The Daily state journal. [volume] (Alexandria, Va.) 1868-1874, 1873-06-20
Z" g Ro og.aa%' In Bankruptcy.

tsNHhf"fUs
In this case it is certified by the regis
ter, that the following questions arose in
the course of proceedings, We're stated and
agreed to by the counsel of the opposing
parties, and presented to this court for
adjudication:
LIST. SIS our present bankrupt law UNI
constitutional because not uniform 20
End. Scan the bankrupt law have re-
Prospective effect without impairing the OF
legation Of contracts and has congress such
power? 2" ... ..-....-.
, Bird. SIS the petitioner entitled to said
lands tthe homestead set apart by assignee)
as part of his rightful exemptions as
against judgment rendered prior to the
ratification of the constitution Of North
Carolina upon contract made before the
present bankrupt law was enacted?"
4th. "Shonld not the lands be sold by
the assignee, ard the proceeds arising from
said sale be distributed among the credit
ors whose debts were made before the rat-
ficaton of our present state constitution ?"
A written opinion was filed by II. G.
EwoIt, ESQ.,, register in bankruptcy, upon
the various questions certified. ~
Graves & Hyman, attorneys for bank
rupt. Pickens, attorney for creditors. -
DICK, il concur in the able and well
prepared opinion of the register upon the
several questions which have been certified
to this court for adjudication. ID
In re Beckerkord, 4, b. r. 80, the Uni-
ted States circuit court of Missouri decided
that, ''The provisions of sectien IA of the
bankrupt act adopting the exemptions in
favor of execution debtors established by
the laws of the several states does not
destroy the uniformity Of the bankrupt
act, nor violate any of the provisions of the
federal constitution"
The question decided was directly pre-
scented for adjudication, and the opinion of
Miller 4 Krekel, j. j. is positive and forci-
BILE and seems to have been well considered.
feel safe in relying upon any legal decis-
ion Of Mr.Justice Miller, as there is no judge
in any country whose judicial opinions are
entitled to more consideration, or greater
weight Of authority.
The amendments of June 8, 1872, does
not materially vary the question Of uni
iormity decided IN re Beckerkord, as it
only changes the date when the state ex-
emptions are adopted /; and the act Of
March 3, 1873, declares the true intent and
meaning OF the act of June 8, 1872, and
re-enacis it with some alterations rendered
necessary by the circumstances of the
times.
The general policy and purpose of
bankrupt laws is to make an equal distri-
button of the effects of an nsolvent debtor
among all of his creditors, and then dis.
charge an honest debtor from all prior
debts.
Before the adoption Of the federal con-
stitution each state possessed the general
powers of sovereignty and could pass
bankrupt laws to operate uponits OWE citl-
zeis, but could not effect the rights Of the
citizens of other states. Asst was easy to
foresee that there would be many business
transactions and much commercial inter-
course between the citizens Of the several
states which would necessarily produce
considerable individual indebtedness, which
might result in extensive financial embar-
easements; it was obvious to the trainers Of
the federal constitution that the benefits of
wise, humane and general system of bank
ruptcy, which might, under certain EXT
gencies, become necessary to promote the
happiness and commercial prosperity of
the nation could only be effectually es-
tablished by the federal government. adop-
ted by the people of the several states for
general and national purposes.
To provide for any emergency that might
arise for general bankrupt law, the con-
stitution vested the necessary sovereign
power in Congress, with no other limita-
ton than that the laws upon such subject
should be uniform in their operation among
the several States.
The uniformity required is as to the
general policy and operation Of such laws
as e. instance, that the common law right
which debtor has to prefer one creditor
over another shall be taken away and his
property be equally distributed among all
Of his creditors; that bankrupts who make
an honest surrender of their effects shall
be discharged from all prior debts--that all
questions relating to bankrupts, their
estates and creditors shall be adjusted and
administered in the same courts and by the
same forms and modes Of proceeding.
These general purposes OF bankruptcy
are certainly provided for in the present
Bankrupt Act, and are everywhere admin
istered with uniformity in the federal
courts and this is the extent of the uni
formity required by the constitution to
make such laws operate equally, justly,
etfectnally and beneticially in every part of
the nation.
The Bankrupt Act in some minor par
tcuiAIS HilSt ntCcSSaTuy operate uilltftul-
ly in the different States. Thus, the bank
rapt law regards as valid the legal and
equitable liens existing by law in the
several States; and as the nature, force
and effect Of such hens are dependent upon
local laws they will, in some respects, be
different in the different States.
The English doctrine Of the equitable lien
OF q vendor or purchaser Of real estate is
recognized in some of our States, and not
in others; and where it exists it is enforced
in the courts Of bankruptcy. A bankrupt
court adjusts the rights Of creditors, and
administers the effects of bankrupt,
subject to the charges whether by way of
lien or exemption; which are created by
the laws of the States--in which such
court is held or the property to be disposed
Of is situated. This rule was adopted to
make the bankrupt law as uniform as possi-
BILE among the States, by recognizing local
laws and thus preserving the harmony and
Spirit of comfy which should always exist
between the federal and State governments,
This rule does not violate but carries into
effect that provision of the constitution
which requires all national bankrupt laws
to be uniform in their operation among the
several States.
The principles involved in the second
question certified by the Register, are too
obvious, and too we'll settled by numerous
adjudications, to need any further discuss
sion. Congress certainly has the plenary