The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1878-07-20

bankruptcy law has, in its most sobiectionai
features, ceased to be operative. Nearlyall
the recent cases have taken the course pro-.
yided for by the 18th section OF the amended
act OF June %, 1874. amending section 5103
OF the United States Revised Statutes-yiz.,
that which provides for composition with
creditors.
AS soon as a case OF any Importance is in
stituted there is an order for meeting OF
creditors to pass upon the bankrupt's pro-
position for composition. He usually
cfEers 25 TO SO cents in the dollar, or other
percentage proportional to his means. Ehis
is accepted. The bankrupt pays the amount
stipulated, and the case thus comes to an
early end at a very moderate expense.
I think it is one OF the wisest provisions
OF law on our statutc-books. 1t is doing a
great deal OF good, and 1 am sorry it was
indiscriminately swept away along with the
worst parts of the old law. I think new
law embodying the composition feature and
a few other OF the essential features OF the
expiring law, and authorizing the bank
ruptcy courts, rs courts OF equity, to ad-
minister the law according to the ordinary
rules OF equity practice, would be all that
is needed.
Indeed, think the necessity OF such
law will sooner or later become apparent to
bulk OF the TRANSACTIONS of trading men are
now had with residents Of other States than
their own. The provisions OF local laws Of
insolvency are unknown beyond the limits
OF State, do. not satisfy the eXigencies of
latter-day business. and are therefore essen
italy unpopular. AS State laws cannot dis
charge from the obligation OF debts, they
therefore must necessarily allow OF prefer
ences, which are the adherence Of general
creditors, especially OF nonresident crcdi.
tors. Aud it will require but brief new
experience Of State laws allowing one or
more creditors to be preferred by debtor
over all others to effect strong sentiment
in favor of q national law forbidding such
preferences, and declaring them to be fraud
ulcnt.
THE HOMESTEAD.
Reporter: How will the repeal OF the pre-
sent bankruptcy act affect The homestead
law?
The Judge: Very satisfactorily, so far.as
the bankruptcy courts are concerned. 1t
will relieve them from all further connec-
tion with the subject, except as to unended
cases, and this will he great relief indeed.
Nothing is more perpleXiDg or disagreeable
to the courts, both State and Federal, than
the administration OF homestead laws. In
bankruptcy cases, in most Of which but
beggarly account OF assets are surrendered,
this law interfered most odiously with
the action Of the court, and either pre-
vented dividends altogether or introduced
great confusion and perpeXity in the adj
minStration OF assets.
II there should ever be another bank
ruDtcy law it should contain no national en-
cmption clause at all; or else the cXemp-
tion allowed should be moderate and def:
mite, and in exclusion. OF all State eXemp-
tions. There should be no homestead, Con-
sisting OF mere value, irrespective OF the
character Of property set apart as such.
The true sort OF homestead law says to the cit
izen, You may have lot OF ground in town
or tract in the country not exceeding (say)
$3.50 in value, and you may build upon r a
dwelling not exceeding in cost (say) $3.50;
and, provided you are married and have
family, you may hold this family home eN-
empt from process OF law, except as against
the vendor OF the land, or the mechanic
who built the dwelling, for what may be
due them on it. The true homestead eN-
emption is homestead in fact-a home for
the .tamiky-planting and roofing the insti-
tuition OF the family into the soil. The fam
lily is the foundation-stone OF free govern
ment. It is the surest nursery OF civic vir-
tue and of the aspirations and affections
which actilatc the true patriot. It is the
safest fortress OF society against the disor-
ganizing social and political isms and here
sizes which are grown so ripe in the world,
and which are so seriously threatening the
social fabric.
We want Il true homestead law. The
present one is little less than an abomlna-
ton. For one, shall bc.Slad to be rid OF
all connection with ii. The defective home
stead laws OF the States can he superseded
as to bankrupts by new bankruptcy law,
which shall in lieu of them grant home
steads only in the form Of land and dYcll-
ing, and only to men OF family, who By iru-
gaitv and industry have provided, or are
providing, themselves with permanent, visi-
BILE homes for the shelter, comfort, and hap
piness OF their families.
But, 7 repeat. whether we have new
bankruptcy act or not, it is cause Of con-
graduation that the present one is repeated.