The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1840-06-25

latter are more fully represented than the former
ana 81 course have preponderating influence
Legislation is always slow when its march i
against the current of popular influence. Blu
those reasons have many Of them lost then
lorce. The insolvent laws Of the respective
states are found TO be inadequate TO the relief re-
CURED, and, if we are TO judge from what we
near from every section Of the country, and from
every class of its citizens, we may suppose thai
'he time will soon come when that dormant
power in the Constitution will be reused TO ac-
uon' Continue the present pecuniary distress,
ana there will soon be uniform sentiment in
| favor oil auniform system OF bankruptcy. Uni
form pressure and distress throughout the coun-
Try have, IN some degree, overruled local objec-
lions and invidious feelings among different
classes, and invoked al last the only remedial
power. Moved by this invocation, the Commit
zee on the Judiciary have reported bill, which
Is now before us.
| That bill provides for the two great objects Of
bankrupt system, as | understand il, in this
country LIST. The surrender Of the insolvent
debtors property, TO be divided among his credi-
tors I'd. The discharge from all his debts due
tothose creditors. This bill is for voluntary bank
ruptcy only IL plain in its principles and sim
pie IN its details, and TO be administered in a
cheap and speedy manner. To this bill there is
an amendment offered BY the minority Of the
committee, by which amendment another bill,
containing different principles, is proposed to be
substituted. To that substitute am opposed
object TO two of its prominent features
lst To the principle of compulsory bank
ruptcy. which il contains.
2dly TO the principle which embraces cor
porations,
| The principle Of compulsory bankruptcy is not
called for by the voice Of the People, either the
rich or poor, which has been so generally and SO
| loudly expressed on this subject. II is not re-
quired in this country for the protection of the
creditor He has his remedy, 10 all intents and
purposes, by civil process, for the collection of
his debts II lis within the province Of the State
Governments so TO extend that process, and pro-
vide such remedies at pleasure, as to subserve
all the purposes OF collection, and afford to the
creditor cheaper as well as more summary
and more certain system Of collection than
can be afforded by any bankrupt law Yes, Mr..
President, the creditor can in this way reach the
last dollar of his debtor. He can strip him Of all
his property and turn him naked upon the world
What more does he wani2 Bankrupt laws,
repeat, Mr.. President, are necessary for the
debtor only, by which he may be enabled ho-
nestly 10 surrender his property to his creditors,
and take his discharge. This can only be effected
Through the medium Of bankrupt law An
arrangement may sometimes be brought about
by compromise between debtor and creditor, and
| | have found in most cases that creditors, espe-
cially those Of commercial pursuits, are iavora-
bly, disposed 10 compromise. If all creditors
were actuated by the same liberal and prudential
motives, there would be no necessity for bank
rupt law. But, sir, il does so happen, that in
many, if not in most Of those eases, there is
| some one Of more stern and memorable spirit Of
exaction-some Shylock who will exact the
bond-who will insist, not only on the flesh, hut
on The blood. For these reasons, without a bank
rupt law, the nsolvent debtor can effect no com
position and, instead of distributing his property
and taking his discharge, must hold on, consume
what he has, or starve, and the creditor thus
loses his debt
But, sir, the compulsory principle in the bill
IS peculiarly Objectionable at the present time of
monetary distress. While il might have the
sembiance Of comforting rights on creditors, it
would expose TO the process of bankruptcy thou
sands of our solvent business men, and even
some of the wealthy, Consider, for moment,
its operation on that class which the bill demo-
inmates merchant" or those actually using the
trade of merchandise, or seeking their living by
buying and selling, &c. owing 3 and con
slider what may be their fate upon the happening
of any of those equivocal acts which the bill sets
down as acts Of bankruptcy and which jealousy
or malice, by false construction, may bring within
the law. This class Of the trading community
are not peculiar to any section of the country.
They are found in the North and in the South
in the East and in the West. Some have large
amounts in goods on hand, on which they have
made large advancements to sustain the opera
lions of the manufacturer Some have advanced
largely on the great staples Of the country, TO
save the producing classes from suspension of
their labors Are those men TO be thus exposed
to commissions of bankruptcy No, SIR let
them alone, and they will pay their debts But,
for the present, they are deprived of their ordi-
nary means; they are strained and embarrassed
Yes sir many of them are on the brink Of ruin,
and the least ioste from bankrupt law might
plunge them down the precpce. Perhaps this
compulsory principle in the bill might not be ex-
erted against the class which have alluded TO,
and the best hope derivable from that considera-
ton is the unfrequency of its use, even where it
| is provided for in the English bankrupt laws.
Ii has, admit, in great degree, gone into dis
use 1t may be retained in all the bankrupt laws
in the world, for aught know. II is rarely
used, however, but at the instance Of the debtor,
except in some few cases, where extreme jea-
lousy or malignant feeling prompts the creditor
| to action. Hence we see that this principle may
very well be dispensed with.
! Allow me now, Mr.. President, 10 call the at
tention Of the Senate to the second and still
more Objectionable provison--I mean that of
including corporations in the bill-a provision so
| impracticabe and absurd, when viewed in this
connexion, that should think il required only
TO be mentioned TO be rejected. IL il involves a
necessary principle of bankrupt law, should
like to see lis details fully carried out Its pro-
visions in the present bill only lead TO difficulties,
without remedying them. It provides for the
seizure of corporation property, without prescrib
ing rules fo~ its sequestration, or winding up
the concerns Of the corporation. 1t provides for
no security or disposition of the surplus thatmay
remain after paying off the debts of the corpo-
ration. Yet il cannot be doubted that many,
and, probably, nearly all that may be made liable
to this bankrupt process will be found solvent
many Of them with large surplus balances, all