The Southern herald., 1898-03-04

Congress struck cut that provision
in the law and allowed q man to
make a. assignment under the laws
Of bis State. Yet this bill, after
these years Of experience, provides
that a nan who makes an ssSign-
menl under the laws Of his State
commits an act Of bankPuc'cy.
The common experience Of every
man will convince him Of the fact
that there are many times in the
lives Of both the fortunate and un'
fortunate When it is not only not
wrong, but is absolutely right, to
make determinations and grant
preferences. The man who lends
to the debtor money, or supplies
him with prOPsr,y which tides him
O-er a erisis, sustsins him In his
business Tor watks or months, or
even years. when all other friends
fail him, is justly entitled to the
right Of beings preferred creditor
Then should The debtor be denounc.
ed as guifSO wrong and thrown
into bankruptcy because, yielding
to every dictate Of humanity, res-
Psc!ing every principle Of honor,
he endeayOrs, when the crash it
about to come, when the inevi,a-
bic fall is at hand, TO protect him
who was his friend in the hour Of
peril2 Yet in this act the grant
ing Of a preference, for months
back even, is made reason or ex-
cuse for forcing a man into bank
ruptcy.
We have had three United States
bankrupt laws. The first was pass.
I'd in 1900; and while it provided
that it should remain in force five
years, it was repealed at the end OF
three.
That law applied only to invol.
untsry bankruptcy, and the only
grounds for which a man could be
put into bankruptcy were for acts
Of actual fraud, not constructive
fraud.
| Then we had the bankruptcy &C,
of 1871, which remained the Law
only two years, being repealed un'
der the same Administration under
which it had been enacted.
Then came the act Of 1867, which
was in force eleven years, and al
though constantly changed anC
amended to make i, less harsh, il
became so unpopular and detesta
BILE to the people that Presiden
Grant sent a special message Il
Congress for its repeal.
Many an honest man went dowr
beneath the heavy hand Of the lav
Of 1867, to rise, it at all, snly aiteI
the best years Of his life had beer
wasted in fruitless Effort.
With rare exceptions, to rise il
business again the bankrupt wa
compelled TO seek a new field ant
new atmosphere, where the odo
Of bankrupt cOuTz was not upor
his trail and where the brand wa
not visibleIO the people with whom
be associated. Unfortunately th,
fact remains that the teIm " bank
rupt" is not title Of respect, snC
it is not at all likely that it eve
, will be.
The argument in favor Of a bank
rupt law, therefore, which attempt
to strengthen itself by the pronIis,
Of restoring the discharged bank
rupt to the commercial and busi
ness circles Of the country mus
fret invent a means by which th,
. sting Of the opprobriouS epilbe
may be- at least softened, if no
eliminated. Ii the law Of 1856
had any good points or produced
any good fruits, they were neve
placed on exhibition, while ih,
evil results were visible on every
hand. ...g4 T..
The purposes, and, ! take it, tht
only purpose, of bankrupt Law
should be 10 secure an equal dis
lributiOn Of ths debtors propert,
!
among his creditors and 10 releas,
him from obligations from wbict
ha could meyer hope to be released
otherwise. L. involuntary bank
ruptcy esseniial stO the accomplish
ment Of ei,hersiof these purposes
| think not. BY the provisions o
a voluntary bankruptcy law lh
creditor, when the insolvent debto
avails himself Of that law, obtain
his prOportiOnats share Of the as
epts of tho nYonoRtv Of tho dahtov