Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1841-02-09


application.
Fourth Proper and suitable provision. to authorize
the Judge, Court, in bankruptcy, in any bank
rupt SHALL pending the proceedings, offer composition
fourths in amount Of them, to compel the acceptance
of the composition by the remaining fourth IN amount
ofthe creditors or rather to accept it for hem and dis
charge him. $1,000
Fifth To strike out from the bill all provisions
which preferences TO any class oil creditors IN
any one State which equally preferred by the
laws of all the States and all voluntary preferences ny
the bankrupt in all cases.
Sixth Proper and suitable provisions to punish, as
felony any Intentional conceament or withholding OF
any part Of his assets from his assisnees oy any bank
rupt, or the connying at any fictitious claims against
his estate.
Messrs. WALKER and CLAY of Alabama spoke
against the amendment OF MT. HnoDara-ano MT. IL.
hmselfin favor of it.
Mr. CRlTTENDEN said he hoped the friends of the
bill would vote, not talk He need not remind them
that to delay its passage by debate would as inevitably
defeat if there an express vote OF the Senate TO
that effect.
Mr. CALHOUN said he should vote for recommit
nen, but he was opposed the proposition to include
interpretations He had spoken, and voted against at
the last sessinn and he held the same opinions now
Mr. BENTON said he was in favor OF recornmitment,
and in favor of including interpretations lie was IN Ia
yor of il thirteen years since when bankrupt bill was
under consideration this body and he had seen no.
thing since induce him to change his opinion He
other Senators. Among those who had voted in oppo
si,ion to him the present President OF the United
States That distinguished gentleman has since
changed his opinion. The Bank suspension OF 1887,
which was readily followed by every Bank IN the
Union and its concouitant evils, bad convinced him
of the necessity of bringing these institutions under the
operations of law. So late October OF last year, he
had expressed his sentiments tins subject ~ letter.
with clearness and candor characteristic OF the man.
H. MIR Brnton) would read this, as better than any
h., Ic,y on rho subject. and he
would be listened to by the Senate with more pleasure
than any remarks OF his own. Mr. Benton then read
an extract from the letter of President Van Buren,, IN
the following words:
alt would constitute objection with me ii corpora
tons were IN proper form embraced by the provisions
of such bill An attempt made ut the close OF the
discussions the bankrupt bill of lc27, III the Senate
TO include banking corporations by inserting after the
word bankers, in the description OF the persons who
were made subject the provisions of the bull the
words cor any banking Incorporation. Assuming
that the effect uf thus amendment lift prevailed, would
he 10 make the members of such corporations liable, III
their individual capacities, to the penalties denounced
BY the law for acts, respect to which their charters
made them personally irresponsible, | opposed II
as an unauthorized interference with State laws
could approve bill containing provisions liable 10
TO such an objection The disastrous state OF things pro-
duced by the general suspension Of specie payments
by the banks in 1887 presented for consideration, IN
form which could not, with proprley, be disregarded
the question whether the power OF congress over the
subject of bankruptcy might not be brought 70 bear
upon these institutions in manner which would steer
clear of that difficulty. Upon careful examination
of The subject, al! its bearings, induced TO be-
leve that this might be done in form which, while It
afforded relief the creditors OF those Institutions and
advanced the public interests, would he neither liable TO
the objection referred to- nor encroach IN any oher way
upon the rights of the States or transcend the authority
nj the Federal Government. provision IN bankrupt
law authorizing the bill holders and creditors of all
banks after specified delay in the payment of their
notes SPECIE to institute proceedings to cause their
affairs 10 be wound up and their effects 10 be applied TO
the payment of their debts, would in my judgment, be
n measure of that character. lis object and effect
would only be to compel them to discharge the o6l,ga-
ton. they incurred and the liabilities they were under
according 10 the State laws by giving to their creditors
for this purpose remedy which Congress alone eff
fectually confer The contracts between individuals
are also made under the sanction OF the laws OF the States
and regulated by them. Those having claims I'M
der these may resort to the State courts TO en-
force them as it is also competent tor the creditors OF
Banks to do. The object Of bankrupt law would be
10 furnish the creditor additional remedy To compel
debtors of description TO do what under the laws OF
the State il is their duty TO do The proposed provision
in regard to Banks would proceed, although IN mod
fed form upon the principle and TO the same end
without deprving the corporation or its members OF
any rights or mmuntes secured to them by the State
laws Entertaining these views brought the subject to
the notice Of Congress during the suspension OF
payments by the banks, in $50. Ii they are correct,
!, would seem difficult to conceive what ground the
exemption of the banks from the provisions of such
law could he sustained by those who insist on its appl
cation 10 other classes of citizens. Equal and
net Justice the only proper basis OF legislation requires
that laws should extend to- and operate upon all who
nre fairly within the range of the policy Corpo-
rations though artificial bodes are composed OF men,
nre by them and like private dealings have for
their main objects The personal advantage OF the corpora.
tions The principle which demands their exclusion from
the operation ola bankrupt law the ground OF mex
pedency claims for that portion uf our citizens whose
property is thus invested, privileges and exemptions
denied others. IL proposes TO secure to them, us
creditors all the advantages of such law, without
making them liable under it debtors. On what
principle ask can marked preference 10 one por-
ton of the people the other be justified Pune
tualty on the part of Incorporated Banks to fulfil their
engagements, is of more Importance to the community
than that Of any individual traders and their failure
in performing their duty is attended with much more
injurious consequences. If, then, there be no good
reason for the distinction the ground of public inte
rests, mos, assuredly there he none on that Of
claims To favor. The privileges which the laws alrea
DIV r;ve TO those institutions and the limited liability
of those who invest property III them furnish on the
contrary the strongest against the exemption
which is claimed III their behalf.
.Whlst on every dollar invested the stakeholder
has right loan two, and sometimes three tunes tbf
amount and whilst he shielded from all personal re-
.nonsbtv in case of the failure of the Bank to comply
with ;ts ragemenis portion Of the property OF any
other class of the community has such artificial value
given TO It by law, is protected, IN like manner
from the hazards of business; bat on the contrary every
dollar they possess held subject 10 the claims OF the
creditors These desirable privileges were granted un
der the expectations Of advantages and facilities TO h
public TO be derived from these institutions not one
of which can be realized if they fail TO redeem thei
bills in specie when demanded. Whatever may bt
thought Of their usefulness under other circumstances
oil must admit that, if they to perform this i'm
portanl function, they the of great mischief
The reasons, therefore, for giving 10 the bill holders
and other creditors, whose confidence has in some
measure obtained under of Legislative guarantee
full and prompt remedies against ,hem in case of fail
ure TO perform their engagements, are stronger thar
in cases of ordinary debtors. Should bankrupt Law
be passed which dld not embrace corporations, having
the right creditors to avail themselves OF ITS advan
tares, individuals who failed in personally performing
their contracts with them might, by their interference
be arrested in their business and have their property
al once transferred assgnees More than this they
might he involved in acts of bankruptcy by the fail
IRE ni the banks themselves to fulfil their promises to
,hen, 10 others, on whose punctnality their own
depended. The injustice of the distinction in this
view of the subject becomes strikingy clear, and