THE Grey River Argus. TUESDAY, MARCH 29, 1870.

Grey River Argus, Volume IX, Issue 654, 29 March 1870, Page 2

THE Grey River Argus. TUESDAY, MARCH 29, 1870.

The coming into force qf Ul9 new Bankruptcy Law in England has naturally attracted a considerable amount of attention in New Zealand, because it has long been admitted by all— Judges of tho Supreme Court and barristers incjuded — that the Bankruptcy Acts at present in force here are cumbrous, almost unworkable, and in many details deficient as a means of administering justice. There is wanting no lack of evidence both in the Courts which are held hpre and elsewhere in New Zealand, that pur bankruptcy system is deficient iv many details, and actually holds, out inducements, tq the dishonest to get rid of their debts in anything but an honorable— although it. may be a perfectly lepaWmanner. Time after time it is the duty of the Provisional Trustee under the present system to report to the Court that after his scrutiny of the schedule the assets are nil, because they are not realisable ; that no creditors h.ave proved in the estate, because it is too expensive an operation, and would pnly be,, throwing, so mu,oh grqod money after bad ; or that before he, as trustee, had obtained possession of the insolvent's bocks and goods, he had made away with so much of his property. It is the ease with which baukrupts are " whitewashed" \n this country, that has caused so much reckless trading, and afforded a section of tho community facilities for crime which they ought npver to have had. Of course, it is questionable whether, in a new country, and amongst the peculiarities of Qolonial society, the same laws could be made tq work as in such old countries as England and Scotland, still there are many useful clauses in the new English Bill which ought tq b,e considered by oiir legislators in view of effectingsom.ech.ange in our o\yn 4cts during the ensuing session of the Qeneral Assembly. For instance, there is one very gqod principle laid down, to the effect that tho consent of a certain majority in number and three-fourths in value of tho creditors shall no longer bind those who choose to dissent from either the acceptance of a dividend, or from the Judge's order for final discharge. We .have on several occasions advocated that it .would be a salutary amendment were the Provisional Trustee empowered to take instant possession, qf the debtor's books and property whenever he filed his declaration of insolvency, The insolvent ha,s n,q longer any right or interest in his estate. It belongs to his, creditors, protection for their interest qujjht immediately tq be extended towards it, and he aught tq have no longer any power of dealing with it; a? we haye frequently seen the case in our awn Court, when it has transpired that after insolvency the bankrupt htis sold the goods and pocketed th.o m.oney, on the plea that he must liye and support his family, at tjie expense, of , his creditors., Turning to. the. English Act, we find., tliaj; it is now nia.de the compulsory du,ty of the insolvent " tq aid to th,e utmost qf his power in the. realisation of his property and the distribution of it among his creditors. He ia to. produce a satisfactory statement of his affairs, at the first meeting of his creditors, and to be publicly examined thereon, and to. do, all such acts a3 may he necessary to enable the trustees lo obtain possession, of his property, and at tho close, of the bankruptcy the bankrupt may apply for his discharge ; but he will not be entitled to B.uch discharge until he can show either that he has paid ten shillings in the ppnnd, or that the creditors have passed a special, resolution that his bankruptcy, or the failure to pay ten shillings, in the poundj has. arisen from circumstances for which tho ' bankrupt could not be held justly rt}S.pp»Bible, and Uia,fc they desired

the order of discharge ; and the Court is at liberty to suspend or withhold the order under specified circumstances of misconduct on the part of the bankrupt. When a bankrupt fails tq obtain his order of discharge ho will remain protected against every debt proveable uudpr the bankruptcy until the expiration of three yeai'a from the clos.e of the bankruptpy. If during that period he pay such sum to his creditors as will, in the whole, make ap ton s.hil}inga in the pound without \nterest, he will be entitled to his dischscge ; otherwise, fit the expiration of the period, any unpaid balance of a proved debt will be deemed to be a judg-ment-rdebt, and may be pnforped against the property of the bankrupt to tl\e extent of and \\\ the manner directed by the (/fourt." ' Another consideration is that in a Colony the prompt action of a public officer, whenever an insolvency is declartd, is much more necessary than at Home. A contemporary suggests, and we think with much force, that "£he admin.'s^.ia.tion of a bankrupt estate would'be more impartially ■ attended to by a trained official, than it would bo in the hands of a trustee appointed by the creditors, after a canvass by the bankrupt to secure the election of a friend in order to protect him, or by spnje interested creditor who may desire the .appointment to cover his own doubtful claim. It is, therefore, on the whole desirable that the otfice pf Provisional Trustee should be abolished, and that every insolvent gstate should be instantly placed in the hands of an official assignee, subject to such advice or control qn the part of supervisors elected by the creditors as will tend to the beneficial realisation of the assets. The moment adjudication has been obtained, the services of the solicitor should be dispensed with, as in Scotland, except in case of litigation ; and the orh'cial assignee should conduct the administration of the estate subject to the rules of Qourr, and with the assistance of the supervisors. The estate would thus be realised in the most efficient find economical manner, the intimate knowledge of the bankrupt law acquired^ in practice by the assignee and the mercantile experience of the supervisors both contributing to that, end." Many such excellent suggestions, are being made throughout the Colony, and we think there is little doubt that attention will be given to the subject, and some of the much-needed reforms brought about during the pnsuing session of Parliament.