The Madisonian. [volume] (Washington City [D.C.]) 1837-1845, 1841-07-24

A
of his wrecked fortune has been equita0iy al'iueu
amongst those to whom he is indebted. :.
Beyond this the law sees and wisely adJudgcs 'ha'
there is end of all reasonable hope OF Iorhei au
vantage TO creditors. A form Of indebtedness sun TO
MAINS but the substance is gone. Nothing Is len 70
the debtor with which himself but MS nan1S
He may labor in employment more or less Prohtaye,
according TO his skill his habits, but In no resri
employment will or can the labor OF wages anoru
more than current support to the aborer ana NOSE
dependent on him, so long as he is not permiea ~
turn one dollar of his surplus earnings INTO caPa'
or obtain one dollar of capital upon credit WIN winch
to aid him in enhancing the prohts oil ms pus h1 ..
a thing utterly forbidden and rendered imPossioie "
the bankrupt debtor. To hold the debtor or alloW
his creditors to hold him in this hopeless posltioh
unjust, unnecessary, and cruel IL Is 10 plhu nm
hand and foot and lay him down at the ieet OIL ms
creditors a victim and sacrifice, as much lost 70
himself TO his family and to society, if not as much
degraded as if, like the debtor in Rome ne hen, oe
led through the public streets by his creditor WIN
halter round his body, and he made the unresis'ns
| subject of blows and personal chastlsement
II is at this point then, that society has an eme
duty TO perform towards the debtor and toward tse
That contingency has now happened the hazaru OF
which the creditor was content to rum or sucn con
sideration satisfactory to himself MS oeptor
has fallen into hopeless insolvency, and MS demand,
or some part of it, has sunk with him. lie mas no
thing to complain Of BY the very act oil lenoing the
debtor his property, without exactlng security, ne
consented to take his share with other creditors IN
the risk Of loss and sacrifice to which the deptors
business necessarily exposed their property In ms
hands, and he took stipulated beforehand Tor ms
paw for that very risk. The enterprise has turned
out an unlucky one, and he must bear ms ioss' me
| law has stepped in, as he knew 1t would, or as nc
knew il might and ought by the terms OF the Consti-
tuition of the country, to make an equitable ADJUST
ment of profit and loss between him and his
in the enterprise, the other creditors and having
Of for his aid and benefit And now mes
the of the debtor and the interest which society
has in his restoration.
II is undoubtedly true that to interfere in the slight
degree to impair the obligation of contracts between
individuals is exercise of high transsendental power
on the part of Government. This Government does,
when it undertakes to release party from the per-
formance of any part of his contract. The power is
expressly prohibited TO the States by the Constitution;
and it is believed that it belongs as little to this Go
vernment to the States, except far as II may be
included in the power expressly given 10 establish laws
on the subject of bankruptcies. Within the Legitimate
range of such laws, the power undoubtedly exists
and had long been part of the policy Of such laws,
before the adoption of the Constitution, to discharge
the honest bankrupt from the remainder of his debts
after his entire estate had been applied raaby towards
| the payment of them.
is believed that power like this exists, of neces
sity, in every country where capital and credit are ex
tensivey employed in the prosecution of business and
OF enterprise In our country, it has been expressly
confded to the Federal Government, and it can be
ercised, with full effect, by other authority. The
duty of this Government them is plain as It's power,
and it is believed to be matter just reproach that
has been SO long neglected. After the law has COM
PEELED the debtor to the performance of his contracts
far as all his means will Co. and when il has, on ma
ture deberaon, pronounced its solemn judgment that
further performance at the tme at any time,
has, through unavoidable misfortune, become morally
impossible, while the ordinary legal power of his Gre
dtos him remains then the release of the debtor
from any further gal liability his contracts be-
comes the indispensable duty of the governing power
Let the moral oblig alton remain, il will strong
as ever; it is the legal liability only which is touched.
1t affects the remedy rather than the obligations
Government does not tear the contract order to
be delivered up to be cancelled 1t leaves to the Gre
dtor the evidence of his debt in full possession and
does not relieve the debtor in the least degree from
the full moral force of his promises and undertakings
whenever he may have ability to perform them 1t
does nothing than withhold from the creditor the
aid and power of the courts, after it has udicallv
certained that further performance the part Of the
debtor has become impossible. The duty Of civil So
clety to supply to creditors the means of coercion and
remedy, through its courts in of breach ofcon
llact, is one of Indispensable obligation but Govern
ment must decide for itself when the duty has been
faithfully performed and when its has gone far enough
for the ends of substantial justice. must have the
right to judge in the first place. what modes and forms
Of remedy it will give and them how far such remedy
| shall be pursued and carried. When it has been
pushed as far as it is safe for human power to goas
far as it can 60 without unmtgated evil-then it is
time to withhold it. aa- 49,.
On the general principles which have now been
stated the main provisions of this bill rest. No dis
tncton is here attempted to be set up between in
solvent system and bankrupt system. All persons,
whatever may be their patton who are unable to
their debts and engagements are insolvents and
if they SO declare themselves, they deemed bank
rupts. These are voluntary bankrupts.
is in regard to the mercantile classes only those
whose business renders them directly liable the pecu-
liar hazards which attend mercantile operations is
in regard to debtors in these classes only and where
their Indebtedness amounts to certain sum- that the
right is given to creditors, under limitations and on
the happening of certain events to debtors
to be declared bankrupt and have their estates seized
for their behoof. These then Involuntary bank
rupts. And this is the only distinction made in the
bill in regard to the various classes of nsoven debt
ors IN the community, to whom such bill is deemed
at all applicable .'1....
The bill proceeds upon the principle that every per-
son In the community, of whatever calling who in
the employment of capital and credit applied by his
skill and industry in production has fallen into hope
insolvency. SO that all further effort to restore and
redeem himself has become evidently useless is emit
tied to the relief which this bill is Intended to afford
And that in all cases the debtor may fhe choose take
the initiative With respect however to the partcu-
classes just referred to- it has been thought advsa
bic and proper on account of the great Importance and
necessity OF promptness and punetuaity in meeting
all their engagements, that it should be put in the
power OF their creditors to against them in GER
tam circumstances, without waiting for them to stir
TIE subject of their insolvency ...~ ~.
IL 1e principles alreauy stated VIII be found the
reasons for making the provisions of this bill apply as
well to existing cases and contracts as to those which
arise after the passage Of the act.
All the legitimate power of civil society would be
exered IN vain to coerce full compliance with the
contracts of insovents who have first lost the mea ms
of payment which they had in possession, and then
are stripped by existing laws Of all the ordinary and
indispensable means and instruments Of accumula-
ton and recovery. There supposed to be not less
than 500 900 such persons the United States
men who, though now bankrupt and ruined them
selves, have by their industry and skill in business,
and the use of capital and credit added millions upon
millions to the aggregate wealth of the nation-a
wealth that stll subsiss, though pant Of it is theirs
and who need only to be relieved from the bondage of
oppressive debt to enter again, with renewed but
chastened energy the field of enterprise and add
again new millions TO the wealth of the community.
Society, any more than their families cannot az
ford to lose the services of such men. m sar
1t is believed too be the highest interest of Gre
dltOrg themselves that the condition of their