The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-03-15


The strong feeling manifested in all parts of the
country in favor of this measure renders it
likely that bill will be passed on the
subject before the close of the present SEES
sion of Congress. Whether the Senate
Committee will be disposed to adopt Mr.
Toombs' bill, or will report one of its own,
will, of course, depend very much on the view
taken of the former by the mercantile commu-
nifty. Thus far the balance Of opinion seems to
be in favor of the bill prepared by this gen.
tleman.
Whatever differences, however, may exist as
to the details of the measure, there seems to be
none as to its main principles. The common
sense of the country revots against the con-
tinuance of system which, whilst il affords
every facility to fraud, brushes out and ruins
the unfortunate but honest debtor. The COM
petition which il maintains between the rogue
with stolen capital and the upright trader with
small but legitimate means is another strong
argument against it. There should be
some protection for the man who works
his way industriously and fairly, and who,
undertaking no more than he can accom-
plish, pays his obligations punctually. Under
our present no-law system he has no chance
against the fraudulent trader. The latter, pay
ing nobody, can Of course afford to undersell his
competitor, and thus the inducements TO pursue
an upright course are lessened, and demoraliza-
ton becomes more widely diffused among the
mercantile classes. One of the greatest bene-
fits that would be conferred by general Bank
rupt law would be the equalization of the
chances of trade by the rigorous application of
capital TO its legitimate purposes. II Is obvious
that it would help to check imitation, to re-es-
tablsh confidence among mercantile men, and
TO render trade more certain and invariable in
its operations.
If these results are TO be in a
degree attained by the enforcement of
fair dealing amongst private traders,
il is clear that the same principle applies with
greater force 10 banks and other joint stock
corporations. If the Encouragement of his
affairs by an individual justifes the law in
taking them out of his hands, imprudence or
criminalty on the part of the directors Of
public company calls still more imperatively
for Its interference. A merchant may commit
errors of management, but q public board Is
not liable to do so, except under influences
which should never be suffered TO have weight
with It. The law should therefore jealousy
safeguard the interests of shareholders, and
vest the latter with power to wind up default
ing concerns on the first clear evidence of NAL
feasance. without the embodiment Of some
such provision no general Bankrupt law will
ever be regarded az complete or satisfactory by
the country.
If these principles are kept steadily in view
we shall not be disposed to quarrel with the de-
tails of any measure which Congress may sec
6t to adopt Whilst we deprecste any further
postponement of legislation on the subject there
n, however, one point that should not be lost
sight of in the settlement of its provisions IL
will be recollected that the affairs of some
seven or eight thousand firms. with liabilities
amounting to upwards Of 5000, O0e 900, are now
in process Of either settlement or liquidation
As the misfortunes of these houses have for the
most part been caused by the late shock to
commercial credit, and as their compositions
with their creditors will occupy at least two
years in settlement, IL seems but fair that they
should not be brought under the operation OF
the new Law. BY fixing the year 1860 az the
period when the bill Is TO come into force, Con
gress will coucilate most Of the objections that
may be urged against the measure.