New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-12-06
THE COMING BANKRUPTCY BILL.


have been favorable TO the proposed new law,
there is n strong undercuTent of opposition.
A large and influential section of the trading
community in New-YOrl regard it with dislike
and apprehension. The firms in question con-
stit1te q majority of our large distributing
houses Their operations are spread over an
immense number Of comparatively small ac-
counts. TO them the liquidation OF particular
estates is of little moment. What they dread
is a law which shall give the debtor the OPP
portunity of slipping off the burden of his
debts, when the chances Of trade 90 against
him, by surrcndcring the wreck of his prop
crty and presenting to the Court a clean bill
of health as 2 trader. They would prefer that
he remain subject to the full extent OF his OBJ
legations; and that his discharge should be a
matter of private negotiation between him and
his creditors. They allcgc that i'll the case OF
an honest trader lcnicncy is never with
held that il is to the interest of the mcr-
chant TO keep such traders in business :;
and that rs the good feeling Of the creditor
NAV always he counted on in such instances
no bankruptcy law is necessary. These gentle
men refer. and not without reason, To the
frauds and dishonesty which iloHrshcd under
the old system, and 10 the intricate and COM
plicated amendments made in the law of 1867,
which rendered it almost incomprchcnsblc,
and TO the small dividends paid under its adj
mini,tration. Their views have not merely
been circulated in reports, hut haze been
formulated in Il petition to Congress signed
by upward of a thousand of the first houses
in New-York. When we find such names rs
JaiIray s. Co., II. +. Cladin & Co., Bates,
Reed 81 Cooley Hastcad, liaincs q Co., A. Il
5. Bmmentha Bclden Brothers & Co., Hall *
Ruckcl Hecht Brothers, Durham, Buckley *
Co., W. II. Lyon s. CO., Collins Brothers, and
1,O53 others, all of reputation aud standing,
attached to n document its contents deserve
at least careful consideration.
If the question were between bankruptcy or
no bankruptcy, much of the argument stated
in the petition would apply but as there are
twrnty-eight different State insolvent laws
locally in operation in this country, the qucs-
ton which Congress is called upon to decide
is simply the policy of supcrscding all these
different State methods by one comprehensive
National system. The petitioners say: ave
"regard the operation Of past bankrupt laws
while in existence as one OF the leading
causes OF the prostitution and embarrassment
"that depressed trade and il is susceptible
"of demonstration that the depression and en-
"barrassmcnt commenced with the passage of
"thc Bankrupt Act in 1867 This is an un-
fortunate sentence. The year 1866 was a year
of panics. The financial world OF London was
convulsed in the month of May, and the infu-
cnce Of that disturbance extended both TO
Canada and the United States. The causes
of that crisis are to be found in the
ovcrtrading and speculation Of the two years
preceding it, and not in the bankruptcy law
passed year subsequently.
But in 1875" says the petition, "the act
"was repealed. This repeal, together with the
resumption of specie payments revived bust
"ness.n This is a still more unfortunate
paragraph, and reminds us Of a saying of the
present Attorney General in England 81 never
"knew how strong the case for the prosecution
"was till heard the Defence The pctition
omits any mention of 1S7O-'71 and 1872,
which were good years, though the bank
ruptcy law was still in force. Then came, i'm
1878, another panic, the depression caused by
which lasted till 1878. In that year the
natural power of recuperation in this country
had won its way, and again affairs took a
ruptcy laws neither caused nor retarded it.
Another paragraph states that the dividends
received prior to the bankruptcy law were
thiTty-fye cents on the dollar, whereas after
its passage they fell to ten cents. When we
compare the periods we find that the years
previous to 1867 were those of initiation.
whereas those succeeding that year were
periods of disturbance in monetary circles.
caused by the fall in the circulating Medium.
Bankruptcy or no bankruptcy, these changes
would have occurred, and they must neccssa-
rily have affected the liquidation of insolyent
estates.
The petition also brings a sweeping charge
against the morality of both the commercial
classes and the lawyers when it points to the
help rendered to the debtor by "the collision
" of dishonest creditors and the aid of dishonest
" attorneys" On the whole the petition appears
TO be founded on the dread of repetition of
the scandals of the old law 1t does not seem
to admit that with all the experience of the
past and with the aid of the commercial
classes themselves, the patient and intelligent
labors OF the Judiciary Committee may result
in an act of now legislation free from former
faults and complications.
II would be not an unreasonable estimate to
suppose that these 1,OSO firms who have signed
the petition have on their books an average
of 5000 accounts, representing 100000 of
smaller traders scattered over the country.
Everyone of these smaller traders is liable to
find himself in circumstances requiring the
of n bankruptcy law. In all prob
ability if they were canvassed not single
opponent to the new law would be found.
But it may be said that the larger houses fail,