The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-05-03
THE AMENDMENTS TO THE BANKRUPT LAW.

To THE EDITOR OF THE HERALD:-
The writer OF your financial article in yesterdays
number OF your valuable paper endorses the action
of the House Of Representatives In regard to Mr..
Jenckes' bill amending the Bankrupt act, and at the
same time adds:-"No such restrlctonary clause
should have been introduced in the bN and the Senate
will do well to repeal the original clause referred to
entirely. A bankrupt act should give equal relief to
ALL with OF without assets" beg to differ with this
opinion II was nothing but just ana right that
Congress- the time OF the creation OF the Bankrupt
act did consider 1t necessary TO give relief to those
who in consequence OF the war; lost their fortune
to those who. In the absence of q uniform law and
through the obstinacy of their creditors could not
get discharge from their debts, and thus were de-
barred from pursuing their vocation anew; but this
object attained by allowing to such Of the class
OF unfortunate merchants others to file their petit
tons as bankrupts for one year from the time this
charge from all their debts, without any assets
whatever. SO far "a this went the law worked bene
cially and We may consider 1t fact that all those
who owed old debts and had assets to settle them
with have availed themselves Of this benevolent In
tention OF the law, and have already fled their petit
tons in order to get discharged. But Is there now
any necessity to extend this privilege for any
longer time, or Is 1t right that man, who through
unfortunate or imprudent business transactions
lost his own capital and also part OF what he b0r
rowed should by law be allowed, nay, encouraged,
to put at stake the remaining part, which justly be-
longs To his creditors, and lose this als0Y II this
should be allowed then conference.-the basis and
soul OF commerce-must cease to exist, and We
would necessarily again return to that primitive state
Of trade which our Biblical ancestors carried on, or
which we find nowadays among the yet uncivlzed
inhabitants of the world. Such restriction as con-
tanned In the second part OF the hrtythird section
OF the Bankrupt act (which should have gone into
operation after the lst OF June, 1861 IL an indspen
sable necessity for the protection OF the
creditors, and think I give only expression
to the universal opinion OF oil the honest business
men, when say that the p0stponement OF the taking
effect Of this restriction will be considered an un
fortunate act, which will only tend to destroy what
little confidence there Ia existing yet In the CONNER
cia community. The New York merchants at least
have had quite sad experiences in regard to the
working OF the Bankrupt act without the second
clause Of the thrtythird section, and at present
notice OF bankruptcy even In Of recent fall
official Information that the claims Of the creditors
are worthless; and now Congress wants to
remove this only remedy for and protection
against gross frauds without any reasonable cause
whatever for such action. For the reasons stated
here cannot adhere to the opinion az expressed In
your valuable paper, and confidently hope that the
amendment Of the House will not be passed In the
Senate.
In addition wish to say that, as far az know,
the laws Of Germany France and Austria contain
provisions similar TO the fifty per cent clause OF our
Bankrupt law, differing only In the percentage,
which Is required TO be larger, in ono instance
amounting even to eighty-seven and half per cent
This communication, although opposing the prin-
ciple you DEFEND, Will, | trust find space IN your
valuable paper, whose genial editor has always
shown himself willing to open literally It's columns
for the discussion OF matters OF public interest.
Yours respectfully, T.
NEW YORK. ApriI q. 1864.