Indiana State sentinel. [volume] (Indianapolis) 1841-1853, 1841-08-11
INDIANA STATE SENTINEL
BNNkRUPT LAW.
~ Mercury.

thorty that bankrupt law VIII be pro lu-tiye 81
Erca, immortality If the law be Troloiy J'amcd
the elect - ght be the very reserse.
Having had some experience 10 Commercial NJ
fairs On both sides Of the Atlantir, my firm convlc-
ton is. that much greater injustice and immor,li-
ties prevail IN eases of insolvency amongst the mer-
canti!e classes here IN the United states, where
there Is 10 Bankrupt law, than in ,nglnd, where
there a well regulated court for the special adJu
dication Of eases Of Bankruptcy
Tie English Bankrupt law, permits no preference
81 creditors, Hider Ggy circumstance. Ibc PriHct-
ne Of The law being, that capital howsocver 70 may
be Obtained, must BE- resPoHsbie fjr me- credit ere
afes. aud not be used a b-it aud trap ior the
public. - that every payment made confidential
~ by nsosent. c0hieny ipf0u ~ his becoming
B1akruPf, within sx months u think prior thereto,
would be- recoverable by las asst gnccs ,hcrc IS Que
barricr 10 immortality.
The punishment Tor fraud or conccamcnt ol pro-
rerty, the part Of the Bankrupt, D. very severe
The crime IS felony and was some years ago liable
10 the penalty Of Death. ! rccolleci case some
-, years ago 81 Bankrupt being tired aud convict
ed iorirauduent couccament OF his effects; sentence
of death passed upon him, aHihc ieast IN ia. cr
trufiou. but h.s punishment vas subsequently com
nuied Ter transportation. or imprisonment, (whcth.
:hs extreme penalty of death ~ part of the new
bankrupt law cannot say Here IS another bar
'Ior ~ immortality. II On examination OF the bunk
fupts affairs and transactions, u should appear that
he has lost his property, by wliu extravaganza,
by gambling, his discharge by Certificate" would
be denied. lire ls another tgrrier against MINOR
aifg.
An officer Of the Court called ga Mcsccnger," up.
on the istuiug a Commission OF Bankruptcy, takes
possession 81 the lnukrupt's effects and makes
complete inventory OF the same, including, every
item of personal property, and household furniture,
and upon an appointed day. the Bankrupt attends
IN court and makes formal delivery oi ali his prop
cry under oath, even 20 the money he may have IN
his pocket his raich and The rings on his fingers,
II he wears any. All these have seen deposited
upon the table IN open court, although they arc IN
mediatcy as "a matter ol course, returned To the
bankrupt, unless he be already deemed criminal This
form o. necessary Ia comply with the icncr At the
law, which IS, that Bankrupt shall give up all his
property. Here again 49, barrier ogara MINOR
aing.
These some Of the provisions on the creditors
side, OF which the honest unfortunate man viii not
complain. : the price of LIBERTY and charactor.-
Now, the humanity of the law steps in, 10 prevent
extortlon, cruelty and slavery TO the unfortunate.
In the first place. II allows, the Bankrupt rea-
sonablc for the uiai,tcnancc of himself aud fam
ily, out of his assets, until final adjudication OF
his casc, and also cxcmpts him from arrest, (say
from 30 To 10 dnys; the time, ] believe, which is
usually occupcd.)
Next, that he may have every incentive to pro-
mote an advantageous realization Of his assets, and
consequently, make tho best dividend possible for
his creditors, he is allowed certain per ccntagc,
Increasing ~ ruiio with the amount OF dividend.
Here is another indictment 10 morality.
The law then PROVIDES that If he has conlormcd
in all things To the statute viz. he has made full
aud complete disclosure OF his affairs and his assets
md has not been guilty Of wan,on waste, or Grimm.
al recklcssness in producing his insolvency, that up
on presenting certificate # such conformity, sign
cd by certain number OF his creditors three ftths
think the Court VIII grant him full and final dis
charge IN person and property whether any dvi
dend none be realized. II the wreck be total no
m,t'er, if all be given up.
The law humanely perceived that one creditors
,ht IN some cases be wanted to complete the
requisite number, and that consequently door
might be left open for OPPRESSION and that the last
eigner might endeavor to make a market of his sig
nature, by cxtorting some obi gaton from the bank
rupt, payable at future time, as the price OF his
signature. In such case. the Court has the dis
erection Of allowing the certificate without the stated
number Of creditors Signatures
Here barrier 10 eTfOrfon. the part Of MGR
cenary and unicelirg creditors the HUMANITY Of the
law does not stop here 1t intcrposes by sPcciei
enaefnch. and prevents creditors from collecting the
amount OF any obligation, payable nj future time,
which they might have extortcd from the hopes or
fears of the bankrupt. II is az follows:
Every bankrupt who shall have duly surrender
ed. and IN all things CONFIRMED himself TO the laws
in force concerning bankrups, al the time Of issuing
the commission against him. shall be discharged
from all debts due by him when he became bankrupt,
and from all claims and demands hereby made
proyca5lc, under the commission, in case he sha !
obtain certificate of such conformity, DC. Any
eohVdVt OF security lHauc or gwen Oy any OAuhIupt
other person, unto, trust for any creditor.
for securing the payment of any money due by such
bankrupt, as consideration. with intent 10 per-
suadc such creditor Sgn such tcate, shall be
VOID, and the money thereby secured sh,dI not be
recoverable, and the party sued such contract or
security may plead the general issue. and give this
act and the special matter in evidence.
These provisions seem to be alike lIst to the VIC
tins of honest misfortune and creditors. The
bankrupt cannot waste his property or deiraud his
creditors with, IT mourning tie seycrcst penalties.
On the other hand. creditors cannot Cypress honest
mis,orfuuc. by driving bargain according to the
abilities, enterprise industry. and lay in wait IN
future for opportunity to pouucc upon the rising
energies of the PROSTATE merchant.
The loss of property IN 4 mercantile community,
is frequently as much beyond the power of the mer-
chant to control, as the loss Of life. man by the
&C, of God loses beloved wife or a child and his
ncighhors condole and sympathizc with HIM. lie
loses his property, and with II his liberty he feels
himself debascd, and the same Christian acghbors,
if they knew IT, look cool upon him. II they DO not
ehun him.
will state few Of the "iamoralaics" which
on, of the present system OF State laws. which have
come under my own observation. and which could not
have happened under Just bankrupt law-namely
A, merchant Of small capital, makes ar
rangcmcnt with ID. merchant OF rcputed wealth and
undoubted credit. accept the Drafts of \. for
tain purchases of merchandise. and whih the seller
parts with upon BIS credit, which AS capital or
credit canno, embrace and To secure IL. for the
amount OF his acceptances, said merchandise Is de-
lvcrcd 10 him. TO hold as a lien. until reimbursed
by sale or otherwise. Before the maturity of the
drafts. u. becomes embarrassed and fails, and as
signs the whole of his property, including the MGR
chnuds-e uIucsd IN has hand, In n persons IN