The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1873-03-13
The New Bankrupt Law.

Mr.. lyreHss "huildcd better tn"n w
knew" uesays in the letter which We r'o,
!, ,;s,,ea ,,st week that the "sfng'e otJec' o'
the tIcclaratory &C: Of March O. lo''' :, Is "
g Give to debtors bereft Of their propef'! os
q sho war the same exemptions as were given
rto debtors becoming 50 since 1863"
we took issue with Mr.. HUGHES last year
=, another point, and Judge R!TEs decided
that Mr.. uranEs was wrong. We now give
IL as our opinion we will give goodrca-
sons for it-that Mr.. HUGHES is again mis-
taken. and that the decaratory act Of March
3, 1873, does, in effect, as we said yesterday
sweep away all debts, old and new, and docs
not merely give to debtors berc!t Of their pro-
perry by the war the same exemptions u
were given to debtors becoming so since
1850 for these last, under the bankrupt INV
! as It stood last year, could not be relieved
from all classes of debts. There were seven
eSceptions, as we showed yesterday. Let Us
again reproduce Mr.. HuGuEs's law;
"Ben enacted by the Senate and House
of Representatives Of the United States o.
AnericG IN Congress assembled, That II was
the true intent and meaning OF nn act ap-
proved June s, 1872, entitled An act TO
amend an act entitled an act 10 establish 4 UNI
form system Of bankruptcy throughout the
limited States. approved March 2. 1861 that
the exemptions allowed the bankrupt by the
said amend .tory act should, and it is hereby
enacted that they shall. be the amount allowed
bv 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
massage of such State constitution and laws,
as we'll az those contracted after The same,
and against liens by judgment or decree o:
any State court, any decision of any such
court rendered since the adoption and pas.
sage Of such constitutions 10 tue contrary
notwithstanding"
Now, notice FIRST that the exemptions here
epoken of are those allowed the bankrupt ~
"the amendatory act 0! 1872" and secondly,
that these exemptions orc lot to he the same
rs those allowed by the State law, but are 10
be "the amount" SO allowed. 1t is provided
that tho exemptions allowed the bankrupt
BY the act of March, 1873, shall be the
amount" allowed by the State law, and that
these exemptions shall be allowed rs against
debts contracted both before and after the
passage Of the State iaw-that l., of course,
all debts. Notice, again, that there Is great
deal Of surplusage In the act. 1t is album
dainty worded, as we said last week. 1t is
exactly the same In effect lin Nir9inia) as if
it were in The words following, to wit:
"Be IL enacted, de-, That the exemptions
allowed each bankrupt in Virginia shall lie
the amount allowed by the Constitution and
laws of that State in the year 1871 and that
such exemptions shall be valid against al!
debts except as otherwise provided in the
bankrupt law"
Nir. HUGHES says this "amount" is $500
So each bankrupt is to keep $4,000, aud pay
no debts except such as the bankrupt law
has always required to lie paid.
If this view of the new law he correct, the
Virginia law will not hereafter be respected
by the Federal courts except as to the
"amount" Of tie exemptions allowed tie
bankrupt, and it follows that baukrupts need
not pay
LIST. The rurchasc-price Of their home
steals, but nluy keep these, and snap their
fingers at the persons from whom they
bought them.
Cd. Laboring persons and mechanics can
no longer get their dues. This f, aturc OF the
Virginia exemption law was incorporated in
the Constitution by the UNDERWOOD Conven-
ton for the special purpose, as We have al
ways understood, OF protecting the interests
of the negroes. What will these poor labor
ing men and mechanics think OF Mr.. HrGuEs
or Mr.. LEWIS as candidate for Governor!
The owners Of property rented to bankrupts
are in the same boat. So are the holders Of
trust deeds and mortgages. They can get
no preference hereafter by virtue of the
State law. They, and the mechanics and Ia
borers, and all other creditors, must be cou-
tent with what they can get out Of bank.
rupt court.
Was il the intention of Congress 10 pass
such III act9 We believe not