The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1864-12-23
TUB BANKRUPTCY BILL.
A sketch Of It's Provisions.

sketch OF Its PrOvIsiOns.
Correspondence Of the N. Y. journal of Common &C.
WASHINGTON, Dec. lathe passage of
the bill to establish uniform system of
bankruptcy throughout the United States,
by a decided majority in the House of
Representatives, renders it certain that
before the close of the present session o
bankrupt law, as authorized AMI required
| by the constitution, will have a place on
our statute book. This will not only be
hailed with joy by thousands of business
men heretofore unfortunate, but it will be
q consolation to others to see, as was last
year remarked by leading supporter of
the administration, that "when the ebb-
tide Of this Fictitious paper-money pros
perity comes, as come it must, the shores
of the great seas of trade will be strewn
with more wrecks than ever yet were seen
in any panic or revulson. The House of
Representatives has done well to acknowl-
edge its constitutional obligation, and to
exercise its power to remedy and antici-
pate these evils. Surely the Senate will
concur.
The bill passed by the house, is based
upon the insolvency act of Massachusetts,,
and is designed to bring the failing debtor
and his creditors upon ground of negotia-
ton and settlement equally beneficial to
both. Our national bankrupt act of 1900
was by digest of the English statutes of
bankruptcy to that date, and was for the
benefit of creditors. As such it was re-
pealed. The national bankrupt act of
1841 was substantially for the benefit of
debtors, and was short-lived. The points
aimed at in the house bill, as stated by
Hon. Mr.. Jenckes, Of Rhode Island who
drafted it, are,
LIST. The discharge of the honest debtor
upon the surrender of his property and
End. The protection of the creditor
against the fraudulent practices and reck-
less conduct of his debtor.
The District Courts are to be made
courts of bankruptcy, and the bankrupt
business, where there is no opposing IN
terest, is to be transacted by officers to be
called Registers, Massachusetts, idea in
corporated into the English bankrupt law
of 1861. When there are opposing inter-
ests, they are to make up the cases for the
decision Of tho judge. They are to be the
hands and the eyes. of the court, but are
neither to be clothed with its power or its
discretion Receiving fixed salaries it
will be their interest as well as their duty
to discourage litigation.
Creditors are to have assignees, but the
law ignores the cunbrOus machinery of
official assignees accountants, registry Of
courts and accountants general Insolv-
ency is matter between bankrupt and
his creditors, and can best be managed by
them under the direction of the courts.
Every question raised by litigants contest
ing the bankrupt's discharge must be heard
and decided in open court, in which re-.
spect this bill differs from other laws.
Commissioners appointed by the Supreme
Court are to establish code of rules to
secure uniform practice.
Honest debtors are to receive an allow
anoe, so that they may not be turned npon
the world without a currency note, if they
have surrendered their effects for admins .
tration and distribution among their cred
itors.
Another provision gives debtor 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
deed with the same effect as if the pro-
ceedings had been conducted in the court
of bankruptcy.
The above provisions, with others, con-
stitute the law which will now come be-
fore the senate, where it will probably be
be enacted. If hopeless insolvency be
commercial death, then will this constitu-
tional statute open to the honest bankrupt
freedom from his membranes, and the
road to new commercial life. -