New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-08-29
THE END or THE BANKRUPT Law.

| The END Or THE BANhhUFI Law.
This is the last week of the Bankrupt Law.
The number of failures during this week will
probably be large, for all who know that they
owe more than they can expect to pay, OF
are so involved that their chances of ultimate
success seem to them slender, are likely to
embrace this opportunity, possibly the last for
lifetime to get release from their debts.
Long ago it was iudicially decided that no
State can grant a release as against creditors
residing in other States, nor will there be,
after Saturday next, any other means for the
collection of debts than those which the laws
of the several States may provide. In some
States, the provisions are very stringent and
effective; therefore, it may be expected
that the number of bankruptcies an
nOunced during this week will be large
in those States. In others, popular feeling
against creditors, and in favor OF Reputation
public and private, has prevented the enact
ment of efficient laws, or caused the selection
of local officials who refuse to enforce the law
for the protection of creditors. In such States,
bankruptcies Will be less numerous at present,
but general withdrawal of credit will prob
ably cause in the end greater disasters than
the most stringent enforcement of claims could
produce. The lesson will have to be learned
anew, that men who have money will not lend
it to those who surround themselves with laws
expressly intended to enable them to swindle
creditors, and that, in the complex commerce
of modern times, general refusal OF credit
is about the greatest misfortune that can be-
fall the business or industry of community.
1t may naturally be supposed that the re-
peal of the Bankrupt Act will tend to break
the credit system throughout the country.
Undoubtedly it Will cause much disturbance
for a tile, but it is reasonable to believe that
in the end it will produce q safer and more
healthy distribution Of credits, rather than
diminution in their aggregate volume. In
States where public sentiment gives no redress
to creditors, capital will be withdrawn and
credits refused, while in States where public
sentiment and the laws give ample protection
to creditors, capital will rapidly concentrate,
and loans will be offered in abundance at low
rates. Those VINO dance will have to pay the
piper. =,
That the country can get along very well
without bankrupt law, and can attain to a
high degree of prosperity, was proved by its
experience before the war. But that expert
ence also proved that those States In which a
spirit Of reputation prevailed always suffered
severely, while those whose laws reflected a
high sense of honor were peculiarly favored,
and gained very rapidly in wealth. New
York and Massachusetts owe not little OF
their present financial strength to the fact
that their legislation never favored the
evasion or reputation of just obligations.
TLoro ora other STATES which have seen in
dustry stagnate and commerce fly as from a
pestilence, and have been For half century
bemoaning their poverty, because, with rich
lands and bOundless resources, they had also
a public sentiment Of hostility to creditors,
aud laws so framed as to make swlndling
easy.