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New Zealand Times, Volume XXXII, Issue 5152, 27 September 1877, Page 2

The somewhat difficult question of how the bankruptcy law should be shaped so as to deal effectually with fraudulent debtors was again brought before the Chamber of Commerce at its sitting yesterday. There was not a very large attendance of members, and scarcely any discussion took place ; but the secretary having read the communication from the Auckland Chamber, enclosing a letter from Messrs. Hbsketh and Richmond, the well-known solicitors, making certain recommendations as to alterations in the law, the Chamber resolved to co-operate with their commercial brethren in the North in any action the latter may take in the matter. The correspondence referred to, of which we gave a synopsis in a former article, will be found published in full in our report of yesterday’s proceedings, and is well worthy of perusal by all business men. One member of the Chamber, Mr. J. H. Wallace, dissented from the action of his colleagues, urging that such an important matter should not be so hastily decided by such a small number of members; and there is certainly some weight in this argument; but, on the other hand, the matter has .been before the Chamber on a previous occasion, and it seems to be pretty well agreed that the existing law is in an unsatisfactory state. Moreover, if anything is to be done during the present session of Parliament in bringing in a Bill on the subject, there is no time to be lost. There is perhaps no more difficult subject for a Legislature to deal with than the law affecting bankruptcy, and it is one on which, as has been often pointed out, the opinions of Chambers of Commerce should carry great weight. To protect the creditor as much as possible against the fradulent debtor, and at the same time to deal leniently with the poor but honest man who finds himself involved in pecuniary difficulties, has puzzled some very wise lawmakers in the old country. And as yet the question is not satisfactorily settled, and possibly never will be ; but by continual amendment, guided by the light of experience, something may ultimately be arrived at which, if not perfection, would still be an improvement on the present state of things. The use of telegraphic authority for the arrest of absconding debtors will, as Messrs. Hesketh and Richmond point out, be practically useless until the power to arrest is given, and that the existing machinery is imperfect is manifest. The whole commercial morality of the country is necessarily affected by its bankruptcy laws, and if they offer facilities for fraud it is natural to suppose they will be taken advantage of occasionally. The tone of commercial morality is probably quite as high here as in any part of the world ; but it is nevertheless the duty of the State to leave as few opportunities to fraud as possible ; and that the existing state of things does give to a cunning debtor, fraudulently inclined, the opportunity of quietly realising his assets and taking himself off to another country without leaving the creditors any remedy, there can be no doubt. It seems probable that by creating new acts of bankruptcy, as pointed out by Messrs. Hesketh and Richmond, some good may be effected ; and that amendments are required as to bills of sale is unquestionable. There seems to be a very evident desire amongst the various Chambers of Commerce in the colony to co-operate together to bring about an alteration of the law, and in this as in most other matters union is strength. The expression of the united and intelligent opinion of these bodies on a question of the merits of which they are peculiarly well qualified to judge, cannot fail to meet with the attention of the Legislature when the matter is brought before the House. The Wellington Chamber has, as it were, placed itself in the hands of the Auckland Chamber j ust now, and the sooner a move is made by our Northern friends the better; for, as we have pointed out, the session of Parliament is already far advanced. The large amount of time that has been wasted in talk during the past two months and more in the Lower House renders it very probable that Bills which come on towards the close of the business will have a very poor chance of being carried. If anything is to bo done this session, a draft of the proposed Bill should be prepared immediately, and be brought forward at as early a day as practicable. If a moderately satisfactory measure dealing with the subject can bo passed before honorable members return to their homes, it will not be the least useful Act of the present Parliament, and may be quoted as a sort of set-off against their having done so little work for the past two months. As soon as a reply has been received from the Auckland Chamber wo hope to see some one rise in his place in the House and introduce a Bill to amend the law relating to bankruptcy, especially in so far as it affects fraudulent debtors.