Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1819-03-23
: -7-zz..,..--....-..
STATE iNSOLvFNy laws

PERCY
---------- = = = , sg-zz--.----.-
STATE iNSOLvENT LAWS.
t7'eti n'~'e>t having been excited respecf
ing Tue feccs; decisions al the Sir, rene C,tutt
on tie s"bicc; OF The Stale Raakruut and
'.SoiFeht 'dAS, We bave obtaned a statement
ot 'He poirts decided by the Court the
accuracy ot ~ lich may be depsuded on and
which we nov lay before our reader, The
opinions at large, with the cases. and the
argument OF counsel, will very SOo,l anprar m
we 4'n Voin'he OF Mr.. w heatomS Reports Ii
"""i" 9t OBVIOUSLY impossible 10 include all
t"e>e IN the compass OF u ucwsplptr; and we
nae therriore, limited our,eitcS to a brief
"SlNN'S OF t'ie OpiiflOnS OF the Court
tHe first case OH this sniJiect vyhivi, was
hrhrh and determined by the Court, was that
OF .st"'E,S against GroWpihsti.id. Ihjs was am
s'""i or assumpS't against he defendant ~
t,"NHSN', "pom two pInunssoIy notes, both
""'Fo ~ New York 22d March, 1871, tor the
sTa ~ 9'r 81 earis- and payable TO The
Pia'ilii, Uue on The hist OF August aud the
C'hei on thc fifteenth at August, 1871 The
"a .rhd@ut Fieaded ISIS DISCHARGE nuder" an
"St 'ot Inc bentt Of iusulVen debtors and
Wsh creditors. passed by the Legislature of
new foi K, the ihird dag OF April. ISL After
si4tl,S ihe provisions OF the act the delen.
ud'' A'ca averied his compliance With them,
".'' '"dt ne WAS discharged, and certificate
e'ne" 1" Hin tue day of 1872.
40 HIS plea there was general demurrer
ana jomher At the October tenn OF tie
N"cn' Court, 1871, this cause came ON to be
io,owiHg quesii0hsarOse, viz:
l. HNetAer, since the adoption of the con-
sutH'ion of the United States, any state has
authority 20 pass a bankrupt idw. or whether
'he powers exclusively vested in the Congress
OF the Uoiied States
q NhetSer lie act of New York, passed
me tn"d day ct April, 1871, and stated ia the
plea in This case is a bankrupt act within the
meaning OF the constitution of the United
state
5. Whether the act aforesaid is an act or
Ia" ma ,alrins Tie obligation of contracts
wiliin Use nearing of The constitution OF the
United Slafex!
1. v u ,her lie Flea is good and sufficient
ba! ui tie pldiAilii action!
Adj, alter hearing counsel upon the ques
hons, the judges Of The Circuit Court we're
opposed IN opinion thereupOn ; ana, npon
melton OF The piainiIii's counsel, The questions
were G. rtliied 10 the Supreme Court, Tor their
d" the first question. the Supreme Court
were nt opinion. that, Hntil the p0wer, con
t"i''s'i ~ tue constitution OF The United States,
l" t.Ss uAiipIm laws ghroughoul the nniO1 on
Tue sui5ecl OF bankrup tic es, be exercised by
SOnsrsss the states have auihsrity to pass a
Hahh upi l.w prOvld d Hth .aw contains 10
rfntCTie oaiiug the 10Th section OF the LIST
hruc:e OF The constitution OF the Unitld states,
"9!Ch declares t,iat" no state stall pass any
law inpdTing the obligation Of contracts"
as Op1iCn, OF course, IenderCd IL unne.
c., aiI 10 consider tie 2d question.
NH ihe 81 question, the COuri were Of
l
Lieated IN tbs case, (and which not only
HpeIteS the person OF the debtor, but dis.
chdiEoS him from all liability for ANY debt
previously CONTACTED on hIs surreuderiug
ms property ia the manner IL prescr!Des) IS an
aci OF Ia" npariSg tic obligation oil contracts
N1thID TIE meaning of Tie 10Th section oil the
III afucte OF the constitution OF the United
S,dtS IA detyecn2 The Judgment of The
Cont, the Chief Justice stated, that as TO
what was Intended by the trainers of the
constitution when they used the terms" diy
ieio nApoiIWg The obligation of contracts" II
""i"@i seem d tilculi TO SUBSTITUTE words which
are more Ineligible, OF less liable to miscOu
sirnCUon. contract is an agreement III
"h'h party undertakes to do OF not to do
paiI cuiar hing. The law binds him to per.
FORM us nhdei taking, and this is of course,
thc Obligation OF "a contract. In the case al
bar, Tie defendant had given las DrOmissOry
h"tc 10 pay tie ~ 4iiitih sum Oi money on o
before ceftdYl day. The cuntracf binds him
10 lsy mat sum on that day, aud this is its
Obligation. Any law, which releases d part
o. IL 0DIgaiiOH, muse, n tlte lite al sense Of
the void .iRlh0ir ii.-Nuch more must W
impair il which uakes il totally invalid aud
o"treis dr.ritdrS' /
~ vas not necessary, nor would il have
cen safe, tor tie trainers OF the constitution
L. eVGnIeiate particular objects TO which the
pfhcipIe they intended TO establish should
apply. Tie principle was tie iRriOiaLHity Of
contracts. This principle was to be protected
III whatever form IL might be assaied 10
hat paipUse should tie convention cnume.
rec me particular Wcdes NJ riJi0tiOH, winch
sbOhli be iOfMddcu, when il was intended to
forbtd NJ Had an enumeration of all the
l""s WHICH might violate contracts been at
trmpied, tie provision must have been less
complete and involved iH mere rerplexity
IRA I no" is.-'lhp PLAN and simple decla
Tai.0I. that 40 state shall pass any iiw impair.
~ the OhigatioB Of contracts, includes insol
TfHi a"s aud all other laws so Tar as flley
iniiirte tie principle the cous nti0n Intended
o. bold sacred, sEd no farther. But tie
CONVENTION Odd not intend 10 prohibit tie
Pdsfa-e Of al insoircrt laws. 10 punish
honest Insolvency BY imprisonment for lite
s - make this constitutional ppinciplc.
would he an excess Of iuiiu,uanity, IS itch
Worin not feaddybe imputed fOthc INDUSTRIOUS
Pdiuois viJ iranrd our constitution OF TO
tue feopie vt9 adopted il The distinction
b tWtt"therb itlfiOJDfd contract X eTsJngdy
gwen by The iCtj.itiure 10 enforce that obi
CATION, exists u the nature of things. The
remedy has be modified ~ tho le isiaiive
wisdom shall aHcCt. ~ifhoui impnlog the
OIL taiion oi SIC cOutfact Confinement 0f
the debtor nify bel puUl siimrut for not per.
t3rmiug 30 COZ idct. 90 maybe allowed as u
iosau. ot IndstnE him to petgDtm a. Bnt
f'e siaiF faaF fe!i',c SO HfiiCt ,h. rH0isimeu,,
OF pay With ID 'iGs Beous oUd leave he
Contract 10 iiH lrcg ldpTisonmtrt is no
ltfi ~ ihr c0ntsaSi, ana simply to relieve the
pu.ouci does not mVslrits tf CATION.
lh9 court also ~ .lund.eG luaI al had been