Burlington free press. [volume] (Burlington, Vt.) 1827-1865, 1843-06-02
MIR. VAN BUREN'S OPINION
BANKRUPT LAW.

On the 18th of August, 1910, a let
was addressed to Mr.. Van Buren,, by Messrs!(
S. L. Danfeld, VIM. II. Brasher, and 9th.
ers, citizens of New York, interroea,ing
him as 10 his opinions with reference TO a
general Bankrupt Law. Extracts from his
reply dated Washington, Sept. Ia, 1910.
we present below-from which il will APP
pear that, Notwithstanding all the clamor Of
the Loco Focos against this measure, Van
Buren, is in favor Of Bankrupt Law Of
the most odious kind, restricted in its oper.
alton to "bankers and traders"
! 1.-THE subject, as pending before the country
and as embraced in your questions presents itself in
| several points of view.
Fret, As to General Bankrupt Law, applicable
| to bankers and traders only.
S,cond As to the propriety Of subjecting corpora
| tons to its operation; and
Third, As to the proprety of embracing volunta.
rly, or involantary, all other classes within its pro-
vision.
1t is arue, the sacred observance of which is In.
dispensable TO the well-being of Society that Gov.
eminent should never interfere with private contracts
even when the authority TO do is conferred by the
Constitution, except upon the ground Of evident
public necessity and then with degree of caution
and clrcumspecton which shall guard IN an efectual
manner against fraud and injustice. That occasions
may arise when those who have the rghtlul power
to interfere, may 10 So and required TO do BY
regard for the best interests Of the community,
THERE 40 DOUBT Thought there 1ras oeco-
sion for such interference in 1927, and gare my ros
for general Bankrupt Law applicable to bankers
and traders, classes which all agree, were in
tended to be embraced by the clause of the coDsttu
ton relating to this object. An occasion of at least
equal urgency for such law crisis at this time The
| arrassments caused by the pernicious expansion
of the currency, and tho consequent facilities Of
credit and cash enterprises, which have unfortunately
oh parfa cd tho1o Eo,-,
an interference ofhis kind greatly conductive IF NOT
WOULD THEREFORE, HAVE UNHEs1TA-
SION OF CONGRESS-, IN THE PASSAGE
} OF SUCH LAW, properly guarded against frauds,
and 80 framed as to secure to the creditors the pres
ent estate Of their debtors, rhen the latter dc
charged from their obligations"
at would constitute no objection with me, il cor.
pora.lons werr in proper form, embraced by the pro.
FL
".obecons to the power of Congress to pass
voluntary bankrupt law applicable to all classes Of
debtors have been principally founded on the follow
Following in this connection he enu-
inerates the points of argument both for and
against it, which we of course omit az
foreign to the illustration of his own posi-.
sion.]
"The evils ola Bankrupt Law with such extended
range, would it is justly 10 be feared, more than
counterbaance the benefits it might otherwise pro-
duce. | am not aware that any government has
deemed it wsel safe to extend the operations Of .
bankrupt law to all these classes of its citizens or
subjects. ! am well aware that these latter obIeo.
b tons sought to be obviated by making the opera
tons of this part of the law voluntary only. But il
well deserves TO be remembered, that such law
\ would be but the entering wcdge-he first move
| a
al power. and no one tell what nigh, De the
next"
Thus it is apparent that Mr.. Van Buren,
is for worse Bankrupt Law than that
e which passed Congress. He is for a gem
] eral Bankrupt Law, applicable to Bankers
and traders" embracing of course, mer-
- chants, factors, and many other classes Of
private citizens") including " banking in.
corporations" But excluding other elasss,
of citizens, equally meritorious. such az
farmers, mechanics, &C., from its opera
!, ,ions. He is opposed to extending the Law
" TO" all classes of Debtors" but agrees 10
embrace few favored and generally mon-
eyed classes, to the exclusion Of all small
:. debtors. This odious distinction he seemi
to wish to palliate, when he intimates that
4 were the law, as applicable to farmers, me.
:, chanics, and other small debtors, made
>. voluntary only" (the precise condition
of the law passed) it would be unobJec.ion
able, only as it might prove an entering
. wedge" to something worse hereafter. Bu'
~ it must be allowed that he no where distinct
:" ly approves such an ex,enton Of the law 4
call classes" The extent Of his wishes Is
- general Bankrupt Law, applicable 4
~ bankers and traders"