Constitutional Whig. [volume] (Richmond, Va.) 1824-1832, 1826-06-09

subject N France n
system has existed since the time of LOUIS the
Fourteenth. In SPAIN the system went into operat;on
IN 1857 In Italy, Holland, Ireland Svo;laud-in
snort IN every commercial country il has been success
SNeiy introduced; and where once introduced has ne
yer oeeh aooished The system has every where been
coe''l with credit-has grown up with commerce. and
essential 10 ITS prosperity, if not its existence-
" nereVer we lind trade there always find Bank.
ruP' laws Ii the experience of modern times can
prove any thng, think the policy of Bankrupt Sys-
leh Is IDLY established This alone has sur, ived all
COMMISSIONS and revolutions which have, in modern
".hes' gwen new aspect 10 the affairs the whole
cViiizeu world Amidst all changes in the internal re-
gulatt0ns and foreign policy of Stues-thuu"b poti
cal stems bave perished and forms of government
oeeh canged--though codes o! political and nu.
h'cHa' iaws have been adoped-the Bankrupt Sy stem
mas survived them all In England lived through the
Revolution which brought Charles the First TO the
scahoia-It survived the Commonwealth, the Restura
uoh, ana the Revolution of ,j83, which put William
OF Orange upon the throne of England. In France
passed unhurt through the fiery ordeal Of the Reyolu
non, found place III the code of Napoleon and still
survives under thc Bourbons. In short if the prac-
"oe VI European nationS, on question strictly
ncrcai, can prove any thing it must establish the truth
that wise and ludcious system of SanlSruptcy is an
souey necessary In the cia operations Of every
country, under all forms Of government.
proceed next to consider Of tic general prn-
cpies and particular provisions OF the bill before
II IS OF the very of every wise and iudcious
bankrupt Law, not only provide for the fair equal
ana speedy distribution Of the estate OF the nsoyen
downward To nj
50 as 10 save tor the creditors much OF the estate as
possible. This nterposition of the law takes place
whenever any OF those acts technically called
acts OF Bankruptcy, which, in a commercial communi
y, unlsn une4uvocai evidence of failing circumstan
ces' The duty OF gathering Ip the fragments of the
estate, and carefully preserving them for those 10 whom
they rguliy belong, IS assigned persons chosen by
he creditors themselves, and bound by legal restraints
ana obligations 10 fulfil those duties with industry and
hdeity The law thus in aid of the creditor,
al his instance, and the facts being ascertaued bv an
immediate inquiry, prompt measures taken to afford
hi complete Justice The acts of the Bankrupt him
SCH from The moment these unequivocal indications of
insolvency are given, absolutely null and void ex
ce SO far as they be necessary to protect
dealing with hn in the ordinary course of business
without notice oi his insolvency lie has no longer
any power to transfer his estate or by trust deeds or
other conveyanccs to dsspale the remnant of his for
tunes. All partial assignments are overreached and
aihpreterences prevented. As lust CONDENSATION TO
Inc debtor Tor smhecting him 10 the operation nj these
rigid laws, he Is released from all his debts provided
his conduct throughout he free from the slightest faint
OF fraud His property, To the iast fartIne being Ia
ken nom HIM and divided equally among his creditors,
he is made He commences A fresh exjs
'ehce' ana goes forth again 10 seek his fortune
The world is all before him.
Where TO choose, and Providence his guide.
Hucn are The general principles embraced in this
o,Il-ihe mode of procccdng-the agents to be en-
regulations 10 prevent fraud on the one
part and oppression on the other-propery belong TO
Tie details and TO render them complete and eGectna
and free from substantial objections has been the anx
ous oesire OF The committee. 1t is certain that
I"G'cai errors IN the regulations these points CON
Uloutcd 10 nTlnG odiun on the English BANKRUPT Sys
tenn and perhaps FASTENED the destruction of orr act of
$500. Halter myself however, that. with the lights
we have had 10 guide this subject, we are now
able to avoid some of the rocks on which those who
went before us have been shpwreckcd we are not
now wandering over troubled ocean without a com
pass or chart Weiiave as guides the act of 1900
ana the experience OF the country in relation 10 IT..
o sara h t..x,I,
oil The abicst lawyers in the United States in 1920 and
winch passed the Senate in 82l after having for seye.
raj successive sessions, undergone a thorough discus
in both Houses bv some of the .beet ,ro, o,,
country has produced.
But above ALL we have the new British Bankrun;
Law, prepared under the immediate direction of the
Lord Chancellor, founded the examinations in tbe
House OF Commons, in 1917 and 1873 and his own
ample eXPeriencc) and intended remedy abuses and
remove objections. These. SIR have furnished "a light
TO our feet and a lamp to orr path"
viii now proceed to examine the provisions Of this
bill somewhat more in dc!ai-adgcrting particularly
to those which are new.
This bill embraces two dstnc, systems,
The 1st Compulsory, and
The Cd Voluntary
The first applicable TO traders onlv-tIc second 10
persons not concerned in trade. The former being the
old established system and the latter being the new
and for the first time proposed by committee tho
1t was adopted as amendment by a vote Of this house
IN respect 10 the compulsory system of Bankruucv,
ton the Senate VIZ
lst. Who may be Bankrupt.
ID. The acts which shall constitute Baukruptcy.
Sd. Tie mode of proceeding.
1st This bill deCares,in The very words of the act Of
1900, that " any merchant or other person residing
Thn the u States, actually using the trade OF 1ner-
ch1ndze, by buying and selling gross or by retail or
dealing ~ exchange, broker, banker or factor
underwater or marine insurer, may be made bank.
rupts"
These were The persons embraced by the former }ri-
fish Bankrupt laws until by series of judicial deci-
SONS these laws received more extended operation and
we're made to embrace under Inc description of persons
getting their living by buying and selling" farmers
gr9zicTs, mechanics, and host ofothers.
THIS extension was considered in England, and even
by the Judges themselves, y great evil. When TIC
bill OF 1920 an1 1921, therefore introduced into
Congress proYIso attached to it, by which it was
declared that armers, grazcr shoe makers, carrcu-
ters taIoTs Inn Keepers aDucrs, and Others whose y-
ing IS substantially gotten by mechanical labor. though
with some mixture Of buying and selling, shall not as
such be deemed to be within this act.D
The learned gentleman who originally introduced this
provso declared that founded on careful exa-
miuaon of all the British sdulications on the subject