, 1874-05-16

D7EIEI I11BUNE,: ; SAVUI
grounds. We rdfer to this only bcoauso It hap.
poria to DO The, latost ono. gentleman in Now
York, the holder Of truat-tloed securing tho my.
mont Of money wrote to his lawyer in this olty,
after thc dofault Of Ills creditor to uol tho pro
erty conveyed by tic deoa. An order Was made
by tho Court prohibiting tho aalo on poll.
tion Of another creditor. +. In a third
Instance, ono L. borrowed largo sum
OF money from tho United States Mortgage Com
Pany, giving as' security a mortgage on certain
real oatato. L. afterwards sold the samo roai
eatAto to acertain lfc-inauranco company subject
to tho mortgage just named. 1holifo-nsrrauco
company booamo; bankrupt, tho monoy became
duo, and tito Mortgage Company wish to forc-
| close, but arc hfndored by an injunction granted
at tho instance Of Mrs. X, creditor OF tho lifo-
insurance company, on tho ground that, ii the
mortgage DO now foreclosed, tho real estate will
be sold at q sacrifice.
UnloHs thore bo some very good reason for the
tnterferonco Of tho Court In tho promises. ite
action In granting thoao injunctions nhould TO-
colyo tho most unqualified condemnation. II tho
law requtros an injunction to be issuod in ali
cases. where acknowledgements bankrupt
has givon collateral security to certain oroditor
on tho prayer of another creditor who las no
such security, no b1amo. Of course, attachos to
tho Court. But thoro ia no such law; md It iB
hard to SOC hon tho discretion accorded to Courts
T.
can be pushed to suoh an oxtopt "a to involve i'm.
pairing the obligations Of contract. This action
of tho Court cannot but have a worry bud offoot on
commercial credit oollaterals arc required mainly
from parties Of whose future golyonoy there
is aomc doubt. lfcollatorals nro mado WORTH
loss Or uncertan there will DO worry littlo lending
OF money to such parties, md business in every
branch will fool this LACK OF contidouco. soou-
rity is given and. required only because It is
foarod TINT by roason OF bankruptcy or some
other contingency tho debtor will not bo ablo to
discharge bis dobt ht tho time agreed on. Money:
IL advanced on suoh securities only because It is
supposed shat they aro m absolute protection to-
tho lender, and because, boiug q protection
based on contract, 1t ia taken for grant. Ut.
ed TINT neither oourts nor Legislatures
can destroy it. !" II lenders arc to
bo hampered rathor 'than assisted by
Courts /; II aeouritios cannot ba sold aud dobta
discharged; II .parttos lending money to A On
mortgage can bo hindered from foroolosins On
petition Of parties whom tho creditors have never
aeon or heard Of, what is tho use OF a mortgago
or any othor socuritY2 What protection is there
In IT. If the Courts aro going to prevent tho
sale Of securities in this way, Or to delay such
salo until 1t ean DO mado without sacrifice,
slmply becauHe the debtor ia q bankrupt, md
somo other party Ii creditor Of tho bank
rupt estate 1t is we'll that tho public
should know It. But at tho same tlmo It would
DO well to ask how Courts arc to learn that sales
will involve sacrifice, and whether the injuno-
tions arc to ronain in force until tho condition
Of the markets. will Warrant . Ra1o of the aecuri-
ties. It tho Bankrupt act impairs tho obligation
OF contracts entered into before bankruptcy
takes placc-tf 1t vitiates the rights OF creditors
to securities actually pledged,-it should be ro-
pealod, for, instead OF being law to facilitate
tho collection Of debts 1t ia d law to retard or
prevent thair collection.
But We can discover no1hing in tho bankrupt
Law which makes It M net to insure the non
payment Of dcbts. It provides (soc. 2o) that
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