Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1822-01-29

could not guard. lfthere was no rcdenp-
ton, therefore, by public law, the merchant
might be derincd perpetually liable 10 ruin, i'm
It's most extended sense. Nor are himself and
family only involved in IL II may extend To
al those To whom he is indebted. Whoever
has often seen mercantile failures, knows that
fhcrc is sort of blindness or ntatua;ion that
seems TO affect them. The imsolvent is un-
willing to penetrate his situation, or TO believe
1t as hopeless as it really IS and hence he lin
gers with some chimercai, underlined, hope,
til bis affairs nave become more deeply involv-
cd, and his ciOharrassments utterly rretrie-
'abc. He is perhaps the very worst person
that could be selected to Judge ofhis own at
FAIRS. lie is led by The deluson to keep up
his credit, as long he possibly can and
yet, to him is cOnhded the uncontrolled pow
cr OF disposing ofhis estate He may waste
II, destroy it or put it beyond the reach of
h's creditors, and when he comes To the final
step ofan assignment, he has then the power
to make his preferences? and to provide for
the circle Of his friends, whilst his distant
creditor, perhaps equally mcritorious, is left
Without redress or hope of payment. What
Is The consequence ? Ii is now become an
usage, So common as almost 10 have acquired
the force of law, that endorsers and lenders
ofmoney are first to be paid. What but this
has created the fictitious capital so deeply felt
and deplored throughout this country What
nut the loan OF names, by which credit is
obtained, and money drawn from Il bank p
And yet in case of insolvency, these persons.
who by lending their names. create The evil
and enable the fictitious capitalist to borrow
money and thereby hold out false colours to
decoy the unwary, are first to be paid and,
perhaps, the very goods that were sold TO him
On credit, bGttoined upon the loan, are sold
abduction after the insolvency, to repay the
loan, that lured the vender to sell. That these
are evils will not be denied but would y bank
rupt system correct them? Mr.. S. believed
1t would. 1t would attribute the effects of the
debtor equally among his creditors. 1t would
cut oil undue preferences /; pay to all their
proper proportions ; and stop the bankrupt
from appointing his own assignees, aad from
prescribing terms 10 his creditor
Mr. s. then adyerted to the operation of
me certificate of discharge, which would
doubtless be in the minds uf ALL Its opera
ton, he admitted, would he to cut off the Gre
ditor from all future claim. But he would
try this, rs Il practical objection, and test it by
experience. He would ask the question, what
Is The value OF a claim against Il failing credi-
Tor now, after an agreement has been made
ana acted on Precisely, what it would he
alter certificate of discharge was given. AZ
Ter an assignment the debt subsists-so il
moral obligation remains ,ineXlinguished and
II has been held in the courts Oflaw, that, upon
a new promise 10 paya debt after certificate
mas been obtained, is sufficient consideration
10 support the action. The certificate doubt
less bars the legal claim, but if the sense OF
honor will Induces nan to pay after an as
alignment, it will he equally operative after a
discharge IL IS notorious that society draws
a line OF distinction between debts created be-
fore and after iailarc and the payment OF
debts after assignment creates as much sur
prize, and is marked with as much emphasis,
as If II had been done after a discharge This
consideration mad, in his opinion, been greatly
overrated, and more Importance was attach
ed to- II, than experience would warrant 1t
was not only private creditors, however, but
the government also, which was interested in
ta adoption OF this law. He alluded to the
collection of the revenue. In cases Of death
orpublic bankruptcy, where the property is
SUBJECT TO a dividend pursuant to law, the go
Vernment IS entitled TO IA preference. But the
case IS otherwise where the failing debtor takes
the law into his own hands, becomes his own
commissioners, and makes such preferences as
his own will and pleasure may dictate. In this
way the government may lose, and has alrea-
by lost, very great sums of money Mr.. S.
would not undertake, at this time, to antic-
pate the various objections that might be rails
ed to the bill. Some had thought that, be-
cause il contained within itself severe enact
ments against fraud, that it presmpposcd it
productive of frauds. II he, mir 81 thought
1t was calculated to generate fraud, he would
by no means supportit. But it was not obvi-
Gus that bankrupt law was more liable to
frauds than other modes ofcoercing payment.
was 1t an objection 10 an execution, obtained
by ordinary process of law, that the debtor
may be guilty of fraud to evade it /? 1t was
so liable, Mr.. S. cOntended, as the practice
mat now prevailed, where the bankrupt was
left to make the law for himself In the way
IN which the examinations were taken in En-
gland, great and frequent frauds were unuues-
honably practsed. This was owing mol so
much to the bankrupt law, as 10 the growth
OF crime in that kingdom. The root of the
EVIL was ~ the state of society. The Lord
Chancellor has the sole cognizance and dircc-
ton OF the law throughout the realm. The
examination is etpaHe and in secret, and the
merchant is ignorant Of the proceeding till he
lUds MS name IN the gazette, published as n
bankrupt. If he then wishes 10 contest the
LEGALITY of the commission, he must petition
Tue Lord Chancellor to avoid it, No such
provision WAS to be found in the bill before
me house aud 1t was strange indeed that il
had ever obtained among the enlightened IN
rsts OF England. Another mischief aross II,
me administration Of the bankrupt law in that
Kingdom, In relation 10 what were called ultra
COMMISSIONS or such as arose out of the CITY
OF London. la those eases the commissioner
WAS appointed 10y the Solicitor here hc is a.-
pointed by the President the United States.
There the business was transacted without re-
gdarity, III the midst nr noise and the com
missioner at one table would perhaps turn
round and bc solicitor at the next but no
SUCH mischief could exist under this bin. An
other appalling objection had been. the cost
and expense of an English commission. I'll