The clarion. [volume] (Jackson, Miss.) 1883-1888, 1883-01-03
Bankrupt Bill.

A bill is pending in the United States
Senate to establish permanent Bank
ruptey system. 1t has been debated at
considerable length. The arguments
against it are contained in the following
pithy speech of Senator Williams of
Kentucky on motion of Senator Brown
of Georgia to indefnatly postpone the
bill.
Mr.. WILLIAMS. l do not propose,
Mr.. President, to disenss the relative merits
OF the two bills before the Senate, because
do not see much merit in either OF them.
| am opposed to both the substitute aud the
original bill, and | shall vote for the
motion Of the Senator from Georgia. No
considerable portion of the American peo-
pie have asked for any bankrupt law at
this time. The whole proposition comes
from few merchants in the great cities.
do not see much difference myself be-
tween the two bills. Both contain the
same objectionable features; both propose
to give to creditor the power to coerce
his debtor into voluntary bankruptcy on
the one side, and the debtor the right on
the other OF being absolved from all his
Indebtedness by applying to bankruptcy
court for discharge from his indebted
neas
Now, sir, involuntary bankruptcy is a
most cruel and harsh proceeding by which
u creditor obtains sort Of cut-throat claim
on the property of the debtor, which he
may enforce upon suspicious aroused in
his mind by rival merchant and insti-
tute proceedings which may result in the
utter ruin Of prosperous business; and it
makes no difference whether the basis Of
the action is = constructive or a real in.
solvency or whether the man be insolyent
at the beginning or not, he is sure to be so
before he gets through.
This whole idea OF administering upon
live mems estates before they die is utterly
repugnant TO the humane genius of our
institution. The old way was much bet
ter, when the merchants compounded with
their debtors. When retail merchant
or country merchant found that his busi-
ness was not prospering he said to his
creditors. II cannot pay more than forty
or fifty cents in the dollar; here are all my
assets; | surrender them to you.n His
proposition was accepted at once /; he gave
security and started in business again. and
I
sold him bills of goods at once and he
went on. But it is not 50 under your
bankrupt laws.
have said this much OF the involun-
tary feature OF the proposed bills; now a.
to the voluntary feature. The idea OF
allowing man upon his own application
to court of bankruptcy to absove him
self from all pecuniary liability, in my
Judgement, is to loosen the very bonds
which hold society together, and open the
door to all sorts Of fraud No bankrupl
law can can be justified except upon occa,
sions of great necessity, of public calamity
when the country is overwhelmed by finan-
ciali distress produced by causes which
could not be foreseen and even then such
a law should, like the Jewish jubilee, be
OF short DURATION and not become ingraft-
ed as permanent policy in the laws Of tho
country.
We have had three bankrupt laws, and
each became 50 obi rus to the country that
the people rose up and demanded its re
peal. Why, sir, bankrupt courts have
been graveyards of all the estates brought
into them. Nothing has come out; no
body has made money and got rich but thu
officers Of the courts, the assignees, tn,
registers, and the clerks: A bankrupt es
tate in my country was practically aban
doned. | know of one instance when
man had a claim Of several hundred dol
lars, eight hundred or thousand dollars
against bankrupt estate. He employed
lawyer, who charged him fee OF $3.50
and he got S64 for his claim-S64 wher,
he had paid $3.50 to his lawyer. That has
been the experience of all. They are utter
ly disgusted with it. The country doe
not want it no considerable portion OF our
time or necessity row for enacting it anC
| shall vote for the indefinite postpone
ment, as proposed by the Senator from
GeorgiaS Mr.. BROWN].
On the motion to postpone, there wert
26 ayes, and "a nays.