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Nelson Evening Mail, Volume VII, Issue 32, 6 February 1872, Page 4

Bankruptcy in Batayia. — The laws of bankruptcy in Batavia are somewhat stringent. A letter from Java to a merchant in Boston, gives this outline : — To be bankrupt here is a somewhat different affair from what it is in the United States. Immediately on becoming ■bankrupt the names of the parties are placarded about the town, and iv the Exchange as if prima facie infamous. The books are then examined by the public officer for that purpose. If the estate does not pay sixty per cent., and the bankrupt can be proved to have done business after he knew the fact, he is put into prison as a criminal for a number of years, and declared " aloosh," which signifies infamous, or without character. After the "aloosh " person is excommunicated, his word is not to be taken ; he is not allowed to be a witness, even on oath ; and if a man trusts him, be does it at his own risk — he has no legal remedy against him. On the other hand, if a man takes his books to the public officer, and declares that he has given up all he has, aud it does not appear that he has been doing business, knowing he was a bankrupt, and after such investigation there are no suspicious circumstances, his creditors must sign his papers. Thus the creditors are protected without oppressing the debtor, the rogue is distinguished from the honest man ; and a person is obliged by a terrible penalty to know the state of his affairs, and when once embarrassed, to refrain from speculation to retrieve himself. This law came into operation in May, 1868, and it was not long before it caught something in the shape of sd English concern which paid out one quarter of one per cent, and whose partners are now expiating their offence in prison. — -Chambers* Journal.