Mexico weekly ledger., 1884-12-18
DO THE UNITED STATES REQUIRE
A BANKRUPT LAW3-AN OPEN
LETTER.

tion, 90 Liberty Street, NeU York.
MEXICO, NO., Dec Is, 1884-GEN-
undersigned is in re-
,eipt of pamphlet from the pen of
me of your number, the Hon. Nor
rs T. Wise, accompanied with re-
Iuest for an expression of opinion
the immediate enactment
Of national bankrupt law.
The duty of government to pro-
vide for the relief of insolvents in the
exercise of its legislative functions is
as clear as is its duty to provide for
the exercise of executive clemency in
its criminal proceedings. No country
can afford to have the hands of its
unfortunate citizens tied up in way
that will cripple their energies and
defeat their desire to serve the public
and provide for those that are de-
pendant upon them. Accordingly
most of the states. if not all of them,
have. adopted salutary measures OF
relief for the victims of private, So
cial and political calamities.
Since the convention delegated to
congress the power so establish uni
form laws on the subject of bank
ruptcies throughout the United
States" there has been great change
in the legislation of the states con-
cerning insolvents. The important
fact that man may be insolvent
without being a criminal has been
almost universally acknowledged.
Imprisonment for debt has been abol-
ished and with the restriction of the
creditor to the property of the debt
or, as rapid means of securing what
is due have been given as are consist
ent with social welfare. Indeed, ex-
perience has demonstrated that the
measures at first provided for collect
ing indebtedness were too rapid, and
the first legislation of the states for
that purpose has been tempered with
mercy. The states may Lot impair
the validity of contracts and the with
holding of that power from them may
have been the moving incentive of
entrusting to congress the privilege
of bankrupt legislation, but expert
ence has also demonstrated that if the
states may not invalidate contracts
they can determine what shall lmpart
validity to agreements. grant home
stead rights and exemptions from the
liens of judgments. and fix the time
at which property may be disposed
of to satisfy executions, and that all
legislation of this sort is beyond the
reach of any law that can be passed
by congress.
In the opinion of many the bank
rupt act of 1900 was passed mainly
in the interest of creditors and ir
imitation of what had obtained ir
England where imprisonment for debt
prevailed. Some have even supposed
that concern for the interests Of tina
class moved the convention to gran
power to congress to legislate con
cerning bankruptcies, but it is NOR
probable, as has been already intimat
ed, that such clause was introduces
, into our organic law for the purpos
of furnishing similar relief in all th
states TO the victims of governments
revolutions and wars, of political mis-
takes and financial folIies, and eve
of necessary industrial and monetar.
refnrmati. ms. This latter seems t
be the more moderh view of congress
concerning what was expected of il
!; The law of 1900 was accordingl
speedily repealed. That of 184l wa
s mainly for the benefit of debtors an
shared similar fate, and though tn:
= of 1867 was an attempt to defeat tl'
!, unequal result of the homestead, a.
J. tachment and stay laws of the sewers
states and create a more equitabl
!. arrangement of the relations of deb
j ors to their creditors than the state
0 had done it was a miserable failure
all that was attempted beyond di'
charging insolvents from their il
cumbrances, and was also speeds
e repealed. From all of which it ca
be seen readily that all our bankrul
z acts have been temporary expedien
n and were. enacted in times of wide
t spread public and private disasts
and quickly abandoned upon the re
: turn of prosperity and that it hs
> been the opinion of congress that o
dinarily it was best that several state
should control the relations of deb
ors ami creditors, and that at I'll
present moment financial difficulties
great and widely spread as the
undoubtedly are, have not reache
and climax that justifies congress
either giving an extraordinary an
: universal jubilee to debtors or |
$ granting impatient creditors pc
!. emptory and es parte collection la
under cover of bankrupt act.
It Respectfully,
o Your Obedient Servant,
II JOHN j. GILL.