Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1841-02-22

and r,,ino,s terms of credit 1t is evident that the
risk in business must be greatly increased, and Of
course the security of the creditor q eatly dmn-
ished by law of this sort and whatever dimn-
ishes the security of the creditor must either di-
minish credit or augment the price nj which il is
obtained. Men, learned lawyer and very
sagacious statesman has asserted, will calculate the
chances OF nsoyency,S. either be sparng in giving
credit, or exact price sufficient to cover the risk
incurred. II appears to me that the measure will
not only take from the debtor all nducement to
make efforts to obtain the means OF paying his
debts by the observance of industry and irugalty,
but will encourage him to dsspate, in extravagant
indnlgences, property which ought to be applied
to that purpose. 1t appears to me that it will not
only lead TO the practice Of false and deceptive
means TO obtain credit, but will greatly encourage
the fraudulent conceament of properly. No one
who has had much experience in courts Of justice
can fail 10 see, that when you present to debtors
such strong and powerful temptation to conceal
property, it will he often done, AMI done efeciu-
ally too, defying all investigation Besides secret
trusts and colorado assignments, Il is easy ut the
present day, some writer has Observed to con-
ceal fortunes and carry millions in portfolio
Mr.. SERGEANT Stephen, an English lawyer of
great elninenee speaking of the danger of fraud
1 in case the debtor should he allowed to make
sion by spontaneous act, rs well as at the
instance Of his creditors says In that case the
debtor would be able to choose the time most con-
venient for himself; and he would be able to pre-
pare for the occasion by an artful adjustment Of
his books and accounts. The creditor might also
be frequently defeated by the debtors selecting
period when particular witnesses were out of the
I way, or I've had reason to expect an accession of
fortune not yet fallen into possession"
Il The learned American jnrist, whose opinion
have had occasion once before TO avail myself OF,
says: "Ihe objection 10 q national bankrupt sys-
tenn consists in The difficulty of defining, to the
satisfaction of every part of the country, the pre-
else class of debtors who can, consistently with
the constitutional jurisdiction Of Congress on the
subject, be made the subjects of it, and in the
great expense, delay, and litigation, which have
been found to attend proceedings in bankruptcy
and in the still moro grevous abuses and fraud
which the system leads TO, Notwithstanding the
vigilance and integrity of those to whom the I'D
ministration of the law may be committed"
Sir, the State of New York has had a system OF
general insolveDt law ever since 1884: and il is
TO be borne in mind that the bill before us, in oil
except its compulsory clauses, is in principle
the The system which has prevailed liz
that State. Now, | think we may form some
opinion Of the operation, the utility and the poll
cy of such system, from a report made by the
Chancellor and Judges of the Supreme Court Of
New York to the Legislature OF that state in 1919.
These learned persons say:
"Judgng from their former experience, and
from observation in the course OF their Judcial
duties, they were OF opinion that the insovent law
was source OF great deal OF fraud and perjury.
They were apprehensive that the evil incura-
ble and arose principally from the infrmity inner
ent in every such system. That permanent insOl-
vent ACT, made expressly for the relief of The debt
or, and held up daily to his view and temptaon,,
had a powerful tendency to render him needless
in the creation fdebt, and careless to payment.
1t induced him to place his hopes of relief rather
W conrivances for d.scharge, than i'll increased'
and severe exertioD to perform his duty. Ii held
out an easy aud tempting mode OF procuring an
absolute release to the debtor from his debts aud
I . had aa and md nI,nh
ever must be, from the very nature of it, produce
tive of incalculable abuse, fraud, and perjury, and
greatly injurious 10 the public morals"
Such sir, was the opinion ofsuch men Kent,
e Thompson, Spencer, Van Ness, Plnu Wood
worth men of grent learning and intelligence,
y, men of enlarged views, and OF extensive expert
ence. They were acquainted with the system,
they knew lis practical operation, and were entire
y competent to Judge of its merits.
! But, it is said that this is not 10 be permanent
! law; that il is TO continue only for TWO years;
that ii is a temporary measure, 10 answer a.
Temporary purpose in the language OF an honor
able member, it is to makea jubilee in the coun.
= try. Now sir, and say wifi all proper defer
y ence, | do not think we are sent here for any,
I, such purpose as that. do not think that it be-
longs TO us to make jnbees IN the country by aD-
: nulling contracts aud abolishing debts 1t is our
y duty to look to all classes of the community; to-
; The interests of the whole people 10 establish
% Justice, and promote the general welfare That is
;, our business and our duty. We should look to
the public good. That is the great object of gov
" eminent and legislation and we should remember
that the public good consists manly in tie pros
u lection Of private rights and beware of any sys-
d tenn which may tend to the subveision of justice
!" and moral obligation among the people,
i Bat if we make jubilee now, how long will it
e he before you will be called upon to make another
70 ljubilce? Will not men deal and act under the
" expectation and persuasion that this law is to be-
revived and continued in force? And will it not
e be attended with all the evils of permanent law !?
is good FOR the present, why is it not good for
y the future and If it is right in principle, why
= should il not he continued in force? Bur if it is
: TO last for only two years; lift is to be temporn-
ny measure TO answer Il temporary purpose; II Il
II is 10 lie retrospective law, operating upon and
e extingushing existing debts without payment or
satisfaction if ihis be its object and delign what
u is it, lei ask, more or less, ihnn relief law,
l. and a relieflaw in very odious form too ! And
y what may we expect to he its influence, as pre-
u cedenL upon the future legislation Of This coun-
&c myi
According TO MIR Madison, il was a regard to the
"a security Of private rights, which led 10 the provis
q ion in the constitution that "no State shall pass
II any law impaing the obligation Of contracts"
"The people, he says, " had seen with regret and
10 Indignation, that sudden changes and legislative
~ nererences in affecting personal rights, be-
70 came jobs in the hands of enterprSIng and infiu-
No entail SPECTATORS and snares TO the more INDUS
MI rlous and less informed part oil the community
80 and they were anxious for some provision which
- would Danish speculation on public measures in
II spiie general prudence and industry, and give
i regular course the business OF society,"" And
= Chief Justice Marshall, after observing that fhe
Al parties TO contract have not merely in view the
a property in possession when the contract is made,
70 but lis obligation extends TO fiilnre acquisitions,
q says: The constitution intended To restore and
r. preserve public confidence completely il intend.
Al eel TO establish n great principle that contracts
- should he nviolabe.' Aud is IL possible TO be-
:. lieve, that, with this saluary restraint imposed
q upon The power of the States, for the great objects
and purposes just mentioned, IL Is consistent w'..h
The security intended to he given to private RI gh,s
e with the spirit The Constitution, with, sound
s. nrnrinles of public policy, for Cong .ess ,,ud.-