The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1859-08-03

Among the mercantile men of high order Of
intellect, of much experience in commercial at.
fairs, and Of well known integrity, there is but
one opinion as to the necessity of general bank
rupt law extending over the whole Union. This
opinion is strengthened and developed at the
present time by the perturbation occasioned in
the commercial community of New York by the
sudden ard unexpected peace in Europe.
In the great revulsion of 1887 there was
general feeling among upright merchants and in
the community at large that bankrupt Law
ought to be enacted by Congress in conformity
with the provisions Of the constitution on that
subject in order that similar calamities might be
prevented in the future history Of commerce. In
1910 bankrupt law was passed, but it was soon
repealed by improper influence exercised in
Congress by interested parties. In the ire
mepdous financial crash Of 1857 the opinion
among the honest merchants and all the able
statesmen in the country was that a well condd.
cred, well digested general bankrupt act of
permanent character, regulating cur banking in
stitutions, as well as the commercial operations OF
private individuals ought to be adopted, in Or
der to guard against recurrence Of those explo-
sions which carry such terror and ruin into the
mercantile world and among nearly all the To-
dustrial classes of the whole community. Con-
gress was too busy with schemes Of party politics
and public plumber to have time for the dis
cussion of a measure of go much general interest
and Of vital Importance to the entire country
And now in 1859 there is perturbation in
our commercial affairs which, if not wisely and
judicious]y treated, may lead to panic. The
feeling among our best informed and most saga
cious mercantile men is, that something ought
to be done to restore tho equilibrium, ana to
quiet the disturbance something that will not
only serve for the present, but for all future
time, against commercial panics, without any
just ground or necessity.
What causes panics is the growth Of some rot
ten concern, like the Ohio Life Insurance and
Trust Company, which explodes and frightens
everybody. Even the most secure establish
ments will not be trusted, and business is para
lyzed.
A banking law is therefore, necessary to pre-
vent all such explosions in the future, and more
particularly to arrest the present perturbation,
which may end IN disastrous panic. Had Con.
gress done its duty two years ago there would
be no danger now. Bat even at the eleventh
hour, at the opening of the next Congress, let
this urgent and important question be the first
to be brought under discussion, and to receive
such solution as the necessity of the case de-
mands. Were such bankrupt act as we have
indicated made the law of the lard, it would be
impossible for such hollow and rotten concerns
as the Ohio Life Insurance and Trust Company
to grow up. They would be nipped in the bud
before they could do mi schief, and we should
have no more of those extensive commercial.
failures which without necessity occur periodi-
cally in this prosperous country, and bring with
them a train of disasters which affect all Glasses
of the community.