The Evening Star TUESDAY, AUGUST 31, 1875.

Evening Star, Issue 3906, 31 August 1875, Page 2

The Evening Star TUESDAY, AUGUST 31, 1875.

While approving of most of the provisions of the Debtors and Creditors Bill now before Parliament, it seems to us that some modification is required in those clauses relating to the discharge of insolvent debtors. The Bill provides ample protection for creditors, but does not deal fairly with debtors. Those who have read the analysis we have given of it will recollect that, in order to obtain a discharge, the debtor has to apply to his creditors, who may or may not refuse it; if refused, he may apply again and again, and ultimately, oil their persistent refusal, he amy appeal to the Court, where, perchance, lie tuny succeed in obtaining it. In the Colonies we are glad to say that, as a general i rule, debtors are liberally dealt with by their creditors, and, uotwithstaud- j ing the frequent abuse by unprincipled ! men of the facilities hitherto afforded j for whitewashing, a vindictive spirit has seldom ' been manifested, 'But I creditors are but human, find are apt to be sore and soured when a bankrupt's affairs have been complicated by mismanagement, or when the dividend is small. There is always a class, also, of rigid disciplinarians, who, placed ! beyond the probability of failure themselves, look upon commercial disaster as a crime, and think they are doing mankind a service by using the rod the law places in their hands to punish defaulting traders. .'lhanks to the humane legislation of these latter days, no Fleet prison closes its doors open an unhappy debtor to shut out all hope for the future, unless his creditors relent before his years are worn and his energies wasted. But the spirit of this. Bill is similar to that of the hard laws of those days. It provides that although a man has been guilty of no crime, as proved through "no prosecution " being "commenced, or about to be commenced" under the provisions of the Fraudulent Debtors Act which is intended to form part of our Insolvency Laws, end, although he has " given up all hia property," he shall yet be j mainly dependent upon the " satiafac-'

tion " of his creditors for his Order of Discharge. We consider this wrong in principle. It opens the way for persecuting a man, who, through no fault of his own excepting error of judgment, may have become insolvent. In this error of juvlgnwit the creditors participate. If the debtor h:m mistaken his way, put his trust in others who failed and ruined him, over-estimated the powers of his own resources, and launched into business beyond his' meant;, or had support withdrawn from him at the very moment he most needed ! it to sustain his credit, and thus from these or from unexppciod causes has been drawn into misfortune, his creditors have -also erred in judgment in putting taith in him. In a, certain sen.se men in business speculate upon each other's stability, and tkun in every commercial transaction of buying and selling on credit, debtors and creditors incur a joint risk for mutual profit. So long, therefore, as there has been no fraud or attempt at fraud, on giving up all property in possession up to the time of failure, a debtor has acquired a right to discharge ; and we think he ought not to be placed at the mercy of his creditors, but on being able to show he had fulfilled his duty, the Court should grant it whether his creditors are satisfied or not. Tho regulations in regard to after-acquired property too, are open to grave doubt as to principle. When credit is given to a man, unless he has held out as an inducement that, if not able to meet his engagement when due, he will be able to pay on some property reverting to him at a future day, it is doubtful whether in strict justice there is any after claim upon him. It may be urged with some force, no doubt, that, every tradesman or merchant com- | mences business with full knowledge of all the risks the law places before him, and that consequently, if there be a law in existence requiring that in case he fails his after-acquired property shall be liable, he is bound to fulfil the social obligations under which he obtained I credit. The expediency of such a law is, however, doubtful." It has a tendency to paralyse exertion, because a man feels that he is working in bonds, and that however he may succeed in acquiring wealth, it may be filched from him, in satisfaction of venerable debts, to such an extent as to cripple his means and limit his power to carry on business, still less extend his trade. Although a few creditors, if their debts were not forgotten, might, perhaps, realise a few shillings in the pound, it seems to us the commercial world would have thrown into it an additional element of uncertainty, rendering it needful, not only to be assured of the present position of a merchant or tradesman, but to be acquainted with his antecedent history before he can be trusted. Practically the provision would be nearly a dead letter, or, acting very unequally, its operation would amount to injustice, because the few would suffer ; the majority escape. The Debtors and Creditors Bill is a Tory great improvement upon our existing laws ; but we think its provisions do not equally provide foi justice to the creditor and protection to the debtor. It gives too much power to the former and too little encouragement to the latter.