The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1873-03-19
The New Bankrupt Law.

Inc New BeiilhIuJS Ats"'
The following from the FhtJ OF yester'
day contains good advice. We heartily ap,
prove of most Of 1t
aThe amended bankrupt act Is pracucaity
tho MAJ. is,portant subject Of the day TO the
,,eo,,,a of Virciuia. II Is the most sweeping
Iasis,at,on ever enacted in this country,
|. TI,erc Is difference of opinion as to IFS true
cnnstruc;ion. Some hold that 1t pays no re-
spect TO any exceptions made by the Const!-
tuition or the State, but cXempts in favor OF
every householder and head OF family the
amo,int, Of g.. 900 for homestead, $500 III
addition, and such other exemptions as are
made by the laws Of the State--iu this State
about $500.
"rhe comprehensive words Of the law
seem to warrant this Interpretation. OtEeFS,
however, contend that the act respects al
the exceptions specified by the State Cons'i-
tuition. and the debtor cannot claim eXcmp
ton against those reservations. The persons
who maintain this construction are those
who are connected with the bankrupt courts.
and should know whereof they speak. l;
max be The safer course for the debtor 10 foi'
low this construction until the judge shall
have decided the question. There is 30 doubt
Int that the powers Of Congress are I'M
limited In the enactment Of Il bankrupt act.
II can abolish all debts. 1t is for the Judge
TO say to what extent it has exercised this
power in the present case.
eBut under either construction the act
cannot fail to exert great influence upon
The fortunes of individuals and the State.
It's tendency is in the direction OF reducing
or extiuguishiny private indebtedness. THIS
is o result greatly to be desired. ii 1t haa
been done Immediately after the war Inc
State would By this time be fully Oh its feet
again. 1t is a result which, no doubt, VIII
involve many cases Of individual hardship,
but 1t is indispensable TO the revival OF III
dustry-the only possible means OF reFiv'n&
the prosperity Of the State. In this view oil
the matter, looking to the wcil-bcing OF the
Commonwealth the great object OF cn!Ight-
ened and benetcent State>ma!>hip-Wea are
content TO attain the end without much
regard to the means; for The prosperity ci
the Commonwealth and the Happiness OF The
people are, in our vocabulary, Synonymous
terms.
"In executing this novel and Revolutionary
act much OF its DcncEcencc will depend upon
the spirit tina. enters into its execution ard
animateS the parties. 1t would be better N
every case, both for debtor and creditor, to
tiltlt iIhiliNjS htAhchN ANH'A' ~
law. The legitimate expenses attending tic
law are large: tie i'cgtilnat2 are c!ten mon
strous, and strip both The iiti%anls naked.
Therefore, whenever il is possible, we would
advise parties to be their own lawyers, COM
missioners, and assignccs. Their common
interest dictates this course. and they should
not permit tritles to stand iii this way OF adj
justment by themselves.
4 full sntttntyapt ,lf tho nriVatn inGC htC H.
ness will at once put the whole population to
work, and the good effects will be speedily
felt through all our bordcrS.'
We have heretofore pronounced the new
law q sweeping measure, and one that might
effect q social revolution in the State. lis
results cannot be easily orcr-estimated. We
published yesterday a telegram stating that
the United States Supreme Court had, in Il
cise arising under the old law. refused to set
aside deed Of trust. But it is evident that
the court would have set il aside if it had
been tainted with fraud. This only proves,
what every lawyer knew before, that cyru
deeds of trusts and mortgages may be called
in question in 4 bankrupt court; and they
were called in question under the old law,
there must be more danger that they will he
treated even more CURLY under the new law,
though we do not think. after mere careful
examination of the law and more reelection
upon the consequences OF disrcgarding
them, that deeds Of trusts and mortgages
were intended to be included even in the
sweeping words of the new law, nor that the
Federal judges will be able SO TO conStrue il
as to include them in a different sense from
that in which they were subject to the pro-
visions of the old law, albeit they may scru-
tinize them more closely and find more OF
them to be tainted with fraud.
AS to Judgment liens, we sec no posi-
bilty Of saving them under the new law
Its language is:
"That such exemptions be valid against
debts contracted before the adoption and
passage Of such State Constitution and laws
as well as those contracted after the same
and against liens by judgment OF DEGREES 0
any State court, any decisions Of any sucl
court rendered since the adoption and pas
sage of such Constitution and laws to tin
contrary Notwithstanding"
We would like for Of" to tell us how h,
could sell any mans property under q ".liet
by judgment or decree Of any State court ;
If the party choose to apply to Fedora
judge for an injunction. We offer Of" tbi
use Of our columns to make the explanation
and promise not to say one disrcspcctrul wore
in reply. We dislike exceedingly to fnt
ourselves in the wrong. but we wish 10 bg
set right AS soon as possible. Let us hcal
from you.