Cincinnati daily press. [volume] (Cincinnati [Ohio]) 1860-1862, 1862-02-05

Although little or nothing has been said in
Congress as yet about a general bankrupt
act, there appears to be general belief that
such law will be enacted during the pres.
ent tsession Of Congress. The passage of such
law is earnestly advocated by many as the
only effectual means of relief in the present
prostration of trade and credit. If the ex-
pertinent of universal bankrupt system is
to be tried for the third time, it is to be
hoped that it may be attended with better
success, so far as the substantial interests of
the country are concerned, than was the case
under the acts of 1900 or lS4l. The great
danger in regard to all insolvent laws is not
30 much in the theory on which they pro.
ceed as in their practical administration.
They are too apt to operate as mere instru-
ments for extinguishing debts without pay
ment. John Randolp ph said that bank
rupts estate in the hands Of an assignee was
like lump of butter in a dog's mouth, and
most creditors are painfully familiar with
illustrations in their own experience OF the
truth of this homely but forcible remark.
Among the thousands who availed them.
selves Of the bankrupt act of l94l, few were
able to escape the faint which the mode OF
its administration left upon the recipients Of
its benefits, and it was repealed without an
attempt to improve it.
1t is therefore a prime necessity that fur.
ther legislation in this direction should be
approached with caution, and should not be
made to subserve the exclusive interests of
any particular class. No bankrupt act
should be passed, unless just and fair to all
whose interests may be affected by it, and
which can remain on the statute book with
out diSgracing our legislation.
We have seen it stated that a committee of
leading merchants of some of the Eastern
cities have gone SO far as to have prepared
by an eminent lawyer bill which they pro-
pose to urge upon the attention of Congress.
This act is said to embrace the best features
of the existing bankrupt systems of France
and England, and of the insoIvent system of
the State of Massachusetts,. 1t accords with
the law of l84l in providing for voluntary
andinvoluntary bankruptcy, and in being re-
Prospective as well as prospective in its op
erations.
1t differs essentially, however, in many
respects, particularly in those which relate
to the safe.keeping of the bankrupt's estate
and to the action Of creditors in superintend-
ing the proceedings for winding it up in
their various stages. The creditors, being
the real parties in interest, should have the
responsibility and the right of choosing the
assignee who is to collect and distribute the
property of the debtor; the proposed law
gives them this right in all cases, and also
provides for the closing up of the estate at
the option Of three-fourths in value Of the
creditors, by trustees, under the inspection
'of committee, in lieu of the more formal
proceedings in bankruptcy. The creditors
who prove their claims share pro rata in the
distribution, and the debtor is entitled to an
absolute discharge, except as to debts iu-
Volving breach of trust, upon the surrender
of all his property and complying with the
provisions of the law.