The Daily state journal. [volume] (Alexandria, Va.) 1868-1874, 1873-01-24
FRIDAY EVEN'G, JAN. "a, 1873.
TEE BANKRUPT Law AGAIN.

THE BANKRUPT Law AGAIN.
Had Congress inserted provision in the
general bankrupt law, that in states where
there was homestead exemption in favor
Of unfortunate but honest debtors, the
same should operate as against new cred
itors from certain date, and not against
old ones Of a prior date, everybody would
have exclaimed against the injustice of the
distinction, and denounced it as one dis
graceful to the intelligence Of our legisla-
tors, if not the whole country. In fact.
the law itself would have been unconsttu-
tional upon its face, as such laws, when
ever passed, are required to be uniform in
their operation" and can give no prefer-
ence to one class of creditors over another.
But by the decision Of our State courts,
and tho concurrence therein by Judge
Rives, of the United States Circuit Court,
this is precisely the effect of the general
bankrupt law as administered in this State.
The homestead exemption clause contained
in our State constitution, in which it was
clearly the intention of the people of Vir-
gina, as well as the act of Congress as
shown by its provisions, 10 protect against
the rapacity Of creditors, is in effect multi
fled and rendered practically imperative by
the decisions of our courts. The aRte-bel-
Inn creditors, against whom no statute of
limitations can be pleaded as covering the
period Of the war, are permitted to seize
and hold the entire property exempted, so
that tho debtor and his family are thrust
out upon the cold charities of the world,
without q penny to buy the next loaf of
bread or even o stone on which 10 pillow
their elected heads. This is now, and has
been since the national bankrupt law went
into operation in this State, the practica
effect Of it among the larger class OF our
debtors.
A very large class Of Virginia farmers
had these ante bellam claims outstanding
against them at the close Of the war
many of them contracted for slave labor
and for the purchase of slave property de"
stroyed by the war--and these debts are
held to be valid as against those contracted
since the war, as well as against the pro-
visions Of cur State constitution and the
national bankrupt law itself.
The only hope of our people Of being
placed on the same footing of equity as tn
people of other states, has been in such
legislation by Congress as should render
the bankrupt law as operative fol
relief here as elsewhere. Our Legislature,
at its last session, memorialized Congress
on this subject, passing o resolution re-
specially urging that body to amend the
bankrupt law in such manner as would
secure to persons taking its benefits in Viz.
ginia, an exemption equal in amount to thai
allowed by The homestead act Of the State,
thus placing the people of Virginia in the
same category ofrelief extended to the peo-
pie in the other states.
In response to this resolution of the
General Assembly, and the generally ex-
pressed wish Of the Republican party Of
this State, Congress passed an amended aci
on tle Sth of June last, by which it was
supposed that the object embraced in the
resolution of the General Assembly was eff
feetually reached. But by the unfortunate
wording of this amended act, and
the construction given it by our courts,
no relief came. The large class of debtors
referred to found themselves in the same
dilemma as before, and could not avail them.
selves ofthe benefits of the general bank
rupt law without becoming the prey of the
old class Of creditors named.
Practically, then, the people of Virgins
have been without any relief, and the hu.
name intention Of Congress in passing the
law has been defeated Of its chief end and
aim. These facts ought to settle the ques.
ton as to Virginia, and secure the retention
Of the law upon the national statute books
until our people can participate in its bene
fits equally with those of other and more
prosperous States. $3.50