, 1840-07-04
Mr.. WEBSTER'S SPEECH.
In U. S. Senate, Nay IS, 1910, on The pro,
posei amer lmcnt to the Bankrup. Bill.

AT - u ''cta'S. -AhJ u iofO. WI tC "O-
posei meaimcnt to the Bankrupt Bill.
i feel a deep and anxious concern for the
success of this bill. and, in rising to address
the Senate, my only motive is a sincere de-
sire 10 answer objections winch have been
made t. it, SD for Is NAV he able. and t.
urge the necessity ani importance If lis pas.
sage. Fortunately, It is a subject which
does not connect itself with any oi the party
contests OF the day, and although it would
not become me to admonish others. yet |
have prescribed it as a rule to myself, that,
in attempting to forward the measure. and
to bring it to a successful termination, | shall
seek no party ends, no party influence, nc
party advancement. The subject, SO for as
am concerned, shall be sacred from the in
trusion of all such objects and purposes. |
wish to treat this occasion, and this highly
important question, as a green spot, in the
midst of the fiery deserts of party strife,
on which all may meet tremendously and
amicabIy hold common counsel for the COM
mon good.
The power of Congress over the subject
of bankruptcies-the most useful mode OF
exercising the power under the present cir
cumstances of the country-and the duty OF
exercising it-are the points to which atten-
ton is naturally called by every one who
addresses the Senate.
10 the first place, as to the power. 1t is
fortunately not an inferred or constructive
power, but one Of the express grants Of the
Constitution. ''Congress shall have power
to establish uniform laws on the subject Of
bankruptcies throughout the United States"
<rl~-~ - .Ia ur,.1. .c The Grant. thoro ,,,1-
he questions about the extent of the power,
but there can be none of its existence.
The bill which has been reported by the
committee, provides for voluntary bankrupt
cies only. 1t contains no provisions by
which creditors, on an alleged act Of bank
ruptcy, may proceed against their debtors,
with a view to subject them and their proper.
" 10 the operation Of the law. 1t looks TO
no coercion nv n creditor to make his debtor
a subject Of the law against his will. This
is the first characteristic of the bill, and in
this respect it certainly differs from the FORM
er bankrupt law of the United States, and
from the English bankrupt laws.
The bill too extends its provisions not only
to those who either in fact or in contempla-
ton of law are traders, but to all persons who
declare themselves insolvent, or unable to
paw their debts and meet their engagements,
and who desire to assign their property for
the benefit Of their creditors. In this re-
spect. also, it differs from the former law,
and from the law of England.
The questions, then, are two: Isl. Can
Congress cons,itutionaliy pass a bankrupt
law which shall include other persons be-
sides traders? Cd. Can it pass a law providing
for voluntary cases only; that is, cases in
which the proceedings originate only with the
debtor himself!
The consideration of both these questions
is necessarily involved in the discussion Of
The present bill. inasmuch as il has been de-
MED that congress has power to extend bunk
rupt laws further than to merchants and ira
ders, or to make them for voluntary cases
only. This limitation in the power of con-
gress is asserted on the idea, that the fiamers
of the Constitution in comforting the power
of establishing bankrupt laws, must be pre-
sumed 10 have had reference to the bank.
rupt laws of England, as then existing; and
that the laws of England, then existing EN-
braced hone but merchants and traders, and
provided only for involuntary, or c~oercive
bankruptcies.
Now, sir, in the first place, allow me to
remark, that the power is granted to Con.
gress in the most general and comprehensive
terms. 1t has one Limitation only, which is
that laws on the subject of bankruptcies shall
be uniform throughout the United States
With this qualification, the whole subject is
placed in the discretion and under the legisla.
ton Of Congress. The Constitution does
not say that Congress shall have power to
pass a bankrupt law, nor to introduce the
system of bankruptcy. 1t declares thai
Congress shall have power to establish UNI
form lars on he subject Of bankruptcies
throughout the United States" This IS the