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

Of his wrecked fortune has been equltably divided
amongst those 10 whom he is indebted
Beyond this the law and wisely adJudgcs that
there is end Of all reasonable hops Of further adj
vantage to creditors form of Indebtedness sui re-
mains but the substance is gone. Nothing Is lett 70
TIE debtor with which TO recover himself but his hands
He may labor in employment moss or less profitable,
according TO his skill his habits but IN no regular
employment will the labor Of wages afford
than current support 10 the laborer and nose
dependent on him, so long as he is not permitted 70
turn dollar Of his surplus earnings INTO capital,
obtain one dollar OF capital upon credit with which
TO aid him in enhancing the profits of his business
thing utterly forbidden and rendered impossible 10
the bankrupt debtor. To hold the debtor or allow
his creditors 10 hold him in this hopeless position Is
unjust, unnecessary and cruel II Is 70 bind nun
hand and foot and lay him down al the ieet oil ms
creditors, a victim and sacrifice much lost TO
himself to his family, and TO society II not as much
degraded, il, like the debtor in Rome, he might be
led through the public streets by his creditor, with
halter round his body, and he made the unresisting
subject Of blows and personal chastisement.
II is al this point then that society has eminent
duty TO perform towards the debtor and toward itself
That contingency has now happened, the hazard oil
which the creditor content to run, Tor such con-
sderation as was satisfactory 10 himself his debtor
has fallen into hopeless insolvency, and his demand
or part Of it, has sunk with him. lie has mo-
thing TO complain Of BY the very act OF lending the
debtor his property, without exactng security he
consented to take his share with other creditors IN
the risk Oh loss ana sacrlce 10 winch inc uoosoi ,
business necessarily exposed their property in his
hands and he took or stipulated beforehand Tor ms
pay for that very risk. The enterprise has turned
out an unlucky one, and he must bear ms loss Inc
/ law has stepped in. as he knew il would or as he
knew il might and ought, by the terms Of the Const
tuition OF the country, to make an equitable ADJUST
ment of profit and loss between him and his partners
! IN the enterprise, the other creditors and having
done this i has done all that the nature OF the case
admitted of for his aid and benefit. And now comes
the Of the debtor, and the interest which society
| has in his restoration.
is undoubtedly true that interfere in the slight
est degree 10 impair the obligation OF contracts between
individuals exercise of high power
on the part OF Government This Government does
when II undertakes TO release party from the per
formance Of any part Of his contract The power Is
expressly prohibited to the States by the Constitutions
and it is believed that belongs little TO this Co
vernment as to the States except so far as 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 II 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 rataby towards
| the payment Of them
Ii is believed that power like this exists Of neces-
sty in every country where capital and credit
ensivey employed in the prosecution of business and
OF enterprise In our country 1t has been expressly
confded to the Federal Government, and il can be
ercsed, with full effect by no other authority. The
duty of this Government, then plain as It's power
and II Is believed to be matter of rspoach that
has been SO long neglected After the law has com
PEELED the debtor to the performance of his contracts
far all his will 90, and when it has,
ture elaboration, pronounced its solemn judgment that
further performance at the present tme at any time
| has, through unavoidable misfortune, become morally
impossible, while the ordinary legal power of his Gre
dtors him remains then the release of the debtor
from any further legal liability on his contracts be
comes The Indispensable duty OF the governing power
| Lott ha nIl. fyaiI
as ever it is the legal liability only which is touched
IL affects the remedy, rather than the obligations
Government does not tear the contract, order 1t to
be delivered up to be cancelled. 1t leaves 10 the
ditor the evidence Of his debt in full possession, and
does not relieve the debtor in the least degree, from
the iu 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 judclallv
ceained that further performance the part of the
debtor has become impossible. The duty Of civil
cety to supply to creditors the OF coercion and
remedy through its courts in Of breach of con-
tact, 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 substant justice II must have the
right Judge, in the first place. what modes and forms
OF remedy will give, and, then, how far such remedy
shall be pursued and carried When it has been
pushed far as it is safe for human power to goas
far as II can go without unmitigated eyil-then it is
time to withhold it,
On the general principles which have been
stated, the main provisions of this bill rest. No dis
unction IS here attempted to be set up between an in
solvent system and bankrupt system All persons,
whatever may be their occupation who unable TO
meet their debts and engagements, nsovents and
if they so declare themselves they are deemed bank
rupts. These voluntary bankrupts.
II is in regard TO the mercantile classes only or those
whose business renders them directly liable the pecu
liar hazards which attend mercantile operations it is
IN regard to debtors in these classes only and where
their Indebtedness amounts to certain sum, that the
RICH, is given to creditors, under limitations and on
the happening of certain events cause debtors
to be declared bankrupt and have their estates seized
for their behoof These are then Involuntary bank
rupr. And this is the only disiinc ion made in the
b IN regard to the various classes of insovent debt
ors IN the community, to whom such a bill is deemed
at all applicable
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
Skin ana industry in production has fallen into hope
less insolvency. 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 the debtor may if he choose take
the Initiative With respect however to the particu-
lar classes just referred it has been thought advsa
Die and proper on account of The great Importance and
necessity of prompncss and pune,uay in meeting
all Their engagements, that il should he put in the
power OF Their creditors TO move against them in
tam circumstances, without waiting for them to stir
tie subject OF their Insolvency.
In the principles already stated will be found the
reasons Tor making the provisions of this bill apply
well to existing cases and contracts as to those which
arse alter the passage of the act.
All the legitimate power of civil society would be
cxeried in vain to full compliance with the
contracts of insolvents who have first lost the mea ms
OF payment which they had in possession, and then
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 800, 600 such persons IN the United States
men who though bankrupt and ruined them
selves, have by their industry and skill in business,
and the Of capital and credit, added millions upon
millions to the aggregate wealth of the naton-a
wealth that still subsists though pant Of il is theirs,
and need only he we'd from The hnnnnrc