The times. [volume] (Richmond, Va.) 1890-1903, 1892-12-14
A NATIONAL BANKRUPT LAW.

Regularly, at each succeeding session OF
Congress, a movement hobs up for a
bankrupt law. The movement due at
this session has put in its appearance
and that is probably the last that we
shall hear from II.
There is something very curious in the
form which this agitation takes. A regu-
lar association for securing the passage
Of a bankrupt law exists in New York
city, and it is altogether representative
Of commercial interests. This associa-
ton is at the back OF the periodic move
ment OF the waters. One can understand
how commercial interests should want
a law for involuntary bankruptcy-that
Is, an act which gives a merchant who
has been swinded a prompt method OF
stripping the man who has cheated him,
for equal distribution amongst his cred
itors of all OF his property. But 1t is
incredible that such interests should be
In favor Of a law allowing voluntary
bankruptcy-that Is. providing that when
a mans debts have become inconvenient
to him, he may strip himself of them
and throw them all off by petltioning
court for relief. For a merchant to be
in favor of such law as this is for him
to declare that he wishes the man who
has cheated him to be offered an opppor-
tunty to repudiate his debt to him. II
the act which the New York association
brings forward provided for involuntary
bankruptcy only we could understand
their zeal In pressing for its passage.
But it provides for voluntary bankruptcy
also, and this provision coming from such
source is very puzzling The explana-
ton probably is that the association !
feels sure that certain class will never
consent to an act for involuntary bank !
ruptcy pure and simple, and that they |
hope TO secure this by batting the afore-
said class with provisions for people In
debt paying those debts by a decree Of
court. This is very smart, If not very
sound political economy.
The Constitution of the United States
authorizes Congress ito establish a uni
form rule of naturalization and uniform
laws on the subject OF bankruptcy
throughout the United States" This is
the entire grant Of power, and whatever
authority Congress has to legis' ate upon
this subject is found in these words In
the exercise of this power Congress has.
so far In our history, passed three bank
rupt acts" The first was passed in 1900
and this one provided for involuntary
bankruptcy only. The act was repealed
in 1903. In 1874 1t enacted the second
one, which provided for both voluntary
and involuntary bankruptcy.
This was repealed in 1S43 The third and
infamies of which all OF ps. 20
cellect-was passed in 1867. and repealed
some fifteen years back.
when our Conctitution was adontad
the word bankruptcy was known and in
use all over the civilized world. II was
he condition of things brought about nv
l merchant or trader being unable. hon
'stly or fraudulently. to pay his debts
With methods and procedure provided by
aw for taking from him summarily at
ne suit OF his creditors, everything that
lie had, but for discharging him from his
iebts as a condition Of such seizure. The !
word meant involuntary bankruptcy. and :
10 system OF laws had ever provided {
or voluntary bankruptcy. The Congress
hat passed the first bankrupt act was !
lied with the men who had framed the
constitution, and their act provided for J
voluntary bankruptcy only, which is
retty strong evidence that they under r
TODD this only TO be intended. 8
The bankrupt act OF 1874 was the result a
the widespread ruin and devastation OF >,
he wildcat banking and paper money era. f
men 1t came into the Senate from its h
'mmttee 1t provided for voluntary bank u
iptcy only. and got through Congress a
one OF the three revolutionary meas n
res that were tied together-the bank a
larter. the distribution bill and the :.
lnkrupt act-no one Of which could get
rough on its own merits, or rather de-
erits. We all recollect the act Of 1857
the product OF the general upturnlng G,
society caused by the war. W
Therefore. when we cast our eyes oyer r
. history Of the matter, we are fairly r
affixed In saying that the people never Al
tended to grant 70 Congress . power a
providing that Q man might rid him.