The Daily state journal. [volume] (Alexandria, Va.) 1868-1874, 1873-02-01
SATURDAY EvEN'G. FEB'RY l, 1873.
The bank upt Law.

IupI act, WAS W luaho u ptIuldueut panh-
rupt law ; and that the very highest legal
authority of the country, as well as the
best commercial acquaintance with the
workings of the several state laws, was
fully consulted before the act was re-
ported for the consideration of Congress.
The present bankrupt law of England has
been in operation for more than twenty
years, although, during that time, it has
undergone frequent amendments as its
deficiencies became apparent, so that now
the mercantile world deals with confidence
with the British merchant, manufacturer,
banker, broker or trader, assured that,
so far as the law and its administration
is concerned, the creditor class is pro-
tected in its rights.
The Constitution Of the United States
wisely provides for the establishment of a
uniform system of bankruptcy. In the
year 1900, Congress passed a bankrupt
law, which was, after a brief trial, repealed.
In the year ls4l another bankrupt act was
passed, but it was also of short duration.
In the spring of 1867 the present bankrupt
act was passed, and it has been amended
by every succeeding Congress. At first,
the general impression prevailed that this
law was to be Of short duration, but as
the system was engrafted upon the juris-
prudence of the country, the judges of the
United States courts, to whom has been
delegated the administration of the law,
slowly but firmly put its provisions into
force. If the law has not proved ~satisfac-
tory to the people, and has not accom-
plished the objects Congress intended, the
fault does not entirely lie with the judiciary,
but must be traced to the source whence it
emanated. 1t cannot be denied that the
bankrupt act has, in some respects, failed
t, protect the creditor class, whilst in many
in stances it has proved harsh and unjust to
the debtor.
1t has therefore become necessary that it
should be amended in some respects or
repealed. Which course Congress should
Adopt is now a matter which admits of lit
tie doubt or discussion. The law having
permeated the jurisprudence of, and its
administration having extended throughout,
the country, its repeal would, in our judg.
meat, result in a revolution, the conse-
quences of which would be disastrous to
our best commercial interests.
We have just received a petition, pre-.
plred, it is SAID, by an eminent lawyer Of
Baltimore, which so clearly and succinctly
embodies the chief objections to the repeal
of this law, even as it now stands, that we
avail ourselves of them, with but Sigh,
change of phiaseology, for the benefit Of
our readers. This petition sets forth the
~fact-as beyond all question the same
exists-that there is no other mode by
which the assets of a large mercantile
house, scattered through various states, car
be distributed. The only other mode posi-
Bile is an assignment for the benefit Of credi
tors. But many of the states have passed
statutes to regulate such instruments and
in some, these acts are of such a character
that no assignment made in another state
could be valid ; morever, no lawyer is
sufficiently acquainted with these various
state statutes to draw an assignment te
meet the requirements Of all consequent;
every assignment must be void in som;
states. The failure of a well-known firm
in the city of New York brought out thi
great advantage il the bankrupt law. Al
assignment was first tried, but as this wa
void in some of the states, attachment
were levied on the property, and there wa
no relief except in bankruptcy.
But another great advantage a~ccruinv
under the law is, that it fixes a standard t.
which failing debtors feel that they ough
to conform, and thus moulds public epin
ion. The tendency of its limitations is t
check reckless trading, and compel failin
men to stop business before their asset
are all exhausted. In the next place it tend
to prevent fraud, for none but honest me
can get the consent of a majority Of thei
creditors to a discharge. The rascals al
thus left liable to their creditors. Unde
the influence of this law there have bee
fewer fraudulent failures than in any otht
equal number Of years under the operatic
of state laws relating to bankruptcy. I'll
superiority of the general bankrupt la
will be still more manifest when it is n
membered that assignments eractias n
leases are held to be valid in several Of Il
states.
Under the operation OF many state law
the large or vindictive creditor took ever
thing. Now the minor creditors are pr
tected. Moreover, experience shows tn
fraud is usually perpetrated under Il
guise of a conveyance to a relative
consideration of an alleged prior indebte
ness. Such frauds have nearly disa
peared, because the bankrupt law affor'
a ready and certain remedy.
We are glad to see that the best ella
of mercantile men in the country a
moving against repeal, and pressing up
Congress a reconsideration of the rece
hasty action of the House of Represe
tativss.