New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-09-02
THE ScR4NBLH roR B1NKRCPTCY.

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THE SCRAMBLE FOR BJNRRCPTCY.
During six months ending June 30, only
424 failures in the City OF New-Gork were
reported by the commercial agencies But
the number of petitions IN bankruptcy flied
here on Saturday alone was 394-oniy thirty
less than the entire number of failures dur
ing six months. More than eleven i'll every
thousand of the persons and firms dong
business in New-York went into bank
rlptcy on the last day of the operation
of the act; on Friday the number Of petit
tons filed was 135, and on Thursday
il was 70, and it was then mentioned
that there had never been as many
failures before in any day since the law was
enacted, eleven years and two months .go.
Yet that number, then unprecedented, Is less
| than One-ffth of the number OF bar Aruptcles
on Saturday alone During the last half OF
last week, the number of bankruptcies IN tins
district was GOA, but the number OF failures
in this city reported during the entire year
1878 was 644, and that number had never
been approached during any previous year OF
which the commercial agencies have given
records. THE number of petitions in bank
ruptcy filed in this district, from July /, 1867,
when the act went into effect, to September
l, 1873, when It's repeal took effect, was
1880 and the number Of traders reported as
doing business in this city alone on the LIST
of January, 1873, was 5000. Except with
in the past few months, therefore, the proper
ton of bankruptcies to the whole number of
traders within the district has been very small.
These comparisons show how very effective
the Bankrupt Act has been in protecting debt
ors against the Just claims of creditors. The
enormous list of bankrupts in August does
not show, as every one is aware, that there
had been extraordinary mlsfortunes business
during that month, or during the months just
preceding. On the contrary, business in Au-
gust. 1878, has been larger in quantity of
products exchanged, and much more healthy
in character, than in August, 1877 The
avalanche of petitions in bankruptcy
shows how many persons and firms have been
enabled for years, through the operation of
the Bankrupt Act, to fasten their big load of
debts upon the community, to force banks and
other lenders to carry them at q constant loss
and great risk, and thus to stop the proper
employment Of capital in the support of
healthy undertakings The average liabilities of
firms failing during the first six months of 1878
| in this city was nearly 100000. Ii the average
is $4,000 for the 1922 persons and firms in
this district whose petitions in bankruptcy
have been fled this year, the aggregate liza
bilities of those bankrupts were about $751;
| 100000. The fact that most of these traders
rushed into bankruptcy either last Spring,
when the speedy repeal of the act was
expected, or during last month, in
order to wipe out debts which they
had been owing, in many cases for five years
or more, shows what fearful load the act
compelled creditors to bear. For years it has
suvplied the bOmb-prOOf wall behind which
| rascally debtors have ensconced themselves in
security. They have laughed at all efforts of
creditors, and, whenever pressed, have calmly
threatened to walk up to the Register IN
Bankruptcy and suffer their property to be
eaten ND by fees and costs. Thousands of
debtors have thus been enabled to defy just
claimants. The magnitude of the fraud, and
tbe extent Of the burden which the cOmmu-
nity has thus been compelled to bear, are not
fully shown even by the proceedings during
the last week Beside all the failures there
have been thousands of forced settlements
| and comprOmises,n which differ some in
form, but not much in morals, from the " set
clements effected by bands OF travellers
with Western train-rObbers or Italian brig
ands The amount OF loss thus involved can
never be estimated.
There will be general and just disappoint-
ment, if the repeal Of the Bankrupt law is not
followed by sense of relief, a revival OF con-
idence, and healthy Improvement IN legiti-
mate business. The men and firms still con-
tinuing IN business, it may be fairly inferred,
either have full faith in their ability to
meet all obligations, or have too much in
tegrity to resort to bankruptcy as a means
of billdng creditors. In either case, degree
of confidence is justified which, as events of
the last few weeks abundantly prove, 1t was
not safe to indulge as long as firms supposed
to be solvent and honorable we're rush
ing to the bankrupt court with state
ments of enormous debts and insignid-
cant assets. Some unfortunate failures may
result from the unexpected disclosures of
last week, but creditors will be more lenient
toward those who had no reason to think
themselves unable to meet their obligations,
or who refused to rid themselves Of debts by
means OF the law. Tie business that remains