The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-03-07
The General Bankrupt Law.

There is reason to believe that the subject of
the enactment of a general bankrupt law will
receive the attention of the present Congress
1t is question Of very grave Importance and
should be properly understood by the public
Every civilized commercial community on the
globe, except the United States, has a system of
bankrupt and insolvent laws, more or less per
feet. distinction has been attempted to be
established between bankrupt and insolvent
laws-namely, that the former released the
debt, whilst the latter merely released the per-
son of the debtor-but the distinction does not
exist in practice. The cessio bondrurn of the Ro-
man law, introduced by julius Caesar, and
which prevails in most parts of the continent of
Europe, only exempted the person of the debtor
from execution for debt, but did not relieve the
debt, or exempt the future acquisitions of the
debtor. The English law, however, favors a
more enlarged policy, and purges the debtor
from all future liability If he honestly gives up
all his property and obtains release. The
advantages claimed on general principles for a
system of bankrupt laws is, that it places all
creditors upon an equal footing: prevents the
debtor from making away with his property,
and, if he is an honest man, enabling him to
begin again. unincumbered with load of debt
hanging over him; that it places business
upon more solid foundation, and suppresses
accommodation paper" by regarding all debts
as equal
II Is evident that the trainers of our consttu-
ton looked upon the establishment Of bankrupt
laws az a matter of course. The power was
therefore given to Congress to establish uni
form Laws on the subject of bankruptcies
throughout the United States In 1900 Con
gress passed an act OF this character limiting
it, operations TO FIVE years. Ii was repealed in
1903, and the subject was not renewed till 1910.
bill was introduced in the early part Of that
year, but after a very thorough investigation il
was found impossible to agree upon its details.
In August Of the following year, however. an
act was passed "to establish uniform system
Of bankruptcy throughout the United States"
II applied to all persons whatever residing with
in the United States who owed debts not created
in consequence of defalcation az a public Of
ficer or as executor, administrator, guardian or
trustee. or while acting in any other fiduciary
character. and who should voluntarily apply
for the benefit Of the act. The act was further
declared to apply to all traders of every kind
owing debts TO the amount of $1,000 who
should be liable TO become bankrupts upon pc
tition Of one or more of their creditors to the
amount of $500, provided they had absconded
or fraudulently procured themselves or their
property to be attached OF taken on execution,
or had fraudulently removed, concealed, as
signed or sold their property. The bankrupt,
when duly discharged, was declared to be free
from all his debts The first provision of the
act applied TO all debtors, and upon their own
voluntary application; the second TO merchants
and traders, and only at the instance OF the
creditors. The passage of the act was opposed
principally on the ground that the constitution
conferred only the power Of passing bankrupt
| law and that the term bankruptcy" had o
clear and definite meaning in English law, from
whence it was borrowed, applicable only to
| traders that the English bankrupt laws
were coercive on tie debtor, and put in &C
| ton at the instance of the creditors alone
| that there was marked difference between
bankrupt and insolvent laws; that the act OF
Congress WAS In fact also an insolvent law. and
that the States alone had the power TO pass in
solvent laws
The last point we do not consider TO have had
much weight But the opposition to the pro.
vision for the discharge Of the debtor upon his
voluntary application was of greater impor-
lance, and accordingly bill was introduced at
the following session of Congress to repeal the
whole law, and after fierce struggle the re-
pesling act was carried aud The bankrupt law
once more was blotted from The statute books.
In the Senate, Mr.. Berrien. from The Committee