The Feilding Star. THURSDAY, JUNE 14, 1886. Bankruptcy Reform.

Feilding Star, Volume IV, Issue 2, 14 June 1883, Page 2

The Feilding Star. THURSDAY, JUNE 14, 1886. Bankruptcy Reform.

As this subj-ct is one that will be freely discussed in the House during the session that opens to-day, we make nj apology for again reverting 1 to a subject that has already been fully ventilate/I in these colu-ms. From the earliest days of the Colony there have been periodical attempts at framing, amending, repealing, or consolidating laws with, reference to Bankruptcy. The result is wellknown : All the efforts of our legislators to produce a thoroughly satisfactory law have failed. Each Act, with its amendments, does not work w*sll even for a time. '1 his has been so notoriously the case that it has been declared by a well qualified judge " that the Bankruptcy Bills hitherto passed by Parliament, have, for the most part, aggravated the evils they were iui ended to cure." All the mischief of insolvency is the bitter fruit of our system of credit. The producer will always have to give credit; but-it is to be hoped that, the present tendency to require cash from the retail consumer, or to ailow vry short credit, will in tim« lar-ely diminish this class of defaulters. In Mr Chamberlain's new Bankruptcy Rill (i xglaua), it is proposed to investigate minutely the cause of each failure, to personally examine each bankrupt, to inspect all books and accounts, &c , much in the same m-.mner as is supposed to be done in this Colony : but it is intended that

officials thould be appointed who would be directly responsible, to the Government. An objection raised to this mode is that it is difficult to see on what grounds the Government is entitled to take upon themselves the peculiarly stringent powers g-iven by the Act. As all previous legislative efforts to successfully control bankruptcy have proved failures, it is not considered wise to organise a new system of officialism which is almost sure to break down. The opponents to the measure state plainly that the best and simplest plan would be to aboli h all bankruptcy laws. There is little probability of honest debtors being harshly treated. Imprisonment for debt is no longer possible. The debtor who can satisfactorily prove that he has no money with which to pay is no longer remitted to «:aol. He ia allowed full liberty, after he has surrendered his all to those whom it is due. The law can fully meet cases of gros9 fraud. On the other hand, i: is impossible :.o conceal the fact that eve J. 'tors too often artificially create bankrupts. There is such a thing as recklois selling as well as reckless buying ; no one who watches the retail trade can deny this. The facility with which credit can be obtained, and the persistent efforts made to induce customers to buy more than they require are too well-known to need more than the mere statement ot the fact. With regard to the wholesale dealers, the system is high pressure. Competition is keen and the country is overrun by commercial travellers, who " hunger and thirst" after what they call " good lines," and in order to obtain them offer what appear to be peculiarly advantageous terms. No bankruptcy law can ever be made that will prevent over selling and over buying while this rule obtains. Yet a change is wanted, for as the law now stands nothing could be more disastrous for the creditors either of an honest or dishonest defaulter. Ihe estate is preyed upon by lawyers and accountants until nothing is left, tue latter especially having brilliant opportunities of swelling their charges In England the cost ot realising estates is set down at 4l£ per cent ; in this Colony about 90 per cent is the average, and the 10 per cent is generally paid to the suffering creditors as a sop. The system is a scandal and a disgrace . ___