The Washington union., 1857-11-11
a BANKRUPT LAW.


ton of national bankrupt law Whether those
which do fully understand and appreciate the con-
sequences Of such law, we do not know; nor do
we know whether thoy look to the action of the
bankrupt. or that Of his creditors; nor are we GER
tain that they discriminate, with distinctness and
certainty, between bankruptcy and insolvency, al
though the legal consequences are widely different
The several Staos pass iasolyent laws in conformity
with State views Some release, or avoid imprison-
mont for debt while &hers discharge from all liab
ties contracted within their respective boundaries
ON suits brought within their limits. national
bankrupt law has broader application and more
extended and positive effect The constitution con.
,ans this provision: Congress shall have power
= to establish = uniform laws on the subject
of bankruptcies throughout the United States" This
expression clearly refers to what was then under
stood by bankrupt laws in England and In tho colo
nies which subsequently became States of Inc Union
These applied exclusively 10 traders " and formed
portion Of the which creditors might
as means of securing payment, and not debtors to
avoid payment. There were twenty acts specified
which, il the debtor diu OF satfered would authorize
any creditor to stsps against him in bankruptcy
among them, departing from the realm remaining
abroad, shutting himself up in his dwelling 30 as to
avoid arrest absenting himself suffering arrest for
debt not due, yielding himself to prison. suffering
outlawry, suffering his property to be seized on at
tachment or execution, making fraudulent convey
ance oi his property, remaining in prison twentyone
days, escaping from prison custody, signing pa
per admitting insolvency, &cn either Of these and
in some other cases creditor could Institute pro-
cecdings in bankruptcy, and compel an assignment
OF the debtors property to commissioners for the
benefit of his creditors. II the debtors property
paid all his debts, he was, of course, free from abil
iy; but il moi, he could only be discharged by the
chancellor the application Of hree-fourths of his
creditors and on certificate by the commissioners
that the bankrupts conduct had been fair, and that
he had surrendered up oil his property III conform
i1y to law. The debtor had no means of going into
court himself and taking proceedings against his
creditors to secure his own discharge without the
action and concurrence Of his creditors.
The English bankrupt laws were based upon the
supposition that traders hazards in their bu-
einess beyond those common to other people and
wcro much more liable to be involved in numer-
ous engagements. While their conduct was above
suspicion they stood in the position of all other
debtors but when they performed or suffered GER
tain suspicious or doubtful acts, The law clothed the
creditor with power to take summary proceedings
to dvest them Of their property, and place it in
rusy hands to be applied in payment of their debts
ahreefourths Of the creditors proving debts to
certain amount had the power, where all appeared
c,;r VI c ,
The debtor was then calleda ''cert6caed bankrupt"
Provisions Of somewhat similar character are
found in some of our States, which are held valid
within their respective limits, though not effective
beyond or elsewhere. In most cases the insolvent
and his creditors petition and act in concert
Our constitution had in view the English system
of bankrupt laws, where the debtor could not take
proceedings to secure his own discharge from debt
because there was then no such system of bank
rnptcy known to vs. Our first bankrupt law passed
in l800 conformed, in its leading features, to the
English prototype 1t did not extend to all persons,
but provided that "if any merchant other person
residing within the United States actually using the
trade Of merchandise by buying and selling in gross
Or by retail, or dealing exchange as banker, bro
perform suffer acts, substantially those specified
in the English law should be deemed a bankrupt
The persons here enumerated had been held to be
within the English law. 1t then provides for COM
pulsory proceedings for divesting the bankrupt Of
his property for the benefit Of his creditors On the
commissioners certifying that all was fair upon the
part of the bankrupt the court was authorized to
give him q certificate Of discharge. But in no case
could the debtor become the moving party, and
avoid devotng his time and talents to earning the
means of paying his debts in full By the English
law the full discharge rested with the creditors but
under this act it was made to depend upon the ac-
tion Of the commissioners and court Whether this
control did not most properly pertain to the credit
ors is the subject Of some difference of opinion This
act was repealed in 1903
The act Of 184l was broad departure from that
of l8O0 and still broader from the English model if
il was not in actual conflict with the constitution as
very many able and learned urists fully believe. II
authorized compulsory proceedings against mer-
chants retailers bankers factors, brokers, and
derwritcrs like the act Of 1900. Beyond these, it
allowed all other persons to be declared bankrupts
upon their own petition, and to secure discharge
without the concurrence of his creditors, with the
same effect as if they had been merchants, and had
been prosecuted by those TO whom they were in
debted This act was repealed in l843 not