The Camden journal. [volume] (Camden, S.C.) 1836-1851, 1842-02-16
THE BANKRUPT LAW.


THE BANKRUPT LAW.
The Money article of the New York
Herald has the following survey of the
effects Of this law: a.
The applications for discharge from debt
under the bankrupt law have commenced
with great vigor. Great haste is made TO
push through The forms Of The law and OBJ
tain a discharge as speedily as possible,
for fear Congress may yet postpone the
operation Of the law, which would have
the effect Of staying all proceedings under
it not perfected. Those in whose behalf
notice 10 creditors TO show cause was made
public to-day, cannot receive their cerlifi.
Gates under 70 days. In the meantime,
the bankrupt will at all times be subject to
examination orally, or upon written inter-
rogatories, before the court on oath, in all
matters relating to his bankruptcy, which
are necessary for the purposes of Justice.
If in any case of bankruptcy, a majority,
I'm number and value Of the creditors who
shall have proved their debts, shall at the
time ofhearing of the petition for dis.
charge, file their written dissent to the al.
owance of a discharge and certificate to
the bankrupt, or if, upon .hearing,;a dis
charge shall not be decreed to him, he NAV
demand a trial by jury, upon a proper is
sue TO be directed by the court, or he NAV
appeal from that decision TO the Circuit
Court. And it, upon full hearing, it shall
be found by the court or the jury, that the
bankrupt has, in all things, CONF lied with
the acquisitions Of this act, The court shall
decree his discharge.
Very many. .oftbose who apply for dis
charge are living in state of splendor far
above that which is within the means of
their creditors. These should promptly
and vigorously combine, and sift out the
real connection of the bankrupt with the
property which surrounds him. Itzis the
only chance. forithe creditors againstwhom
the law is arrayed, to protect their rights.
Under the late Banking system, the cred
its created by trusting these people were
called property. Banks and individuals
that held their paper considered it as good
as property. The amount of that proper.
ty represented by those who applied for
discharge yesterday in this city, is estima-
ted at S6,0OO,000. This, by the operation
of the law, will be annihiIaled. The hope
heretofore entertained Of being able to re-:
alize something from these debts, has kept
alive The hope of being able to pay other
debts. That chance. is now destroyed,
and the probability of creating many other
bankrupls is increased, who in their turn,
will apply fora discharge, and contribute
TO pull down some others in their turn
The avalanche is now hanging over the
heads of thousands who little dream that
they are in danger of being crushed in the
fall.
What little propertyis is possessed or will
be disgorged by the bankrupts will be put
upon the market, and will greatly affect
the value of other property. This will,
no doubt, mostly consist of real estate,
bonds and mortgages, &c. &c. and it is
precisely this description of property in
which the greatest decline may hereafter
be expected. The losses IN this descrip-
tion ofpr"perty must fall on the lenders.
In order to show the practical operation
Of closing up the loans on mortgages we
annex from the Comptroller's report the
result Of the foreclosures of the mortgages
belonging to the United States Deposite
Fund, from 1889 to lS4l, inclusive:-
From this it appears that thu amount
bid was not one half on the amount loaned
Notwithstanding that very small portions
only were put upon the market. In New
York city the property was appraised at
scarcely more than fifty per cent, Of the
amount loaned omit. The recent sales Of
improved property that have been made in
this city have exhibited an immense fall
ling off in prices. aud the future holds out
no prospect of any let up in rates. While
most ali other criptinns of property
have been pressed upon The market, the
nominal value of this description of prop
erty has been kept up, from the fact that
but small portion of the property has
been put upon the market.
The summary method Of closing up in
debtedness now TO be pursued under the
new law, will producea vast change, and
annihilate vast amount Of assets compos.
cd Of that description of property.