, 1840-07-11
MR.. WEBSTER'S SPEECH.

N"'" LIZ NJ LLSIl
In o. S. Senate, Nay Is, 1910, on the pro-
posed amendment to The Bankrupt Bill.
(coScLuDED.)
Leaving this very important part of the
case. another question arises upon the pro-
posed amendment. Shall the bankrupt act.
in its application to individuals, be voluntary
only, or both voluntary and compulsory?-It
is well known that 1 prefer it should De both.
| think all insolvent aud failing persons should
have power TO come in under its provisions.
and be voluntary bankrupts; and | think, too.
that. as to those who are strictly merchants
and traders, creditors ought TO have a right
TO proceed against them, in the commission
of the usual acts of bankruptcy, and subject
them to the provisions of the act. But the
committee think otherwise. They find many
objections to this from many parts of the
country, and especially from the west. In
a country so extensive, with a people so vari.
Gus, with such different ideas and habits, in
regard 10 punctuality in commercial dealings,
great opposition is anticipated 10 any meas
ure SO strict and so penal as a c~oercive bank
ruptcy. | content myself, therefore. with
what | can get. | content myself with Il
voluntary bankruptcy. ! am free TO confess
my leading object to be. TO relieve those
who ale at present bankrupts. hopeless bank
rupts and who cannot be discharged or set free
but by a bankrupt act passed by congress.
| confess that their case forms the great mo-
tive of my conduct. II is their case whirh
has created the general cry for the measure.
Not that their interest is opposed 10 the in
terest of creditors; still less that 1t is opposed
TO the general good of the country. On the
contrary, | believe the interest of creditors
would be greatly benefited even by a svs.en
of voluntary bankruptcy alone, AMI | am
quite confident that the public good would be
eminently promoted. In my Judgment, all
interests concur; and it is the duty of pro-
viding relief for the unfortunate insolvents. in
amanner thus favorable to all interests which
l feel urging me forward on this occasion.
And now, sir, whence does this duty arise.
which appears to me SO pressing end impera-
tive? How has it become so incumbent up
on us? What are the considerations, what
the reasons, which have so covered our tables
with petitions from all classes and all quarters,
and which have loaded the air with such loud
and unanimous Invocations to congress to
pass a bankrupt law?
SIR, let me remind you, in the first place.
that commercial as the country is, and having
experienced, as IT has done, and experience
ing, as it now does, great vicissitudes Of trade
and business, it is now almost forty years
since anv law has been in force by whirh
any honest man, failing in business. could be
effectualIy discharged from debt by surren-
desing his property. The former bankrupt
law was repealed December 10. 1905
From that day to this, the condition Of an
insolvent. however honest and worthy, has
been utterly hopeless, SO for as he depended
on any mode OF legal relief. This state of
things has arisen from the peculiar provisions
of the constitution of the United States. md
from the omission by congress to exercise
this branch of its constitutional power
BY the constitution, the states are prohibited
from passing laws Impairing the obligation
of contracts. Bankrupt avs impair the OBJ
legation of contracts, if they discharge the
bankrupt from his debts without payment
The states, therefore, cannot pass such laws.
Tne power, then, is taken away from the
states, and placed in our hands. 1t is true
that it has been decided that, in regard to
entered into after the passage of
any state bankrupt law, between citizens of
the state having such law, and sued in the
state courts, a state discharged may prevail.
So far, effects have been given to state laws.
] have great respect habitually, for Judicial
decisions; butt I has nevertheless, | must say,
appeared to me that the distinctions
on which these decisions are founded are
slender, and that theyqescape, without an-
the great political and commercial
intended TO be secured by this part j
Of The constitution. But these decisions,
whether right or wrong, afford no e~aectual
relief The qualifications and limitations
Hhich hare stated rendered them useless,
@ to the purpose Of Q general dischalge.-l
20 much Of tie concerns Of every man Of b.