Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1842-01-29
LEGISLATURE OF VIRGINIA.

DEFERRED DEB.iiE.
Continued
REPEAL OF TIE BANKRUPT LAW.
H., IL


of our own report OF his remarks, we give the oiow
ing made by himself and published III The wing OF
| Monday last
Mr. lRyIxG said lie was glad TO the change that
had taken place in the opinions OF gentlemen IN fea-
ton 10 the propriety of resolutions by the Legislature
of VIRGINIA. upon subjects of an abstract character
| The gentleman from Acconac now ooJects 10 the
anne ndnent of the gentleman from Campbell, because
there is Bankrupt law in existence, including
the CORPORATIONS u the States within It's PROVISIONS
Now il this be u valid objection TO the amendment Of
the gentleman from Campbell, which denounces a.
attempt that may be made to include The banks and
other corporations Of the States within the terms oil
the Bankrupt law, what becomes of the resolution pro-
posed and now on your table, by the gentleman hInE
SELF decara,ory of the opinions Of tie General Asset
bly, OF Virginia upon the subject Of National Ban&:-
If, the gentleman truly says, there is no law up'n
the statute book by winch Banks and other Corpon-
tons of the States subject 10 bankruptcy, so, IT.
equally true there is law upon the statute book vs.
tabshng National Bank. In both the resoutIonsoi
the gentleman and in the amendment oil the genilemn
from Campbell, the Legislature is made TO express is
opinion upon state of things thai may arse. II, n
the case 1t is improper TO express our Opinions D'.
cause law has been passed, presume the ohlectio,
would be equally valid in the other. But il urged By
the gentleman IRON Accomac, that the object of the
amendment OF the gentleman from Campbell, III pro-
posing the amendment, only 10 embarrass The action
Of the Legislature upon the suhjec; OF the Bankrupt
Law-thal il is attempt Ia eEgraf upon the rcsolu-
tons originally proposed the opinons oi lie Legis!a
ture upon subject totally distinct, and no way con-
uectcd with The original resolutions. Now he con-
ceived that il would BE- Sufficient answer to tins
objection, that whenever the subject OF bankrupt
| Law has been introduced into Congress, the at
tempt has been made 10 include the Banks and
other Corporations Of lie States within lis terms
But he would ask what the state Of things
| in relation 10 this subject at present At the com
mencement of the present session oi Congress-, mo-
ton was made by Mr. Benton, of Missouri 10 refer the
subject of The Bankrup, Law 10 committee, w'ii The
avowed object OF 50 amending the law rs 10 include The
Corpora lions Of the States within lis operation. Upon
lbs motion the subject referred 10 the committee
that the distinct proposition is now before Congress
subject the Banks, and other Corporations Of The
States IL system Of Bankruptcy, and yet we are told
we should cxprcss the opinions OF this House upon tie
subject Of law which prescrbes system OF bank
ruptcy for individuals Whilst 10 withhold the
expression Of our opinions upon the proprieiy OF IN
GLIDING the institutions Of the States express
the of this House upon the law II now stands
upon tie statute. book-but we are 10 be silent upon
the provision which is attempted 10 be engratted upon
that law For HIMSELF he considered II much more I'm
porRnt that should express our opinions upon Tie
subject embraced by the amendment, that upon the
subject OF The original resolution. But the gentleman
seems TO think that The amendment applies only to one
of the dta lis of the law, and that il not proper that
should express The opinions Of this House upon
details Does the gentleman consider the subject
of the amendment mere detail: y proposition To
subject all Of tie Banking institutions Of the States OF
this Union 10 system al Bankruptcy mere matter o.
detail. What then, lie would ask, was Ike nature and
effect II the propositions upon which the gentleman
from Campbell proposes 10 express the opiE'on Of the
House: II is proposition 10 declare all corporations
for manufacturing commercially and other purposes ow-
ing debts to a certain amount and all corporations or
associations that shall emit bills, drafts or obligations
with the design that they shall circulate as money sub
jcct TO the provisions Of Bankrupt law. And II pro-
poses TO declare that whenever these corporations or
associations have faded, suspended stopped pay.
ment for certain period Of time, they stall be deemed
bankrups and be mnde subject To the provisions OF the
law regulating mode Of proceedings in other cases OF
bankruptcy. He would then briefly inquire into the
power Of Congress pass any such law. The power to
pass uniform laws upon the subject of bankruptcies is
given in express terms by the Consttuon-t!e grant
Of power is ''unlim,ed and Supreme, whenever the
subject upon which the Law is designed 10 operate
may be fairly embraced within the terms of the Con-
stlution In other Words if The corporations OF the
States can he considered subject upon which sys-
tenn of Bankruptcy prescribed by Congress, can be
made 10 operate then these Institutions may be nclu-
dcd within the provisions Of such a law. lie would
attempt to show that these institutions could not,
constitutionay, be brought within the operation OF
my system of Bankruptcy prescribed by Congress
What then, lie would ask, were the main objects Of
the Bankrupt SYSTEM Was il not in the first place, to
the rights Of creditors by obtaining equal dis
rbution of,Ie effects Of the Bankrupt amongst hrs
dtors: In the second place. to set tree the energies
of those who are weighed down by load Of debt which,
by exertion Of theirs, they can ever discharge
These two views enter ecessarily, INTO the Consul
tuition of every Bankrupt system In relation To the
first object of the SYSTEM the security OF the rights OF
creditors Bankrupt Law applicable u the corporations
oflhe States To be entirely inappropriate These
corporations artificial beings, created by the States
Their charters contain the electual provisions
for the security Of their creditors. Every provIsIon
therefore, uf Bankrupt Law, looking TO the security
Of creditors, may be, and in most instances 10, incorpo
rated into the charters Of these Institutions The only
provisions of Bankrupt Law that could bemade TO ap
ply to the State corporations, would be clause pre-
scrbing forfeiture of their charters upon The failure
to perform Their obligations by paying specie
All OF the charters granted by the States prescribe
certain penalties and impose certain iorietufes, Tor
failure comply with their obligations. The charters
of some of The State Banks prescribe that IN the event
of such forfeiture, the whole OF the institutions
shall be placed III the hands Of commissioners or as
signecs who required 10 make equal distribution
amongst the creditors Of the Banks. 1t must then be
perceived that the clause Of any Bankrupt Law, look
ing the security Of creditors, could have nothing to
operate upon unless supersedes the laws Of the States
Can il be believed for moment that the States would
have consented 10 confer upon Congress the pow
er 10 pass uniform laws on the subject OF bankrupt
cles IL they had supposed that, under That clause
the power would have been claimed 10 divest them OF
the right grant charters Of ncorporaton:for lie
concnGed, that if there be III Congress the power to
subject the State institutions TO other terms, 10 other
penalties, and other conditions, than those prescribed
by the State granting the charter, then the power OF
the State is entirely worthless. OF what avail would
be contract between the citizen and the State, II, al
that contract is made, Congress can incorporate 10
that contract, terms and conditions inconsistent with,
and different from the terms Of the contract made be-
tween the State and the Stockholders. For instance
The State makes charter, it pescrlbes certain duties
to be performed BY the corpoaticn-t prescribes GER
tain penalties for the performance OF those duties
grants the other hand, certain rights and prive-
ges guarantees the Stockholders corporate exist
ence for certain period Of time The stockholders, on
the faith Of this contract made with the State vest their
money in the insttuion-in the meantime u Bankrupt
law is passed by Congress, which cuts up by the roots
the law Of tie State granting the charter Of ncorpora
ton, and subjects the stockholders other and higher
penalties than those imposed by the charter. Can there
be doubt that the States have retained 10 themselves
the power charter Banks and other corporations
If they have is il not wonderful that they should have
granted TO the General Government The power to
modify, abridge, and, in fact, 10 annu those char
1 Enr ha cnnaidarod lie nnrrer n