, 1873-11-23

ablo-many Of thom still considering thouaotvoa
morally bound to pny. But tho provisions of
tho Inv undor which thoso proceedings woro Ind
arc practically obsolete. Debtors moy still In
discharged from their dobtB contracted prior to
Jun. I, 1860. Dut most dobtH Of ths o!ass 1,ayo
boon long since cancelled. t1obtor cunuot now
10 discharged without eurrcndoring to tue Az
sjgueo aHsots ut 1enAt equal 10
PlFrY pEn oENrulf
OF tho debts proved againnt Ills ostato, or 40.
curing tho written nsHont to his discharge Of tho
majority In paiao aud number Of his creditors,
As mattor OF faot, most honest dobtors 10 3d.
euro tho necessary asaont, Tlo oon1itiona now
imposed upon a debtor aoo1siug discharge aro
fur and reasonable; and they aro doubtloas
modolcd after tho provisions Of tho Bankrupt
laws Of England ana Holland, each Of which, NO
bolievo, eontnfns tho 80 por contum provision,
and requires tho assent Of certain part In num-
ber and amount Of creditors. 30 much for tho
rroyiBtons Of tho act relating to debtors. Since
1860,
THE CREDITOR o1AsB
has been most Interested In the workings Of tho
law aud 1t Ia tho ofoot upon tic interests Of this
class which wo will now consider.
II tho operation of tho present law, with Its
3mperfections, las beon beneficial, no must con-
olude that permanent Bankrupt law, alnondod
from timo to timo as experience may suggest, ia
necessary to osir highest commercial prosperity.
The principal objection to tho proaont law ia ts
oxpenslvonosa- objection for which there ii
somo foundation. But even now this objection
is not alwaya we'll taken. Take tho
onso Of q trader in Chicago who falls
to-day aud ia put into banktruptcy.'
Tho cost Of tho bankruptcy proceedings only ara
paid out Of his estate, and tho balance ia equally
fina III H.t-n
oaHo
WITHOUT 4 BANKRUPT Law,
and Bupposing tho trader to havo thirty or forty
creditors-a number by no means uncommon
even in case Of small fatluroB. As soon as tho
mercantile agencies report single suit against
tho debtor, oyory othor creditor begins ~ tho
race Of diligence" " to Hoouro his claim tho ro~
suit Is groat multiplicity Of legal proceedings,
emanatng probably from several different courts.
fow creditors incur largo oxpensos md secure
their claims In full many others incur largo OK
ponsoa and secure nothing whutoyor; au1 wo be~
liove TINT tho "sottlemont" Of thdt dobtor'a
affairs without tho bankrupt law must be worry
considerably more expansive to his crclitorH,-
that ls, tho aggregate Of costs must bo greater
than with tho settlement under tho Bankrupt
aot, and that the result muHt give far loss gep~
oral satisfaction.
But wo caunot ostimnto tho 7aluo of the Danlt-
| rupt law to the commercial intorosts Of tic
country from tho actual proceedings in court
| alone. Tho number Of Cases In tho Bankruptcy
| Courts Of tho country has hcon comparatively
few, as compared with tho number OF failures,
since 1860. Tho power Of It's influence has boon
shown in
| FACILITATING SETTLEMENTS
outside Of any court, and without oxponso.
Creditors. knowing that tloy could secure no adj
vantage over cach othor, haye, in tho largo MT
| 1ority OF oasos boen willing to accept from tho
| honoBt debtor such sum as lo could afford to
pay.
Tho utility Of Bankrupt law Inns also beor1
most cloarly shown during timos Of groat
excitement md financial dBturbancoa
resulting from tho great flree in Chi
cago md Boston, and from the recent panic.
We be1iovo that tho existence Of tho present law
has boon OF lncaloulablo Importance to the oiti-
zona Of Ohicago TINT without suoh Inv our
merchants would 1layo boon unable to settle with.
their creditors, es in many INSTANCES some crei-
itor or creditors would hayo boon found wbo
would havo begun "the race OF diligence" to
soouro thoir claims, In which race they would, Of
courao, have boon followed by other creditors.
| And aomo Of our unfortunate cftizons, holding
| to tho principle Of commercial honesty which
prevailed before the enactment of tho Bankrupt
Inv, aud boiug ,1nabo to pay a1l their creditors,
would hayo paid thoac in full to whom thoy wora
more especially bound by tics of blood or friend
ship. Thts courao would hayo resulted in dis
satisfaction among other creditors.
Another advantage which our oizons derived
from the presont law was found in tho aettlo-
mont Of the affairs Of
1NsoLvESr INSURANCE COMPANIES,
both those Of Chicago and Of other cities.
Through tho Influence Of tho Bankrupt law, En-
equal distribution Of tho aasots Of many COM
panies In other citioH WINS secured without cost
or expense Of legal proceedings. Whore frauds
were attempted the companies woro thrown into
bankruptcy and proper distribution compelled.
In tho case Of our home companies, we bolioyo
that, with possibly two Or three exceptions, no
general dividend would ever hayo boon paid to
the creditors Of these companies had no Bank
rupt law been in force. With no law prohibiting
preferences, What would IN insurance company
probably have paid whose officers woro holding