Marshall County Republican. (Plymouth, Ind.) 1856-1878, 1864-12-29
Tao Blnkrup,cy B.ll-A SXatch Of
its Provisions,
Correspondence New York Joarnll of Commerce.
WAsuIXGTJN. Decent Der II.

lLo IlOFISlO1LSJ
Correspondence New York Jolrnil of Commerce.
WAsuIXGTJN. December 12
The passage al The bill to establish a
uniform system of bankruptcy throughout
the United States. hy decided maj iority
in the House of representatives. renders
il certain that boforc the close of the pres
ent session bankruptcy law. as authori
zed and required by the Constitution. will
have place on our statute book. This
will not only be hailed with Joy by thou
sands of business men heretofore unfortu-
nate, but lt will be a consolation to others
who seas was last year remarked by
leading supporter of the Administration
that "when the ebb tile of this fictitious
paper money prosperity comes. as come it
must, the shores OF the great seas Of ira C
will be strewn with more wrecks than ev-
er vet were seen in any panic or revul-
sion" The Home of Representatives has
done well to acknowledge its constitution
al obligation. and TO exercise its power TO
remedy and anticipate these evils. Surely
the Senate will concur.
The bill passed. by tho House is based
upon the insolvency act of Msssachu>etts,
aud i, designed to bring the failing debtor
anl his cielitors upon ground OF nego
tia,ion and settlement equally benehciil to
both. Oar national bankrupt act OF IoO)
was a digest of the English statutes Of
bankruptcy to that date. aud was for the
benefit of creditors. AZ such it was re-
pealed The national bankrupt act Of
1911 was substantially for the benefit of
debtors. AMI was short livel The points
aimed at in the House bill, as stated by
Hon Mr.. J-ncses, of Rno ie Island, who
drafted il. are:
1st. The discharge Of the honest debt
or upon the surren Ter of his property
and
81. The protection ofthe creditor against
the franlulcnt practices and reckless con-
duct OF his dehtor.
The District courts are TO he mad, courts
of bankruptcy. AMI the bankrupt business.
where there is no opposing interest, Is to
be transacted by officers to he callel regis
ters. Massachusetts, lea. incorporated
into tie English bankrupt law of lS6l.--
When there are opposing interests. they
are to make up the cases for the decision
of the Judge. They are to be the hands
AMI eyes of the court. but are neither to be
clothed with its power or its discretion
Receiving fxel salaries. it will be their in.
terest as well as their duty to discourage
litigation.
Creditors are to have a'signees. but the
law ignores the cumbrous machinery of Of
fatal aSsignees, accountants, registry of
courts and accountants general. In>olven-
cy is matter between the bankrupt and
and his cre'li:ors and can best be mana
ged by them under the direction Of the
courts. Every question raised by litigants
contestiny the bankrupt's discharge must
b, heard AMI decided in open court. in
which respect this bill differs from other
laws. Commissioners appointed by the
Supreme court are to establish q code of
rules to secure uniform practice.
Honest debtors are to receive an allow
ance. so that they may not be turned npon
the worl! without a currency note, ifthey
have surrendered their effects for !miniS-
tration and distribution among their cred
itors.
Another provision gives de5tor an op-
portunity to meet his creditors. and, if
they are satisfied Of his integrity and abil-
ity, to wind up his affairs under a trust
decd with the same effect as if the pro-
cccdings had been conducted in tho court
Of bankruptcy.
The above provisions. with others, con-
s;itute the law, which will now come be-
fore the Senate. where it will probably be
enacted. Ii hopeless insolvency be COM
mercial death, then will this constitu-
tional statute open to the honest bankrupt
freedom from his in cumhrances, and the
road to a new commercial life. ~ ro1ft