Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1873-01-30
THE RUTLAND HERALD.
SATURDAY, JANUARY 25, 1872.
The Bankrupt Law.

Ene AS3hkFupt Law
The power of Congress to pass laws
providing for a uniform system OF bank
ruptcy throughout the country has never
been doubted or questioned. Indeed "y
an express provision of the Consfit u'ioh'
that power is entrusted to congress. It's
expediency, however. las oeen question
upon which men have and Will still con-
tinue to Differ. Hence, although this
power has been in the hands of Congress
for over eighty years, it has only been
exercised upon three occasions, and there
have been uniform bankrupt laws for
the United States only for some ten or
dozen years. The difference of opinion
as to its expediency is, if possible, more
clearly shown by the short life that was
granted to these several attempts to al
low the people the benefits of its pro-
visions. In 1900, the first law was
passed, probably for the benefit of those
who had suffered by the disastrous losses
inflicted on our commerce in the years
previous, but was, however, suffered to
remain on the statute book but for
brief period. After the commercial re-
vulsions, growing out of the war made
by Gen. Jackson upon the United States
Bank, the wide spread spirit of specula-
ton engendered by the expansion of the
State banks and from other causes, the
proposition for uniform national sys-
tenn of bankruptcy was once more de-
manded, and was, we believe, endorsed
by the Wing party as one of the issues
of the campaign of 1910. At any rate,
the extra session of Congress, called by
the new Wing administration, passed
such an act in August, 1S41 The rush
to take advantage of its provisions was
immense, but short-lived, as, in March,
1S43, the same Congress, which as one
of its earliest acts had passed the law,
repealed it as one of it's last acts before
final dissolution. Again, soon after the
close of the rebellion the condition es-
pecially at the south and west, was such
that the demand for a bankrupt law
again became general, and the present
law was passed, receiving the approval
of the President March 90, 1867. For
this law the country is indebted to the
persistent and unwearied efforts of
Thomas A. Jenckes, of Rhode Island, in
the House of Representatives, and of
Luke p. Poland, of this State, in the
Senate. That persistent and untiring
labor was required may be seen from
the fact that, after the details of the bill
had bsen fixed and after long and learned
debates, the final passage was secured in
the House by majority of only nine,
while in the Senate the majority was
but taoo. 1t Is now, after some less than
five years trial, proposed to repeal this
law, bill to that effect having passed
the House by more than a two thirds
vote. In the Senate bill to the same
effect has been reported, and it is under.
stood to be favored by all of the mem
bers of the committee of the judiciary,
except Mr.. Edmunds, of this State, and
Mr.. Frelinghuysen, of New Jersey
We trust the bill will not pass. The
present law, as we believe, has worked
well and has afforded relief to many an
honest but unfortunate debtor. 1t prob
ably is not perfect in all its details, and
could, doubtless, be improved in many
respects. 1t needs improvements, simpli
flying and lessning of expenses. Let us
have them, but let us still have g
uniform system of bankruptcy through
out the country. To what will its
repeal remit us? In Vermont, where
we have no insolvent laws, or any
laws at all in reference to insol
yency, we so back at once to the g grab
law" First come, first served, and the
rest kept out in the cold This is all
well enough for those who are lucky
enough to be the first in, but it is de.
cidedly unjust to the mass of the credi
tors, and many times to the debtor. In
viewing this question, there is no occa
sion to expend any sympathy upon a
fraudulent debtor. There are such and
the law provides fit punishment fol-
them, and from the courts of bankruptcy,
or our own courts, they receive no
mercy. But there is no reason why one
or more creditors should receive all of q
debtors property to the exclusion OF
other creditors, and, perhaps, of the
very creditors whose property they seize
to pay their own debts with. Reason.
justice and equity forbid such a course.
Now the bankrupt act makes pro rata
distribution of the assets and all stand on
an equal footing. In some other States
there are well devised systems of insol-
vent laws but they are, after all, apple
able only to the citizens of the State.
More litigation has grown out of the
conflict of laws in different States on
this subject than from any other cause
The debtor surrenders his property and
gets his discharge, but courts of other
States refuse to recognize its validity.
and the debtor is liable to arrest and inn
prisonment the moment he crosses the
line of his own State. Are the people
Of the United States willing to give up
uniform system of bankruptcy for
grab laws or incongruous and UNEQUAL
State laws. We trow not.
HOSTILITY TO LAND GRANTS. The
House committee on public lands have
had an important and rather exciting