The Charlotte journal. [volume] (Charlotte, N.C.) 1835-1851, 1842-02-24

legislation OF the States over this subject.
This is upon the supposilion that they
possessed the whole power over II, INSTEAD
OF that crippled remnant which the decision
Of the Supreme Cour, has left 10 Them
But the difficulty, amounting almost to I'M
pracUcablly, OF obtaining a re,rocession Of
this power 10 the States, even IT II were &c
sirable 10 do so, renders it Indispensable
that Congress should exercise 1t.
Superadded to the expectancy Of retain
ing the present bankrupt law, from con.
sideration of the carrying legislation of the
States, is that winch arises from the iaeR
cheney Of that legislation.
1t cannot extend beyond Tie limits Of me
States and the persons subject to lis .jaris'
diciion.
|; cannot bind creditors in other States,
nor affect debts contracted there.
II cannot affect the contract, OF the rene
dy for as enforcement, IN the .jarisdlciion
of any other State.
The Senator from Pennsylvania Mr.
Buchauan) desires that thus doctrine may
be stated with this modification, that al &c
ceptance of his dividend by a non resident
creditor makes the discharge binding upon
him BE il so. But in this, the law does
not operate proprio rigore, but by the as
sent Of that creditor lie has, in effect, by
accepting his dividend, become party 10 q
deed Of composition, and By 50 doing, re-
leased his interest. II is d. his option,
therefore, to be bound by the lazy, or 20 set
it at defiance.
Under this State legislation, the discharg
ed nsosen, may be harassed by new suits
as soon as he crosses the boundary Of the
Stale in which his discharge was obtained
He is stripped Of his property BY the opera
ton of the bankrup; or insolyent laws Of one
State, which can afford him no protection
beyond It's limits, and is liable 10 SuiI in ere
ry other State.
In regard to foreigu nations, the leglsla
ton Of one or a few States might be pushed
to an ex'eut which would be retorIed by
excluding all American creditors from par
iic,pating IN the distribution of the effects
of their foreign debtors who may become
bankrupt, Il is expedient, therefore, to re
tain The present law, because Of the taeE
cheney Of State legislation.
II is expedieat, also, because Of the
means which il affords Of preventing the
Icaste Of tie Debtors property, and Of secur
,ug the equal distribution Of lis dSsetS.-
This is the creditor interest under this law
New York and Massachusetts, are, from
their amount Of capital and The course Of
trade, the great creditor States OF thl>
Union and, whatever may be said 10 the
contrary, and however confidently 1t may be
SAID, their intelligence has enabled them to
discover that this law is not calculated
merely to benefit the debtor, but tina, Il
will emineniy promote the interest Of the
creditor. Hence II is thar, 10 these great
creditor States, the majority in favor of re
tanning the bankrupt Law IS so overwhe'm.
ing. they do not, however, advocate it
merely for the reasons which | have just
stated. They lock 10 he advantage it will
bring TO them by enabling them TO extend
their future Observation-Disclosures their
customers by restoring to vast number Of
active, intelligent, and enierPrising citizens
he means of becoming SO. But this
ranch of the subject belongs more appro
,riaiely 10 the Senator from Massachu.
sets, on the other side Of the Chamber,
Mr.. Choate,) Who proposes to address The
Senate, aud TO h!m | leave il.
Fifth point. 1t is next said, that this law
nil! encourage u.ld spirit Of speculation
Sir, SAID Nr. g., tie precisely opposite re
suit must follow from the continued opera
ton ct this law. Senators v no urge this
at the sane time assert that the
bankrupt law viii DIMINISH the security 81
the creditor. l. i. not, then, mssl ubyious
that II will increase lis caution , that il sill
reader him more careful bow and to whom
lie gives credit He will look 10 the pres
ent means Of the dobtor, not 10 his hopes
aud Expeditions IN the future, and will
limit accordingly the credit which be ex
,eods. Such viii lie It's operation on the
creditor. Why should it tempt The debtor
70 wlid speculation The benefit which
viii result to him sl!l be, that he will Be
stripped Of his property, and # his conduct
has been honest, that his certificate Of dis.
charge will protect his future acquisitions
but be enters upon his new career wiih the
uneuylGb,e character Of certIhcated bank.
rupt, and with the certainly that, however
prudent may be his operations. If misfortune
should again attend them, the door Of re
lief IS forever closed 10 him, unless his es.
tate should pay seventy five cents in the
dollar. Sir, tins does 20, seem 10 INC to
present any very strong temptation. No
sir, the natural effect Of bankrupt law i
to diminish the amount Of dealings on cred
It, while It renders those dealings more Sc
cure.
/ Sirth paint Il is urged as another oh
lection to this law, that 1t will, in It's ltnne
date operation, embsrrass the country, by
bringing 500 600 600 Of bankrupt proper
ty into the market. How, and by what
process. this amount is ascer!ained ! know
not. ! canuo: figure It out. But do no
trouble myself with that. The statement
and the argument founded on II, that Il
would OCCASION sacrifice of this vas