The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-09-01
Expirataoa ~ the Federal Bank
ruptcy Act.

ruptcy Act.
BY the terms of the repeating law, passed
at the last session of Congress, the federal
Bankruptcy act. of 1867, expired yesterday.
The rush Of debtors eager to file their petit
tons and schedules during the last hours
of the acts existence was absolutely start
ling. and the Registers offices in this
and other commercial cities were
kept open until midnight last night
for their accommodation. Hundreds
who had apparently struggled on in the
hope of wcathering the storm must have
become alarmed at the thought of being shut
ont from the benefits of the federal law, and
have suddenly resolved to place themselves
within the reach of its provisions before
they should become imperative. On no
other theory can this wholesale deathbed
bankruptcy as it were, be explained; for the
long lists of petitioners are made up of bust
ness men and others whose affairs have not
become suddenly involved, whose financial
condition must long have been known at
least to themselves, and majority of whom
would not be likely to postpone necessary
act until there was danger of its becoming
impossible.
eral act came from the creditor class. 1t
WIS insisted that the law was too favorable
to debtors that it did not afford sufficient
safeguards against favoritism or fraud; that
it was not sufficiently searching and exact
ing in it's operation against the debtors
estate. The scenes that have marked its
closing hours appear to lend some color to
this view of the dead law. After the cessa-
ton of it's provisions the insolvent is not
left without relief He has the State law to
fall back upon, and his preference OF
the federal act must have been very
decided to induce such eager efforts
to place himself within the latter's
just bankruptcy law is an advantage to both
the debtor and creditor classes. 1t aids the
honest trader and imparts confidence in
business relations. A law that leans unduly
to either debtor or creditor is public evil.
In the one case the dishonest trader alone
benefits from it's looseness; in the other
case the fair creditor is injured by the OPP
preston Of the honest debtor, who is pre-
vented by an exacting and unjust law from
repairing his misfortunes and again becom-
ing contributor to the business activity
and wealth of the country. If the federal
Bankruptcy act erred on either side its re-
peal will be productive of good.
1t is an open question among business
men whether general bankruptcy law or
State laws are preferable and fair argu-
ments have been used on both sides. Now
that the federal law has expired we 60 back
in New York to the old State Assignment law
which underwent some amendment and
alteration of the last session of the Legisla-
ture Under it's provisions an insolvent
debtor makes complete transfer Of all his
property to ON assignee, and is required
within twenty days thereafter to file in the
County Clerks Office sworn inven-
tory and schedule of all his properly,
debts and assets. The assignee must file
his acceptance with an exemplary bond
sufficient to secure all the creditors, and
should the bankrupt fail to file the sworn
inventory and schedules within the desig-
mated time it becomes the duty of the as
signee to supply the omission. AS safe
guard against collision stringent provisions
are made for citations to creditors,
public hearings, full examinations and
trial by jury of disputed facts, and COM
position must be effected between the
debtor and his creditor before the debtor
can be released. These are the main fea-
lures of the State law, and if they should be
found to need modification or alteration
the next Legislature will doubtless take
the necessary action.
Tax NRrGmBoRHoop OF Wash inPton Market ysster-