The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1898-07-09

IHe iONg SIEESgic EsAuE TO SSINTS q
national bankruptcy bill has been ter
minated. and there Is now law on the
statute book such as the trainers Of
the constitution contemplated. Com
,nerce has long needed such a law, and
very many attempts have been made to
enact one. but they have all been de-
feated either through the efforts Of
wholesale dealers to make the provisions
too onerous upon the honest debtor or
by demagogic pretenses To protect the
honest debtor. but whose effect would
be 10 make IL easier for the dishonest
debtor to escape payment of his debts.
The chief difficulty has always been
due to affailure TO agree upon the most
vital OF the purposes namely, the pro-
vision for Involuntary bankruptcy.
There has been very little difference of
opinion as to the measures for volun-
tary bankruptcy. as that necessarily
gives a man a wide latitude and he may
select his time for failure. If his cred
itors have been SO injudicious or so
thoroughly deceived that a man can be
on the verge OF bankruptcy and still
be receiving credit, il is felt to be a case
where the law can do very little good.
The theory upon which the present
law has been constructed is not open
To criticism. 1t was desired to protect
the debtor and creditor equally, and to
supply law which should encourage
trade. so largely transacted on credit
basis. by removing as far as possible the
Inconsistencies and instability OF the
various state laws.
The wholesale dealer desired to be pro-
tected from the retail dealer in a far
Off state. Of whom he could know little,
and the retailer who had often himself
to give long credit desired TO be protect
ed from being plunged into insolvency
by the act Of a too exacting creditor.
Although honesty and uniformity were
the chief objects, there were very many
who sought to make that honest by legal
enactment which could not be defended
in a code Of morals. There is no doubt
that. unless carefully guarded. proceed
ings for the enforcement of involuntary
bankruptcy could be made great hard
ship. Between these difficulties bank
ruptcy bill has usually been lost. and
;n FMS Of
the act. many concessions were made 10
the members from the South and the
far West. who fought the involuntary
feature of the bill on the ground that
1t was merely making the Federal
courts a debt-collecting agency.
Proceedings in Involuntary bank
ruptcy may now be instituted as fol-
lows:
Where a debtor has transferred his
property with intent to defraud Where
he has transferred II to certain creditors
with the intent Of making them preferred.
Where he has given preference through
legal proceedings. Where he has made a
voluntary assignment for the benefit OF
his creditors generally. Where he admits
In writing that he Is "A bankrupt. Tho
debtor il fully protected against porSecu-
ton. inasmuch rs he cannot be made al
involuntary bankrupt on failure to meet
his obligations. SO long his property. on
a :ar valuation. is shown TO he sufficient,
on realization. TO pay his debts. This pro-
vision Is peculiarly essential In times OF
general financial stress. whom so many
msn become temporarily embarrassed.
Another benefit Is the creation ~ Al syS-
tenn whereby insolvent estates will not IN
exhausted by legal costs. % the dctrimcrt
or creditors. Criminal punishment OF a
bankrupt too is reduced to perjury and
cmbezzlement OF property and farmers
and wage-earners are made exempt from
involuntary proceedings. The latter pro-
vision. coupled with the exemption az ma
tionai state and territorial banks was
probably the most distinct concession made
to the congressional ruatcontcuts."
II may be found necessary 10 modify
AMI amend the bill as experience Sug-
gests. but distinct triumph has been
gained In the passage Of a hill II some
character. The certainty ~ methoJ and
fairness viii I've an advantage to the
creditor but. On the other hand, i pro-
tecjs the debtor - the full extent n
which he Is entitled. and. according 30
Senator Iloar it Will enaole from f6o.-
0oo to 2o3.oo0 bankrupts 20 get on their
FEE; again by reason of its liberal terms
og discharge
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