Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1840-01-31
A General sankruDt Law.


distress Of tue country been great it is at the
present time. Commerce is perfectly FRUSTRATED;
financial affairs paraly zed and the whole agri-
cultural interes of the United States are likely to
be brought to similar state before the close Of the
this; variety of causes $50 well known to all con-
cerned that il is not necessary here TO enumerate
them) are at work, not only to produce this result,
but even TO increase still more the commercial dis
trsss Of the Country And there is little doubt that
so far from having experienced the worst effects Of
the revulsion, we have only felt the CONNIE nee
ment and that what is follow will be ten times as
severe as that which we have passed through; un
less, indeed, some be taken ward off the
coming evils and to remedy those of the past How
this is to be done, scarcely any seems TO know
All agree that something must be done speedily; and
the only measure that has been proposed in order 10
effect this, is the passage by Congress Of General
Bankrupt Law.
Under the administration OF the elder Adams a
general bankrupt system was established which was
in operation comparatively short time and which
worked well so long it allowed to remain in
operation This law vas brought about by the exer
tions Of the Federal party and matter of course
strongly objected 10 by Jefferson, and many Of
the southern politicians and charlstan pretenders Of
that period, a measure that was anti democratic,
and sgbversve of the best interests Of the people
They also saw that the operation Of this law threw
the settlement Of the great CONNIE a relations of
the country ine the United States Courts, and by its
nhuenee tended TO the Capitalization OF ali the com
mercial matters of the eouatry. The power then
being in the bands Of the Federal party Of course,
the Jefferson school Of politicians opposed this mea-
furiously. The southern interest also objected
to the measure, because the south was principally
occupied in planting, and were mpa-ativeIy little
engaged in commerce.
In 1901, this bankrupt law was repealed and al
though several attempts have been made since re
vive its operation, they have always failed. Mr..
Hayne, Of $. c., came nearer succeeding than any
Of the others, ard probably would have carried the
law through Congress, had not the country at the
time been prosperous and the immediate need of
this law, therefore, was not felt
But the case is widely different at the present
ment. The country has been convu!sed from one end
to the other. All CONNIE rcial have suffered
or less scarcely any CT them is out Of debt and
all want that relief winch they cannot obtain under
the presen, system. There never was 70 favorable
a time, therefore, for the passage Of the General
Bankrupt Law, as the present time. The commercial
and planting interests lay PROSTATE; the ayrieul-
and nothing can relieve the one, and prevent the
other, but the operation of such law.
Engagements to the amount Of at least 100000, 900
have been entered isto aud due by aad from those
who are bankrupt, These were made when money
was more plentiful, and actually cheaper than IL Is
now. For although 81, 1000 now is nominally worth
no more than four i've years sisce, yet rela
tiysly and considered in relation TO the price Of la
= ondf he dan IN inIs AZ
goods. it is worth $1,000, and in some instances
SO Ooo How then can long standing engagements be
met, without some great and general measure Of
Jeff The banks may resume, the Sub Treasury bill
NAV pass into a law, but nothing start society
afrssh unless j, be general settling up Of old &C
counts by the passage of a General Bankrupt Law.
IL must also be an ez post JGcio law. 1t INST not
only embrace the u,sre but all the transactions Of
tse past in its bearings and operaions and then all
classes Of society will be benefited, and the mem
bsrs thereof will start afresh the in the broad
and beautiful walks of mercial life, like new
made men, or. d" giants refreshed with new wine"
This law should also embrace corporate bodie, and
their liabilities and transactions, az well a. indivi-
duals Merchants, societies, banks and corporations
Of all kinds should come under its influence and b.
subis cited TO its healthful control. There would
then be some chance for the honest and unfortunate
dcb,or, and none whatever for the dishonest. The
law could be made as severe as necesssry ON those
who fraudulcn;ly concealed and disposed Of their
property, whilst il would do away with all motive
to be dishonest fraudulent, except in those who
are constitutonally so.
Were such law IN operation, We should very sci.
dom hear Of the suspension Of the banks all over the
country. Those who did 80, should immediately be
wound mp By assignees, and their debts cancelled
with all their available assets, in the same way that
a private merchants affairs would be wound up The
banks would not then, now, essagc in a thousand
wild and proftless schemes snd spoculaions TO the
ruin Of all who confde in them. Bu, prudence and
caution would be properly observed Every maa
and every institution weuld thea have an induce ment
20 avoid bankruptcy and IL from circBmstance.
over which he had no control, his failure was newt.
able he then would have inIucemtnt TO pose Of
MS property fraudulenily. There would he an nvs-
,ble relief the honest debtor and ten times more
security for the honest CREDITOR than there Is under
the working of the present system.
AT present the whole law of debt throughout the
country is only powerful indueementto commit ali
sorts Of crime Hence the horrible prostration Of
morals consequent thereon. Hence the want of con.
fdesee fellowship and kindly feeling bet cen man
\ aa5 uaB. Hence the cnsnsbop and frigb,fsl IN