New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1857-12-09
NEW YORK DAILY TRIBUNE WEDNESDAY DECEMBER o. 1852

,,rtroy dent speculation leading to rapid fuotu atom
in prices soG habits OF eztf.Ssg'nc., ! REGARD
existing In the commerce Ct the oountry. The
opy efficient remedy for such evil, is 10 b.
feuid IN return 10 the prudent o,1rse,
and stesoy habits which, for time were M hap o'ly
isid aside. This Government could do but iuls TO w.
ed eytIicetng individuals, corporations or com nuo
iee from She pefniccus qusr ces Of their exrava
giant expenditures or III conceived enterprises Wrr
oie6 bss been extended'so far beyond the bonds OF
legitimate confidence rs to creste revuion in trade
occa.ionitg fl OF pros. ard destruction Of on.
vate credit epeecy edjustn ent Of the relations be.
tween creditor and debtor by liquidation and settle.
utnt il the sest mode for the restoration Of the edui
hbIium.
Wild ard chimeiicsl speculations will thus hsvs
their termination, industry will be better enabled 80
realize its sober expectsti0hs aud the substsna In
terests Of society beirg relieved from the noxcus
huence OF excitement, OvsraAon, and disorder, will
Iesume their accustome! energy in communicating a
beahu end vigorous activity to the BURNERS of the
country. The proper agency Of the Government in
such 3 case is 10 remove whatever impedment msy
exist TO the exeIOn Of the native forc OF society aud
to extract from the experience they have gsined les
tons to be- embodied IN VIII olesone and we'll cOnsit-
cred laws TO prevent the recurrence OF the NI.
IL is evident that the great mOneyed corporations
created under the laws Ct the States have hal con-
troiug influence in the undue expansion Of private
credit In many Of the States the legislation in
respect to these is strngt ard embodies mary Of the
safeguards that experience has suggested for their
euatOn.
But it will not be denied tba! this legislation ha,
been nugateIy. The State authorizes have already
manifested eager disposition 10 relieve them from
the penalties they have incurred, aud 10 dispense as
fares they were able, With the performance Of the
obg stiOns they had enacted from them when they
were organized. This has been done, in come csses
without an inquiry into their cosdton man agement
their capacity TO resune their ppsiiion solvent
institutions even to pro'ec. the community from
deprecated paper currency.
In my Judgment the period has arrived for Congress-
to employ the powers conferred by the Constitution
upon II to mitigate the present evil and to prevent
catastrophe Of similar biod in future; and for this
purpose compulsory bankrupt law, to include two
classes of corporations anies, necessary. l.
ehoud be law for the protection OF creditors not the
relief Of debtors; to prevent improper credit not to
psy imprOvident debts; compulsory, not voluntary.
The effect of ouch Jaw would be felt more 10 its
resiI aiming Influence than in its practical execution.
/ do not recommend las similar TO either of those
which have heretofore existed and were absndoned
after short and unsatisfactory experience. The first
was adopted the 4th April 1900, and was repealsd
the 18th December 1903. 1t provided for comp1l-
sOiy process OF bankruptcy against those merchants
and commission agents, az the suit OF creditors whose
insolvency had become manifest by certain overt acts
of fraud defacatiOn, aud effected collection and
distribution of the estate Of the bankrupt through the
judicial tribunals Of the United Staes which was fol-
lowed by his discharge from the debts his estate had
not Satisfied. The second act was patsed 18th August,
lS4l. ard repealed lbe Sd March 1913. 9is ac,
beside the compulsory syeem Of the act of lSOO con-
tanned q syste of bankruptcy, TO be applied On the
petition Of insolvert cebor OF any class or profes-
sop and to result in his relief from he debts ana en-
esgemepts upon the surret der OF his property and
compliance with other conditions OF the act.
There are grave objections to the present adoption
Of the system developed n these statutes The v0ldn
fary feature of the act of 1871 is rejected as unwse
Ut Just unnecessary. 1t was this provision which
rendered that law Justly odiOus 10 the pn5!ic mind
Nor do propose to extend the provisions even of
compulsory bankrupt law TO the numerous cases COW
L. L.Nf4w 20 l.ay 20 fhA
operaio of the insolvent ard bankrupt laws OF the
sewers States all which do rot, from their m.g
utude and importance, affect the general commercial
ard busDess interests of the country Ii believed
,hst the power of the States Is ample to meet such
cases the propriety and policy Of exercising such
powers WILL sooner or later, be developed by the les'
tops of bitter experience.
The two cases which ii is now proposed to bring
under the operation Of compulsory bankrupt law
are banks railroad corporations. Inc immense
capital employed by these companies their controlling
power aid influence in the commercial and business
operations of the country, their disposition 20 expand
ard enlace their credit and the rUinous effects pro-
duced by their operations when carried beyond esiti-
mate bounds, impose upon the Government the au'Y
of providing by every constitutional meas ia tn
mower foI The safe proper and legitimate conduct OF
such Go, poratioLs The facts which presented in
other port one of this port developing tue condition
and oe aions of these two classea Of Corporations,
will July justfy the policy nov recommended. lac
object ia not to ire them but to protect the commu-
tiy, The effect will be 10 restrain their opershons
iiiu proper imits ard thereby insure to the county
s the ben sts they capable of conferrng Without
The accompanying hazards OF wild speculatons ana
ruiz ope re7u slons.
Tn closing nv obsery atoms on this subject, il Is
proper to state that these recommendations are not
Iomed In any spirit of hostility to these corporations
nnd Jmpsuiee, am insepsible OF their vast in.
poftance in the commercial system OF the United
States. Nor have any disposition to denounoe any
punishment nor to subject ;hem to any losS, ia the
wesent co, junction Of their affairs. My object is to
place them in subsection to wholesome laws, 80 that,
While the benefits they yield to the community may ba
preserved their exec will be counteracted
or prevented. ,
The DETAILS of any act formed on the principle
have suggested, should bs adopted after an enargsd
irouiIy into their condition and should emboiy the
most b raj provisions for the security of the rights OF
the pslsors interested ia them. A reasonable tins
should also be allowed 10 The cOrporatisas which are
now IN default to Ites!abhsh themselves bsiofe tnlt
oct becomes operative.
During this financial cris,s and general arrangement
Of the curreIcy the collection aud disbursement OF ths
public have proceeded with( ut loss or emoar
isssmeIt. The operations VI the indepenoen teasury
system, in Ordinary times had been found by exPe
nence eminerty successful. The danger OF loss from
unfathful and inefficient Offices the expense OF con
Quoting its operations without the intervention OF bank
age nciee its deletsTCus effects upon COMMERCIAL pro-
erefs and the general business OF the count y-a oil
which was apprehended by the opponents OF the meas
ue at tie time of Its adopton-hsve been demon
rated TO be I'LL founded. L. ony remained to encouoer
a commercial crisis IKE the present 70 Ninucae IN
Justice ard wisdom of tbs policy against all cause o
complsnt or apprehension. brief comparison OF the
operations of the Treasury Department duIog the gu
pension Of 1857 aud the present Tins will place the
ect before the public mind in the most satisfactory
napner.
On the 3Ob June, 1887, immediately after the general
suspension the posit banks held TO the credit OF the
Treasurer Of the UDsd States and subject TO hi dat
the sum of $24 994 l5S S-a lager amount In proper
ton to the receipts aud expenditures OF the Govern
ment than there the treasury a. the tn' OF the
suspension by the batks the present year. Toe funds
Of The Cove being then under toe control OF tue
banks, AID they either unwilling unable 10 pay the