, 1873-12-22
THE NATIONAL BANKRUPT LAW,

"A'cu uoH has lilo direction OF lilo matter.
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THE NATIONAL BANKRUPT LAW.
Tho dispatches from Washington stato TINT
tho carly ropoal Of tho Bankrupt Inv haB been
checked by tho arrival of numerous petitions
against tho pnssage Of tho BILL Which was 30
summarily rushed through tho House o fow dnyB
ago. Tho vote in the Houeo waa apparently
based upon tho idaa TINT, II tho Inv was repealed,
debts could no longer DO collected. Legislation
In behalf Of debtors is always in order, eepeoial-
ly In timca Of panic, and tho vote Of the House
shows TINT tho law Is ut tho present moment
unpopular. Nevertheless, we aro Convinced TINT
its unropularity originates not 30 much in any
injustice of tho law aB in d haaty Judgment TINT
ignores tho protection afforded by 1t to
botll debtors and creditors III q degree
neyor attained before, by any law In
this country for tho collection OF dehrs. Tho
leading principle OF tho Bankrupt law Ms 1t
stands now is simply TINT In cases Of Insolvency
no ono creditor sllall DO ablo to tako tho prcco-
douco Of othors to their disadvantage or to tho
disadvantage Of the bankrupt himself. Tho op-
pononta of tho Inv complain Of tho facility with
which ono unreasonable creditor may now throw
debtor into bankruptcy, tako his business ont Of
his hands, place It IN tho control Of m assignee
who docs not understand It's details or tho gon-
oral policy Of It's management, and so to somo
extent destroy it's valuo whereas, II loft in tho
hands Of tho dobtor himself, ho might so twist
md turn as to pay OF hB debts In full, and como
out without the discrodit Of having boon IN tile
bankrupt courts. This, however,, is supposiug
an extromo caHo not applicable to ono in n
hundred Of the caseB in which petitions are flied.
People acem to have forgotten the old jay
hawking process by which, prior to tho
enactment Of tho bankrupt law, any unreason-
able creditor could Buo out writ Of attachment,
and marketable property, soil it at auction for
half or quartor OF its real value, and, having
thus sacrificed thrice tho value Of his dobt md
crippled tho debtor beyond recovery, left tho
other creditors no other alternative than to rush
in and get what they could. Let any one try to
imagine what would have boon tho result Ind
these facilities for letting the harpies Of tho
Inv looBo upon every ono who has failed
to meot his obligations during the Inst three
months. Tho great incentive Of getting moro
erty, tue chance If getting pay in full, while all
other creditors might lie compelled to take ono
half or ono-fourth Of their ciaims would have
i1npelled thousands Of creditors to adopt this
course. There would now be shower OF writs,
tho courts would be full Of suits, and thou
sands Of lawyers would be growing rich at
the expense Of both debtors and creditors, and,
aside from tho injustice to creditors who were
disposed to bo forbearing, the bankrupta cub
asauco would be much more largely absorbed In
legal expenses than undor the Bankrupt law as
1t stands now. At present, the law bids every
ono keep "hands OF" tho dobtors property
until the Court decides wltother lie ia iusolyunt
or not. II 1t fnda thdt ho is not It refuses to
grant the petition for assignee, and the debtor
has reaaon to bo thankful for the protection Of
the Inv. If, on the other hand, it ia
found that ho is inaolvent, the Court bids every
creditor como in md tako. his equitable propor-
tion. But in this distribution the Courts arc
bound to require that tho property shall bo 30
managed that it shal yield the most possible,
that there shall bo no forced sales at unfavora-
bio times or under my circumstances that would
sacrifice tho property at leBB than its real value.
For this protection Of their interests it seoms to
us that creditors havc reason to regard tho Bank
rupt1nw as thoguardianof Of their interests equally
with thoao NJ fha inirnr E;poll,, +t,o no,l,,,4
law gives the debtor discharge from a]l his
debts. and permits him to begin life again free
from tile incubus Of dobt, which, under tho old
laws, has crushed tho energy Of many man for
life.
We aro inclined to tho belief that the whole
some restraint which the Bankrupt Inv imposes
upon creditors has boon potont influence
in tho restoration Of confidence sinco
tho panic. Remove this restraint and it
is not improbable that the oagernoas of crod-
itors to get the better Of each other would cause
n renewal Of some Of itH wors: foatures. At
my rato to ,sse dno Of the homoly illustrations
OF A1r. Lincoln, 1t iB a bad time to swap horseB
in crossing stream, md until tho country Inns
entirely recovered from tho effects OF tho panic
and oil branches of business ara In tho full tide
Of prosperity again. it will bo nloak dangerous
experiment to change tho lava for the colloc-
ton Of debts.
MORE BOGUS RAILROAD SUBsCRIPITONE.
The Legal Neios publishes tho opinion Of tho
Supreme Court Of Illinois. delivered last winter
H..