The Northern star, and constitutionalist. [volume] (Warren, R.I.) 1834-1837, 1835-01-31

In the principal commercial countries
OF Europe there are bankrupt laws, which
direct, that the effects Of merchants and
ufaders, who become unable TO discharge
their debts, shall be ratcably distributed
among creditors and which, ut the same
time, released the debtor, ii he have been
guilty OF no fraud, from ull further respon-
sibiIity. The policy OF such laws IL to
encourage trade. and hence the indul-
ssncc they afford, is confined 10 those
persons who are engaged ia trade 1t be-
ing obvious that extending the indulgence
10 others, would be " countenancs indo-
lence und estravaganee.
The Congress OF the United States are,
under the CONSTITUTIONS, empowered 10 CO.
tab!ish IA uniform system OF bankruptcy |;
and the authority thus delegated was ex-
ercised by the passngc ot bankrupt law,
in the year 1900. The law referred to,
was modelled upon the judrious "nd eq-
ui,able statutes of bankruptcy existing Il.
the time in England and II expired by lis
own Limitation five years ailcrwards.-
There has been no revival ot II since, and
at present, . there is no probability thm
there very soon will be. Any ona ol the
States may enacta bunkrurt law tor IL
self /; but its power To do so Is, by the Con
sitution, subjectsd to important rest. ict-
/, ,ns. No Slate bankrupt law can affect
existing contracts it can come IN con-
fiict with no Act Of Congress and its OPP
erat,on cannot be extended to citizens OF
other States. A bankrupt law oi II single
State could not, therefore, supply The
want OF "a national one.
In tho absence Of II bankrupt law, 1t IL
natural to suppose, that th"so who are
engaged in the pursuits Of commerce.,
,.neu they becoin- SO embarrassed AS "
be unable to discharge with proper punct-
ualty, their engagements, will--iiKe per-
! sons in similar state OF smbnrrassme ut
, who do not come within tho uin aud IN
, tention Of bankrupt law--ussign ,hei
. property and effects in trust, lor the us'
: and benefit OF creditors. That such ha
! long been and now is, Il very common
; practice in tho United States, is a TACT $,
a we'll and GENERALLY known, that il is bare
: ly necessary to appeal to 1t. By The Vol
b untary assignments, made, aud to b'
d made. under the circu.iis, ances nnd Tor th
b purpose Just mentioned, u vast deal of lit
d guiion nus, nnd will continue ~ be crca
: ted. There has, o,withstu.ding, hilher
d to been no work PROCESSING to aivo u fu
t. and systcHut,cal view Of tn. law deter
d mining the validity Of such conveyances
y as it has often been eXpoundcd ny Amer
: lean Courts, in references to Tie statute
u copied from the one pusseu by the Brit
: ish Parliament in the ihirtsenth yenr
! the reign of Elizabeth, for the prevcn.io
"A of all transfers in trnud OF creditors.
!, The above considerations have Undue
o ed the author to prepare and offer TO lh
It public, the following work. lie appear
d before the public with no other p'eter
II ,ions, than us having attempted tho tas
d or exhibiting, in II methodlenl form, an
!, within a small compass, the suhjec; b,
: fore him, as it has been ndjutlicatcd upo
h by Counts of Law and Equity. Will
u he intends the work chiefly for the col
= venicpce of the profession, aud person
), in trade, he INDUCES hope that II ma
! tend to promote very desirable objec
+ viz the gradual reduction of-by th
coucurrent aid of our locul Legislative nn
Judicial tribunals-Ath law of assignment
), in trust for the benefit Of creditors, to
more uniform system than he vt any oIhs
; author is now aDlo to present.