The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1878-05-01
FORTY-FIFTH CONGRESS-.
REGULAR SESSION
HOUSE.
The Bill Repeating the Bankrupt Law
with Several Amendments, Passed At
ter Long and Heated Debate.

ter Long and Heated Debate.
WAsHINGToN, April %.
Immediately after the reading OF the journal
the speaker announced the regular order to be
the consideration of the senate bill for the re-
peal of the bankrupt law.
Mr.. Mcmahon, who had charge of the bill,
stated that at the end or two hours discussion
he should demand the previous question.
Mr.. Keller hoped the house would not second
the previous question, bat that ii would allow
an extended discussion TO be had on the bill.
Mr.. Knott thought there might be grave
doubts as to whether the bill passed by the
senate would effect the repeal of the bankrupt
law. He would therefore move to amend the
bill as to repeal title 81 the revised statutes
and the act approved june 1874, entitled ''an
act to amend an act to establish uniform sys-
tenn Of bankruptcy" He would alsOyOfier an
amendment to the bill so that penal actions
for criminal prosecutions arising prior to the
passage of the bill under the acts proposed to
be repealed shall continue in full force unit
disposed of.
Mr.. Mcmahon said he was authorized by the
judiciary committee to offer a substitute
for for the Dill repeating iha the bankrupt
take effect Immediately, as TO
involuntary proceedings, except pending
ter the LIST of July, 1873, in regard to volun-
tary bankruptcy proceedings. He said there
were three classes of views in regard to the
bankrupt law. One class desired permanent
bankrupt law. The second class wanted its
unconditional repeal, and the third class, rep
resented by a majority of the judiciary COM
mittee, desired its repeal as to voluntary pro-
ceedings TO take effect after the lst of July,
1873. He spoke in behalf of those who thought
the bankrupt law was contrary TO republican
institutions, but he would modify its repeal by
granting limited time in which persons
might take advantage of its benefits.
Mr.. Conger favored the substitute. People
all over the country were DESTROYS of knowing
the exact time when this bill would take ef-
feet, that they might have time to file their
petitions Tor voluntary bankruptcy. The
threatened action OF the house. under the
le .Cership OF the gentleman from New York
J. NYopd), was bringing ruin on the country and
destroying all industries, agricultural and
mechanical. This threatening and lmpend-
ing effort of class enthusiasts, who might be
free trders and intiationists, anu who threat
ened destruction to the general industries of
moment before they drove to involuntary or
voluntary bankruptcy men who bad for years
struggled to preserve their credit and pay their
debts.
Mr.. Frye advocated the substitute
Mr.. Lapham favored the senate bill.
Mr.. ChIttenden believed a good bankrupt
law was an absolute necessity. The substitute
of the judiciary committee was the most dam
been presented to the forty-fiIth congress.
/ There was nothing in the proposition 10 allow
/ the voluntary feature to extend until January
next than an invitation to a high carnival of
\ disaster, distress and calamity. That the
/ invitation that congress proposed 10 give to
/ $1,000 merchants and people involved in the
would lead 10 a result which no man could
foresee, and which would come back upon
congress and confound 1t.
Judiciary committee. He preferred to have
l the laws perfected.
Mr. Ewing sustained the motion to refer. He
characterized the pending bill tit sequel to
/ the resumption law, and would complete the
work Of ruin which that law contemplated.
/ The +, sumption law provided In effect that
men who were so unfortunate as to have been
| in debt during the past three yearS-men who
( were so yenturous as to continue business,
! should be broken up, and their property given
/ to their creditors. The pending bill enacted
| in addition that the creditor should have more
u hold on the brain and muscle of the unhappy
/ debtor TO the end of his life. 1t was a
monstrous measure. The condition of the
masses of the business men of the country was
! a condition of insolvency; not one man in five
of them could settle his debts by the loss of all
/ his property. And what was the cause OF that
| insolvency? Was 1T the fault of the debtors?
| Was it because they had been over venturous
-becau-e they had been reck'es Not at all.
| The cause was the legislation of congress. He
cared not whether it was attributable to intla-
ton or contraction, or the one followed by the
| ether, the cause still was the finance measures
of the general government. At their property
/ had been swept away rom them.Dy vista
ton of God or by an act of war, would congress
] follow that SAD and terrible event by IL 10
repeal the beneficent provisions of the bank
rupt law? Would congress say that that was
the proper time to enact that the
debtor, although his property has been
swept off without any fault OF his own, should
he not be acquitted of his debt on the loss OF
his property? No congress would say that
That was the worst of all times to do such a
thing. 1t would say that If ever a people
needed q bankrupt law they needed il then
This is the situation of the country. The bust
ment and practical insolvency Very few OF
them knew even the cause OF the steady fall in
value in everything in which they dealt, and
the steady rise of their debts conn pared
with their prosperity.
Mr.. Cole asked Mr.. Ewing whether he assert
ed that not one out of five business men in the
country could pay their debts?
Mr.. Ewing-Yes, L asserted ii, and believe 1t
Mr.. Cole-Where do you get that kind of sta
tistics?
i
has been a fall in values of property during the
past three years OF not less than 81 per cent. OF
an average.
Mr.. Cole-And still assert that there is no
one out of every five business men of the coun
try who is not diScharging his obligations
promptly and faithfully.
Mr.. Ewing-A large part of them are dis
charging their obligations promptly and faith
fully, and that is largely due to the fact tina
they are sustained from being actually swept
out of business by the bankrupt law. Bank
ruptcies have multiplied from the day that Tn,
resumption law was passed, and 1t goes on, in
creasing every month since then. To attribute
these bankruptcies and failures TO the bank
rupt law is unreasonable. / think Ii would b,
the worst policy now TO repeal the Dankrup
law. In the name of God have not the strug
Cling masses of business men in this country
suffered enough? Is there not enough discOn
wrong which has been Infife ed by law suf
ficiently Intenss? Shall we aggraYate by tell
ing these people that hereafter when they
break down under the operations of oul
enactments, not through their fault, no
through their recklesSnesS, not through causes
which they can understand or appreciate
they fall, like I.ucifer, never to rise again? Be
ware Mr.. speaker, OF adding anything more tS
that discomfort which now peTvades the bust
ness men OF TIE country, which now pervade
|, the masses of laborers and the masses of mel
/ who, unfortunately, are not laborers because
they can not sell their labor for bread. Bewar,
OF adding TO the flame already kindling, anC
which may disturb the very foundations of or
der and prosperity before this resumption
scheme is fully executed.
Mr.. Hooker opposed the reference OF the bill
to the Judiciary committee, and advocated II,
immediate passage.
Mr.. Kelly favored the commitment of t-I'
bill to the Judiciary committee. The Ameri
can people had never been I'm so grand a com
mercial crisis ss- they were in to-day, neve
had they been suffering under a more porten
tous state of things than that which over
whelmed them to-day. eff" said he, "th'
bankrupt laws are to relieve men at the enc
of a crisis. for God sake permit this law to re
main; let IL execute its legitimate. purpose; lie
IL remain until under our Internal resumption
law those who feel that they stand and d.
not take heed snail have fallen. anC
: until we have concentrated the rea
estate and machinery and corporate propert,
of the country in the hands of "A few cormor
ants. Give the masses of business people the
.fr..