The New York herald., 1877-10-28
THE BANKRUPT LAW.
FEW OF THE REASONS WHY THE UNITED
STATES STATUTE SHOULD NOT BE REPEALED.

FEW OF THE REASONS WHY THE UNITED
STATES STATUTE SHOULD NOT BE REPEALED.
To EDITOR THE HERALD:-
1t has been suggested that Congress appoint CON-
mission to investigate the working OF the Bankrupt
II exists, for the purpose OF amending the
same. If such commission be appointed and they
examine how much the creditors have received in
dvidends during the past years assigned es-
taes under tho State law, and also how much
been obtained In dividends in those cases
where bankruptcy proceedings have been Instituted
after such Slate assignments havo been made they
will be surprised At the comparison. Tor they will nnd
that when debtors have made assignments under the
State law and submitted offers Of compromise and
bankruptcy proceedings under tho United states law
were thereafter instituted, the creditors have real
ized from thirty.three and onethrd to one hundred
per more than the debtors offered before such
bankruptcy proceedings were begun This difference
may be some extent accounted tor the difficulty
OF obtaining the assent Of all creditors accept an
offer OF compromise without bankruptcy ana tho
debtor oon reserves from his assets Iund for the
purpose OF procuring tho assent of such creditors
who otherwise will not compromise upon equal terms
with other creditors. Then, again, 1t frequently oc-
that debtors, disappointed In being able 10
effect settlements with all creditors become indier
to what becomes OF their estate and tho assets
assigned become vauelcss, and tridng. II any div
dend s declared by the assignee under the State law
who selected by tho debtors In their leresI
than that Of tho creditors
The provisions, however, Of the compost
tion clause Of our Bankrupt act based upon
. similar law, which has been Tor years
N England, enables honest insolveut debtor by
submitting to his creditors under oath statement Of
his and Liabilities, to. offer such settlement
as the assets warrant. and which may bo salts
factory 10 ~ least twothirds in number and half
at any rate aud virtually threequarter In value OF his
creditors, and thus obtains such relief from his abil-
ties as THIS Denehcent act provldca
In bankruptcy proceedings, either voluntary In
voluntary, where no composition under tho act is
proposed the creditors have the right Of selecting such
assignee or trustee as they their judgment deam
most suited, whiie under the state Jaw debtor con.
sulls his own inclinations In the selection of an
assignee and disposition OF his assets, making such
preferences as he may see It,
IL must, however, DO acknowledged that maj nv have
obtained tner discharge who are not entitled thereto;
but the fault lies moro III the want u proper or
united action and opposition the part Of
TO tho granting OF such discharge than any other
cause, Tor II the merchants were to famarze them
selves With tho provisions OF the Bankrupt
protection 1t Affords them debtors
they would regard the Bankrupt law, with such
amendments as experience from time 70 tmo will
guard commercial community have. 1t
should also be borne In mind by those who
are advocating the repeal OF the law, some
OF whom have perhaps never read the law
acquainted With its provisions that there arc
ut present hrty-egnt States In the Union The cti-
OF which lave mercla TRANSACTIONS each
other, and some Of shesc States have passed law
affecting the rotations OF debtor and CREDITOR by which
home creditors have preferences over creditors the
citizens OF other States. These laws, however, are
now subordinate to the Bankrupt act when protects
the interests of all creditors alike.
IL must therefore, DO apparent to any rejecting z
mind that u Uniform system OF bankruptcy, when
provides for the equal distribution OF among
good and wholesome law and should not be repealed.
ONE WHO KNOWS.