Morning journal and courier., 1881-05-03
Tuesday Morning, May 8, 1881.
BANKRUPTCY IN ENGLAND.


 The English bankruptcy act of 1869 does not seem to have worked any better than did the last national law regulating proceedings | in bankruptcy in this country. There. as here, the law has apparently acted as an in- centive to bankruptcy and dishonesty. In England, it is said, there has been growing inclination among merchants to treat the debts owed by insolvent debtors as hopeless ly lost. The committees of inspection, do not inspect. Trustees, accountants and solicitors swindle on their own account or in partnership with dishonest debtors. It is estimated that the annual loss to the English mercantile community by insolvency is from $1OO, COG, ,OeO to $125, 900, ,OoO. Mir. Cham .berlain, President of the Board of Trade, has brought to the notice of P Parliament some rather startling figures showing the increase in failures since the act went into operation. The total number of bankrupt cies and arrangements of inso1vencies in 1870 was LOOP; in 1879 the number was 13, 132. The liabilities in the same period increased from el7, ,756, ,425 to e29, ,67s, 193 estimated assets, e5, ,381, ,533 to e10, 193,6 ,617, from which it resulted that the loss in that period had increased from SIP, ,O74 1896 to e19 1884, 576. Bankruptcies proper had diminished from 1851 to 1,156, while during the same time liquidations and compositions, which were outside bankruptcy and did not come under official cognizance had increased from 3,657 to 1876. Compositions between 2s. Cd. and 5s. were reduced 30 per cent. con- positions under 2s. Cd. had increased from III to 50 per cent. therefore compositions and iquidations under insolvency had rapid ly increased in number, but at the same time had rapidly deteriorated in quality. Of the bankruptcies 179 were annulled and LOOT treated in open court. Only per cent. of the insolvencies were subject to legal control while the remaining 93 per cent. were left without any legal provision and were open to every kind of fraud and abuse.
 Mir. Chamberlain has introduced bill in Parliament which it is hoped will do away with many of the evils which have prevailed under the old bankruptcy act. Under the new bill compositions and iquidations by arrangement will disappear and only in bankruptcy. The bill seeks to protect the creditors whether they try to pro- tect themselves or not. The debtor may still present petition, but then all control of his estate passes into the hands of the court. During the seven days before the meeting of the creditors an official receiver is in charge. In voting for trustees proxies are still al- lowed, but neither the debtors solicitor nor any candidate for 8 trusteeship may use them. No composition for less than 25 per cent. is admitted, and the Court of Bankrupt cy alone can discharge the debtor. The costs of the court and of the trustee are lim- tied to percentage, and all charges must be taxed. A questionable feature of the bill is that the amount for which a per son can be made bankrupt is to be reduced from $50 to e20. summary procedure, however, is provided for in the case of es- tates of less than e3Oo. The penal provisions of the Debtors act are made applicable to a petition by bankrupt, and in the matter of civil disabilities it is provided that bank ruptcy adjudication, unless annulled, will disqualify for election to the Commons or to any public office, while if the bankrupt is in office, unless the bankruptcy is annulled with in two months his officei is to be vacated. And the position of a bankrupt peer is assimilated to that of bankrupt NJ. P. by making mere discharge insufficient to rehabilitate him.
 This bill seems we'll calculated to decrease the swindling which has gone on under the old act. But the act of 1869 seemed also excellent, and whether the new act will work any better can only be discov- cred by trial.