The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-03-20
CopstitutionsI Bankrupt I.w Withou,
tAe Ala Of the Lobby.

The Presidents accommodation TO Congress
in favor Of the passage OF Bankrupt law az
fecting railroad and banking corporations and
the rumored intention Of Mr. Senator Toombs to
introduce q general bill on the subject, have At.
tracted good deal Of ate n,ion. and il is pro.
bable, If The details can be agreed upon. that a
uniform Bankrupt law may be established this
session But We think il viii be very difficult
TO either get a bin passed by Congress ut this
time, or receive the Presidents sanction, which
will NEE, the wishes Of the lobby representing
those Spectators who, having already failed to
meet their obligations. now desire the passage
Of whitewasbing law. In other words, We
doubt very much If any retroactive Law can he
passed, a. well because of the door it would
open 70 fraud. ~ Of it, doubtful constitutional
ity. We are in favor Of q general Bankrupt
law. properly guarded and altogether prospec-
tive in il character; but il will require very
strong state Of facts to induce Us to advocate
the passage Of any law which IL to -per.te as
sponge and wipe out existing contracts
The debates which took place on the bank
| rupt question in Congress during The session Of
1910 ~ were very full. TIE objections to and
arguments ia favor cf tie passage Of some
enactment may DC briefly stated. Some OF the
members were cppo-ed 10 any bankrupt system.
on the ground Of it, leading to the creation Of a
crowd Of otficcholders, and they preferred that
the States should pas bankrupt aud irrolvcat
laws The decisions Of the Supreme Court
however. show that State insolvent lswS do not
sns~er The purpose. ~ they are limited in their
operations to the citizens Of the respective
States. The compulsory process Of bankruptcy
a. the instance Of the creditor was urged by
| others ~ essential TO the system and that he
provision should be extended 20 az ia include cor
poratons. On the other hand il was argued that
the constitution contemplated giving Congress
The power 10 p@-- Bankrupt Law, having in
view the technical English legal meaning Of
the term, which applied only to individual
traders, and not to corporations. The law
which was framed in 1911 did not apply 10 cor
porston-. and Wa repealed the I'd Of March
lSi3. principally because Of the numerous frauds
which had been committed under the voluntary
clause, and made il, in fact general iusolyent
law.
Although there have been decisions by the
! lower courts both for ard against the conslitu-
tionality Of a Bankrupt law applying to debts
created before is pessago there is little doubt
in our mind but what the supreme Court would
decide against the constitutionslity Of ooy law
which was retrospective in ts character. The
constitution only prohibits the several States
from passing any lsw importing the obligation
Of contracts; but IL is abeurd TO suppose that
| the omission was intended to give Congress the
power TO impair contracts. We must judge Of
the constitution upon principles Of common
sense and Il would be violation Of this rule
TO suppose that the rights of the public we're
' protected by The constitution ~ Ear ~ Mo