Indiana State sentinel. [volume] (Indianapolis) 1841-1853, 1841-09-21
Tile BANKRUPT BILL.
The following remarks upon the bankrupt bill
re from the money sr,ele Of the y. Y. Herald.

THE BANKRUPT BILL.
The following remarks upon the bankrupt bill,
are from the money article Of the y. Y Herald
The long talked Of bankrupt bill has at length be-
come the law oi the and and the attention of the
public has become Interested IN lis probable nract
cal operation. The law il now stands, is looked
upon rs unconstitutional. inasmuch as II is not UNI
form 10 It's provisions giving to the creditors OF cor
roraiors no remedy against their fraudulent debt
ors aud further, it allows of voluntary bankruptcy
for any amount. bat gives the creditor no remedy
against debtors owing less than 5000 This ground
Of constiutionality VIII be tested before the Su-
prerne Court. the earliest possible day and there
+ is bot very ittle doubt bat that Court,
Stliufed viii decide against n. The principle OF
itself even if perfectly uniform in its provisions.
is unjust and tyraHuical UasHuch as 1t comes IN
between parties, and iorcb,y dssolves contract,
without the consent Of the creditor. dcprivlng him
Of his undoubted claim Upon his debtor. he states
have no power 10 pass such law, and 1t should
not exist IN the Federal Government. If an midi
vidua contracts debt. he does it wth the full
know ledge that It must be paid, and that unless he
does pay It. he is IN the power Of lis creditor ever
after. The conviction Of this has moral tendency
90 make him Industrious, economical and frugal ;
but If the law hcids up 10 Aim the hope Of DIS
charge from the liability IN case he cannot pay,
the tendency is u make hm more careless IN his
business, more cNtravaeant In his habits. and more
speculative IN his enterprises spirit Of gambling
Z
system, demoralze- society, runs al regular bust
ness, and impoyer!sAc- tic county.
The new law exempts from Is provisions ali de-
faulters public officers executors, guardians, ad-
mEstratOTs, guardian - trustee, or whle actirg
IN any other hGuciary capacity. Banking natitu-
tlons NOT directly included IN the ilst Of those
against which the yctito oi creditor may be hed;
but bankers are mentioned, and the 18th section
provides the manner Of proceeding where one or
more persons are doing business company. n
bank neither nor less than an association OF
persons transact banking business and IT Will be-
come question to be tested, whether banks cannot
be proceeded against under tins Provision. II so,
Viii make the private property OF all stockholders
liable partners, for the debts of the concern
The practical operation OF the law can hardly DC
] calculated upon and II much to be feared, from
, the eects which it may be supposed to have upon
the value o. all property If 1t goes into operation
S as il now stands. The number OF bankrupts sub
ect to It's provisions has been varously estimated
e from GEO to 100000 We apprchend that thu
former number Is more nearly correct may, how
ever. be extended to 2U000O. The average amount
of debts due by these. 1t almost impossible TO de
terminc. bat Il; the lowest sum at whicl
Ia debtor may be proceeded against. VIZ s2NUV "a
the general average, the whole amount ct Indebted
> ness u be- cancelled VIII be S1uOOuO,OuV ms al
most maud bic amount will come INTO process OF set
Element almost at the same time immediately after
the first of February 10 be closed up soon As pos
n sible within two years. Ofthis large amount, prob
ably - per cent or 400 600 600 Is represented by
no assets whatever. The other S3JOOpO,VC0 d
represented by all descri ptons of property, bn
: mostly by fictitious mortgages. and company or ian
. cy stocks, and the balance by merchandise, slaves
= &c and may be classed follows =
poo 600 usolvcns, owing $4,000 each si00,oto,0 0
IS Assets Of real estates, Sl0uNu0.NuO
J. :. Slaves, ioOoo,0U0
). Merchandise. G00J0.oC0
n Company stocks, $1,000 COO
q a
J. No assets, l50,OOo6O0
q --siO0, GOO 00
n This of property TO be put upon the mar
II ket with all convenient speed, turned INTO money
= and paid over IN lnstalmcms. lndiv iduas who hay
y paid much attention to the subject, estimate In
II number of bankrupts at 800 GOO. and the amount
+ debts 10 be cancelled at 2Uo,UO6UOo, which w
re yield 100000 II property, to come to market
l. is not easy to estimate the disastrous effects whc
must result from the forced exchange of such mas
Of property IN gwen period. aud that not IN sea
son OF active and full currency, but one wher
all confidence and activity IL destroyed by the &c
tion of the bill The amount of debts due the bank
, <: the Union Si2U, 500, 523-of tins S29- 600 uu
a. is IN the south western States, and Sl22 Cu0oUO !
- the middle States. II. therefore % per cent. onl
of the mass of Indebtedness Is due to the banks,
will sweep of 80 per cent OF their assets, and the
ri NAV realize 20 per cent. of the debt leaving ger
&c cra reduction OF 40 per cent in the bank assets
= This viii be greater less according to the sec
lc ton of the country. In Mississippi, Alabama an
i Georgia, exceed this, and in New ork, an
~ at the eastward it VIII fall short Of il. The L.
70 Bank insancc-thc suspended debt OF the cor
&c Germ is 29,G00.G eco due from HIRE, Uejb, Uc6ie
= d Co.. very little of 1t being mercantile paper. l
very nearly all Of this the law VIII apply To spong'
: and leave the stock utterly worthless. The sam
effect, to greater less extent, must be produce
% upon all stock and upon all other descriptions
" property. People now IN standing may find the
= assets shrinking from their grasp, and thcmselvc
unable TO iGlhi their engagements. general dI
trust viii be cngendered. and VIII lend IL
lie money for the purchase Of property, winch Is col
n stanty deprecating under the quantity continual
nd forced upon the market The who.e measure
re calculated TO produce serious rcvusion The TIN
all 10 create bankrupt law is when it is not wante
of then It's operation gradual, it is Ike breal
&C ING up dam, and The rush VIII carry every tim
as before il.
er THE DISTRIBUTION BILL.
ai In relation TO this measure, the Globe observe