The New York herald., 1867-03-04

form system of bankruptcy throughout the
United States will afford general satisfaction
and prove a valuable boon to the country.
While some of the features OF the law-ior its
final approval by the Executive may be re-
garded as certain-may require alteration or
amendment, its enactment In an imperfect
shape will be universally conceded to be pre-
ferable TO its defeat
The Jurisdiction In bankruptcy cases is given
by the act to the several District Courts OF the
United States, with the United States Circuit
Courts acting in q supervisory capacity as
Courts Of Equity. The Judges Of the District
Courts will be assisted In the performance Of
the duties imposed upon them by Registers in
bankruptcy, who arc required to be counsel
Record Of their several States The power Of
the Registers is limited. and provision Is made
for reference Of disputed questions to the Dis
trict Court Judges, and for appeals from the
District Courts to the Circuit Courts, and from
the latter, in cases where the matter in dispute
shall exceed two thousand dollars, to the Su-
preme Court Of the United States.
There are two kinds of bankruptcy contem-
plated by the act voluntary and involuntary.
In the former any person residing within the
jurisdiction Of the United States, owing over
three hundred dollars, and finding himself in
solvent, may apply by petition to the judge OF
the district in which he has resided for the six
months preceding the date of the petition, or
for the longest period during such six months,
and shall thereupon be declared bankrupt.
The creditors, having been properly notified
by the court, meet together and appoint one
or more assignees of the estate of the debtor
the choice to be made by the greater part
in value and in number OF the cre-
ditors who have proved their debts, OF in
case Of failure to agree, then by the District
Judge, or where there are no opposing
creditors, by the Register. The whole afairs
of the bankrupt pass into the hands Of the
assignees, who have full powers granted them
the final adjustment and closing up of the
estate. Stringent regulations are made for
the proper deposit and safe keeping of all
moneys received from the estate and whore
delay is likely to occur from litigation in the
final distribution of the assets the court is
empowered to direct their temporary invest
mcnt The bankrupt is liable at all times to
be called up for examination,on oath upon all
matters relating to the disposal or condition
of his sproperty or to his business transactions,
and, for good cause shown, his wife may in like
be compelled to attend as witness in
the case.
In the distribution of the bankrupt's estate
are to be paid as agreed upon by o
majority in value of the creditors, from time
to Tine. at three months intervals, bat the fol-
lowing claims are first to be paid in full =
First, the fees, costs and all expenses under
the Bankrupt act second, all debts, taxes and
due to the United States; third,
wages dine to any operative, clerk or house
servant to an amount not exceeding Gty dollars
for labor performed within six months pre-
ceding the bankruptcy fifth, all debts due to
any persons who are or may be entitled to
preference by the laws of the United States.
The voluntary bankrupt Is entitled 10 his dis
charge provided no fraud is proved against
him, atany time from sixty days to one year
after adjudication of bankruptcyyS bat the
proof or discovery Of any fraud or conceal
ment deprives him of tn, right to o,discharge.
No person who has once received hissdischarge
Is to be, entitled again to become a voluntary
bankrupt, unless his estate is sufficient to pay
seventy per cent of his debts, or usless three
fourths Of his creditors assent in writing to his
Preferences and fraudulent con-
veyances are declared void by the act, and
suitable provisions are made for the voluntary
Of partnerships and corporations.
The exemptions under the lawvare as fol-
lows -
Tbs necsssary household ara kitchonfurnitnss, and
such other articles and necessaes Of such bankrupt
the assignee shall designate an sot apar havia refer
stances ot the bankrupt but eogether oxceed
vnlue In any case the CT $780, aad also the
ing apparel OF such bankrupt aud that of his wife and
children. and uniform arms and ecuioments Of any
who is has been soldier ia militia or In the
service q the United sfaes and such ohc. property as
nav ID or hereafter shall he exempted from attach
ment er seizure or levy execution by the
lawso the United States aud such other properly,
included IN the foregoing exceptions, MS is exempted
from levy and sale upon exestion other process
order Of court by the laws OF the Stale IN which the
bankrupt has his domicle et the time of the commence
mcnt Of the proceedings In bankruptcy TO amount
not exceeding that allowed by such State exemption
laws IN force IN the year 1854.
Acts Of involuntary bankruptcy under the
Inv are classified as follows:-Departure or
absence from the State where debts are owed,
with intent to defrard the creditors; conceal
mens to avoid service of process for the re-
covery of debt, conceament of pro-
perty to avoid seizure on legal pro-
cess assignments designed to delay, defraud
or. hinder creditors; arrest and detention
for seven days, under execution for debt ex-
ceeding one hundred dollars actual imprison-
ment for seven days in a civil action founded
on contract for one hundred dollars assign
ment, gift, confession Of Judgment, or any other
act by which preference is given to any crc-
ditor, endorser or surety; dishonoring CONNER
cial paper, or suspending and not resuming
payment for fourteen days The petition for an