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

favor Of amending the law instead of repeating
il, and he fortified his report with extracts from
various answers given to the Secretary Of State,
under resolution Of the Senate, by legal gen
temen in different parts of the country. Among
these are letters from Judge Story and other
Justices of the United States Supreme Court,
highly favorable to the continuance of a gen.
eral bankrupt law properly modified Judge
Story assigns one argument in its favor of much
weight. and which applies to great portion of
the commercial difficulties at the present time
lie Gays speaking of the act then in force:-"It
strikes at the root of that great evil-accommo-
dation paper-which has been the main source
IL 80 many ruinous epeoulations and caused the
downfall of 80 many of our banks. II cuts
down the temptation to grant any such accom-
notation by preventing the parties from giving
what are called honorary preferences and secu-
rites in cases of failure"
But the opposition to the law in Con-
gress was too great Under the voluntary"
clause thousands had shuffled off their debts
without their creditors being able to interpose,
using the law almost exclusively as general
insolvent act and doubtless committing extern
sive frauds under its loose provisions Yet not
withstanding, as far as the opinion of the public
could be reached, it was found that 81 900 per-
sons pettioned against its repeal and in favor of
it's amendment, whilst 5000 persons only petit
toned for its total repeal. OF the States, the
Legislatures of Connecticut, Maine, Mississippi,
Vermont and Ohio passed resolutions in favor
of its repeal and Illinois in favor of its repeal
or modification. The other States took no ac-
ton in the matter. The majority in Congress
would not, however, accept any proposition for
its amendment. and it was accordingly repealed.
BY that time the law had probably done all the
damage it was capable of under its faulty con-
struction, and had it been permitted to remain,
properly and carefully amended, its advocates
claimed it would soon have become popular
and beneficent enactment. Since that periodno
attempt has been made to revise it.
There are strong reasons, however, why some
general system of bankrupt law must be adopt
ed at period sooner or later. The evils of the
existing "no-law system are daily becoming
more and more apparent. Under a prudent
bankrupt law imitation would, in great mea-
sure, be checked, creditors would be placed
upon an equality and fraudulent assignments
put an end to. whilst honest debtors would be
benefited. 1t would doubtless interfere with
the arrangements of that class of debtors who
fail so as to get rid of paying their debts, and
who thereafter live sumptuously upon the pro-
perty they have managed fraudulently to make
away with. Under proper bankrupt law such
fraudulent assignments and transfers could net
exist, and those who attempted it would be ex-
posed and degraded. State bankrupt and in
solvent laws do not and cannot meet the re.
quirements of the case. No State can pass a
law impairing the obligations of contracts; nor
can any State exercise the power of establish
ing bankrupt law which will act upon the
rights of citizens of other States.
We occupy position of the first Importance
as commercial nation, and we must bring our
selves within the pale Of other civilized CON-
mercial communities. A system which protects
alike the honest creditor and the honest debtor
is needed, and however much difference of opin-
ion may arise as TO the details Of the act. some
law on the subject is imperatively demanded.