Year: 1867

It's customary issue is sixteen pages, and its annual
receipts and expenditures are probably as large as
those of all the other London daily journals COM
bined.


A GENERAL BANKRUPT LAW.


The New York Herald, of the 7th, has the fol-
lowing article on United States general bankrupt
law:


The Constitution of the United States empowers
Congress to pass uniform laws on the subject OF
bankruptcies. This power has only been twice ex-
ercised - once in 1900, when bankrupt law limi.
ted to five years was passed, which was repealed
before the expiration of the term, at the close OF
the year 1903, and again in August, lS4l, when a
general insolvent law was enacted, which was so


loose in its provisions and so available for the frau
dulent debtor as to excite storm of popular dis
favor. The latter law was pushed through Con-
gress by questionable means, and among the first
who availed themselves of its provisions was the
Chevalier James Watson Webb, who after making
a great fuss over the passage of the law, eooly
wiped out some halt million dollars OF debts by
its aid. He derived no permanent benefit from
have resorted to it again in few years afterwards,
on smaller scale, to bis own advantage. The law
of 184l had less than two year s existence, bill
for its repeal having received the President sig-
nature on March 8, lS43. During the period it
remained in operation it was calculated that some
40 900 persons avaed themselves of its provisions,
whose aggregate debts must have been in the neigh
borhood Of $200, 100000.


Notwithstanding the failure of former expert
ments, it has long been the opinion Of the ablest
fnanciers and the most honorable business men in
the United States, that general bankrupt law,
fair and liberal in its provisions, and containing
strict safeguards against fraud, would be at once
protection to the honest debtor, and advantage to
the business community. Congress alone b has
power to pass such law, which would be binding
upon all creditors in the o. States, and all descrp-
tions of debts. The insolvent laws of State can
only reach its own citizens, unless creditors from
other States, by voluntary recognizing the insol-
vency and accepting dividends from the estate, put
themselves within the pale Of their operation
The close and intimate commercial relations be-
tween the States render it very desirable that a
uniform system of laws relating to bankruptcy
which all understand, and by which all alike are
bound, should exist and it was wise provision
of the Constitution which vested the powerto make
such laws in the Congress Of the United States.


In Europe, bankruptcy laws are Of quasi crimi-
nal character. The proceedings are regarded as
he is arrested and confined in prison, or put under
surveillance, and after an examination into his af
fairs, by the Tribunal of Commerce, he can be re-
leased on bail or Internationally. After the nves
tigstion is completed, he can be condemned to i'm
prisonment, with Or without labor, if fraud is
proved against him. The English law has some
peculiar features. A bankrupt who obtains his
certificate of discharge is allowed per centage to
limited sum out Of the proceedings Of his estate,
when the dividends reach a certain amount
When fifteen shilings in the pound is realized by
his creditors he receives ten per cent on the whole
assets to a sum not exceeding s6OO and so in pro-
portion for smaller dividend. This affords a
bankrupt small capital with which to commence
life anew One provision of the English law would
hardly suit the United States. A bankrupt is
not entitled to discharge if he has lost certain
amount within the year Immediately preceding his
bankruptcy, either at gambling or stock .jobbing.


It is objected by some that bankruptcy laws are
a protection to fraudulent end dishonest debtors.
A good law must always be the reverse. Our pres
ent system, without any general law at all, is op-
pressive only to the unfortunate and honest debtor
and affords the rogue every facility he can desire
to cheat his creditors. 1t is also an incentive to
temptation to men of weak and unstable principles
ing business with an intention and wish to establish
a GOOD reputation finds misfortune coming upon
him he has now no opportunity to redeem himself,
and will in large majority of instances, set to
work to put his property out of the reach of his
creditors. If he goes down, he argues, he can nev-
er get up again, and sefpreservation is the first
law of nature. A fair bankrupt law would enable
him to stop at once, to put all his property in the
hands of his creditors, to pay as much as he could
and to commence again without an incubus of debt
weighing him down. From dishonesty and fraud
no law devised by human wisdom can entirely pro-
tect the creditor But good bankrupt law would
afford him more protection than he at present en-
joys, since it would enable him to take immediate
measures for his protection whenever evidence of
intended fraud should make itself apparent.


The lack of a uniform bankruptcy law deprives
the community of some of its best commercial abii
ty and business enterprise. To keep man con-
stanty out Of business because he has once been
unfortunate, or to compel him TO resort to all man.
ner of tricks and subterfuges to conceal his proper
ty and cover up his interests cannot conduce eth
er to the good of the creditor or of the State The
honest debtor, if he should become bankrupt,
would never fail to pay up his old obligations in
full should he subsequently secure the means to do
so. The dishonest man never would ply debt at
all if he could avoid it. We have examined with
at its first session, and is now before the Senate Its
main provisions appear to be fair and just both to-
wards the creditor and debtor and it contains ap-
parently stringent safeguards against fraud and
dishonesty on the part Of bankrupt At this pc:
Rod of our life as nation it is eminenty desirable
that some uniform law should be given to the eoun-
try and the subject should claim the early and the
serious attention of the Senate 1t is one Of the
most important matters that remains before that
body, and should be passed during the existing
session, so that if any amendments to the bill are
found desirable they may be acted upon by the
present House. which has already maturely con-
sidered and thoroughly debated the subject.