New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-04-24

As during the first quarter Of 1877, and Al
in that part of 1876, and 80 in the hrst quar-
ter of 1875. 1t does not seem unreasonable
to suppose that as many as 6 in 10000 OF
the firms doing business may have Deen
induced by the prospect OF a repeal
of the Bankrupt Act to take that
mode of getting rid of debts, or may
have been forced into bankruptcy by
creditors, in order to guard against the diff
ferent proceedings which will be possible after
the act has been repealed. The increase III
number Of failures was about 30 per cent III
New England, about 26 per cent In the west
ern and Southern States, and very small III the
Middle States in the Pacific States there was
a decrease. The amount of liabilities was
$50, 600, 000 against 500, 5OO,OOO durlng the
first quarter of last year but the increase IN
liabilities was about so per cent at the South,
about 70 per cent in New-England, about 60
per cent at the West, and only about 40 per
cent in the Middle States.
Very many failures must be expected dur
ing the time remaining before the act OF re-
peal takes effect In some places the bank
ruptcy proceedings only anticipate collapse
which could not long be delayed, but III many
other instances the failures are essentially
fraudulent in character. Sometimes there IL
collision between the bankrupt and one or
more of the creditors; sometimes part OF the
creditors cOnspire to wreck firm, i'll order to
control the choice of an assignee, and TO Sc
cure advantages over other creditors in the
disposition of property. As proceedings i'll
bankruptcy are likely to become more numer-
ons the longer the repeal is delayed, it ought
to be acted upon as speedily as possible
in the House. If the bill is to pass at
all, it ought to pass soon and take effect imme-
dIateIy. Credit is due to the Senate for reject
ing all the forms of repeal which contemplated
a lapse of some weeks or months, after the
passage Of the bill, during which proceedings
could still be commenced. Such a provision
would have mlschievOusly increased the evils
and Inconvenience incident to a repeal of the
act. The House Committee has properly
wasted little time on the subject, and pro-
posed no amendment of the Senate bill, and
the House ought to act promptly, and terminate
the vexatOus period of expectancy.
There are strong reasons for urging con-
tinuance of the Bankrupt Act, but it is evil
IDENTIFY too late TO urge them. The act is in
some respects very faulty, and has caused
general dissatisfaction by its defects and the
abuses which have grown up under it, Few
seem to realize what sort of system, or
want Of system, will result from its |
repeal In some States, the repeal |
is urgently demanded because stay-aws can
then the more ellectuallY prevent the cOllec-
ton of debts In other States laws more or
less favorable to the debtor are already on the
statute books. But in other States, again, laws
e /
or soon will be enacted. Whether debts can
be collected at all, or with fairness to different
creditors, after the repeal Of the act, will |
depend upon legislation in the several States. |
In some States failures may become very |
numerous, and the repeal may severely test |
the credit and sOundness Of every firm. In |
others, formal failures may almost wholly !
cease; but if firms that are really bankrupt are
enabled to go on with impunity, shielded from
creditors by laws making the collection of
debts difficult or impossible, credit will be al
most wholly Withdrawn. Little less than a !
general upheayal of the very conditions |
of business may result in some quarters, |
and it will not be strange if public opinion
soon demands the enactment of a new bank
rupt law as strongly as it now calls for re-
peal But the public demand for repeal will
now doubtless prevail. Some want to escape
the mischievous features of the existing law,
some want to escape all laws for the !
collection of debts, or for the equal dIstri- |
button of assets, and some believe that good |
bankrupt act is more likely to be reached by |
the repeal of the present law than by any |
amendment that can now be passed If very |
great increase in the number of failures should |
result, especially in some States, it should be |
that this is not in consequence Of |
the approach of resumption.