The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1878-09-02
rFor the Dispatch.]
Tho ReneaI NJ the Bankrupt Law.

II Is surprising that the New York Jour-
mails. conducted usually with considerable
intelligence, should make such remarkable
mistakes on the effect OF leading political
questions. This was illustrated last year in
regard 10 the effect OF the reconciliation OF
silver. which they said would seriously dis
turb all financial operations. Ihey pre-
dicted a rise in gold and fall in Govern,
ment bonds; and vet their predictions OF
evil were falsiiied by the result. NOW tney
speak OF the bankrupt act as measure III
the interest OF credit, and suggest great
disturbance from the withdrawal OF creolt,
consequent upon the repeal OF tue ACT. Can
the explanation of this singular want OF
Judgment be found in their want OF can
dorY II any proposition IS pam IL Is that
the bankrupt act, both voluntary ana III.
voluntary, was a standing menace to credit
during its existence.-to the LIST Of Septem-
Der. When, fortunately. it expires. We
have for it no groans, no reioicings. Bury
the dead. Let the living come out ana re-
ioice. We are now to find the missing fac,
tor, the loss Of which has so astonlShed ana
bewildered writers during the last ten years.
That missing factor is confidence. Ihe
GOOD old time will slowly return. Conn-
dence in ourselves, confidence in each other,
n sense of responsibility and self-reliance
growing out OF the consciousness that we
can trust and be trusted without the fear OF
voluntary or involuntary bankruptcy, with
it's frightful expose Of empty schedules or
assets wasted in the bankrupt court. Its
return may be slow. 1t will take some
time for the future to divest itself
completely of the livery OF the past.
But come it will, and that right speedily.
Men will find that they eau lend to each
other without the fear of receiving bank
rupt notice in discharge Of the loan. An
honest man can meet his engagements by
others meeting their engagements to bin.
CAPITAL will come from its hiding-places.
The enterprise Of the nation will plume
itself for higher and nobler flights. Energy,
industry, and character will be again
basis OF credit, better than stock-colatcrals
that daily vary on the New York stock
market. The good old times and good old
WAYS will again return, and will bring
healing to many Il bruised and al
most crushed strusgler in the tenn
pest through which we have Just
passed. 1t is sometimes asked why $685.
100000 OF paper money now in circulation
is not enough, when in the prosperous times
of 1850 S20T 100000 were sufficient. The
answer is found in the existence OF the
bankrupt law, that has entirely DESTROYED
character, industry, sa@aclty, experience,
as the basis of credit; had substituted for
them stock collaterals on thirty or sixty
DAYS paper; and had brought the whole
exchanges of this country to cash basis.
In ordinary times it is estimated that the
metallic circulation performs but one half
of one per cent, the paper circulation two
and q bali per cent. OF all the exchanges,
and the Observation-Disclosures per cent.-ls
done by means of bills of exchange, prom
issory notes, accounts, book credits, and
the clearing -houses. Danish or unluly les
sen these latter, and frightful panic ensues.
There appears to be no money, although
the quantity Of paper money Is enlarged.
The gold and silver and paper money can
not sustain the burden thrown upon them.
and then come hard times, pressure, inSol-
vency; a frightful shrinkage OF all proper
ties; ruin, bankruptcies, and, apparently,
no money; and all this growing out OF
bankrupt act that has murdered credit.
We can rejoice, that all this will
now change-slowly, perhaps, but as surely
rs the first faint streaks of light in the east
ern sky herald the approaching day with all
its sunshine aud gladness. 1t is wondrous,
the effect of single law upon the habits,
the customs, the feelings, the comforts, the
very life of a people. This law Of bank
ruptcy, by killing all credit, has robbed the
poor, crippled enterprise, made integrity,
character, and experience OF no avail; has
stopped our furnaces and manufactures,
been the fruitful mother Of tramps, and
filled the land with the wailings OF distress
and want more extensive and enduring
than battle between great nations. For
those who have been compelled to take the
advantage OF the law we have no other feel
ing but sympathy; it was their only escape
from pecuniary ruin, brought about not by
their own improvidence Or want of honesty,
but the direct or indirect action Of the
law itself. We can now all to-
yether rejoice at, and see and enjoy the I'M
provement following The repeal OF the law.
The motion OF the engine is reversed. We
20 forward, not backward. II. G. G.