The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-07-27
SPEECH OF siR. KALAMAZOO,
or NEW YORK,
ON THE BANKRUPT BILL.

no apology necessary Tor the SNORT uhne mess -
occupy OH the final passage Of this bill Oenuemen
On the other side tell u they will vote Tor The bh
banking corporations included he vote Of yes
terday OF more than two 10 one, rejecting sneh
proposition, must, think, SATISFY Them hai ueIe :
no chance that II prevail hope uhel, ual
those gentlemen who willing 10 go Tor the 0lli
with banking corporations, that provision having
failed viii now 70 for il for the sake Of those for
whose relief il Is intended ! am aware that their
votes are not necessary 10 the passage OF the bill
but | would like 10 the moral influence on the
country of a united vote this important measure
III MY Judgment il i idle 10 talk of including cor
porations in Bankrupt Law, and every effort TO en-
brace them Will only AID 10 defeat the measure itseh
Ii II j. desirable that Banks and other corporations
should be subjected to Bankrupt law, why mol m
troduce Dill exclusively for them Why encamOer
bill for the relief OF individuals with the controversies
question Of corporations Many are opPosea, -
principle 10 including corporations IN General BANK
rupt law. The honorable Senator from South Saro-
lima, MIR. Calhoun with Others deems y hneons1-
sut.oHai 10 include them, No one doubts tie Ton-
stitutionality IL Bankrupt Law for individuals why
then shall snaridsas be deprived OF their eonsfhu
tionai rights, because corporations cannot oe Drought
into al asfuiona subsection 10 the provisions
ola Bankrupt law Let these two classes Of natural ana
artificial persons rest their respective merits
Those who in favor of including corporations
should submit the will of the majority and 90 for The
relief OF Individuals, If corporations are not included
II will be satisfactory answer 70 that large ana as
tressed portion Of the community 10 say, We 90 against
giving you any relief, because the constitutional ana
other scruples Of gentlemen will not permit them 10
include corporations in the same law.
Mr. President, corporations ought not 10 be IN
cluded. They never included IN Bankrupt
law In any commercial community on the face OF the
earth. From the very nature OF their creation ana
their being, they do not come within the reasons upon
which a Bankrupt law Is founded The principal de-
sign Of such law far the debtor IS concerned,
is first to release the individual if in prison, from
Imprisonment. Second, to discharge the obligation
Of his contract Third, 10 exempt from execution
his future acquisitions, and to protect them Tor me
future sustenance and support Of himself and family
These objects have relation 10 corporations. lhey
canno, be imprisoned the laws Of the several States
give 10 creditors ample remedies against them, ana
after the application of their assets towards the pay
ment of their debts corporations can have no cause
for the balance Of an outstanding obligation lhey
can have future acquisitions or families to pro-
vide for therefore, the reasons for the law as APP
pleabe 10 individuals, have no application to corpo-
rations
Aside from this consider that such law, applied
10 the banking institutions Of the country, would be
most disastrous in its consequences. II would, IN The
first place, conflict with the proper control OF the
several States Institutions OF their own creations
and under their exclusive jurisdiction These lnstl-
tutions deemed by many, an emanatlon oil state
sovereignty many of which owned by the states,
and over which the General Government can exer-
else no control, and with which it in no shape
interfere. In the second place il would be putting
into the hands OF courts and commissioners oil the
General Government dangerous power, by reason
ing institutions which would be subjected to such
law on the instant of suspension OF specie payments
The General Government cannot manage prudehuy
or dscreetly such fund al the drmS-lenRM distance
at which it would be placed. II requires the close
inspection and near supervision of the states them
selves do it,. They the best Judges Of what
regulations best suited to their WI institutions.
They best subject their courts and their agents
TO that wholesome control absolutely necessary to
the proper management and distribution of the funds
of such institutions, when winding up their concerns
The State Of New York. and presume the remark
is applicable to Other States has far better Bank
rupt Law for Banks than Congress possibly pass
and she has and does administer through the Chan
cellor and Bank Commissioners infinitely better than
any law of Congress can be administered through the
courts or agents Of the General Government. In New
York, If Bank suspends specie payments for ten
days, its concerns at once handed over, on the
complaint Of the Bank Commissioners, 10 the Chan
ceor and by him placed IN the hands OF Receiver,
and closed up with all convenient specializing
due regard 10 the individual and public Interests In
vowed in lis liquidation. The States too, best
Judge whether any Interference their part Will, at
any time, promote the public interests There may be
cases there have been before where the Legislature
Of State mg ht deem proper TO interfere and sus
pend the forfeiture Of Bank charter. This occur
red in 1897, after the suspension Of specie payments
by the Banks. The suspension brought on, at that
time by causes beyond their control. They suspend
ed f6r the benefrof the community, not their own,-
and the Legislatures Of several States suspended the
forfeiture Of their charters but did not legase thsr
suspension Of specie payments. The Banks OF New
York and elsewhere were at all times, liable TO prose
cuon for demands against them, and to increased
interest on all demands made which were not met IN
specie The people had their remedy agains, them III
the courts; but in my own State, public sentiment
was So strongly in their favor, that there was scarcely
an instance heard OF to them by prosecutions
and why were they sustained by public sentiment =
Why did the Legislature, before the expiration OF ten
days after their SUSPENSION pass an act TO relieve the
from the forfeiture of their charters 1t was because
the public voice demanded it-no for the benefit OF the
Banks, but for the People themselves. Let sup
pose that, the occasion of the suspension OF the
Banks in 1887 throughout the Union, there had been
in existence Bankrupt Law for Banks-what would
have been the consequence The People were in
dehtel 10 the Banks 10 the amount OF than hive
hundred millions Of do'lris. A Bankrupt Law ope-
rating upon the Banks would have forthwith put their
into the hands OF Commissioners TO be closed
up. This enormous amount must have be en- collected
atteWpte 10 be collected, from their debtors. Judg
ments aud executions must have gone against their
property, Tha, property would have been sacrificed
Tor OF purchasers and inevitable ruin would have
overaken he whole debtor portion Of the community
and such disasters cannot befal that portion without
affecting in their consequences the solvent portion
also An earthquake tornado, extending It's ta-
wages over the whole country, could scarcely equal the
destructive consequences OF the operation OF BANK
rupt Law under such circumstances. Ii was for such
reasons that the Legislatures in 1887 posednot
for the Banks but for the People. But had such
law then existed there could have been no relief NO
Legislature could have nterfered would have been
as unycljng he bed Of Procrustes, and the victim
would have been Topped of, stretched out TO meet
Its Dimensions. Such time, though far distant may
arrive again ] am for leaving the Banks in such
crisis their natural guardians, the Legislatures
of the several States Soae have supp scd that they
could get over the constitutional objection to ncud NJ
Banks by leaving the law TO the of the respect
I've states One moments reflection will show the
unconstutionsity Of this proposition, namely, that II
would not be a uniform Bankrupt law, if one State
-. "a nd ihatd hone trust