Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1882-03-11
MEMPHIS APPEAL


THE NATIONAL BANKRUPTCY BEL.
The Senate judiciary Committee have
brought theirProposed bankruptcy bill before
Congress, and il Is naturally exciting much
interest among business men. At the very
start in preparation two ways Of proceeding
are before the committee-one was to draw
up complicated act, defining everything
and regulating and deciding every point in
the progress Of case, and providing for
every possible contingency. The other was
to confer the required powers on some court
already existing, introduce the provisions
absolutely necessary to the end in view. then
to leave the court free to apply the law in
the forms and according to the ordinary
usuages Of the judiciary. The latter alterna-
tive was adopted, and consequently the law
Is simple in its terms and readily understood,
and that simplicity will preserve it from that
lneXtricable maze Of detail with which prec-
cdents and rulings would soon have deluged
It, The New York Irbtz,e grasps the whole
oil the bill as prepared in the following brief
terms "Any person who has contracted
debts exceeding $500 without fraud may pc
tition the District Court OF the United States
Tor an adjudication in bankruptcy. There
upon on good cause shown the court shall adj
Indicate him a bankrupt and appoint a
receiver of his estate. Where a debtor
has committed an act of bankruptcy any
creditor may petition for an involuntary adj
judication. If the debtor can show that in
contracting his debts or in the circumstances
Of his failure there is no fraud, the court is |
In him hia. ell
provisions to granting extended time to |
pay power to approve agreements between
the debtor and his creditors; to stay actions,
set aside fraudulent preferences, etc, and to |
make rules. The scope of the act is thus at |
once official and elastic. The adjudication, |
the appointment OF the receiver and the dis
charge Of the bankrupt rest wholly with the |
court. There are no assignees, trustees, COM
mittee Of inspection, or other quasi officers,
and the liquidation will rest entirely in the |
hands Of the receiver, subject to the super
vision of the court of first instance, with |
an appeal to the circuit Judge and the |
associate judge Of the Supreme Court"
Here We found the necessary jurisdiction
given, and the broad principles of the act
laid down, while the court is left full liberty
as to the mode in which those principles
shall be made operative. Should any com
plicated amendment be patchworked on to
the act during its progress, it will violate this
simplicity OF arrangement and by that COM
plication deteriorate the practical working
OF the law. One feature, and it is a valuable
one, is new. Where debtor can, with an
abatement Of his liabilities, successfully con-
tinue his business, he may apply to the
court, who after examination, may make an
order reducing his Indebtedness pro rata.
The court may also, in its discretion, confirm
any agreement entered into between ma
jority Of the creditors and the debtor. In
view of the expense and inconvenience en-
tailed by the former national bankruptcy
act, the merchants and men Of business gen.
orally cannot too closely scan the proposed
act in all its provisions, and make objections
in time ii such are found necessary. In form
ing judgment, however, it will be neces-
sary to remember that the act was not drawn
up so to fit the precise locality where
those who make examinations do business.
Its application is universal, and conse-
quently the committee had to frame it so
that it should answer the best possible for
the crowded, settled city, and the scattered
residences of the country. The question
with respect to it is not, therefore-is it the
best possible for the circumstances that sur
round me, but is it best for all the individuals
in the country. taken one by one and under
every variety of circumstance and location?