Year: 1878

The repeal OF the Bankrupt Law has beeh so
long threatened that it should take nobody
bv surprise. Yesterdays action in the Senate
places the whole matter in doubt, as the
House is not likely to. favor pOstponcment to
next year Of the effect Of the repeating bilI.
In fact, such pOstpOncment may DO more harm
than the llw itself is capable Of, since threat
of repeal will keep mp a succession OF busl-
ness failures in the interval. No legislation on
this subject that will suit everybody
is possible. The grounds of dissatisfaction
have, however, frequently changed. Some
times 1t has been in the interest OF creditors,
sometimes of debtors, that the repeal has been
demanded At first intended chiefly to help the
debtor class, the law was found, early in 1878,
to be capable of use against them as a terri
BE weapon Of oppression. Numerous improve
ments were made in the law during the latter
part of that year, and from then till now the
creditors have made the most complaint. in
1876 the House passed suddenly, and almost
without warning, bill to repeal the act; but
the movement stopped there, and was at the
time regarded as too haSty. The friends Of
the law have latterly lost hope about it, since
no reforms could be suggested that were gen
orally acceptable. They offered little oppoSi-
ton to proposal for its repeal that came be-
fore the House early in the present session.
They made very small showing of strength
last Thursday, both as to numbers ana
speeches. 1t does not greatly help cause III
Congress to be supported by the cfiuSiyc ora
tory of General Ewing aud Judge Kelley.


The objections to the Bankrupt Law may be


stated in few words 1t does not adequately
belp Door and honest debtor, but bad use
may he made of it by rich and dishonest in
solvent. To the creditor the law proves highly
unsatisfactory, because the dividends from
! bankrupt estates are usually a very small per-
centace; hence, also, it has become cheaper,
when a man owes money, to accept from
him almost any kind of compromise. The
radical trouble is in the bankruptcy proceed


ings themselves They are too cumbrous and
too costly. An assemblage of lawyers and
receivers and assignces and legal functionaIics


of all kinds gather around the estate, and
| pick off every particle of value. Time Il


wasted in taking testimony, III summoning
| witnesses, in climbing to upper stories to meet
legal gentlemen who are not prepared to 20


ON with the case. and who ask its postpone


ment. Everywhere in the bankrupt's course


there are charges, fees, disbursements to be
paid out of the estate. till at length men OF
business begin to look upon the whole system


as swindle perpetrated at the expense of the


mercantile community.


| Yet the fact remains that if there could be


such thing as a simple and efficient system
! of bankruptcy proceedings, not too costly for
ordinary use. and leaving matters as much as


possible in the management of merchants who


understand them, rather than of lawyers who
! take So per hour along with hasty glance


over the features of case-such a system


would be of immense benefit to all concerned.


The debtor would be promptly relieved of his


burden, and enabled to start again in his


business before it is snatched away by rivals.
! The creditor would collect the maximum of


assets at minimum of expense. Perhaps


such measure of wisdom could be planned


by the present Congress before adjournment.
| But if this be impossible, there will be, in any


event, consolation in the thought that if there
| is an end 10 proceedings in bankruptcy, the
| chief sufferers will be class of legal prac-
| tilioners who have hitherto obtained pay


for services out of all proportion to value.