REPORT OF THE ACCOUNTANT IN BANKRUPTCY.

New Zealand Mail, Issue 37, 7 October 1871, Page 3

REPORT OF THE ACCOUNTANT IN BANKRUPTCY.

The “ Southern Cross” of the 30th ult. has the following remarks on the third annual report of the Accountant in Bankruptcy : The annual report of the Accountant in Bankruptcy is no less valuable than the statistical returns of the RegistrarGeneral, as estimating the commercial condition of the colony ; indeed, it gives us a closer insight into the prosperity or otherwise of the population than perhaps any other document submitted to Parliament. It is not astonishing that the large falling off in the Customs revenue has been accompanied by an increase in the number of insolvencies, although, perhaps, the latter is a good deal due to the facilities which our imperfect bankruptcy law affords to unscrupulous traders. We learn from the report under review that the number of bankrnpts during the year 1869-70 was 305 more than the previous year, the actual number being 715. From a return furnished by the Accountant we find that the largest number of insolvencies in any province was 187 in the province of Auckland, being 116 more than in the previous year; Otago and Southland come next with 148, and Canterbury third with 133. The West Coast Goldfields (Nelson and Westland) show an aggregate of 148, as against 118 in tho previous year. The provinces that show a decrease in the number of bankruptcies are Canterbury, Taranaki, and Hawkes’ Bay, the last two provinces having had only seven insolvencies during the year. Everyone will share in the regret expressed by the Accountant at the fact that the chief increase of bankruptcies has been amongst farmers and settlers and miners. Tn the case of the last-named the increase amounted to 88.6 percent., and in the two former 77.7 percent. Eighty hotelkeepers and publicans became bankrupt in 1869-70, as against 64 in 1868-9. The insolvencies amongst storekeepers and grocers amounted to 61. in 1869-70, as against 46 in the preceding year. Out of the whole number of bankruptcies it is satisfactory to find that in only 78 cases was it found necessary to suspend the final discharge : in Auckland there were nine suspensions, whilst in Canterbury, Otago and Southland, and Westland North and South, there were 23, 33, and 31 cases respectively. The aggregate amount of the reported liabilities of adjudged bankrupts during the year was 534,091?,, and of this sum the secured debts rmounted to 136,356?. In the province of Auckland the liablilities of insolvents amounted to 141,336?. —the highest of any of the provinces; the maximum reached in any estate being 14,317?., and the minimum 53?. There were in this province ten cases where the liabilities did not exceed 100?; fifty-four cases under 500?; twenty-three cases under 1000?; thirty cases not exceeding 5000?; and five cases above that amount. In sixtytwo cases no list of liabilities was reported. The next highest amounts of aggregate liabilities in the provinces were in the provinces of Otago and Canterbury. Canterbury showed 135,850?, the maximum extent of indebtedness in any single estate being 30,733?, but we notice that nearly 75 per cent, of the total amount of liabilities in that province was secured. Otago and Southland show an aggregate amount of liabilities to the extent of 138,776?, of which only 722? was secured. The province of Wellington showed bankruptcies to the amount of 58,881?, of which only 4,797? was secured. On the West Coast goldfields (Nelson and Westland), the liabilities of insolvent estates were 46,537?, of which only 383? was secured. The province of Nelson (less the goldfields) showed liabilities to the extent of only 14,840?, of which amount 3940? was secured.

The report does not show the average amount of assets realised, but we notice that in the list of estates adjudicated a great many appear as having declared no dividend, and the Accountant draws attention to the fact that a very large number of the estates previously re ported as “ depending” have since been returned “ Clo.-ed—no assets,” On examining the list for the province of Auckland, we find that of the whole number of estates brought under the

Bankruptcy Act, 1867, which have not been reported in previous years as finally closed, there are no less than 66 cases in which there was “ no estate,” and 135 cases still “ depending.” Only 16 estates are reported as having been wound up or closed, and only 36 estates had declared a dividend. Taking a few of the principal cases as examples, the expenses in the shape of trustees’ commission, law expenses, and other items, the official cost of realising insolvent estates, amount to from five to seven per cent on the sum paid in dividends. The same characteristics attach to the other provinces : a most disproportionate number of cases where there is no property to realise, and of cases depending, and a small number of dividend-paying estates. In only 16 of the whole insolvencies throughout the colony was a settlement effected by composition or arrangement; the average rate of composition is not stated, but the highest was 10s in the pound. The Supreme Court has disposed of most of the cases of bankruptcy, only 155 having been dealt with in District Courts.

The report which we have reviewed affords a vast amount of valuable information on the working of our insolvency law, and will prove useful in the discussion upon the new bill introduced by the Government.