New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-02-10
THE BAVKRDPTCY LAW.

The House of Representatives recently aston
ished the country by its sudden vote to repeal
the Bankruptcy Act. The measure still awaits
the action of the Senate, and 1T is rarely that
a question Of greater Importance to business In
terests throughout the country demands the at
tention of Congress. The present law, known as
that of 1867, is based in its general character
upon that Of 1S41. Its intention and its lead
ing provisions are just, humane, and expedi
ent. No demonstration is needed to prove
that the whole community is benefited when
men of enterprise and integrity who have been
overwhelmed by commercial disaster can be
set on their feet again. Without bankrupt
lsw such men can only start anew by effectlng
a compromise with their creditors. Too FREE
duently one or two creditors, actuated, per-
haps, by the meanest of human motives,
have held an unfortunate debtor down in
the dust till all his opportunities of rein
stalling himself in business are lost,
and his hopes of usefulness to his family
and the community are destroyed. TO apply
relief in such cases, a general bankruptcy sys-
TEN of law has been adopted in England as
permanent institution, having its own tribunals
from which the debtor who obtains first
class certificate energies not only free man,
but possessed of an Endorsement of his char
acter for honesty and ability, that usually
proves the equivalent of capital to give
him fresh start in life. Something like this
is the design of our bankruptcy law, so far
as its voluntary sections are concerned. It's
provisions for involuntary bankruptcy are in
tended to enable creditors to seize, hold, and
equally divide the property which a falling
debtor might waste, secrete, or fraudulently
assign. In this, as in the other branch of the
law, the design is equitable, and the proyi-
sions for the most part judcious.
Yet bill has been presented to Congress
asking the repeal of the Bankruptcy act. and
five thousand petitioners sign their names to
the appeal On the other hand, counter
petition is in circulation, having the signatures
of some of our largest dry goods houses, pro-
testing against repeal 1t is evident that there
is al extreme difference Of opinion on
the subject. The lastfhamed remonstrants
justly complain that there has been
no public discussion of the principles
involved. We sincerely trust there will
be no lack of full and frank discussion
before final action ia taken. But neither in
the petition for the repeal of the law nor in
the remonstrance and contemplation do we
find any extended consideration of the ques-
ton which men generally regard as most per-
tinent in all mercantile affairs. That question
is practical one, and does not affect any
opinion we may have of the sound
ness or justice Of the principles in
volved in the law. The question. is, as
the law is executed, Does it payf We
are credibly informed that one Of the most
prominent gentlemen who has signed the re-
mOnstrance against the repeal, himself admit.
ted, within a few weeks, that the law was of
no profit to him in his extended collections.
We find a very general assent to such an
opinion among merchants And we are forced
to conclude that whatever may be the justice
of the principles of the law, the machinery by
which they are carried out involves great in
Justice in a majority of cases both to debtor
and creditor.
When an honest but unfortunate debtor,
possessing no property which can be con-
verted into cash except at a sacrifice that must
aggravate bis insolvency, applies for relief to
a Register in Bankruptcy, he ia likely to be
astonished. 1t is as if q sick mendicant should
apply for board at a hotel instead of
hospital. The first thing wanted Is money, and
plenty of it. There is q petition TO be
fled petition with schedules aud b.