Arizona republican., 1921-11-17
The Old and the New Way

It is the belief od-fashioned people and it is fly no means belief. that the world ages
 he people become weaker. wiser and wickeder. Per- tlaps aliteraon contributed the spread of Lhis doctrine. That people wisers Is not dspu- table. But they becoming stronger and humane just in their dealings with another : Take for instance the present methods of dealing Mith bankruptcy. In the early times the lot of she debtor hard Once he fell, his creditors were him like pack of wolves, and not only his creditors. also community. The popular atti-
 ude toward the unfortunate debtor reflected in ahe early laws which thouch since modified the methods employed against him. have yet the spirit tof the old laws.
 Even the first bankruptcy act passed in England Tor the amelioration of condition debtor reflected the harsh and unfeeng attitude of the 1ropertied class, which controlled the courts and Legislation. toward the insolvent debtor.
 D There has since been considerable modification iSf bankruptcy legislation that the that se said of the existing legislation is that is waste isul permits though, the insovent go free but enominally naked.
 We have comparatively lately found better way flo deal with insolvency by legal but not legalistic cmethods. This through creditors committees (which seek to conserve to the creditors the full 1mount of their claims and to much possi- bbe for debtor to keep his business running land restore him when his creditors have been Nnade secure. The disposition Is to help him and not pto wreck him ensuing scramble the bcredtors may salvage something from the debris. n Our bankruptcy laws and laws relating to aceiverships only wasteful but they htimes and rigid that the work of creditors Committees is greatly hampered- That is especially
 he in the adjustment of affairs of embarrassed tebanking institutions We have known when tcommittees of depositors stockholders with greatest difficulty only by evasons of the Saw with the consent of law officers, avoided Yceiverships which would have wasted absorbed uthe assets of institutions which banking Wwere designed to conserve.
 u The men who built the framework of our bank Sruptcy and banking laws not business men and mbankers. and at the time these laws framed 5sabusiness and bankers could not have antici- sipated modern business and banking methods. 1s Until very recently banking and business (by sbusiness we mean commerce industry have ssthe problems of the business except that the latter sometimes in urgent of money. The S methods of the business and his probabilities of success or failure were blank the banker.
 Courts and lawyers know less of the intricaces of business bankers. than business and bankers know of each others affairs So the legal machinery and the operatives of 1t. for adjusting mending banking and business when going wrong are more likely to make things than better.
 The bankruptcy proceeding a receivership assumes that business before it in ruins from 5ewhich whatever be of value is to found and extracted The creditors committee looks upon the hbusiness hand something that be pre- ssserved from ruin and which may be repaired Reconstructed.