The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-05-29
THE BANKRUPT LAW.
To THE EDITOR OF THE HERALD -

To THE EDITOR OF THE HERALD -
As there is law for the punishment OF the guilty
40 there ought to he law for the protection o: the
needy and TO enable traders who have been unfortu
nate In business, through no fault of their own, to
honestly wipe out their liability after their financial
transactions had been subjected to the most search
ing investigation. 1t is that there is act of
Congress establishing uniform system OF bank
ruptcy throughout the United States This act pro,
fesses to give relief to insolven debtors 1t does
not meet all the requirements OF the Its au-
thors have managed that II shall exist only for
limited period. Certain amendments, however, have
been proposed One Of these is that the clause which
enacs that after the coming first OF June no bank
rupt shall be at liberty to file petition In bankrupt
cy unless he is able to pay fifty per cent of his abi
ties is not to take effect until the first OF January
next II Is also provided in the amendment that,
whether petitioners have assets not, they file
schedules up to New Years Day. The House OF
Representatives has adopted this alteration OF the
law but IL has not as yet been passed upon by the
Senate and whether the Senate will pass II or not IL
is diliicult 10 say. They are rabid mpeach-
ment they hardly think Of anything else In good
earnest; they ought to be well able TO discuss the
merits OF the bankrupt law for their Infamous policy
rate this proposed amendment to which we have ad.
verted will II passed by the Senate. practically put
stop the bankrupt law, because any honest debtor
who Is able TO pay fifty per cent Of his liabilities
would no doubt prefer handing that sum over TO his
creditors without having 2 cent deducted from IT IN
a very considerable portion OF what Justly should 20
TO the payment Of his debts would be swallowed up
in costs TO marshas, assignees registers and other
officials who Will not do a hands turn unless the
poor bankrupt comes down with 'fees.n
In England for several years opast, efforts have
men 10 simplify the bankrupt law. That law Is not
in operation for the purpose Of meeting financial
crash money panic. IT Is not placed on the statute
book In twenty or once IN thirty years. but Is
a continuous law OF the country, like the maritime
laws or the criminal code. An English trader who
r.. ham inf ipQao nd hoo mt aop
guilty Of swindling his creditors can obtain pro.
lection rom the court, as the law Is open to him
at all times; but In America we have proceeded
on different principle We had bankrupt law in
1s4I. This gave temporary relief, and the country
was until 1857 left without any general statute pro-
yiding for the relief Of insolvens debtors That this
was entirely wrong there can be no doubt. man
falling In trade could not readily get credit In the
place where his failure was known. He could not
apply TO the bankrupt law there being none In exs-
tencej TO give him protection so a. to enable him to
start again. and the consequence that many per.
sons left localities In which they had been engaged
In business went 10 other towns and, changing their
nameA sought 70 BEGIN 4 new career IN the o0mmes'