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

not uUChl lot us ~ extend tie
inc persons included IN proviso ought TO be left free
to embrace the voluntary 81 stem of Banlsruncv viii
Inc consent OF their creditors; but that they were M.
IN Tins country at least, fit subjects for the concuIsorv
system.
BY the first section of the bill the creditors arc ner
United I" act when any act of Bankruptcy shall be
committed by creditor. The true mode fsavs FdinN
OF viewing hat the law terms an act of BanI,rupc
Is as test OF insolvency, act from which solver
cy may be considered as in Acatcd-on proof of which
INC Grcdor Is entitled to prompt remedy against the
insolveDt cStatC.n
Tins principle is obviously applicable to traders only.
ana snail never with my consent be extended 10 olher
GasSes' n merchant who fails 10 pay the discount on
ms note IN oank must under the msdern system of Gre
dit unquestona!ly be insoveu bat surely such cir
cunisance would afford slight presumpiinn of Lo
Insolvency of farmer-luiced, the whole system Of
compulsory Bankruptcy. IS in all respects appcab BILE
extensively, To those whose ordinary business i'm orcat
measure depends upon credit and 10 tbcsn classes #
must be continued.
Before creditors permitted avail themselves of
the oeneht OF this act they required 10 give bond
10 answer damages and costs, and then they are
not permitted proceed, unless their demands shall ~
mount TO $1,000. The necessity of these provisions
needs no illustration.
come 10 consider
ID The Acrs OF BANE-RuprcY
l'eSe are substantially, or nearly the as arc
found in the British Bankrupt Law and which were in
troduced into act of 1900. The differences win
now proceed to point out
At the suggestion of one Of tire Judges of tLe SUI
prenG Court OF the United States the words have been
mercantile men, have generally stopped PAYMENT -
These words, which, il is becv ed, will he very clear
understood by those TO whom they be applied
may perhaps embrace class OF cases that MIGHT mt
fail within the other descriptions without ALLOWING
latitude OF construction abhorrcn the genius Of our
institutions
The next amendment is in the clause which contains
these we'ds. n SHALL remain in prison. or under arrest
twenty da, moren
lerc the words 'or under arrest" introduced Nv
the Committee, TO provide for the case Of persons por
nj of Stooe
ally confined in prison. The period OF utwenty a, -
Is here substituted for two months which were required
by the act OF 1900 The English law this point has
undergone several alterations. BY the statute of
James the First confinement in prison was not consi-
dered an act OF bankruptcy, unless continued for six
months twenty years afterwards (by the statute Of
u james The period reduced TO two months; and
oy Tie late act is sill further reduced twenty one
DAYS.
In England, new principle last year introduced
VIZ that declaration of insolvency flied in the Bank
fuPt Office. should he considered an act OF Bank
ruptcy.
The committee are not prepared say, that any in
convenience would arse from tins ;royson-but nc !,
is new they shrink it will be prudent wait for The re-
suit OF the eN feriment Lofore il introduced in this
country. Indeed, they have acted througlout on the
principle, rather TO fall short i'm their provisions t,n IN
oversoot the ma-ratler do little than too much
rather to leave defects be supplied than Injurious re-
Gulations TO be repealed.
81 THE MODE PROCEEDING.
me ifs step to he taken by a creditor wishing 10
avail himself OF The bankrupt law swear TO his debt
lie then applies TO the Judge, and, having given the
necessary bond commission IS issued TO the COMMITS
H"her oil Bankruptcy, who is Immediately invested with
power TO act on the subject he bankrupt is ins1e-
diaeIy summoned and examined and the Truth o. false.
mood OF the allegation is at asccrtaned. Ii il is
necessary witnesses are cxamincd--cvcn jury may
be empannclled, the instance of either of tho r,r,cs
and the case is determined once Ii the debtor IS
"eciarcd 10 be bankrupt, his property Is Immediately
vested III asslnCes TO be chosen by the cred DIS whose
duty Ut becomes TO collect the same, and make an equal
division thereof among the creditors within four mouths
he notices. when and how 20 be given, examination Of
witnesses, proof OF debts, &c belong the minute de-
tails with which will not trouble the Senate al this time
During the necessary Investigations the ban upt sup
ported ont OF the estate and privileged from arrest. On
the mai distribution OF the estate the bankrupt receiveS
IAN allowance rToportoned to the paid on lis
debts Ii las creditors receive a dividend of - per Cunt
he Is allowed commission of 10 per cent provided The
whole allowance shall not exceed 5000. Should his rs
tate divide 90 per cent he is allow ed commission of
five per cent not exceeding $500 and, should the d.
vdend be under 30 per the allowance Cannot OK
coed $500.
One Of the material provisions in This bill is dat
winch substitutes tor the commissioners, who the
agents employed IN administering tho law one General
commissioner OF bankruptcy. The experience boil, o
England and America IS conclusive to show that tins
Las been the weak point Of the systen. Edn declares
That, notwithstanding the numerous improvements in
troduccd into the bankrupt system in England lie con
slders them only as the prccurcrs Of change IN the
agents by whom The system Is cxecuted--''a change.
Say hc)which viii bc worth all the resD All who re-
collect tie operation Of the Of 500 concur that tie
want OF character and knowledge IL the Commission
ers was the most Efficient Of Tie evils so much
complained OF under that system. The remedy which
we now propose for this, is. 10 substitute single COM
missioner for tue whole army Of officers provided by the
former law In England, they have been constantly
diminishing the number Of commissioners, aud still tbcv
are TOO numerous. By adopting this plan talent eliza
Tacier and experience, VIII be secured By the former
law tie commissioners, Of which there three ia
each case received five dollars DAY each, making a
charge upon trc iosoycnt estate Of Gccn dolIar- t.
IS now proposed 10 substitute commissioner. and tp
give hn Ten dollars day; tp saving 10 The estate
third Of whole the expense, with The certainty that
sibly Of obtaining the attendance Of the General Com
missioner at remote parts OF tic country. This is pro-
vded for by giving In power (untcy tic direction uf
tic CONT Of sub1iiuinG special commissioner ~
peculiar cases. IL IS believed that nineteen cases out
OF twenty will arise III the commercial crtir- or IN rla
ces where the General Commissioner viii be able 10
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