Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1893-11-06

Upon the Question Of Naiisnsi sansrupte,
Legislation.

do not propose, at this time, to diseuss
the details of this measure, but simply to
bris fiy indicate some reasons why il seems
10 me this Congress should take affirmative
action with respect to bankruptcy legisia-
ton.
| And first, Mr.. Chairman, il must be
agreed that the framework Of our govern
ment contempiates national bankruptcy
legislation. The trainers Of our govern
men, in constructing tina, great instrument,
tbs. Constitution Of the United States, in
drawing the line Of demarcation between
the state and national power, intrusted
bankruptcy legislation TO the Congress OF
the United States, and withheld it from the
LEGISLATURE, Of the several states Of the
UnI0n.
If there is to he bankruptcy legislation at
all, therefore, comprehensive legislation,
covering the ground which the trainers OF
our Constitution intended should be covered.
il must be national Il cannot be simply
state,
And Mr.. Chairman, hold that the fra
mers OF our government, intrustiDg the
power to enact bankruptcy laws to the ma
tionaI rather than to the state authority,
acted wisely, with a keen comprehension
that such legislation il necessary incident
of domestic commerce, and that we shall be
falls. to the highest interests Of the country
10 We allow prejudice or distrust of the ma
,ional authority to lead US to refuse to enact
such laws.
4 know that we have had bankruptcy leg
| islation for only comparatively short peri
DDS in the existence of this nation--three
laws in all; the last Of which remained only
eleven years upon the statute books of the
nation | think, however, that we can dis
| cover in the early condition of the country
and in some Of the features of this legisls-
ton an explanation for the comparatively
short lease of such legislation.
t.
Every part of this country is commercial
ly linked with every other part. The mer-
chant in New England is dealing every day
| with the merchant in New Orleans and Gal
weston. The merchant in st. Paul is sell
ling to and purchasing from the merchant
| of Boston every day. States lines have
been broken down CONNER ialy in the pro-
gress Of this nation.
There have been elements in the bank
ruptcy legislation heretofore enacted which
have almost inevitably aroused opposition.
! need not stop to recall them, because you
gentlemen are aware of them. one OF
| those elements was the unnecessary ex-
pense attending the administration of our
| bankruptcy laws 10 the past. To great
extent this bill has overcome the difficult
ties which have been 80 fruitful of criti-
! cism in the past. 1t seems to me there
may be amendments adopted which will
serve still more to overcome those diff
cultie.. It can not be possible, after all
/ our experience in administering such laws
with all parts of this country commercially
| interlinked rs never before. with the neces-
sty upon us for some legislation in this di-
rection, that the wit of man can not con
ceive uniform bankruptcy legislation ex-
tending from Maine to Texas, from New
| York to Oregon, which shall work with IA
cility, with efficiency, with justice, and with
reasonable satisfaction secure justice; con
serve the interests of both debtor and credi-
tor, and promote the best interests of the
vast business of great people. f.
! Mr. Boatner. If the gentleman will par
Ion an interruption. would suggest that If
YOU could devise a system which would dis
charge the bankrupt and at the same time
| leave him in possession of his property, it
would probably be satisfactory to some of
| the opponents of the bill.
| MT. llu2IeF- IL appear
| of the opposition to the bankruptcy bill is
based on such desire.
Mr.. Boatner doubt whether any other
system of bankruptcy woul be satisfactory.
Mr.. Dingley. Mr. Chairman, there is Il
second reason for national bankruptcy leg
islation. Justice to the debtor-humanity
At least, requires it. Under our laws as they
exist today, and as they must exist under
| the Constitution which withholds from the
state the power of releasing obligations to
nonresident creditors, it is not possible for
any insolvent debtor, however oppressed
! may be his condition, to lift from himself
any liability TO creditors, outside of the
state in which he resides by anything else
than absolute and complete payment. He
! loav surrender all his property, but the Ii
ability to pay the balance still hargs over
him
Gentlemen know honest neighbors in
] their several localities. Just as | know
neighbors in the state where | reside who
| today being insolvpnt through their mis-
! fortunes, are unable to engage in active
/ bus ness because of debts hanging over
/ them which they have Contrat ted 10 credi-
tors in other states. II we could know
correctly how much the country is losing
| through the forced inactivity of large
body of insolvents, honest men who desire
to be freed from the debt burdens which
Cypress them, and to enter upon the work
| of production and distribution again in this
country, and yet cannot lift their hands in
| their own name TO enter upon active burr
ness, it would astoni-h us.
Now. it is inhumane. it seems to me, in
| the legislation of any country to leave hon
esq but unfortunate debtors in this plight,
this inability to habilitate themselves and
enter once more upon their work as honest
and efficient citizens. No other country
does leave any of its debtors in such posi-
| ton through the failure to legislste.
| And yet, because gentlemen pr, tend to
be fearful that any national legislation may
| be used to make the condition of debtors
worse. they refuse to lake a single step
| toward tightening the burden of men known
| to all of US, who are thus unable to enter
again upon the active work of life. Our
country is losing every year through these
men thus forced to be inactive more than
can possibly be imagined.
| have heard during the past few days
| lurid denu nciations of national banking
law alleged to be an engine for the oppres-
sion of debtors; and when | have heard
them have carefully listened for an intel
Iktut eXpiAHAtipH OF SUCH RESULTS, AHu 1
have not as yet heard any.
Now. instead of placing new burdens on
the honest debtor, | assert-and | ask for
proof to the contrary--thst it will improve
his condition. OF course it lie admitted that
1t will improve the condition of the hope
1 lessly iusolvent debtor by relieving him
from the entire burden of his indebtedness
on the surrender of his property. Somuch
is clear gain.
Again take the case of the debtor Who is
not able to pay his paper at maturity. but
" no yet expects in due time to meet all his
obligstions. What is his situation now?
His property is subject to attachment under
state laws. Each of his creditors, especially
those out Of the state, fears that other
creditors. especially those in the state, will
endesvor to get ahead and attach the credi
tors property, for "first come, FIRST served
The chances are more than even that in
this state of uncertainty one creditor will
secure his debt By attachment. or prefer
entail conveyance, and then all the others
will follow like a pack of wolves. trying
each to get in ahead, and the unfortunate
creditor will be made hopeiessly iusolvent-
IL national bankruptcy l&~ existed, %
that neither creditor could get an advantage
of the other, and thst in ease the debtor
should fail each would come in for bis
share, all would allow the debtor to 20 on,
and even give him helping hand.
In short, under any and all circumstsn-
ces. the national Bankruptcy Law would i'm
prove the situation of the honest debtor,
and save thousands frcm bankruptcy Who