Nashville union and dispatch. [volume] (Nashville, Tenn.) 1866-1868, 1867-09-04
THE EFFECTS OF THE BANKRUPT
LAW

The New York World thus alludes to
the operation of the bankrupt law in
that city:
The enactment of a bankrupt law has
had a somewhat different effect upon the
fortunes of merchants and traders who had
failed, than was expected. 1t was supposed
that as there was known to be great NUM-
bers of people who could not 60 into BUSH
ness because Of their uHliquidated indebt
edness, that as a consequence there would
be a rush of bankrupts to take advantage
of the new law. 1t has not so turned out,
though, undoubtedly, when the fall terms
of the courts commence, we will see a much
larger number of bankrupts put through
the legal mill than was the case this sum
mer. Instead of taking advantage of the
law to free themselves from their obliga-
lions by being declared bankrupts, the
delinquent and unfortunate traders are
settling" with their creditors. For one
person who makes application to the courts,
there are twenty who privately come to an
understanding with their creditors. This
has been done to so great an extent that
throughout the country thousands of old
merchants will re-enter business this fall
and winter. The law allows practically Of
three modes of settlement: the voluntary
and involuntary bankruptcies of insolvent
debtors, or a compromise without legal
proceedings, and this is what is now going
on all over the country. The effect cannot
but be good. Hundreds of energetic men
will again find their way into business, and
thousands of families will be relieved from
the burden of old debts. The law so far
seems to have worked we'll
The Herald in this connection gives
the particulars Of the petition in bank
ruptcy of a somewhat noted character,
Of which mention was made few days
since in the daily kilograms
The petition of George /. Schuyler, to
be adjudged bankrupt and discharged
from all his debts, affords an insight into
the reckless manner in which business is
conducted in the city of New York. The
petitioner is a brother of Robert Schuyler,
the former President of the New Haven
railroad, who left the country in conse-
quence Of the exposure of the well-remem
bered frauds in which he was implicated,
and died in Italy. The Indebtedness of
George L. Schuyler is set down at not less
than four million dollars and he swears
that he has no assets whatsoever, neither
land, property, stock, household goods,
wearing apparel nor personal property of
any description" He is literally cleaned
out-a respectable, upper-ten pauper and
yet from the list of his confdiDg creditors
he appears to have enjoyed good credit
and a remarkable facility for borrowing
money.
Among his creditors for money loaned"
are some gentlemen who enjoy the reputa-
ton of cautious, prudent, business men.
The brokers figure very prominently among
the confding victims. A prominent Demo-
cratic Manhattan Club politician is touched
to the tune of one hundred and eighty-two
thousand dollars. One well known broker
figures in the schedule for three hundred
and twenty-nine thousand dollars, money
loaned" Four other firms in the same
business evinced a similar confidence in
the bankrupt to the gross amount Of about
seven hundred thousand dollars. Some
sharp lawyers are creditors for one hundred
thousand while the great railroad king
suffers for over half a million, and Gouver-
neur Morris for quarter of a million, all
on the same description Of Indebtedness.
The loans by themselves amount to over
two million dollars.