Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1882-02-11
sAr1orAL BAsKaUprcY LEaIsLAT1on

ruptcy law, and though Congress has made
come inquiry into the matter, it seems to
be doubtful whether any snch legislation
will be enacted at the present time. This
doubt arises from the existence of uncer-
tainty as to the character of the law that
is wanted There are two quite contrary
staudpoints from which such law may
be framed 1t may be made from the
point of view that it is necessary to trsat
bankrupts as though they were kind of
criminals, to deal harshly and suspiciously
with them, and to cause them as much an
noyance as possible; or, it may be drawn
from the point of view that the bankrupt
is simply an unfortunate trader, who could
not help his failure, and who ought to be
relieved as quickly and easily as possible,
provided he surrendeIs all his property to
his creditors. There are of course many
fraudulent bankrupts, but for all this 1t
will not do to assume that fraud is an
invariable element in business failures, and
indeed that way of looking at the subject
may be regarded as practically obsolete in
these days. For with the growth of
speculation all business has become
mere or less uncertain. There was a time
when a man who undertook to conduct
commercial enterprises upon borrowed cap
ital, or who risked his solvency upon pro-
iects the outcome of which was altogether
beyond his control, was looked upon with
suspicion and misgiving. That condition
Of things, however, has passed away. All
business men nowadays take great chances
occasionally, and many Of them are de-
pendent entirely upon speculation. 1t fol-
lows that there are many failures, but
bankruptcy nowadays does not involve the
utter breaking up of the bankrupt, as it
did formerly. A man may fail dozen
times and yet succeed in the end. It has
even been alleged by the cynical and SANDER
GUS that many men have actually made
their fortunes by successive failures. These
cases-of course are exceptional, and partake
of fraud if or when they occur. The or
binary bankruptcy must be presumed to be
a simple case of misfortune
1t would doubtless be a mistake for
Congress to ask the advice of bankrupts as
to the character of bankruptcy legislation,
and it would be equally improper to take
the suggestions of creditors without modi
fieation. The true golden mean would
seem to be that which secures the creditor
against fraud, distributes the debtors
property equitably and quickly, and re-
leases him with as little harassment as
possible. The idea that when man fails |
in business he ought to be put on trial,
and be made to detail all his methods, and |
go through tedious inquiry as to the
steps which led him to insolvency, and ell /
the time be dealt with as though it was a
moot question whether or not ne should be |
sentenced to the penitentiary, no longer
accords with the existing conditions.
Bankruptcy cannot now be said to be re-
garded as disgrace, in short, and the
legal machinery which suited the times
when that view was held will not fit the
present day. The modern need is for as
little sentimentality and as swift and con-
elusive procedure as possible. Creditors
of course must be protected against one
another quite as much as against their
debtors, for thlee-fourths of the snarls in
modern bankruptcy proceedings grow out
of the efforts of creditors to secure unfair
and disproportionate amounts from insol
vent estates.
But if they were assured that the law
made it impossible for any OF them to
overreach others in this way, they would
probably be satisfied to take what they
could get and let the bankrupt go. Time
is money in these days, and business men |
cannot afford to be hanging around Courts
for weeks together looking after the drib-
let's which may be squeezed out of some
debtors remnant of property. In such
cases the shrewdest and most successful
men are precisely those most impatient OF
delay. And the bankrupt himself must
naturally be anxious to be free to try his
fortune once more. If he is willing to give
up all he has, nothing more can in reason
be demanded of him, and it is for the gen.
eral interest that the proceedings should
be summary. But at present there does
not seem to be enough pressure upon Con-
gress to force it to legislate on the sub
iect. Curiously enough all the national
bills of the past were enacted
in the interest of debtors. They were
called for during seasons of general depres
sion, and they were required to enable the
failing business men to sponge off the slate
and start afresh. There was then plenty
of agitation for the laws, but it does not
appear that the creditors took any action
either to forward or retard them.
At present business is still prosperous,
and while there is no bankrupt class to re-
quire indemnity for existing obligations,
there is no creditor class clamoring for
more stringent rules against insolvents
Should a panic threaten, Congress would
probably find that the interest in this sub
iect is increasing. and perhaps it would
also discover that there was a disposition
30 repeat the familiar tactics. 1t is some.
what singular that none of the preceding
bankrupt laws have been allowed to stand.
As soon as the furry which gave cause for
them had passed, they were repealed, and
the country fell back upon the State laws.
Possibly the original debtors lad in their
turn become creditors, and were not in
their new relation satisfied to have the
process OF sponging off debts repeated to
their disadvantage. However this may be,
it is a fact that only periods of general dis
tress have produced national bankruptcy
and that at other times the peo-
pie have appeared reasonably conteuted
with the State laws. OF course the main
advantage of national bankrupt law con-
sists in the uniformity of practice secured
by it, and this is more important in panic
periods than at other times. The indica-
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