The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-01-07


tho Second, b1t With moro encouraging
prospects, to enlargiay and completing tho
reforms initiated BY Maria Theresa, and, par
Hsulariy, to developing the industry and foreign
commerce Of Austria Tho house Of Hapsburg
may thus reach happy issas out Of all il
difficulties.
General Daakraps Law fer tho Uaited
states.
Tho constitution Of the sUaited States on
powers Congress Is pass uniform laws On the
subject u -bssiruptoiss This power bee snly
been txios sxsrcissd--sao i 1897, whom .
FSaa1zspt Law iidassa 70 saysxstwm i4sssA,
MAisA w. repealed kefsfs - sxpirstiSa 81
tAe' tsFa. q tAs clcss Or fRe' $eaf 1903; AMI
sassin in A1gnst isff, whom . general Insolvens
law was cnactsd. whioh was 90 lsosein it, pre-
visions and 20 available for tho fraudulent
debtor - 10 excite storm Of popular dis
favor. The Latter Law was pushed through
Congress by questionable means, and among
the 6rst who availed themselves Of Its pro-
visions was the Chsvalier James Watson
Webb, who, after making great fuss over
the passage of the law, cOolly wiped out some
half million dollars of debts by its aid. He
derived no permanent benefit from the white
washing process, however, since he could have
resorted to 1t again few years afterwards, on
similar scale. to bis own advantage. The
law Of l84l had less than two years, existence,
bill for its repeal having received the Presi-
dents signature on March 5, l84S. During the
period 1t remained in operation it was calcu.
lated that some forty thousand persons evailed
themselves Of its provisions, whose aggregate
debts must have been in the neighborhood Of
two hundred millions Of dollars.
Notwithstanding the failure Of former expert
ments, It has long been the opinion OF the
ablest inanciers and tho most honorable bust
ness men in the United States that general
bankrupt law, fair and liberal In its provisions,
and containing strict safeguards against fraud.
would be ct once protection to the honest
debtor and an advantage to tho business con-
mualty. Congress a3oae hes power. to pAsB-
ssoA . law, which would be biading upon all
erslitors II Ne United States and IN Aesorip-
lions r. debts. Tho iAsslvsat lava sf =
Stats saa only ssaoh is owa citss,s, snisss
creditors fron other States, ~ vslsntsriiy
rsssgaizing To inssissnoy sad aeespting divi-
dends from the estate, put themselves within
the pale Of their operation. The close and in
innate commercial relations between the
States render 1t very desirable that uniform
system Of laws relating to bankruptcy, which
all understand and BY which oil alike are
bound, should exist and 1t was wise provi-
sion Of the constitution which vested the
power to make such laws in the Congress Of
the United States.
In Europe bankruptcy laws are of a quasi
criminal character The proceedings are re-
garded ~ hostile 10 the bankrupt. Under the
French law he Is arrested and confined in
prison or put under surveillance, and after an
examination into his affairs by the Tribunal of
Commerce he can be released on bsil or I'M
condltionally. Alter the Investigation is COM
pleted he can be condemned TO imprisonment.
with or without labor, II fraud is proved
against him. The English law has some pecu-
liar features A bankrupt who obtains his cer-
tificate Of discharge is allowed per centage
70 limited sum out OF Che proceeds Of his
estate when the dividends reach . certain
amount When fifteen shillings in the pound
10 realized by his creditors hs receives ten per
cent ON the whole assets to . sum not exceed
ing six hundred. pounds, and 80 in proportion
for a smaller dividend This affords bank
rapt small capital with which TO commence
life anew. One provision OF the English law
would hardly suit the United States "A bank
raps- il net entitled to his discharge if he has
lest a cerain amount within the year immedi-
atcly preceding his bankruptcy either ut gam
bling or stock iobbing
Il is objected by some that bankruptcy laws
are protection 70 fraudulent and dishonest
debtors. A good law must always be the re-
verse Our present system, without any gen.
ersl law at ell, is oppressive only to the unfor-
tunate and honest debtor. and affords the rogue
every facility he can desire to cheat hl, cred
itos II il also an incentive or temptation 10
men Of weak and unstable principles to be-
come dishonest When person who is doing
business with an intention and wish to estab.
lish good reputation finds misfortune coming
upon him he has now no opportunity TO TO
deem himself, and will, in large majority Of
Isa,,,,.s, set to work to put his property out
S, roach s 81 &. creditors ! as sss: down w.
be argues, he can never get up again, s.. -''A'
preservation is the first law Of nature. A fair
bankrupt law would enable him to stop at
once, to put all his property in the hands Of
bis creditors, to pay as much as he could, and
to commence again without an incubus Of debt
va;0hiwU min. Aawu From diahorcstv and