The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1864-05-24

great double issue that we have TO decide this
year on our battle fields at the South and here
at our homes in the North.
General Bankrupt Law.
I'VE are glad to learn that Congress now pro-
poses to consider general bankrupt law. We
hope that the measure will pass. It ought to
have been passed at the very outset OF this
war, and a. war measure. The subject has
been pressed upon the attention of Congress,
in one form or another, ever since the govern
ment was organized. We recommended it as
one Of the most essential features Of the system
of finance which Secretary Chase should have
adopted That bankrupt bill was not en-
acted long ago Is surprising. II it be post
poned now the delay will be criminal.
The necessity of such law which would
establish uniform system throughout all the
States, which would include all persons,
whether natives or aliens, residing in the
States, and which would take cognizance both
of voluntary and compulsory bankruptcy,
is too apparent to require argument
That an immense mercantile commu-
nifty like our own should be able
to transact business in the absence Of a law Of
this kind really appears remarkable. No
wonder that countless evils and heavy losses
result from the present system, under which
the honest debtor has no escape from his mis-
fortunes, and the honest creditor has but small
security, if any, against the rogues who fall in
order to get rich.
In 184l bankrupt act was enacted by Con-
gress. But to those who remember the excite
ment of thai. period, it is unnecessary to state
that this law was passed in hurry and repealed
in hurry, and that its term of authority was
too brief to enable us to judge fairly OF its bene
fits One Of the great objections to that bill
was that dishonest debtors were anxiously wait
ing for its passage, 30 that they might fail and
cheat their creditors This objection was en-
bodied in letter from many New York mer-
chants, which was read to the Senate
by James Buchanan. II we recollect
correctly, Webster Immediately replied that
people who were waiting for such law, SO
that they might turn scoundrels, would be
likely to turn scoundrels anyhow, and so need
not DE taken into consideration. No doubt
this old objection will come up again during
the debate upon the proposed bill, and so we
have supplied an answer for it in advance.
Another answer is that the bill proposed ought
to protect the creditor as we'll as free the
debtor, and consequently will not be half so
available for purposes of roguery as the
present loose and unsystematic practice.
Had bankrupt law been passed by Con-
gress as soon as the war began it would have
cleared away all the debris caused by the fail
ures resulting from the secession of the South
ern States, and would thus have left a firm
bills Business, then disorganized by
the sudden withdrawal of nearly half
our domestic commerce and the consequent
embarrassment Of our foreign commerce,
would have been at once relieved, and the ma
chinery of trade would have worked smoothly
and strongly again. With this view we stcadi-
ly urged the passage of the bankrupt bill at
that time; but Congress refused to consider it,
and at last postponed il when it was reported
by special committee. Not having succeed
ed in our efforts to secure the enactment of
the law as a measure applicable to past
failures, We now revive it for the purpose of
meeting the contingencies Of the future. The
inflated paper currency system of finance,
Of which Secretary Chase CLAIMS and deserves
the credit or discredit, must end in a dreadful
crash sooner or later; and when shat crash
comes bankrupt law will be absolutely indis-
pensablc to dig out our merchants from the
ruins Of Chase's finances and set them upon
their feet to begin their work anew We are
very DESTROYS, therefore, that the present Con-
gress shall not adjourn without enacting
general, well digested and comprehensive
bankru pt bill.