The Charlotte journal. [volume] (Charlotte, N.C.) 1835-1851, 1841-08-12
Report on "a Bankrupt Law.

reported by MIR. Barnard in the House o
Representatives, for establishing uniform
system Of Bankruptcy
The Committee on the judiciary, {,
whom have been referred the petitions ant
memorials presented to the House on tn,
subject Of bankrupt law, respectfully re
port:
10 the opinion of The committee, bank
rupt law ought 10 be passed BY Congress
without unnecessary delay; aud they pre-
sent a bill for tue consideration Of Ii,
Ilouse.
This bill is essentially the same that wa
matured 10 the Senate in The FIRST session
Of the last Congress, after great dalib
Grafton, and which finally passed that body
Ii was not then considered in the House
for want Of time.
The policy Of laws designed 10 afford
remedy aud relief as between creditors ant
their debtors who are hopelesslg lusolyeui
has the sanction Of usage, in the past and
the present, among nearly all highly civil.
l2ed aud business communities. The lead
log idea upon which these laws have pro
I ceeded has certainly not always been tie
samc i, has varied with the general state
4 a the law, and With the progress Of society,
10 country where the creditor was, By
law, the undisputed aybiler Of liberty aud
life to his insuiyent debtor, tho immediate
motive for inlerposition rnust have been dIf
Ieront from that which has prompted egis.
( iatlye interference where the relation Of
debtor and creditor las Jeen differently
understood.
10 England, bankrup, laws bad their or
igin apparently in the idea that debtors who
dd 20. pay we're merely unwilling, and not
unable to pay. The first bankrupt law pas
scd n the time Of Henry Sh was legeed
against those who crafty obtained the
goods Of other mcn, and nsd or kept their
houses, not mindlug TO pay their debts. =
It came 10 ali ofthe law, proceeding on the
same idea Of ability and unsillingness,
which authorized imprisonment for debt
a thing unknown TO the common law. If
a debt was not paid, the credit itself was
supposed TO have been crafiig obtained ;
the ability to pay was presumed The debt
or was arrested and imprisoned I'LL lie
should be made willing; or, if be lad fed
or kept house, so that arrest was imrossi,
bic, his estate passed into the custody Of
the law for the liquidation Of the debl.
So loIg as thus idea of ability and IN.
/ willingness prevailed, and no other was ad.
miIted, the whole evil, so far as creditors
were considered, was supposed 10 be ade.
Quately net by The punishment Of imprisan.
ment or confscalion. When however. il
was found, as industry and production
came TO be increased By tho use Of capital
and credit, that the mass Of debtors who
did not pay we're only unable but not ga
willing, it became necessary to turn round,
and, without disarming tie creditor, throw
shield over The doleaceless heed of his
honest and innocent debtor.
The law ID England on this subject often
variously modified in matters Of detail, now
is, and has long been, IN subsistence
FIRST, that where creditors invoke the
punishment of Imprisonment on their debt.
or, the latter, if willing but unable 10 pay,
may regain freedom upon voluntary and
honest surrender Of his property, to be ap.
Piled towards liquidation.
4 second, that where creditors invoke
the punishment Of conGscalion on their deb.
tor, which can only be done where the
debtor belongs to one or another Of certain
specified classes, the creditors shall take
the fell benefit Of The proceeding by the ap,
pIicailon Of the property towards the pay.
ncut Of their debts; preceded the deL,or,
being honest and willing bot unable to pay
lr fuj, shall, on certain terms and condl.
tons, be forever discharged from all legal
obligation 10 pay the rest and residue Of bis
debts.
Thus the law Of lnierpoSi!ion and relief,
in England, as between creditors on the enc
hand and de5t1rs Who cannot pay thojr
debts on the cher, stands, and is admins.
tered, in two distinct branches, ard under
two distinct systems. Ia the one system
the debtors are deuominated iasolyeGt; 10
the other they are called bankrupt. 10
report made to the Queen, IN July, $40,
and signed by eight out Of nine commission
ers appointed 10 investigate this subject, il
was strongly recommended to reduce these
two branches of the law and systems of al.
miuistration 10 one consistent system, and
make the whole law Of lie case more con.
iormable to reason and to right.
The principal improvements in the law
relating to insolvency proposed by the COM
mIssiouers are these:
To extend the benefits Of the discharge
from debts, in case of bankruptcy, beyond
the mercantile and other specified classes,
To which they are now chiefly confined, so
as to embrace all persons engaged in bu.
srncss requiring capital and credit"
To allow and encourage a voluntary ccs.
sion of property, on the part Of iusolvents,
cat such period of difficulties as Will best
ensure equal justice 10 all their creditors"
To make the granting Of certificate OF
discharge a judicial act, which may be op
posed BY creditors for cause, but to which
their consent shall not be necessary.
The suggestion Of these improvements is
,ient M Indicate the great chauTe which