be consulted in order to ob-
tain a just idea of the law. (Hear, hear.) As there exists a
general opinion that acts of Parliament ought to be conso-
lidated, I felt last year that it was my duty to attempt to
consolidate the whole of the written law on the subject of
bankruptcy. The present, however, is only an amending
bill, and is therefore of a fragmentary and disconnected
character, the provisions of which cannot be at once per-
fectly understood from the want of those lights that might
be cast on them from other statutes which are left untouched.
In framing the present bill I have entirely abandoned con-
solidation, though my feelings and sentiments are all in
favour of a consolidating measure; but it is at all times
desirable to propose that which is likely to pass, and if I
can succeed in inducing you to pass this measure during
the present session—a measure more than ever demanded
by the mercantile community—it will in some future session
probably enable us to consolidate the whole law of bank-
ruptcy, of which this bill, if it receives your approbation,
will form an important element. (Hear.) I will very
shortly remind you of the important principles which it was
desired to establish and carry into execution by the measure
of last year. You will remember, probably, that oneof the
great evils which I thought called for a remedy was the con-
fusion that now exists in bankruptcy between the judicial
and administrative functions of the court. These are con-
ducted in such a manner that the one has no order, or eco-
nomy, or regularity, and the other has neither dignity nor
efficiency. (Hear.) One object of the last bill, therefore,
was to separate the judicial from the administrative func-
tions; to bring home to the body of the creditors all those
duties touching the administrative part of the law which it
is necessary should he discharged in the first instance ; and,
at the same time, to give to the judicial functions of the
court that uniformity and certainty of decision, and that
elevation of judgment, which would wipe away the reproach
that now attaches to the law as it stands. (Hear.) One of
the other features of the late measure was to restore to the
creditors of the bankrupt the power of settling their own
affairs. The principle on which the law of insolvency rests
is, that the moment a man becomes clearly insolvent his
estate belongs to his creditors—(hear)—and the creditors
are the parties who should be consulted as to the mode of
administering and disposing of the estate. (Hear.) Unfor-
tunately, the history of the law shows that partly from the
apathy of creditors, and partly from other causes, great
evils existed in the modes of administration formerly fol-
lowed. Great changes were made in the hope of remedying
these evils, but nevertheless it was found that creditors re-
"fused to avail themselves of proceedings which they fancied
to be injurious to their interests. There was an enormous
amount of formality and technicality, and officials were
establisiied who destroyed that property which it was their
duty to protect. To remedy these evils was one of the objects
of the bill of last year, and all that it was hoped to accom-
plish by that bill in this respect will be embodied in the
present measure. Another object of that bill was to effect
a reduction of the great expense incurred by the law charges
of the Court of Bankruptcy. It is quite unnecessary that
I should justify the introduction of a measure on this point,
because the evil is universally admitted ; but I shall shortly
mut:, erate to the house some of the different sources of that
expenditure, which exists in consequence of those changes
that have at different times been made since 1831. On
every estate brought into bankruptcy there is a consider-
able sum to be paid on its first introduction ; then there are
charges for the messengers, gentlemen who are receiving
very considerable incomes for the performance of very slight
duties ; then there are fees paid to the auctioneer, the
broker, and the accountant, fees on public sittings, regis-
trar of meetings, and fees for sittings ; the building fund,
ad valorem percentage fees to the official assignee, allow-
ance to bankrupt for maintenance, allowances or dividend
and excepted articles, and solicitors' charges. (Hear, hear.)
Probably it will be remembered that last year I showed,
from returns before the house, that the charges on the ad-
ministration of estates in bankruptcy amounted to not less
than 33 per cent. (Hear, hear.) Another object of the bill
of "last year was to establish an effective audit and the control
and superintendence of creditors through the medium of
official assignees; and also to inform creditors, by the trans-
mission of the proper accounts, of an estate and the manner
of collection. Another object of the bill of last year was
the subjecting the insolvent or bankrupt, when applying for
his discharge,to a proper tribunal, with the power of punish-
ment in cases of fraudulency. (Hear.) All these different ob-
jects it has been my endeavour to provide for by this bill.
(Hear.)" But, before entering more particularly into that
point, I may be permitted to say that in presenting this
measure to the house, I present it as in my judgment the
best that is attainable under the circumstances. (Hear.)
Any one who approaches this subject with the intention of
reforming the law finds the ground covered with establish-
ments which have been again and again modified until the
Legislature has become, in regard to bankruptcy, jealous
and suspicious of all further attempts at reform, and is ad-
verse to permitting any expenditure of public money in
this direction. Under these circumstances little can be
done except to modify that which now exists. Undoubtedly
by giving away money under that odious name " compen-
sation," it would be possible to build up a much simpler
form of administration of this important part of the law.
Whatever, too, may be done by way of enactment, a great
deal is requisite for the reform of the administration of
bankruptcy, which must be left to the prudence, care, and
superintendence of the creditors themselves. (Hear, hear.)
I thought last year that it was desirable to have one
law of insolvency, and to subject the trader and the non-
trader to one uniform system of administering the law if
they became insolvent. The house will recollect that it
received last session with approbation the proposal to give
a chief judge to the Court of Bankruptcy. At present the
i
law is administered by numerous commissioners, and as to
a portion of the cases by the County Court judges. It was
thought that therewa.s great difficulty in obtaining unifor-
mity of decisions unless there were some ready means of
approaching a court of appeal. The house was unanimous
in thinking that it would be proper to have a chief judge at
to
the head of the administration of bankruptcy secure uni-
formity, certainty, and dignity. (Hear.) I havetherefore,
retained that portion of the plan of last year. 'One of the
proposals of the bill of last year was, however, to abolish at
once the five London commissioners and to pia.' ce two other
commissioners in their room. That proposal involved the
necessity of giving to those gentlemen for the rest of their
lives retiring annuities to the full amount of their present
salaries. That proposal did not appear acceptable, and I
have thought it right to continue these commissioners in
precisely the same situation as at present. Their duties
under the present bill will not probably be greatly aug-
mented, considering the appointment of a chief judge and
the proportion of labour that will fall on his shoulders. That
will be, at all events for the house to determine, but I pro .
pose, in the present bill to retain that part of the existing
system without any alteration. The bill of last year proposed
the abolition of the Insolvent Debtors' Court, and with it
the removal and discharge of the commissioners of that
court. One of the commissioners, Mr. Sergeant Murphy,
has since died. Another commissioner was appointed in his
place, but on the understanding that if it pleased Perna-
went to put an end to the court he was not to be entitled to
any.compensation. At present, therefore, so far as compen-
sation is concerned, there is but one commissioner of the
insolvent Court, and, if the present scheme is carried into
*feet, it will leave the administration of justice, both in
~!_likruptcy and insolvency in the London district, in
'no and the same court. That district is exceedingly
rntensgive, stretching from the extremity of Norfolk on
Therade to the borders of Hampshire on the other.
we,
:--eaziathaerefore, be in the
.Lo.ndon district a chief
judge,
the &dies of vtl London commissioners, to discharge
Another part of to law of bankruptcy and insolvency.
Count bill proposes to augment the jurisdiction
of the Co
'creditors to take the •
dßy the former bill power was given to
niinistra.tion of bankruptcy from the
District Courts to ta
eatatesuoounty Courts. It provided, how-
ever, that those
froninlyshould be transferred by con-
sent of the creditors
ounty Courts where the thet Bankruptcy Courts to the
not exceed £l,OOO. I have
since thought that noirudeagsoenfo:axtdito‘ta for that limit, that the
creditors were able to
) rathelves on this point, and
bad the right to do so. (Hear.
or
reraroevfre propose to con-
tinue to the creditors the power
estate from
udeve:tthhout any
tha Court of Bankruptcy to the County aratn
limit in point of amount. (Hear, hear.) le
bill it was proposed that the County Courts should bearmrnaere
right to take administrations in bankruptcy where the'vaue t--
did not exceed V.OO. It has, however, been represented to
me me that it is difficult to say whether the assets do or do not
exceed £3OO, and I propose that all petitions for removing
eankruptcy shall be presented in the first instance to the
Court of Bankruptcy, except in those limited cases where the
debts of the trader do not exceed £3OO. The facility of ap-
plying to the County Courts has led to many endeavours On
the Mt ct lowlTAleut traders t 9 was itaticoi awi I I

have therefore thought it right that all petitions for adjudi-
cations of bankruptcy, except in those smaller cases where
the debts do not exceed £3OO, shall be presented in the first
instance to the Court of Bankruptcy or the District Court.
These are the material changes in the structure of the bill,
and these are all the differences that exist on this part of the
subject between the bill of last session and the present. I
now come to the procedure in cases of bankruptcy. I have
thought it most desirable to secure the creditor of an insol-
vent the opportunity of determining whether he will
enter the Court of Bankruptcy or not. The great
fault of the present system is, that the creditor cannot
get the benefit of the provisions of the Court of Bank-
ruptcy without entering the walls of the court. There
is, also, the further evil that once within the walls
he cannot escape until he has paid the utter-
most farthing. (A laugh.) He must remain there
until the whole of the estate has been ground down, col-
lected, and administered. But I think it right that, with
the consent of a certain portion of the creditors, a man who
is an honest trader, or who not being a trader is an honest
debtor, shall have the opportunity of surrendering his pro-
perty and having it duly administered without incurring
the opprobrium and stigma of bankruptcy. (Hear, hear.)
It is necessary to deal with this part of the case with very
great caution, because if you give to the trader any protec-
tion during a certain period of time while he has solicited,
or has represented that he has solicited, the consent of his
creditors, you have suspended during that period the right
of the creditors, and, unless care be taken, the opportunity
may be converted into the means of defrauding the creditor
by the debtor. I have endeavoured as well as I could to
provide a remedy for this, and, while the creditors' rights
are suspended, there will nevertheless be a provision in the
bill enabling the debtor's estate to be administered under
a private deed without the necessity of an adjudication
of bankruptcy. I consider that a part of the utility of
the measure will depend on the possibility of working this
portion with convenience and success ; and, though, no
doubt, it may on many occasions be desirable that, while
the rights of the creditors are protected, the estate should

be wound up without the debtor being subject to the oppro-
brium of passing through the Bankruptcy Court, yet I pro-
vide in the bill that the creditor or debtor may at any time
pass over the boundary and go into the Court of Bankruptcy,
in order to meet any emergency or necessity, or to have a
determination on any question which may arise in the ad-
ministration of the estate under the trust. But supposing a
petition presented for adjudication, and that the debtor is
adjudicated a bankrupt, the next form of procedure by the
bill is that there should be an immediate meeting of the credi-
tors, at which meeting it should be decided whether the admi-
nistration of the estate should continue in the court by which
the adjudication had been pronounced, or be transferred to
any other court, as, for example, the county court. At the same
time, the creditors would have the opportunity of receiving
any proposal of the debtor, and of determining whether the
estate should go on in bankruptcy, or be wound up by
private deed. Therefore, at the very first meeting—and
there would be power to call any future meeting for the
same purpose—an opportunity would be afforded to the cre-
ditors of deciding which was the best mode of administer.•
ing the estate. Then, with regard to the proofs of debts—
a proceeding at present attended with much unnecessary ex-
pense,—l have introduced, in conformity with general re-
commendation, a most simple mode of procedure. A written
declaration, containing a statement of account, signed by
the party, is, when unopposed, to be taken as proved, a
penalty being attached for any false statement. Another
point to which I wish to call attention is the posi-
tion in which the croditors' assignees and the offi-
cial assignees will be placed by the bill. All ac-
quainted with this subject know that official assignees
were introduced in 1831, in consequence of the great evils
which were felt, chiefly from what I have denominated the
indifference and carelessness of the creditors. The official
assignee was invested with the right to receive the whole
estate, and the consequence was that creditors found them-
selves, in their own opinion, entirely excluded from their
proper position with respect to control over the administra-
tion. There has therefore been a general cry to be emanci-
pated from the official assignees, as great as there had been
previously for relief from the maladministration and
neglect incidental to the former system. I have endeavoured
to provide a mode of proceeding which should be something
between the two propositions. I hope the houso will agree
with me in thinking that it is proper to leave to the credi-
tors' assignees the right of receiving, applying, and admi-
nistering the estate ; but that it is most essential that there
should be an efficient auditor, active inspector, arl vig-i!ant
superintendent over the creditors' assignees—able to ascer-
tain, and who would have an interest in ascertaining, that
the property was received by them and taken into hand
for the benefit of the creditors. I propose, therefore, by
the bill, that as soon as the creditors' assignees should
be appointed the functions and duties cf the official
assignees should cease with respect to the collection and
distribution of the property, save in one particular. I have
found by an examination of the returns that small debts—
debts not exceeding £lo—due to bankrupts' estates are col
lected by the machinery in the power of the Court with
infinite economy, and therefore I propose to continue to the
official assignee the power of collecting debts not exceeding
£lO. With regard to the rest of their duties, I make it in-
cumbent on them to require accounts from the creditors'
assignees, to audit them, and send copies to the creditors.
The creditors' assignee will also have to return quarterly
accounts of the estate, and those quarterly balance-sheets
will be audited with the aid of the official assignee. The
next question is that of the discharge to be granted to the
bankrupt, and here the bill which I am now seeking to in-
troduce will be found to differ materially from the measure
of last session. It has appeared to me, upon much conside-
ration of the subject, that an obligation should be thrown
upon the commissioners and upon the chief judge, whether
there be any accusation by the creditors or not, of examining
with care and attention the conduct of the bankrupt. Sup-
posing, therefore, that there is no accusation by the credi-

tors, or supposing the commissioner to whom the matter
may be committed thinks it right that the conduct of the
bankrupt should be brought before the chief judge, the
question of the discharge will, in the London district, be
brought, in the first instance, before the chief judge for de-
cision. I propose to arm the chief judge with two kinds of
authority. In the first place, I give him authority to exa-
mine the conduct of the bankrupt in all cases of miscon-
duct not included in the list of offences which the law treats
as misdemeanours. The house is probably aware that, ac-
cording to the existing law, the conduct of the bankrupt
may be thesubject of examination by the commissioners,
and that the certificate to be given to the bankrupt varies
according to the opinion so formed of his conduct. There
are three kinds of certificate—those of the first, those of the
second, and those of the third class. The first class is a
declaration that the insolvency of the bankrupt is attri-
butable entirely to unavoidable misfortune ; the second
class states that it is attributable not entirely to unavoid-
able misfortune; while a certificate of the third class sets
forth that it is attributable wholly to causes other than mis-
fortune or accident. lam told, however, that practically
the distinction between the different classes of certificates is
almost wholly disregarded; that it is of little more use than
if the certificates were written on so many pieces of white,
or red, or pink paper. (Hear, hear.) Hence, I have thought
it better to persevere in the proposition which I made last
year that these certificates should be wholly abolished.
(Hear, hear.) Ido so with the more confidence now, be-
cause I believe it is necessary that something more strin-
gent, something more definite, something the effect of
which may be more severely felt, should be placed in the
hands of the judge, than the mere power of giving a certain
description of certificate. (Hear, hear.) I have therefore
described a number of instances of misconduct which are
not characterised as misdemeanours, but which are treated
as grave offences, warranting the judge in refusing or
suspending the order of discharge, or in committing the
bankrupt to prison for any period of time not exceeding one
year. Among the offences so enumerated is one which I
should have been very glad to make a criminal offence if I
could have found the means of defining it with that amount
of accuracy with which every criminal offence ought to be
defined. I mean the acquiring of fictitious capital, the
trading with false capital, principally produced by the ex-
cessive use and unjust application cf accommodation bills.
(Cheers.) That, in point of fact, is nothing more than a
mode Of obtaining the means of trading by fraudulent pre-
tences,
and ought in the excess to be punished as fraud.
But the difficulty is in making criminal that which is so
only in the excess, because the excess is incapable of being
defined in words, although no man can hesitate about recog-
nising it when it comes before him in actual business. It is
impossible to assert that being a party to an accommodation
bill shall, of itself, be an offence ; yet no man of any infor-
mation on, the subject can hesitate to say that such a sys-
tem of trading by accommodation bills as that which has
been exhibited in the public journals, in connexion with a
recent case of bankruptcy, amounts to one of the worst de-
scription of offences. (Cheers.) I have not hesitated, there-
fore, to give the chief judge, who will be a judge of the
highest rank, the power of inflicting a sentence of imprison_
ment for 12 months in those cases of delinquency which are
not included in the list of offences amenable to the criminal
law. Ido so with less hesitation, because the existing law
gives the power to a creditor, if he pleases, of inflicting a
greater amount of imprisonment. The law as it at present
stands is characterised probably by as much inhumanity and
at thd same time inefficiency and impolicy as any law that
could be devised. If the Commissioner suspends a certifi-
cate, or refuses it for any limited time, during that period
any creditor ray apply to the Commissioner for a certifi-
cate of his debt, and upon that certificate he has a right to
commit the bankrupt to prison. Then, at the end of the im-
prisonment, which is an imprisonment for a limited period,
any other creditor may proceed against the bankrupt in
the same way, and subject him to a similar incarceration.
I think that, if the delinquency of the bankrupt is such
that it is just to expose him to the penalty of imprisonment,
that penalty ought not to be left at the caprice of any
creditor who might be prompted by malice or a vindictive
feeling—(hear, hear)—while, on the other hand, I am
equally of opinion that it is unfair that the creditors should
be made the agents and instruments of inflicting a criminal
s_..,entence. (Hear, hear.) Such a sentence, to have any
ro"cot way of deterring from similar crimes, ought
me from a judo of the highest dignity. I therefore
propose to take away the power of imprisonment now given
to the creditors, and, in cases where the judge shall be of
0134144 that the order of tiiiichirs9 onlat to be ry14.04 or

suspended, to give him the power of inflicting the amount
of imprisonment I have mentioned. I have also thought
it right that the same judge--viz. the chief judge—should
be armed with authority to trythe bankrupt for any offence
of which he may be accused, because in handing the bank-
rupt over from the Court of Bankruptcy to a criminal tri-
bunal there is not only very considerable difficulty in caus-
ing proofs of the offence to accompany the accusation, so as

. .
to enable them to be brought forward in the manner re

quired by any ordinary criminal court, but there is great in-
justice in subjecting the estate to all the expense and delay
incident to that description of prosecution. I have thought
it right, therefore, as we propose to place at the head of
the Court of Bankruptcy a judge of the highest rank and
character, the equal of any of the judges of Westminster
hall, that such judge should have the power of administer-
ing this part of the criminal jurisdiction. The Bill provides
that, if the bankrupt desires to be tried by a jury, he shall
be tried by a jury in the ordinary manner; but that if he
does not desire to be so tried, then the judge is to examine
his conduct, the Commissioner who has had the immediate
prosecution of the matter sitting as the assessor of the chief
judge. The final sentence is to proceed from the Court so
constituted, no appeal being allowed to any other tribunal.
From the decisions of the commissioners in the country and
County Court judges an appeal to the chief judge ap-

pears to be desirable, but from the sentence of the chief
judge in this matter I think it right that there should be
no appeal. I think these provisions are not more stringent
than the absolute necessity of the case requires. I hold
that justice should be administered in a manner in which
humanity and consideration may be united with necessary
severity, and so as to operate more efficiently than the pre-
sent system. I have mentioned to the House the procedure
applicable entirely to the case of traders. It was part of
the proposition of last year that the non-trader also should
be brought within the area of the same tribunal. That
was a preposition which, I believe, as far as general
discussion has gone, has received the approval of, I
may say, nearly all who have attended to the subject.
The true policy of the bankrupt law is, I believe, that
every species of encouragement should be given to a
debtor the moment he finds himself in a state of insolvency
to do that which justice requires, namely, to divide his
estate equally among his creditors ; but I must beg you
also to observe that, with the exception of the trader--
in the case of the non-trader the whole tendency of your
laws as at present established is to produce the very oppo-
site result. You admit of execution against the person of
the debtor; you admit the debtor being consigned to prison
on that execution—for what purpose ? You cannot for
one moment say that he is sent to prison for punishment.
You have not been administering the criminal law at all.
He is sent to prison at the pleasure of a creditor. Well,
the creditor has become his creditor by his own voluntary
act. To every debt, in that sense of the word, there are
two parties—the man who contracts it, and the man who
permits it to 'be contracted. The creditor, of his own
accord, willingly gives credit—to what had he the right of
trusting at the time he gweit ? He trusted, of course, to
the solvency and means of the individual. In the very
nature of the contract, it is impossible to suppose that the
power of consigning the debtor to prison ought to be re-
garded as one of the natural rights of the creditor. Con-
signing the debtor to prison cannot be justified on any
other consideration than this, that it is a means of com-
pelling the debtor to give up his property for payment of
his debts. But if you can accomplish the same thing
without imprisonment, the imprisonment would be with-
out reason to justify it. The imprisonment of the
debtor is undoubtedly the means of rendering the
debtor useless to himself and a burden to the community.
(Hear, hear.) To the creditor it produces no good ;to the
State at large it is an unmitigated evil. The debtor is de-
moralized ; he is in a state of idleness and depravity fre-
quently while in gaol ; he comes out of gaol a worse man
than he entered it. The whole process, therefore, is neither
more nor less than a process of unmitigated evil, unless
you say it is effectual as a preventive to men going into
debt. But I say you are not justified in imposing any such
law with a view to prevent that consequence when men
only get into debt with the consent of their creditors ; and
if the creditor consent, the act of the creditor entitles him
to nothing more than the aid of the law, in the most expe-
ditious manner, to get at the property of the debtor and
divide that property among his creditors. But here, again,
you give every temptation to fraudulent preferences, you
stimulate the debtor to do that which in bankruptcy the
17311::t stigmatise with the imputation of fraud. I
cannot illustrate more forcibly the opinions that have pre-
vailed on this subject, and dictated by good policy as well
as humanity and justice, than by taking the liberty of
reading one or two passages from the reports of various
commissioners who have considered the subject. In the
report of the Common Law Commissioners in 1832 the re-
sult of the law is thus accurately described :
" The practical effect of the law of arrest on final process,
combined with the insolvent law, is the imprisonment of
numbers merely to be discharged without opposition at the
end of afew weeks. The consequence is misery, waste of
funds, and multiplied frauds and perjuries. While no
benefit arises to the creditor, the arrest, imprisonment, and
expense are ruinous to the debtor. In short, the ordinary
consequence is disappointment and loss to the creditor, de-
struction to the debtor."
I say this is a correct view of the case; statistical returns
prove it in the strcngest way by the number who are com-
mitted to prison, the short time they remain there and then
are discharged ; not one estate in 250 profiting thereby. You
are bound by the principle of your law of debtor and
creditor to give the creditor the most available remedy, but
it so happens that the most available remedies to the credi-
tar are those which are most consistent with humanity and
justice to the debtor and the general benefit to the State at
large. You tell the insolvent debtor that he shall be re-
leased and discharged on surrendering his property—why
do you make it a necessary condition that he shall go to
prison before he surrenders his property? (Hear.) You
have felt the injustice and have modified the operation of
these laws by various acts, which have had in them per-
haps more humanity than ccnsistency, and which were not
quite impartial. You will recollect the Act of Parliament
that was passed for an object I won't stop to explain, and
which is commonly denominated the " Gentleman's Act."
That is an act by which in reality the insolvent may get
the benefit of bankruptcy without going to prison. The
Legislature, in passing it, at the same time condemned the
general system because it has by that and other protection
acts in effect declared that if a man will communicate with
his creditors, and get the assent of a certain number and
surrender his property, his person shall be free from arrest.
Now, all I desire for the benefit of non-traders is this—
that the law should give them an opportunity of at once
surrendering their property, and, upon that surrender and
free discovery, that they shall be protected from arrest.
This is the first thing therefore that is proposed, and for
the benefit I trust of the non-traders. I will venture to add
one or two more extracts from the report I have referred to,
in order to vindicate the proposition I have laid down. In
another part of the same report I find this statement :
" Thousands are every year imprisoned and discharged, not
only at great pecuniary cost, but at a moral expense infinitely
more detrimental to the interest of society." Another re-
port was made in 1840 by the commissioners appointed to
consider the Bankruptcy and Insolvency Laws. The report
is signed by Mr. Justice Erskine, previously Chief Judge
of the Court of Review, Mr. Evans, Mr. Fonblanque, and
Mr. Holroyd, Commissioners of the Court of Insolvency,
and Mr. W. Crawford, Mr. W. Ellis, Mr. B. Hawes, jan.,
Mr. G. C. Glyn, and Mr. John Horsley Palmer--a combina-
tion of authorities of the highest character. There are two
passages I would read :—" It appears to us," the commis-
sioners say, " that to unite the jurisdiction in matters of
bankruptcy and insolvency would, upon principle, tend
much to benefit the public, but this benefit cannot, we think,
be obtained without placing all insolvent estates under the
administration of one uniform system of law. We can per-
ceive no good reason why the estate of one debtor (a trader)
who is unable to pay his debts in full should be adminis-
tered in a different manner from that of another debtor not
a trader under the same disability." I cannot but think,
therefore, that you must arrive at the conclusion that the
greatest injustice is under the present system done to the
non-trader, and the greatest injury inflicted upon the credi-
tor; because, as matters now stand, the former is led to
submit to considerable sacrifices from time to time, fre-
quently even to commit fraudulent acts, in order to evade

the penalty of imprisonment; so that, instead of deeming
it to be his interest to make an honest surrender of his pro-
perty to his creditors, every species of inducement is held
out to him to do that which under a just and politic admini-
stration of the law of debtor and creditor might not occur.
That hundreds and thousands of debtors should be impri-
soned only, as it would seem, to keep up a costly tribunal
for the purpose of their discharge from confinement, would
appear to be the very extreme of folly. If then the case be
as I state, it becomes the interest of all parties to place
the law of insolvency upon the same footing as that of
bankruptcy. It has, however, been made manifest to me
since last year that some degree of odium attaches to the
word "bankruptcy" in general acceptation, and that that
circumstance would be likely considerably to detract from
the beneficial results which I anticipated from the changes
in the law which I then proposed. I have, therefore, been
desirious of embodying in the present bill words which
should be certain and unmistakeable, as defining the tests
of insolvency as applied to non-traders; so that the law of
bankruptcy might be brought into operation in such cases
upon the most distinct evidence, of general inability to meet
one's just claims. Now, I think the house will agree with
me in the opinion that one of the greatest subjects of re •
, preach in connexion with cases of this description with
which we have to deal is that which results from the
habit which exists among men who happen to be involved
in debt of withdrawing their property from this country
and seeking a residence in some part of the Continent, where
they may enjoy it, thus defrauding their creditors of that
which ought to be distributed among them. (Hear, hear.)
We are all perfectly well aware that there are abroad cer-
tain localities which are well known as being the places of
refuge of English debtors, and that being so, I have made
the first test of insolvency in the present bill the absconding
from the ceuntry with the deliberate intent of evading one's
just creditors, and the remaining abroad with the same!
object. But now comes the question, which shall be the
overt act which shall meet with general acceptance as evi-
dence of the mattes animus to defraud ? In dealing with
that question, in which you have to collect from the acts of
tie dcbt9r tke :proofs 1-64 aninm byvalid; bj4 Abociio

from the country is influenced, I have been desirous to I
render it necessary that a certain process should be
gone through. I should require a•petition against him
to be served at the last place of abode of the
debtor, as under the existing system the Courts of Chan-
cery and common law are empowered to demand in the case
of a bankrupt, so that it would be impossible for any man
to be declared an insolvent upon the ground of fraudulent
absence from the kingdom without having a fair opportunity
of showing what is about to be done with respect to him, of
entering an appearance against the petition, and of proving
that he in reality was animated by no fraudulent intention
in taking up his residence abroad. The next test of bank-
ruptcy which I would make applicable to the non-trader is
the fact of a creditor having obtained a judgment against
him in accordance with the ordinary process of law or equity,
and being unable to find him to enforce that judgment, and
I propose that under those circumstances an opportunity
should be afforded him of appearing to answer the demand,
and of giving either satisfactory security to the creditor or
proving that he was not liable to be called upon to liquidate
the claim made upon him. If that be not done you will, I
think, agree with me that a criterion of general insolvency
is furnished which makes it the duty of the debtor to deliver
up his property for the payment of his liabilities, and which
renders it incumbent upon the framers of the law to enforce
that surrender. Another test of insolvency is the fact that
the debtor being a non-trader has been arrested on filial pro-
cess, and is placed in prison. Every hon. member at all ac-
quainted with this subject must be aware that it has not been
unusual for persons so situated to prefer to remain in gaol
and enjoy their property there to giving up that property
to be distributed among their creditors. Tho most absurd
part of the English law with respect to this particular point
is this—that it seems to assume that when you have got the
body of your debtor you have obtained satisfaction of your
debt, thus reminding one of the doctrine attributed to the
Roman law of sanctioning the division piecemeal of a debtor
among his creditors. The test of insolvency which I have
last mentioned may be made the occasion of a petition for
adjudication of bankruptcy being presented against a non-
trader, and the result would be that his estate would be ad.
ministered on the same principle as that of a trader. Touch.
ing upon this part of the question we are naturally led to
ask the very important question, whether in altering the
law of bankruptcy we ought to import into tho amended
system that principle of the law of insolvency which makes
the future estate of the debtor liable for his debts, or whe-
ther it would not be more advisable to extend to the non-
trader the benefits of that humane principle of the bank-
ruptcy law which gives the debtor an unqualified and gene-
ral discharge for the future upon his giving up the entire
property in his possession to satisfy the claims which exist
against him. For my own part, I confess that I do not
think a man, if he chooses to give credit, is entitled, morally
or upon grounds of good policy, to anything more than an
equitable distribution of all the means in the possession of
his debtor at the time when he gives him credit. It is not,
it seems to me, a just or a politic course to take so to legis-
late as to induce a creditor to speculate on the future
prospects of the person whom ho trusts. (Hear, hear.)
We know that in equity all bargains with expectant heirs
upon the security of their expectations, and all contracts
relating to future acquisitions of property, are regarded as
unjust, and I feel therefore confident that the house will
be of opinion that a debtor, having once honestly delivered
up to his creditors all the property which he possesses,
ought not to be liable to be pursued by them through life,
and to be called upon to surrender that which he may
afterwards secure to satisfy their claims. That is a prin-
ciple on which the house will have to decide. I have the
greatest possible confidence in a general committee of this
house. I know of no more searching tribunal for the
examination of such a question ; and this, as well as all the
main provisions of this bill, I shall submit unreservedly to
discussion in committee, accepting altogether that which
its wisdom and sense of justice may approve. I must,
however, tell you that in that part of the measure which
deals with the orders of discharge of bankrupts, whether
traders or non traders, I have given to the chief judge in
case of any delinquency the power of annexing to such
orders of discharge conditions affecting future acquired pro-
perty. It will be for you to determine the prudence and
propriety of that course ; but the bill proposes, as a penalty
upon the bankrupt trader or non-trader, that in cases
coming within just censure such censure shall involve the
liability of future acquired property. (Hear, hear.) Now,
it may be asked whether this bill goes the length of totally
abolishing imprisonment for debt. My answer to that is
that I regret it does not. I have hesitated on this point
from a fear that if I had pledged myself to such a propo-
sition I might not have found it accepted by this house.
But I will tell you what I have done, and which in reality
will, I trust, arrive at the same result, although it is not
the same thing in name; neither is that boldly avowed
which reason, justice, and policy appear to me to
demand. The course adopted by the bill is this : In the
first place, every pauper debtor, who, on account of his
poverty, cannot petition for an adjudication of bankruptcy
against himself, has the power of presenting a petition to a
County Court, and of presenting it at the expense of a fund
provided under the 33d of George 111. for promoting the
discharge of pauper debtors. That is one of the modes by
which I hope to relieve the gaols of some of their present
occupants. But another mode is this :—The gaoler, by a
provision of the bill, required to make out on the first day
of every month a return of all prisoners in his custody for
pure debt, or rather simply on account of debt, and to for-
ward this return to the chief Judge in the London district,
or to the commissioner in any country district of bank-
ruptcy. On the receipt of that return notice is to be sent
by the clerk to the execution creditor and the detaining
creditor of every such person; and on the expiration of 10
or not more than 20 days from the date of the return a
registrar will examine every prisoner, whether there be a
petition or not. The registrar will have power to make an
adjudication—that is, to make an order vesting the estate of
the prisoner in the official assignee—and, if he thinks fit, to
grant the prisoner an order of protection—that is, a quali-
fied discharge. When that machinery is in operation I
believe it will be impossible for any man to remain in
prison simply on the ground of debt for a longer period than
from 14 to 20 days. And, if that be so, I think it will fol-
low that no creditor would be willing to commit his debtor
to prison; for he pays a considerable sum for that privilege
or source of enjoyment, if it be such—(a laugh)—and he
would hardly avail himself of it when his debtor would be
released from prison in the manner I have described.
The house will recollect that prisoners for debt in
this country are now divided into two classes. Ono
of these classes, and by far the most numerous, are those
who are imprisoned by the orders of the County Court
judges, for there is a species of imprisonment which must
be called penal, not being for pure debt, inflicted by the
sentence of a County Court judge, or of a Commissioner of
Bankruptcy in cases of small debts which are found to have
been contracted either under circumstances of fraud, when
the debtor had no probable means or expectation of being
able to pay, or under some other species of falsehood or de-
linquency. Now, of course, it would be very wrong to in-
terfere with that description of criminal imprisonment, and
therefore, I do not propose that the registrar who attends
for this gaol delivery of debtors should have any power to
release persons so committed to custody. But for pure
debt, for debt unaccompanied by these circumstances of
fraud or reproach, no man will be permitted to remain in
prison ; but, whether he will or no, will be discharged and
his property, if he has any, taken from him and made avail-
able for the benefit of his creditors at large. These, then,
are the principal provisions, some of which were included
in the former Bill. I have only to add that connected with
the additions made to the former measure there is this im-
portant circumstance : —I have mentioned my great desire
to facilitate the process by which debtors without incurring
the reproach.of bankruptcy, should be enabled to surrender
their property for division among their creditors. But it re-
peatedly happens that the debtor cannot accomplish this,
because ho is unable to ascertain who are his creditors at the
time, seas to obtain the assent of the required majority for a
composition or arrangement. Every trader is probably
liable upon promissory notes or bills of exchange which are
circulating about, it may be in foreign parts, and the
holders of which cannot be discovered in a short period of
time. I have, therefore, introduced this provision, that, if
the debtor obtains the required majority of those creditors
who can be ascertained, and is willing to make the trust
deed or deed of assignment, run in a very simple form, it
shall be as effectual and complete a discharge and protec-
tion to him as if he had gained the assent of all his credi-
tors. The simple form in which the deed shall run is to
this effect, that he conveys all his estate and effects to cer-
tain trustees, to be by them collected, applied, and adminis-
tered exactly as if he had been regularly adjudged a hank•
rupt. With regard also to deeds of arrangement after
bankruptcy, I have incorporated some provisions from the
Scotch system, in order to facilitate a change from the pro -
cess in bankruptcy to proceedings by private arrangement.
Such is the measure which I submit to this house for its '
approval. It must be recollected that we have at present
a most artificial system. It is impossible, as I have already
said, to sweep that system entirely away, and substitute
for it a perfectly new one. All we pretend to do is to
remedy its worst defects, to remove its undoubted griev-
ances, and provide the means whereby, without incurring
the expense of all its present formal modes of proceed-
ing, the creditors may easiest obtain the property of the
debtor for the satisfaction of their just claims. If these
pro visions work well and satisfactorily, I venture to
anticipate that the charges of bankruptcy, where bank-
ruptcy exists, will be diminished by one-half; but I
hope that bankruptcy will seldom be resorted to, and that
only in case of absolute fraud and delinquency. I hope
that the mode of administering debtors' estates by
private arrangement, incorporating as it does all the prin-
ciples and appliances of the law of bankruptcy, will be the
general rule, and the formal process of bankruptcy the ex-
ception.
t fortiuonn.Ytuonuactae tansnotte of thehavea lawbet thtorilaln iustsraptrieosnenotef
presented
the
e-
contrast between the number of cases of bankruptcy and
the cases of composition. It proves to you this great truth,
that whenever your law is not in harmony with the exi-
gencies of society—it has the effect of driving the people out
of their courts of justice into the by-ways which are still
open to them, in order to secure those advantages which
they ought to be able to obtain in a more legitimate manner.
The cases of composition amount to between 8,000 and
10,000 a year, while the bankruptcies and arrangements
bUiCIW the cehtrel of the Ge4rte oeldera exceed 1,000 we I

1,100. This only shows the great preference among credi-
tors for private arrangements, even although under the pre-
sent state of the law the trustee in such a case cannot have
the expeditious remedy which this Bill will allow, and,
although the only mode of seeming the duo performance of
the trust is by a resort on the part of the creditors to the
Court of Chancery against the trustee. In spite.of these
disadvantages, creditors have preferred to incur all the
inconveniences of deeds of private arrangement. Not
that the law of bankruptcy itself is wrong, but that there
are impediments to its proper administration. I have
thought it right to address myfelf to aid that which appears
to be the general impression among the commercial corn-
munity, and which in the abstract nature of things must be
most desirable; for if a debtor comes and surrenders his
property and is willing to account, what do you want with
a Bankruptcy Court ? It is quite sufficient that there should
be a facile remedy to compel the administration and per-
formance of a trust when it is once created. Upon that
ground, therefore, I trust that that portion of the Bill which
applies the law of bankruptcy to deeds of trust and com-
position, and admits of the parties to them being placed in
the same relative position, and subject to the same juris-
diction as if there had been actual bankruptcy, as if the
trustees were assignees, and as if the creditors claiming
under the deed had proved in bankruptcy, I say, I trust and
believe that portion of the bill would be found most useful
and efficient. It is upon that portion of the bill that, as a
question of finance I hope to meet with the approval of the
House. At present the House is aware that the Court of
Bankruptcy is in constitution self-supporting. Ido not
propose to interfere with that principle, except in two par-
ticulars—one with respect to the salary of the chief judge,
which I propose shall, like the salaries of other judges
employed in the administration of public justice be paid
out of the public revenue, and the other is the unfortunate
portion upon which the former bill in a great measure
suffered shipwreck. In the former bill I proposed, in
conformity with the recommendation of the commissioners
and in conformity with repeated suggestions of former
commissions—that the compensations granted in 1831 to
officers who were then discharged from their duties, and
which compensations were charged upon the bankruptcy
fund—most unjustly, as I think, because it made future
generations of creditors pay for the faults of the law, and
the improper mode of its administration previously existing
—I proposed that these compensations should be thrown
upon the Consolidated Fund. The House did not agree to
that proposition, but did, I think, agree that the compensa
tion should be defrayed by annual votes of Parliament. I hope
gentlemen who listen to me will understand that my bill
creates no compensation at all. I am only dealing with com-
pensations given nearly 30 years since—(hear)—and I am
only acting in accordance with common justice, in order
that we may accomplish that result, without which all re-
forms are idle—namely, the introduction into the adminis-
tration of the law of bankruptcy the principles of economy
and cheapness which are absolutely necessary, for if yoUtax
creditors to the extent of 33 per cent., as at present, you
compel them to resort to other remedies rather than seek a
court of justice for relief. The Bill will, I trust, be in the
hands of hon. gentlemen by Wednesday morning, and I
trust that if they give me leave to introduce it now, they
will accompany that favour with another, by permitting
the bill to proceed with all possible expedition—(hear, hear)
—and I hope that, with the assistance of the house, the Bill
will before we part for the Easter holidays have gone through
committee, and may be transmitted to the other house
before the end of the next ensuing month. I have now
only to thank the house for its kindness in listening to me,
and trust that it will not consider me to have unnecessarily
trespassed on its patience. (Cheers.) The hon. and learned
gentleman concluded by formally moving for leave to in-
troduce a Bill to amend the laws relating to bankruptcy
and insolvency.
Mr. HADFIELD felt authorised, in the name of the
commercial communities of this country, to tender their
thanks to the hon. and learned gentleman for bestowing so
much care and attention upon this important subject.
(Hear, hear.) He was glad to find that the hon. and learned
gentleman intended to proceed with the bill expeditiously,
and hoped, as this was no party measure, that members on
both sides would assist in that desirable object, even
if one or two morning sittings should be necessary for
the purpose. He was glad to find that the old objection
against submitting non-traders to the same law as traders
had not weighed with the Attorney-General, and, for his
own part, he believed non-traders would benefit by the
change. Let non-traders keep accounts and exercise cau-
tion in making contracts as commercial men were obliged
to do, and there was no reason why an exclusive law should
be created for them. He rejoiced, too, to hear the learned
Attorney-General's opinion on imprisonment for debt, as,
from his experience, he had arrived at the conclusion that
the system should be got rid of as soon as possible. He felt
bound to express his obligations to the Attorney-General,
and to assure him that the bill would be very satisfactory in
lt.'s main features to the commercial classes. (Hear.)
Mr. MALI N S said thero wa's scarcely anything which had
fallen from the Attorney-General in which he did not
entirely concur. Many of the provisions of the bill had
already received the sanction of the house. They had una-
nimously approved the principles of having a chief judge
and of abolishing the classification of certificates. The part
to which there was the greatest opposition was that which
affected non-traders. But, as he understood, non-
traders would bo protected by due notice being required,
and by judgment being first necessary upon any debt in re-
spect of which they could bo made bankrupt. He inter-
preted the empty state of the benches usually occupied by
country gentlemen as an indication that their alarm had
been removed, and that they would not offer any very for-
midable opposition. The true principle, he apprehended,
was to make the law of debtor and creditor with regard to
traders and non-traders uniform, and to provide that all
classes who became insolvent should render up their pro-
perty and be restored to a capacity to acquire future pro-
perty. He thought it exceedingly rational that in cases of
great impropriety the judge should have the power to make
future-acquired property liable for debts. He regarded with
some degree of distrust the great diminution of the powers
of official assignees, as he thought great advantage had
arisen from assets being in the hands of persons holding an
official position, who could not use them for their private
purposes. He concurred in the advisability of going on
with the bill as soon as possible, but he suggested that the
Attorney-General should fix some moderately distant day
for the second reading.
Mr. CRAWFORD said it would ill become one who was
unacquainted with the principles of law to offer any criti-
cism on the luminous speech of the Attorney-General, but
as he represented the largest commercial city in the world,
he should fail to do justice to their feelings if he did not
take the earliest opportunity of tendering to the hon. and
learned gentleman their thanks for the manner in which he
had dealt with the question. (Bear.) He agreed with the
hon. member for Sheffield that it was not a question of
party politics. The notice was now in the hands of the
house, and he hoped Parliament would as soon as possible
pass this bill into law. (Hear, hear.)
Mr. WALPOLE said—l very much concur in the ob-
servations which have fallen from the kon. gentleman who
has just sat down. This bill is one upon which no party
question arises. It is a bill of the utmost moment to the
commercial classes, and it should be proceeded with in a
temper and with an expedition to enable it to pass into law.
(Hear.) With that object in view, Ide not quite concur
in the observations of my hon. and learned friend, inasmuch
as I think it better that the second reading should be put
for an early day, and that the committee should be post-
poned to such a period as will enable the people to examine
the details of the measure. (Hear.) That there may be
no mistake upon the points which will arise on the second
reading I will state briefly what I consider are the objects
of the bill. I conceive those objects are, first, a speedier and
more economical administration of the bankruptcy laws;
second, as a consequence of that, increased facility to private
arrangements, compositions, and agreements between credi-
tors and debtors; third, a gradual approximation to the
abolition of the punishment of imprisonment as the means
of getting satisfaction for a debt; and fourth, a gradual
assimilation of the laws of bankruptcy and insolvency, go
that the same principles shall apply in futuie to the trader
and non-trader. These aro the four great points involved
in the bill, and it is obvious that if gentlemen agree mainly
on those points the second reading may be fairly assented
to on an early day, and the details considered when the bill
has been in the hands of the public. (Hear, hear.) I will
not enter into any discussion of those points at the present
moment, because I think it is almost unfair to the Attor-
ney- General that we should throw doubts on portions of the
bill until we are satisfied from examination of the bill itself
that those doubts aro well founded. The luminous exposi-
tion which the hon, and learned gentleman has made of
the whole of the measure, also, is such as to preclude the
possibility of cavil at this stage. (Hear, hear.) If I throw
out one or two suggestions it is more with a view to keep
them open for myself in future discussion. In the general
objects of the bill I most heartily and entirely concur. The
points which I should like an opportunity of considering
are these :—first of all, with regard to the administration
of the law, whether it would be wise to place the adminis-
tration of bankruptcy in the County Courts—whether we
cannot acquire a facility of administration independent of
those courts. The reason that I have a doubt on this
point is that the County Courts ought to be kept as litigant
courts. Bankruptcy is essentially an administrative
court, and there must be great difficulty, though I do not
say it is impossible, of reconciling those two kinds of juris-
diction in the same court, without detriment to the
court to which the two jurisdictions are referred. I
entirely approve, also, of the provision that where a debtor
has been guilty of misconduct the court should have power
to come upon any property which he may subsequently
acquire. As to the mode of trying offences, lam not quite
sure that I understood my learned friend. It seemed to me
that he proposed that a case of misconduct should be trans-
ferred, if the debtor demanded it, to a court of law where it
would be heard before a jury, but that where no such de-
mand was made by the bankrupt the case should be pro-
ceeded with before the chief judge. I,VOuld suggest that
such cases should not be removed from the Bankruptcy
Court, but that the chief judge should have the assistance
of a jury. I would confine the trial to the court that is to
administer the property; but I think it is due both to the
judge and to the bankrupt that the assistance of a jury
should be called in. (dear.) t will nut, go hit° lie grave
question of the gretbild abelitio>w of P 44441914 kg kV,

nor the equally if nut more important question of the assi-
milation of bankruptcy and insolvency, because my learned
friend has treated those subjects so clearly, and has alleged
such forcible reasons for the propositions he has made, that
I think they must meet with general approbation. (Hear.)
I will say no more, except that I hope my learned friend
will receive all the assistance the house can afford him in
promoting this measure, and that, after all the changes
that have been made in the law of bankruptcy, and after all
the dissatisfaction that has been expressed as to the admi-
nistration of a matter so important to a mercantile people,
he may be able to identify his name with a measure that
will be at once satisfactory and permanent. (Hear, hear.)
Mr. JAMES concurred with the right hon. gentleman in
trusting that the learned Attorney-General would be able to
proceed without delay to the second reading of the bill. He
would not utter a word that might be deemed fulsome praise
of the Attorney-General for the very lucid manner in which
he had explained the measure to the house. There were one
or two important principles involved in it which would re-
quire the serious consideration of the house. One of these
was the new plan, which he believed would be an improve •
ment, of allowing creditors to settle their own affairsamong
themselves. It must not be forgotten, however, that al-
though the system of official assignees had proved costly
and troublesome at the first, it had led to the collection of
large amounts and long arrears ; and that cases were well
known where creditors' assignees had retained large sums
in their possession for a very long period without dis-
trituting them among the creditors. Abuses of that
nature might, however, be guarded against by a stringent
system of audit. There were, he conceived, safeguards in
the present bill which entirely removed the just objections
urged against the assimilation of bankruptcy and insol-
vency in the measure of last session. He approved the
power which the judge was to have with regard to pro-
perty afterwards acquired. It would be the duty of the
judge to consider not merely whether the debtor had con-
tracted the liability in a fraudulent and improper manner,
but also whether the creditor's share in the transaction
would bear investigation—for if there were extravagant
and fraudulent bankrupts on the one side there were also
grasping and avaricious creditors on the other. (Hear.)
The courts of law and equity frequently brought to light
the most monstrous conduct on the part of creditors against
young men with expectations of future means. He recol-
lected a case in which a debt of £520,000 was alleged
against a young man who declared that the only portion of
that sum he had ever received was £5,000, which had been
advanced by a Jew money lender; but by renewals and in-
terest the debt had risen from £5,000 to the enormous
amount he had stated. If non-traders were-to be brought
under the bankruptcy law, they ought to be protected
from the extortion of avaricious creditors, and he believed
the measure of the learned gentleman would secure that
end.

Mr. TURNER hinted that the lawyers and the merchants
had somewhat diverse interests in this question. The
lawyers were the cats and the men of business the mice. (A
laugh.) What the mercantile community sought was that
where a bankruptcy was duo to misfortune the bankrupt
should receive honourable acquittal, and that the creditors
should be enabled to realise speedily and inexpensively
whatever property was left. He expressed general approval
of the bill of the learned gentleman, and hoped its progress
would not be delayed.

Mr. MELLOR believed that the measure now proposed
to the house obviated the objections raised against the
former one. That portion of the bill which gave creditors
power to make arrangements by a vote of the majority,
without the interference of the court, met with the warm
approbation of his constituents.
Mr. ROEBUCK observed that the learned Attorney-
General had stated that there was nothing about compen-
sation for suppressed places in his bill ; and wished to know
whether he intended to make any provision for the official
assignees who were to be deprived of their situations The
hon. member for Manchester had alluded to a supposed an-
tagonism between lawyers and commercial men, and had
spoken of the former as cats and the latter as mice. He
begged to remind the hon. gentleman that in doing so he
had placed commercial men in the category of vermin. (A
laugh.)
Mr. PAULL hoped that the Attorney-General would
take means to secure one at least of the Government nights
of each week for the consideration of the bill. (Hear.)
The ATTORNEY-GENERAL thanked hon. members
on both sides of the house for the manner in which his
humble effort to amend the laws of bankruptcy and insol-
vency had been received. This measure was one almost
entirely of detail, and he should not consider that its second
reading pledged the house to anything more than the
simple proposition that the administration of the law of
bankruptcy required amendment. He had quite felt the
force of the doubt which had been suggested by his right
hon. friend the member for Cambridge as to giving juris-
diction in bankruptcy to the County Courts ; but his right
hon. friend would observe that he gave to those courts no
greater powers than they already possessed, except as con
cerned that voluntary jurisdiction, if he might so express it,
which they would receive by the vote of the creditors. If
the hon. and learned member for Sheffield referred to the
reports of the speeches which were made upon the measure
for establishing official assignees, he would find that those
officers were appointed upon the hypothesis that the in-
come received by them in London would be about £BOO or
£lOOO. The returns which had been made by themselves
for a series of years showed that the income received by
them in London had been about £l,lOO a year. This bill
proposed to make allowances to official assignees, which
would give them in London a maximum of £1,200, and in
the country of £l,OOO a year. They would also be relieved
from the responsibility of being liable to the costs of
suits that might be brought against them, and there.
fore he thought that the proposition which was to be made
would leave them little grounds for complaint. The bill
which he introduced last year was allowed to be read a second
time pro forma, and under those circumstances he should
venture to ask the house to allow him to take the second
reading of this bill on Thursday, not that there might be
a debate, but that the house might more rapidly go into
committee, where there must necessarily be much discussion.
In committee he trusted that the bill would receive such
consideration that we might not two years hence find our-
selves in such a situation as that in which we now stood
with reference to past changes in the law. (Hear, hear.)
Leave was given, and the bill was subsequently brought
in and read a first time. _ _ _