Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1873-04-24
M1isfellaneuns &eadiug.
From the Greensboro State.
THE HOMESTEAD LAW.
BANKRUPTCY THE ONLY SAFETY.

BANKRUPTCY THE ONLY SAFETY. e.. H
As we briefly announced, last week, the Su-
preme Court of the United States have deci-
ded the homestead laws in the States, so far
as they apply to debts contracted prior to the
enactment of such laws, to be unconstitution-
al. We have no better information now, than
when we made the announcement, but there
is no doubt that this decision has been made.
The case arose in Georgia. The point deci-
ded is, that the application of the homestead
exemption to preexisting debts, violates that
provision of the constitution of the United
States which prohibits any State from enact
ing laws impairing the obligation of contracts
OF course, this determination strikes directly
at the root of the decision Of the Supreme
Court of North Carolina, in the case Of Hill
Us. Kessler, which was to the effect that the
homestead exemption applied to old debts.
It is useless to discuss the questions of law in
volved, nor do we intend doing so for
the decision of the highest tribunal of the
land liz 6nality from which there is no ap-
peal. 1t is true, that previously to this de-
cision, the current of authorities in the various
States, in which this question had been con-
sidered, was in consonance with our own Su-
preme Court and there would, therefore,
seem to be abundant reason to sustain our
Judges in the view they took of the law.
The matter being, however, finally deter
mined, the only question that remains to be
considered is, "What shall the people do ?"
Of course, there is no protection to those who
have taken the benefit of the exemption laws.
Judgment creditors, those whose judgments
represent old debts, will proceed to issue exc
cution, sell the homestead, and make their
money. .-.a
But the Congress of the United States,
shortly before the termination of its last ses-
sion, in all probability foreseeing the possibil-
ity of such decision Of the Supreme Court,
enacted the following statute, which we re-
publish for the information Of our readers:
IAN act to declare the true intent Of the act
approved June 9Th, eighteen hundred and
seuenty-two, amendatory Of the general Bank
rupt LaeO.
"Be it enacted by the Senate and House of
Representatives of the United States of Amer
lea in Congress assembled, That it was the
true intent and meaning of an act approved
June 9th, 1872, entitled An Act to establish
a uniform system of bankruptcy throughout
the United States, approved March 2, 1857
thatthe exemptions allowed the bankrupts by
the said amendatory act should, and it is
hereby enacted that they shall, be the amount
allowed by the constitution and laws of each
State, respectively, as existing in the year
1871; and that such exemptions be valid
against debts contracted before the adoption
and passage of such State constitution and
laws, as we'll as those contracted after the
same, and against liens by judgment or decree
Of any State court, any decision of any such
court rendered since the adoption and passage
Of such constitution and laws to the contrary
Notwithstanding" .,.......
The amendment of June 9th, 1872, as can
be readily gathered from the wording Of the
above statute, gave to debtors the benefits of
the State exemptions existing in 1871 and the
foregoing declaratory act gives legislative con-
struction of the meaning of such amendment.
While State constitutional conventions and
legislatures, by ordinances and enactments,
cannot impair the obligation of contracts the
Congress of the United States has the undoubt-
GU Ponei W w 81 auu Wy tllS ueCloiatoiy
statute has established the validity of these
exemptions. -
But they are not valid as matter of course.
Some action must be taken by the debtor, to
render these provisions beneficial and abso-
lutely the only remedy left him, is to file his
petition in bankruptcy. Should he not do
this, he is at the mercy of his creditors, and
must give up all he possesses to satisfy their
demands. The remedy being apparent no
more need be said, only that nothing but neg
lect to take advantage of Congressional legis-
lation, will deprive the debtor of his property.
By taking the benefits of the bankrupt law,
debtors have all Indebtedness, whether in the
shape ofjudgments, or not, wiped out; and
may commence the world anew, with their
homesteads secured to them. Therefore, what
the State legislatures and courts have failed
to accomplish, has been secured to the poor
debtor by the Congress of the United States;
and if he fails to avail himself of his legal
rights, he has no one to blame but himself.