THE BANKRUPTCY LAWS.
■♦ : (From the Timtiru, Herald, March 5.) For the perfection of grim jocularity on a totally lugubrious subject, we recommend Judge Ward's remarks in recently deciding the case of a fraudulent bankrupt, at Balclutha. Tho Judge begins rather seriously. ''T'ara clearly of opinion,", he says, "that the order of discharge applied for by this bankrupt,, must be delayed for a lengthened period." This looks ominous for the applicant, as well as for the creditors who hope to get their fun out of him, if they cannot get their money. But his Honor soon cheers up. The clouds of gravity which threatened to make his address as dismal as such things usually are, separate immediately, and beams of humor shine through the gloom in all directions, making glad the heart of debtor, creditor, and public alike. He tells the bankrupt that he considers him ", a moat unfortunate man." Whether the Judge had poor Joe Small in his mind's eye, when he applied this epithet to the interesting subject of his remarks, we do not know ; but we can well imagine this "unfortunate man" assuming at this moment that grimace of unutterable despair, relieved by a knowing wink, with which the comedian -was ever wont, to: set his audience in a roar. Mr. Ward .then proceeds to touch with delightful • drollery on the bankrupt's particular mode of becoming the victim of misfortune. We shall not, however, commit the yauclieric of trying to "explain* his" Honor's" jokes. Like all good jokes, they explain themselves instantly to such as have a mind fit to appreciate wit. To such as have not, we extend our pity; but we must, nevertheless decline to perform the surgical, operation, discovered by Sydney Smith. Having made the most of the applicant's sad position, and gently broken to him the painful fact that his certificate must be suspended for two years, the Judge goes' on to show how justice is tempered with imbecility; and how the strongest blow that the Bankruptcy Court can strike at fraud and robbery, is utterly ineffectual for either deterring or avenging crime. With an exquisite satire, which must to some extent compensate tho swindled creditors for their loss, his Honor concludes his decision by thus pathetically addressing the uncertificated bankrupt : —" I am well assured that I act in simple accordance with the lofty spirit of our laws, touching debtors and creditors, when I inform you that, in suspending your order of discharge for two years, I do not expose you to the slightest practical risk of imprisonment; I merely express my opinion of your peculiar style of business, and abandon you to the reproaches of an agonised conscience." We are quite prepared to have it asked, " Is it becoming tho dignity of a high court of justice, respectful to the law, or humane to a person who, if a criminal, is yet only liable to penalties prescribed by statute, for a Judge on the bench thus to turn the whole process of bankruptcy into ridicule, aud roast a debtor in addition to suspending his order of discharge?" Well, at first sight, the terms of Mr. Ward's judgment may seem remarkable ; but we feel confident that a slight examination of the circumstances surrounding the administration of the bankruptcy laws, will show not only that he was fully warranted in saying every word that he did say about them, but also that in adopting a tone of polished sarcasm, ho was using the most potent, perhaps the only potent instrument for bringing about a reformation of them. The feelings of tho bankrupt are not worth a moment's consideration ; ho got off altogether too cheaply for his deserts'; and only those who sympathise with him in his rascalities will blame tho Judgo for scorching him with irony by way of inculcating truths for the public good. It is the interests of honest, law-abiding men, whether debtors or creditors, not those of rogues, that we have to consider. The law as it stands is all in favor of fraudulent bankrupts, and against those who fail
in business through misfortune or the inevitable vicissitudes of commerce. The last check that remained on dishonesty in trade was removed by the Act of last session abolishing imprisonment for debt. Any worthless fellow who can get credit by any ■ means whatever short of false pretences of the grossest sort, may now consider himself a man of property to the extent of that credit. He may spend the money which he has virtually stolen, in extravagance or debauchery; or he may put it away in some place more secure pro hoc vice than a bank ; or hemaylenditorgive it to his relatives or "pals," in exchange for value to be afterwards received; and no one, as far as we can ascertain, can touch him so long as he plays his cards well, and resolutely refuses to be industrious. If a tradesman fails, if his creditors oppose his discharge and his certificate is suspended, and if he starts in business again after emerging from the first stage of bankruptcy, he is yet liable for the difference between what his estate has paid, and ten shillings in the pound of his liabilities. An honest man, of course, who has really failed through misfortune, and has never had any intention of robbing his creditors, will set to work as soon as possible, and do his best to liquidate his debt, at least to the extent j required by the law. But a dishonest man, who has never had any view from the beginning, beyond the spoliation of all who give him credit, will be careful to earn no more than will suffice to keep himself in luxury from day to day. Of course, imprisonment for debt is not yet totally abolished. Under certain circumstances it still may be -obtained... But, as Judge Ward very keenly pointed out, the Legislature has thrown so many obstacles in the way of " the unfeeling creditor," and hedged the poor fraudulent debtor in with such a multitude of costly proceedings and vexatious delays, that the chances are fifty to one against the extreme process being ever resorted to.
Reforms in the law of bankruptcy in New Zealand have been attempted again and again; but it seems impossible to get any amendment of importance passed by the House of Representatives. Chambers of Commerce have often besieged the Government with solemn remonstrances on the subject ; lawyers and even judges have gravely appealed through various channels to the Legislature ; the Press has raised its voice in every possible key of disapprobation, or as representing every interest save that of the fraudulent debtor satisfied with his position ; Ministry after Ministry has tried, with more or less sincerity, to get the law of bankruptcy placed on something like a rational footing ; and each of these several powers has failed ignominiously. In 1872 a strenuous effort was made to place before Parliament a measure such as it would accept, and such also as would meet the requirements of the country. Every Chamber of Commerce was invited to furnish the Government- with a list of its objections to the existing law, and of suggestions for framing a new one. The consequence was that some half-dozen draft Bankruptcy Bills were received, no two of which agreed in any essential particular, and several of which were diametrically and irreconcileably opposed to each other in principle as well as detail. The Government did their best to piece together such parts of these as could be made to fit into their own general plan ; and the result was a measure, by no means perfect perhaps, but still far nearer perfection than the existing law. The Honorable John Hall, who had applied his well-known industry to the elaboration of the Bill, introduced it in the Legislative Council, from which, in spite of very severe criticism, it passed without material alteration to the House of Representatives. And there, of course, it died of a complication of disorders. The principle of the measure, the need of amending the.bankruptcy:law, was admitted without discussion ; but beyond that the representatives of the:people could not get. It has been averred with some show of authority, that the fraudulent bankrupt enjoys an altogether undue share of representation in the present Parliament. It has even been stated by leading journals that a number of members of the House of Representatives, sufficient to turn a division, do not dare to support an equitable Bankruptcy Bill, lest they themselves should 'He among the first subjects of .its operation. We. hope these assertions are exaggerated. It is, however, certain that no Bankruptcy Bill which proposed to make commercial fraud really punishable, has ever met with any but .'the coolest reception at the hands of the House of Representatives ; nor has auy Ministry ever had the boldness to make.the passing of such a measure a condition of remaining in office. Mr. Vogel, with a majority which would have done almost anything for him, never ventured on that step ; indeed he never gave any good Bankruptcy: Bill his cordial support at all, and the strongest opponents of every effort to carry one have been among the steadiest members of his party. Can we then hope that any serious remonstrances, any representations,, however weighty, any arguments however unanswerable, any illustrations , however convincing, will move the authorities to a sense of their duty in regard to au amendment of the bankruptcy law ? We do not believe it for { a moment ; we welcome an. effort, such. as tliis extraordinary address of .Judge Ward, to bring the subject forward in the newest audstrongest'light; and we think: it would be for the good, of; this j colony: if., every Judge, in dealing with such cases, were to speak with all ,thc candour and all. the wit that are in his nature. . ■ ;
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New Zealand Times, Volume XXX, Issue 4358, 9 March 1875, Page 3
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1,640THE BANKRUPTCY LAWS. New Zealand Times, Volume XXX, Issue 4358, 9 March 1875, Page 3
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