The Athens post. [volume] (Athens, Tenn.) 1848-1917, 1858-03-19
A UNIFORM BANKRUPT LAW.

day last, upon the motDn OF MIR. Toombs,
adopted resolution, rekrring so much of
the annual message of tie President as re-
lates to the subject of q uniform bankrupt
law, to the committee on the Judiciary. Mr.
Toombs, it is understood, has prepared bill
which the Judiciary Committee, of which he
is member, will doubtless report, and the
Senate, if it is disposed, may consider and
act upon it at the presen: session. Whatever
may result from it, says the Augusta Consti-
nationalist, the passage Of this resolution will
bring the important srbject of a general
bankrupt law prominently before Congress
and the country, as ore Of the means by
which we may provide against some of the
evils which We have often suffered, from ex'
travagant expansions in the business of the
country.
The President of the United States, as our
readers will remember, in his annual message,
after commenting upon The deplorable none
tary condition of the country and the causes
which had produced it, recommended the
passage of "a uniform bankrupt law, applica-
BILE to all banking institutions throughout
the United States" congress" said he, ''in
my opinion, possesses the power to pass
uniform bankrupt law, applicable to all bank.
ing institutions throughout the United States,
and l strongly recommend its exercise. This
would make it the irreyersible organic law
of each banks existence, that suspension of
specie paymspts shall produce its civil death.
The instinct of self.preservaton would then
compel it to perform It's duties in such man
ner as to escape the penalty and preserve its
life" This is all which the message contain.
ed upon the subject. In the report of the
Secretary of the Treasury, it was presented
at greater length, and we have referred to
the passage of Mr.. Toombs' resolution, simply
to reproduce the following extract from that
report, urging the passage of a compulsory
bankrupt law, applicable to all banks and
railroad corporations as it suggests the true
principles upon which any general bankrupt
law, passed by Congress, ought to be formed:
ain my judgment the period has arrived
for Congress to employ the powers conferred
by the Constitution upon it to mitigate the
present evil, and to prevent q, catastrophe of
similar kiId in future; and for this purpose
compulsory bankrupt law, to include two
classes of corporations and companies, is ne
cessary. 1t should be a law for the protec
ton of creditors, not the relief of debtors; to
prevent improper credit, not to pay improvi-
4 -, ,nt n1,,n h.
effect Of such law would be felt more in its
restraining Influence than in its practical ex-
ecution.
81 do not recommend a law similar to
either of those which have heretofore existed,
and were abandoned after short and unsat
isfactory experience. The first was adopted
the 4th April, 1866, aud was repealed the
10Th December, 1908. 1t provided for q
compulsory process of bankruptcy against
those merchants and commission agents, at
the suit of creditors, whose insolvency had
become manifest BY certain overt acts of fraud
or defaleation, and effected q collection and
distribution Of the estate of the bankrupt,
through the judicial tribunals Of the United
States which was followed by his discharge
from the debts his estate had not satisfied
The second act was passed 18th August, ls4l,
act, besides the compulsory system Of the act
of 1900, contained system Of bankruptcy
to be applied on the petition of an insolvent
debtor, Of any class or profession, and to re
suit in his relief from his debts and engage
ments, upon the surrender of his property
and compliance with other conditions Of the
act.
"There are grave objections to the present
adoption of the systems developed in these
statutes The voluntary feature of the act
of lS4l is rejected as unwise, unjust, and un
necessary. 1t was this provision which rem
dered that law so justly odious in the public
mind. Nor do | propose to extend the pro
visions even ofa compulsory bankrupt law to
the numerous cases covered by the act OF
lS4l. 1t is better to leave to the operation
of the insolvent and bankrupt laws of the
several States all cases which do not, from
their magnitude and Importance, affect the
general commercial and business interests OF
the country. 1t is believed that the power
of the States is ample to meet such cases, and
the propriety and policy of exercising such
powers will, sooner or later be developed by
the lessons of bitter experience.
"The two cases which it is now proposed
to bring under the operation al compulsory
bankrupt law, are banks and railroad corpo'
rations. The immense capital employed by
these companies, their controlling power and
influence in the commercial and business ope-
rations of the country, their disposition to
expand and enlarge their credit, and the ru-
inous effects produced by their operations
when carried beyond legitimate bounds, i'm.
pose upon the government the duty OF pro-
viding, by every constitutional means in their
power, for the safe, proper, and legitimate
conduct Of such corporations. The facts
which are presented in other portions OF this
report, developing the condition and opera
tions Of these two classes of corporations,
will fully justify the policy now recommend
ed. The object is not to iujure them, but to
protect the community. The effect will be
to restrain their operations within proper
limits, and thereby insure to the country all
the benefits they are capable OF coniering;
without the accompanying hazards OF wild
speculations and ruinous revulsions.
"ln closing my observations on this subject
it is proper to state that these recommends
tions are not formed in any spirit of hostility
to these corporations and companies, nor am
insensible of their vast Importance in the
commercial system of the United States
Nor have | any disposition to denounce any
punishment, nor to subject them to any loss,
in the present conjunction of their affairs.
My object is to place them in subsection to
wholesome laws, so that, while the benefits
they yield to the community may be preserv-
ed, their excuses or errors will be counter
acted or prevented"
Portland, Me-, March l6.-T'he
steamer North America has arrived with
Liverpool dates to March Sd. Cotton has
advanced | Sd on all qualities. The general