New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-02-07
"NO DISGRACE IN DEBT"
,cyANDS COURT OF APPEAL SAYS
RANKRUPTCY Is HONORABLE.


- Used TO MEAN SHAME AND RUIN-oND
VOTING NoBLEMAN WHO HAS BEEN BANK
nrprrp THREE OR FOUR TIMES
nANKRuPrs OF DUCAL HOUSES
.eThe idea that there is any shame in bank
r.Nn,cv Is an exploded one" This remarkable ut
srarce delivered by Lord Esher. Master of the
pols when presiding over the highest court OF
.naol with the Lords Justices Lopes and
Ch,t,v beside him. made from the Bench IN
S.sronse 10 a pathetic petition presented by
- Oxenden for the arrest of the decree Of
bankruptcy which Was about TO be issued
,.s, bor husband. The poor woman pleaded
.. q ves through her that Sir Percy had be-
-. involved in financial difficulties which were
-, N hiring him to shame and ruin ana II
&c this that drew from Lord Esher the some
he. startling statement above recorded
rwentv. thirty and forty years ago bank
-rntcv was regarded as so terrible disgrace
,hat when once gazetted as a bankrupt man
r.ver held up his head again. he felt himseh
,rrshed beyond the power OF recovery, and
a,o,,y considered il incumbent upon himself to
&C IN some foreign land. where in many
,-r.oroas under an assumed name, he sought 10
oorceal what ne regarded as his burden of
,croninv. In those days bankruptcy entaIed
~. loss OF q commission in the Government SER
,.,e either rs q military. naval or civil officer
The withdrawal from all clubs. and the loss of
.va-v decoration and order Of kniShthood Bank
-,,ntcy. in one word was the end of mans
social and political career and no more striking
Instance Of this need he recalled than the case
Of the second Duke of buckingham and Chan
dos who died in 1862 TO all intents and purposes
1llaiph
amounted 10 the colossal sum Of S12o0OWo. was
mainly the result Of the magniiiCerce with which
- entertained Queen Victoria and Prince Albert
when they visited his Palace Of Stowe, Yet SO
M,tsr was the feeling against him in connection
With his bankruptcy that the Queen actually in
Unated 10 him that she could no longer receive
him at Court. In spite of this he put in an ap-
nearancc at Windsor Castle on the occasion or
The stay there Of the French Emperor and En-"
oress Thsre was a question for a moment as 10
whether he should he forcibly removed. But
finally Her Majesty decided that ii was best 10
avoid the scandal OF such proceeding, and the
cnlv thing done was that neither she herself nor
the Prince Consort. nor in fact, any of the peo-
ME Of tho Court took the slightest notice of his
presence.
NEW IDEAS PREVAILING
For the last ten years, however, different IDEAS
have prevaied--idcas Of which expression has
now for the first time been delivered judiciallY
from the Bench 81 the supreme court Of the
British Empire. Bankruptcy is no longer looked
upon as a disgrace but merely as a perfectly ac-
cepted and honorable means Of getting the best
Of ones creditors. by compelling them to release
one OF all further obligation through the pay
,,ent Of either 80 90 or 10 per cent of ones
But, Lady OXenden, if the bank
ruptcy stands Sir Percy is given an easy way to
pay his debts and will secure his release there
from" explained the Master Of the Rolls in the
court Of appeal. from which ii would appear |
that he likewise, IN spite OF his advanced age or |
eighty years, thirty of which nave been passed |
,pon the Bench Is sufficiently up to date to be in
record with the new, principles with regard 10
financial honor. Thanks to these ideas, titled !
lersonages are now In the habit Of running up a |
Big slate full OF liabilities without the slightest
Intention Of ever paying them in full Then, when !
hey have reached the end Of their hnanciai
,a-bar they either apply themselves. or else get |
como oomplaisant creditor to petition against
hem. to the bankruptcy court, which thereupon |
5suos decree Of insolvency, and judicially
-anges for the wiping out OF ali debts no mat
or how contracted, by means OF easy payments
4 the smallest number of shillings in the pound.
As soon as the bankrupt has paid this he re-
,eives his discharge, leaves the court without
, stain upon his character" as the saying
.. and re-enters the world with an entirely
lean slate free 10 resort 10 idcnuCallY the
5ame tactics over again. Young Sir Robert
Peel for instance, has been bankrupted III TINS
manner some three or four times already, and
y spite OF the fact that some Of his liabilities
we're of such a questionable character as to
prevent his marriage tho other day 10 the
7ajress 20 whom he has been afiianced, there is
nothing TO hinder him from running
10 another few hundred thousand dollars
vorth Of debts. and then applying once more
10 the court for a discharge on facie terms.
The only disadvantage to which bankrupt
$ subjected nowadays. If he is peer Is that
,ur,rr the time which intorveres between tho
,rooarance Of his name In "The London Ca
$40" and the decree OF discharge conceded
- aeon az ever he has paid the last Of his
mall dividends for the benefit Of his unfortu-
ate creditors. he is unable 10 occupy his seat
y me House OF Lords; If a member Of tho
over house. he Is prccluded from taking part
g., any ~ IFS deliberations; IL a Magistrate, he is
.yspen6e6 temporarily from his judicial func-
ions and II he obtains credit from any one
,erson 70 The tune Of more than 500 he rem
;ers himself liable 10 criminal prosecution I'M
Ter the Fraudulent Debtors act
E1GHrY sA1AR1ED, BUT DID NOT PAY.
Lord Augustus LOTUS however VINO was Ior
- many years Governor or the most HhPor'dh'
colonies OF Australia, and AInpassaoor 10 'i4e
Courts Of Vienna Berlin and St Petersburg
suffered no suspension from his membership OF
,LA p,Ivy Council Of The Queen while in the
coalition oP an undischarged bankrupt, and in
STE Of the fact that his insolvency was par
,iculsrlv unpardonabe. owing to his having
tsawn during the course OF his official career
IN salary ard allowances some S2Vo1ooo OF
public money. he still wears to-day with IN
diminished pride and pomposity the grand cross
y the order Of the Bath, conferred upon nun
by tho Crnrvn nrior 70 bis being gazetted rs an