The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1867-01-15
A Gsncrnl Bnnkrupa Law.

States general bankrupt law:
The Constitution of the United
States empowers Congress to pass
uniform laws on the subject of bank
ruptcics This power has only been
twice cxercised-once in 1900, when
bankrupt law limited to five years
was passed, which was repealed be
fore the expiration of the term, ut
the close OF the year 1903. and again
in August, 1871, when q general in-
solvent law was enacted, which was
50 loose in its provisions and so avail
able for the fraudulent debtor as to
excite q storm Of popular disfavor.
The latter law WAS pushed through
Congress by questionable means, and
among the first who availcd them
selves Of its provisions was the
Chevaiicr james Watson Webb,
who, after making q 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 rcsoTted to it again a few
years afterwards, on smaller scale,
to his own advantage. The law of
1871 had less than two years exist
cnce, bill for its repeal having re-
ccived the Presidents signature on
March 3, 1913. During the period
it remained in operation, it was cal
culated that some 10000 persons
ayailed themselves Of its provisions,
whose aggregate debts must have
been in the ncighborhood of 5000
100000.
Notwithstanding the failure Of
former experiments, it has long been
the opinion of the ablcst fnanciers
and the most honorable business men
in the United States, that a general
bankrupt law, fair and liberal in its
provisions, and containing strict safe
guards against fraud, would be at
once a protection to the honest debt
or, and an advantage to the business
community. Congress alone has
power to pass such q law, which
would be binding upon all creditors
in the United States, and all descrip-
| tons Of debts. The insolvent laws
Of a State can only reach its own citi-
zens, unless creditors from other
States, by. voluntarily recognizing
the insolvency and accepting divi-
dends from the estate, put themselves
within the pale of their operation.
The close and intimate commercial
relations between the States render
1T very desirable that y uniform sys-
tenn of laws relating to bankruptcy,
which all understand, and by which
all alike are bound, should exist; and
it was wise provision Of the Con-
stitution which vested the power to
make such laws in the Congress Of
the United States.
In Europe, bankruptcy laws are Of
q quasi criminal character. The pro-
ceedings are regarded as hostile to
the bankrupt. Under tho 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 bail or uncondition-
ally. After the investigation is com
pleted, he can be condemned to i'm
prisonment, with or without labor. if
fraud is proved against him. The
English law has some peculiar fea-
lures y bankrupt who obtains his
certificate Of discharge, is allowed q
per centage to - limited sum out Of
the proceedings Of his estate, when
the dividends reach a certain amount
When fifteen shillings IN the pound
is realized by his creditors, he re-
ceiycs ten per cent. on the whole as
sets to Il sum not exceeding eG00,
and so in proportion for smaller
dividend. This affords q BANKRUPT
Il small capital with which to com
mence life anew One provision Of
the English law would hardly suit
! the United States. \ bankrupt is
not entitled to his discharge if he has
lost L certain amount within the year
Immediately preceding his bankrupt
cy, either at gambling or stock-job-
bing.
1t is objected by some that bank
ruptcy laws are a protection to fraudu-
lent and dishonest debtors. \ good
law must always be the reverse. Our
present system, without any gene
raj law at all, is oppressive only to
the unfortunate and honest debtor,
and affords the rogue every facility he
can desire to cheat his creditors. 1t
is also an incentive or temptation to
men of weak and unstable principles
to become dishonest When q per-
son who is doing business with an