The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1840-05-02
From The Neir York Times.
TIE BANKRUPT LAW.

The obcc, of Bankrupt Law rs it regards indi
viduals is TO benefit both debtor and creditor. To
benefit the creditor by scizing the estate before il is
wasted; to benefit the honest unfortunate debtor by
granting him discharge, thereby replacing him in
position support for his family, and to be-
come in all respects a useful citizen.
A Bankrupt Law applicable To banks would be a
law for the benefit of creditors alone; because bank
stripped of its effects by commission of bankruptcy
would be wound up and ccasing TO exist could ENJOY
future benefit from discharge releasing il from its
debts and liabilities The object therefore of enact
ing Bankrupt Law for banks must he to wind them
up in of bankruptcy and to enforce an equitable
distribution of their effects among their creditors
Can this end be best obtained in this way? We
think not.
The reason why debtors now applying to Con
gross for general law in because the powers of the
several States being local and limited cannot give full
effect to a discharge from debt. As regards every
other operation of a Bankrupt Law State power is
all sufficient The laws of our own State at this day
comprehend all the provisions necessary to protect the
rights Of creditors
Let us test the truth of this assertion The bill
ported hv Mr.. Tallmadgc embraces all the acts of
bankruptcy usually set forth in Bankrupt Law
The first Of the acts Of bankruptcy enumerated is that
of debtor ahscondina conccaling himself for the
purpose of preventing the service of civil process
Now our absent or ASCENDING debtor act efficiently
guards the rights and interests of the creditor in such
case as the elaborate general bankrupt law could
do
The second third and fourth acts of bankruptcy
late to fraudulent disposition of property The act
abolishing Imprisonment for debt cantains ample
provisions for the benefit Of creditors in such
could be incorporated in any Bankrup, Law.
The fifth and sixth acts Of bankruptcy refer to i'm
prisonncni of debtors Our State law in relation 10
proceedings against imprisoned debtors is good =
protection as the creditor could desire or as bankrupt
law could afford him.
Thus il will he that in our own State under
! fs.= = A.
tagcs that could he secured to him by the perfect
bankrup, law and that these statutes in fact consti-
tutc bankrupt law complete and ample as the
measure now loudly called for by the nation ex-
celt that they do not provide for The mn discharge Of
| dtbtors
The proposed law is therefore not wanted for crefi-
fors; consequently the provisions in relation to nvoI-
untary bankrupts could be dispensed with
| The foregoing remarks though they refer specially
TO individuals apply also, and with peculiar force 10
bankrupt corporGfionS; because the latter do not
require To be discharged from their debts lu, die when
they become bankrups, law for the benefit of the
creditors is all that is necessary.
But besides the statutes Of State already cited
have statute which il, to all intcnts and pur-
poses Bankrupt Law applicable TO banks Under
| il suspension of specie payments by bank for
thirty days, is net OF BANKRUPTCY. and authorizes
proceedings in chanccry for the appointment of n
ceiyer to take charge of its effects and wind up its az
fairs for the benefit Of its creditors We have
this bankrupt law applied and know how il works
Can promise ourselves tina, embracing banks in the
provisions Of United States Bankrupt Law will work
kbctcrl Besidcsthc important fact that suspension OF
specie payments hy bank constitutes aa act of bank
rup;cy il should be borne in mind that bank com
missoncrs commissioners Of bankruptcy with pow
or enter the banks watch their proceedings and
bring them up banknpts for any rio'oiion IF heir
charters uc general statutes concerning hcrn The
States then having ample powers to pass bankrup,
statutes for the protection of creditors both as re-
CARDS individuals and banks, and nothing being
needed from Congress but bankrupt law to dis.
charge honest debtors, why may we no, look to tn,
General Government for hoi alone leaving individual
and corporate involuntary bankruptcy to the operation
| of State laws